Monday’s Headlines: Spotify Leaves Russia

Monday’s Headlines: Spotify Leaves Russia

Here were the biggest movers in the MyWallSt shortlist on Friday:

Moving Up ⬆️

Howard Hughes Corporation (HHC) +2.7%

Take-Two Interactive (TTWO) +2.7%

American Tower (AMT) +2.2%

Casey's (CASY) +1.8%

Berkshire Hathaway (BRK.B) +1.8%

Moving Down ⬇️

StoneCo (STNE) -14.3%

Upstart Holdings (UPST) -10.1%

Trip.com Group (TCOM) -8.4%

Duolingo (DUOL) -7.3%

Bill.com (BILL) -7.1%

1. Spotify (SPOT) has announced plans to fully pull all of its offerings from Russia. The streaming company had previously removed its subscription service from Russia but had left its free service in place. However, strict censorship laws have forced the firm’s hand. A spokesperson for Spotify stated that “unfortunately, recently enacted legislation further restricting access to information, eliminating free expression, and criminalizing certain types of news puts the safety of Spotify’s employees and possibly even our listeners at risk.” Spotify had initially wanted to maintain a presence in Russia to try and provide “trusted, independent news and information in the region.” Russia currently accounts for less than 1% of Spotify's revenue, with the company expecting to lose roughly 1.5 million Premium subscribers from the region. Find out more on the story here.

2. Netflix (NFLX) has announced the acquisition of another game developer to further bolster its gaming arm. The streaming giant has purchased Boss Fight Entertainment, a Texas-based independent gaming company that was founded in 2013. This marks Netflix’s third big gaming acquisition, following the purchase of Next Games and Night School Studio in March 2022 and September 2021 respectively. As described in the company’s recent earnings call, the initial forays into gaming are intended to help Netflix understand what consumers want and how they engage with games from the company. According to Amir Rahimi, Vice President of Game Studios at Netflix, “we’re still in the early days of building great game experiences as part of your Netflix membership.” Read more here.

3. A new data-sharing agreement between the European Union (EU) and the U.S. has quelled fears of a Big Tech pull out from Europe. An agreement “in principle” was announced on Friday that will see a new framework for cross-border data transfers developed. The previous agreement had been invalidated in 2020 following a legal battle that began in 2013. With no agreement in place, and the EU demanding stronger data protection, companies such as Meta (FB) had even warned that shutting down some of its services in Europe was on the table. Thankfully, for many Big Tech companies, services can now continue to run uninhibited by data privacy fears. Google’s (GOOG) President of Global Affairs, Kent Walker, welcomed the news by stating, “we commend the work done by the European Commission and U.S. government.” Find out more by clicking here.

Get this week’s full earnings calendar here.

Pádraig BolgerPádraig Bolger

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