Tuesday’s Headlines: Twitter Board Mulls Musk Offer
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Twitter (TWTR) +7.5%
Lovesac (LOVE) +2.0%
Tesla Motors (TSLA) +2.0%
Texas Roadhouse (TXRH) +1.9%
StoneCo (STNE) +1.4%
Moving Down ⬇️
Baozun (BZUN) -5.4%
Lemonade (LMND) -5.4%
2U (TWOU) -5.2%
Cloudflare (NET) -5.1%
Teladoc (TDOC) -4.9%
1. Elon Musk’s war of attrition against the nerves of Twitter’s (TWTR) board members continued on Friday as the Tesla (TSLA) CEO aired his thoughts. Following a “cryptic” tweet stating “Love me tender”, all but confirming that a tender offer to take the company private was on the table, Musk tweeted the following: “Wow, with Jack departing, the Twitter board collectively owns almost no shares!” This referred to former CEO Jack Dorsey, who will step down from the Twitter board this year. “Objectively, their economic interests are simply not aligned with shareholders!” Musk continued. Last week, he offered to buy Twitter for $54.20 a share, which would value it at about $43 billion. On Friday, Twitter adopted a limited duration shareholder rights plan, often referred to as a “poison pill,” in an effort to fend off a potential hostile takeover. Investors should keep an eye out for further developments. Read more here.
2. Could Activision Blizzard’s (ATVI) acquisition by Microsoft (MSFT) be in danger amid accusations of insider trading? The Securities and Exchange Commission (SEC) has requested cooperation in an investigation into whether investors who knew Bobby Kotick, Activision’s Chief Executive, engaged in insider trading of Activision stock before the $70 billion Microsoft deal was made public. “Activision Blizzard has informed these authorities that it intends to be fully cooperative with these investigations,” the company said in a filing on Friday. Following lawsuits last summer related to allegations that Activision had a toxic, sexist workplace culture, leading to employee walkouts and the ousting of some executives, the gaming giant will likely be kept on its toes to see this acquisition over the line. Read the complete story here.
3. Down almost 10% year-to-date (YTD), shares in Apple (AAPL) look set to slide further still amid supply chain disruptions. U.S. consumers trying to order Apple’s latest high-end models are now seeing delivery estimates pushed into June as COVID-19 restrictions in China intensify due to fresh outbreaks. With Chinese manufacturers contributing upwards of 40% of Apple’s total output, delays in the region are damning to the company which, despite recent pushes into software subscriptions, is still very much reliant on hardware products. Apple will announce its second-quarter earnings results on April 28, potentially giving investors a window into its supply challenges. Read more here.
There are 3 companies on the MyWallSt shortlist that will report earnings today: