Friday’s Headlines: Twitter Drama Not Over Yet
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Tesla Motors (TSLA) +3.2%
Monster Energy (MNST) +1.8%
Core & Main (CNM) +0.9%
Twitter (TWTR) +0.8%
Coca-Cola (KO) +0.4%
Moving Down ⬇️
Roku Inc. (ROKU) -9.1%
Sea Limited (SE) -8.9%
Bill.com (BILL) -8.9%
Align Technology (ALGN) -8.5%
1. If you were looking for a day off from Twitter (TWTR) rumors, you may want to look away now. A new filing with the Securities and Exchange Commission (SEC) has revealed that Elon Musk is exploring the option of commencing a tender offer for the social media platform. A lack of any real response from the company’s board is cited as the reason behind this change in tactic, with Musk now considering purchasing shares directly from its stockholders. The SEC filing reports that the Tesla (TSLA) owner has secured $46.5 billion in order to finance any potential deal, with just over half coming through debt financing and the rest from equity financing. With Twitter’s “poison pill” defense coming just days after Musk’s offer to take the company private, it’s unlikely that this back-and-forth ends any time soon. Read more here.
2. Boston Beer Company (SAM) reported its first-quarter 2022 earnings last night and its shareholders are likely pondering their next move following a sub-par call. The beverage-maker posted a loss per share of $0.16 when analysts had been expecting earnings per share (EPS) of $2.06. Revenue also missed the mark, with sales of $430.1 million falling below the anticipated $448 million. This represented a 21.1% decrease from the year-ago quarter. The company has now missed on revenue in three out of the last four quarters in what’s undoubtedly been a troubling year for the company. Distributors are continuing to keep less inventory on hand so shipment volume is down 25% year-over-year. Supply chain issues and rising material costs have also eaten away at the firm’s margins, which even price increases through the quarter couldn't save. To find out more, click here.
3. Apple (AAPL) workers are set to become the latest in a growing line to attempt to unionize. Employees at the Cumberland Mall store in Atlanta have officially filed for a union election. This follows similar drives from workers at both Starbucks (SBUX) and Amazon (AMZN) to join unions lately to varying degrees of success. A union statement directly mentioned a lack of living wage, cost of living adjustments, and stock options when discussing Apple’s retail workers. According to a statement from a group of employees in New York also seeking to unionize, “Apple has grown to be the most valuable company in the world. Why should its retail workers live precariously?” With companies such as Starbucks having slid over 12% since the beginning of its drawn-out union battle, Apple would be wise to pay close attention to this development to prevent its stock from following suit. Read more here.
There is one company on the MyWallSt shortlist that will report earnings today: