Friday’s Headlines: The End of Google Advertising?
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Bill.com (BILL) +12.6%
Coupa Software (COUP) +10.2%
Datadog (DDOG) +9.6%
Farfetch (FTCH) +9.4%
Wix (WIX) +9.3%
Moving Down ⬇️
Under Armour (UAA) -11.9%
Nautilus (NLS) -7.3%
Lovesac (LOVE) -5.3%
Microsoft (MSFT) -4.9%
Hasbro (HAS) -4.4%
1. A new proposal with the backing of both major US political parties could force Google (GOOG) to break up its highly lucrative digital advertising business. The Competition and Transparency in Digital Advertising Act was introduced to the Senate on Thursday and would see companies that process in excess of $20 billion annually in digital ad transactions banned from participating in more than one part of the digital ad space. Google has a famously multifaceted digital ad model currently that would see them have to choose what to keep should the act pass. Senator Mike Lee explained that “when you have Google simultaneously serving as a seller and a buyer and running an exchange, that gives them an unfair, undue advantage in the marketplace, one that doesn’t necessarily reflect the value they are providing.” Find out more here.
2. A new report from global technology market analyst firm Canalys has shown that Apple (AAPL) managed to acquire 51% of the North American smartphone market in the first quarter of 2022. The Cupertino-based Big Tech firm was one of the key drivers in boosting overall shipments for the quarter by 4% year-over-year. Considering that supply chain issues have dogged the smartphone industry of late and that concerns around inflation only continue to rise, this small but not insignificant boost could provide hope to an industry desperately in need of a break. Apple managed to ship 19.9 million units in Q1 — up 45% from the year-ago quarter. The company has recently spoken about a renewed focus on its home market, and this appears to be paying dividends thus far. For shareholders, the hope is that these wins begin being reflected in the stock price as global tech continues to take a hammering across the board. Read more here.
3. Shares in athletic apparel manufacturer Under Armour (UAA) tanked by almost 12% yesterday following the announcement of its CEO’s imminent departure. Patrik Frisk unexpectedly revealed that he will step down from his roles as CEO and board member effective June 1. Current Chief Operating Officer, Colin Browne, will take over his duties on an interim basis until a more permanent replacement can be sourced. Frisk will stay on as an advisor to the firm until the beginning of September. Shareholders reacted by selling off rapidly. Frisk had been doing a stellar job of revitalizing the flagging company, but continued supply chain disruptions saw Under Armour report an unexpected loss in its latest earnings call. Browne will be hoping to put his significant supply-chain experience to use as he helms the company through an undoubtedly troublesome period while the leadership search begins. Read more on the story here.
Get this week’s full earnings calendar here.