Friday’s Headlines: Will Elon Actually Buy Twitter?
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Nike (NKE) +4.7%
Tripadvisor (TRIP) +2.4%
Hasbro (HAS) +1.7%
Nautilus (NLS) +1.5%
Trip.com Group (TCOM) +1.4%
Moving Down ⬇️
Ericsson (ERIC) -9.3%
2U (TWOU) -8.4%
Farfetch (FTCH) -8.0%
Wix (WIX) -6.8%
MercadoLibre (MELI) -6.6%
There will be no Market Headlines on Monday, 18th of April due to a Bank Holiday in Ireland. We'll return with all the biggest news stories on Tuesday, 19th of April.
1. Rarely does one person command this amount of headline real-estate in one week, but Elon Musk has seldom been one for convention. Yesterday, the world’s richest man made an offer to buy Twitter (TWTR) outright and make it a private company. In a regulatory filing that Musk himself tweeted out, the offer amounts to a price of $54.20 per share — valuing Twitter at around $43 billion. This represents a premium of 18% on the firm's stock price Wednesday night, and a 38% premium on its stock price prior to Musk’s 9.2% stake being announced. However, speaking at the TED2022 conference in Vancouver yesterday, Musk revealed that he’s “not sure” if he’ll actually be able to buy Twitter, but admitted that there is a Plan B in place. To read what our analyst Mike thinks about these developments, click here.
2. Peloton (PTON) has announced plans to raise subscription prices for its on-demand fitness content. This hike in monthly fees will be the company’s first time ever raising these prices as it attempts to reverse a steady decline in its share price. The fitness equipment maker is conversely reducing the cost of its flagship Bike, Bike+, and Tread machines as it hopes to entice new customers to sign up to its product. A company spokesperson stated that “the pricing changes being announced today are part of CEO Barry McCarthy’s vision to grow the Peloton community.” These stark measures come only days after a renewed call from investment firm Blackwells Capital for the company to sell following a lack of progress under McCarthy. Read more here.
3. Shares in Ericsson (ERIC) slid by over 9% yesterday following its first-quarter earnings report. The company posted adjusted earnings per share (EPS) of $0.10 against an expected $0.15, on revenue of $5.89 billion versus analyst expectations of $5.88 billion. The main reason for the stock's slide, however, appears to be the revelation that the telecommunications firm is expecting to be hit with fines over its recent Iraq scandal. The company reported in February that an internal investigation had revealed that it may have made payments to the Iraq-based Islamic State militant group. According to President and CEO, Börje Ekholm, the magnitude of the fines to be levied “cannot at this time be reliably estimated.” Find out more here.