Thursday’s Headlines: Google To Take On Spotify
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Lululemon (LULU) +9.6%
Core & Main (CNM) +1.4%
Costco (COST) +1.1%
CrowdStrike (CRWD) +0.9%
Moving Down ⬇️
RH (RH) -13.3%
Trupanion (TRUP) -8.6%
Stitch Fix (SFIX) -7.9%
StoneCo (STNE) -7.0%
1. Google’s (GOOG) video streaming platform YouTube is reportedly planning to launch a dedicated podcast homepage for users in the near future. Leaked documents claim that these plans are among a number of features aimed at increasing the opportunities for monetization from podcasts for the platform. This move would put the firm in even more direct competition with Spotify, the market leader by quite some distance. YouTube’s current video-centric offerings prevent it from capitalizing on audio advertising — a rapidly growing source of revenue for companies like Spotify. The emergence of a powerhouse like Google in the podcast space could spell potential disaster for the competition considering its existing dominance in video content, but with players like Apple already failing to corner the market, it remains to be seen if Google can mount a true challenge. Read more here.
2. Tesla (TSLA) is in the news again today, but for once it’s not a result of Elon’s Twitter habits. Instead, it’s been revealed that Cathie Wood, the CEO of ARK Invest, has jettisoned over $200 million in Tesla shares in the past week. While Tesla stock has been performing well recently — up over 25% in the past month — Wood has decided to rotate into some recently struggling stocks such as Roblox and Coinbase. Fortunately for Tesla, this follows Wood’s M.O. of trading around the volatility of stocks as opposed to representing any major issue with the company itself. More worryingly, however, is the news that Tesla has extended the COVID-related closure of its Shanghai plant by at least another day. With production already behind schedule, this could have major knock-on effects for vehicle deliveries. For more, click here, or for more on ARK’s sell-off, click here.
3. Apple (AAPL) has announced that certain apps will be able to sign up new subscribers without having to pay App Store fees. The change will primarily apply to “reader apps,” which typically provide written, audio, or video content. Other apps, such as games, won’t be able to avail of the use of external links to sign up new users. Apple has typically taken between 15% and 30% in fees through its payment system, so this announcement will be viewed as a major win for app developers. It comes on the back of a litany of antitrust issues for the company, with the most notable being its ongoing legal battle with Epic Games about a lack of external payment options. Apple is likely to see its App Store revenue take a considerable hit as a result of this news. Find out more here.
There is one company on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.