Thursday’s Headlines: Peloton Set to Sell?
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
ShotSpotter (SSTI) +12.7%
Zoom Communications (ZM) +7.8%
Airbnb (ABNB) +7.3%
CrowdStrike (CRWD) +7.3%
Moving Down ⬇️
PayPal (PYPL) -2.8%
2U (TWOU) -0.5%
Redfin (RDFN) -0.5%
Boston Beer Co. (SAM) -0.5%
1. Peloton (PTON) is once again under fire from a familiar source. Blackwells Capital, a firm with less than a 5% stake in the exercise equipment manufacturer, has blasted the lack of progress made under new CEO Barry McCarthy. According to Jason Aintabi, Chief Investment Officer at Blackwells, “shareholders are worse off now than before” following McCarthy’s appointment. The investment firm argues that it’s now “two months since Peloton hired one of the highest-paid CEOs in all of corporate America, nothing has fundamentally changed.” Blackwells is pushing for a sale, a stance it initially took two months ago before John Foley’s sudden exit as CEO. Despite apparently no intention to sell, this renewed pressure will surely spark further rumors surrounding potential suitors such as Apple (AAPL) or Nike (NKE). Read more here.
2. A collection of Twitter (TWTR) shareholders have sued Elon Musk over alleged failures in disclosing his recent investments in the social media platform. On April 4 it was revealed that Musk now owned 9.2% of the company, however, this disclosure may have happened too late. Investors are required by law to inform the Securities and Exchange Commission within 10 days if they take more than a 5% stake in a company. Reports have emerged that Elon could have passed this milestone as early as March 14. The lawsuit alleges that this delay prohibited shareholders from making potential gains resulting from his initial stake, and some legal experts have estimated that this could have helped Musk accrue over $150 million in gains. Musk and his team have so far declined to comment. Find out more here.
3. Amazon (AMZN) has announced the addition of a 5% fuel and inflation surcharge to any U.S. sellers using its fulfillment services. The fee is not expected to go into effect for another two weeks and has been deemed “subject to change” by the company. This comes in the wake of increased fear around rising inflation, with Amazon looking to try and offset costs by shifting the burden to its users. According to a 2021 report, 89% of sellers took advantage of Amazon’s fulfillment services. As stated by a spokesperson from the company, “it is still unclear if these inflationary costs will go up or down, or for how long they will persist, so rather than a permanent fee change, we will be employing a fuel and inflation surcharge for the first time.” Check out more here.