Tuesday’s Headlines: Musk’s Twitter Reign Begins
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Lemonade (LMND) +7.4%
PagerDuty (PD) +7.3%
Stitch Fix (SFIX) +6.8%
Trupanion (TRUP) +6.7%
Match Group (MTCH) +6.7%
Moving Down ⬇️
Netflix (NFLX) -2.6%
Wynn Resorts (WYNN) -1.4%
Trip.com Group (TCOM) -0.9%
American Tower (AMT) -0.9%
1. And so it finally ends — the long-running saga between Twitter (TWTR) and Elon Musk has finished. Yesterday saw the social media platform accepting his bid to purchase the company. The billionaire will pay $54.20 per share in a deal valued at $44 billion — marking a 38% premium over the stock price the day before Musk revealed his 9% stake earlier this month. The deal will see Twitter become a private company once again, having originally gone public under Jack Dorsey in late 2013. In a statement released yesterday, Independent Board Chair Bret Taylor stated that the company engaged in a “thoughtful and comprehensive process” to assess Musk’s proposition, and that this deal was “the best path forward for Twitter’s stockholders.” Musk spoke of Twitter’s “tremendous potential” and his desire to make the platform even better. You can read more here.
2. Activision Blizzard (ATVI) posted a below-par first quarter in its Q1 2022 earnings call yesterday. The video game manufacturer revealed earnings per share (EPS) of $0.64 against analyst estimates of $0.71, on adjusted sales of $1.48 billion versus an expected $1.80 billion. These results represent declines of 34.7% and 22.3% respectively. The company is currently trying to navigate a number of regulatory issues related to Microsoft’s (MSFT) proposed $69 billion takeover. Legal costs associated with this process have impacted Activision’s bottom line. More impactful, however, was the weak engagement seen by its flagship 'Call of Duty' line. Poor sales due to a return to pre-pandemic activities and issues with product cycle timing both contributed to the marked lack of success. You can find more about the earnings call here.
3. Coca-Cola (KO) posted a solid earnings beat yesterday in its first-quarter 2022 results. The beverage-maker reported adjusted EPS of $0.64 versus an expected $0.58, on revenue of $10.5 billion against analyst estimates of only $9.83 billion. CEO James Quincey did, however, reveal that the company is considering increasing prices in the immediate future in a bid to offset inflation and rising materials costs. He stipulated that customers won’t “swallow inflation endlessly,” so a price rise now would be better than waiting to do so during a potential recession. The call also touched on the impact pausing operations in Russia has had on the company. The decision is likely to negatively affect case volume and revenue by between 1% and 2%, but Coca-Cola held firm on its outlook for full-year growth of between 7% and 8%. Find out more here.
There are two companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.