Thursday’s Headlines: Etsy Boycott On The Horizon
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Prologis Inc. (PLD) +2.3%
American Tower (AMT) +2.2%
Diageo (DEO) +1.8%
Costco (COST) +1.6%
Markel Corp (MKL) +1.5%
Moving Down ⬇️
Cloudflare (NET) -9.0%
Farfetch (FTCH) -8.0%
Twilio (TWLO) -7.4%
DraftKings (DKNG) -7.2%
Shopify (SHOP) -6.6%
1. On April 11th, thousands of sellers on Etsy (ETSY) will go on a weeklong strike to protest a range of new policies rolled out by the e-commerce company. The problematic new rules include a 30% transaction fee increase — from 5% to 6.5% — that’s set to take effect on that date. The strike action also asks for shoppers to refrain from buying on Etsy, and a campaign in support of the strike has received over 15,000 signatures in just over a week. Etsy CEO Josh Silverman said the higher fees would help cover the costs of better marketing programs, an expanded support team, and improved tech infrastructure. However, the strike itself could well cost the company millions, with no signs of negotiations in sight. Read more here.
2. Luxury online retailer and MyWallSt’s most recent stock addition, Farfetch (FTCH), saw shares drop 8% yesterday following its latest investment. The fashion firm announced that it will make an investment of up to $200 million in Neiman Marcus Group, gaining a stronger foothold in the U.S. as part of a deal to develop the high-end department store’s online business. The investment cements a “very strategic, very deep partnership that we want between the two groups,” Farfetch CEO José Neves told Reuters in an interview, noting it was the largest deal for the online retailer in the U.S. Investors appear to disagree though, believing the move to be a risky one amid inflation and recession fears, which could impact luxury spending. Read the official press release here.
3. Atlassian (TEAM) is hoping that its latest product offering can help its share price improve following a 20% dip year-to-date (YTD). At its Team ’22 conference yesterday, the Australian company announced the launch of Atlas, a new service for cross-functional team updates, and Compass, which helps software development teams overcome the complexities of distributed software architecture. Atlassian has experienced rapid growth in recent years as the need for collaborative software services amid lockdown drove its share price up. However, following recent dips and rising competition from the likes of ServiceNow (NOW) and GitLab, Atlassian’s latest innovations could be what’s needed to breathe life back into shareholder sentiment. Read the official release here.
There is 1 company on the MyWallSt shortlist that will report its earnings today: