Thursday’s Headlines: Twitter Deal Is Back On?
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Nordstrom (JWN) +14.0%
Lovesac (LOVE) +10.8%
Pinterest (PINS) +9.6%
Upstart Holdings (UPST) +8.9%
Zoom Communications (ZM) +8.5%
Moving Down ⬇️
2U (TWOU) -17.9%
Otis Worldwide (OTIS) -2.6%
Ericsson (ERIC) -0.8%
FedEx (FDX) -0.5%
1. Twitter (TWTR) saw its shares get boosted yesterday following a positive update on Elon Musk’s impending takeover. Despite the deal apparently stalling following Musk’s demands for further information on the number of spam accounts on the platform, a new regulatory filing has revealed that the Tesla (TSLA) founder has pledged an additional $6.25 billion in equity financing to the deal. This effectively eliminates the margin loan Musk had planned to use against his Tesla shares. Twitter is currently up over 5% in pre-market trading following the news. This comes as welcome affirmation that Musk is still pursuing the deal, with many speculating that he may have been seeking an exit, or at least a better price, following the general collapse of tech stocks witnessed recently. Find out more here.
2. Apple (AAPL) has asked its suppliers to begin speeding up the production of its flagship iPhone devices as it continues to struggle in the wake of rolling lockdowns across China — its major production hub. While the Big Tech firm announced that it expects iPhone production to be kept flat for the year at approximately 220 million units, waning supply and decreased demand following global economic uncertainty could have a significant impact on full-year sales. Apple had warned of the impact supply chain issues could potentially have on its full-year figures in April, but could never have anticipated the continued effects of both lockdowns and the ongoing war in Ukraine. The company is now expecting both its manufacturing schedule and its initial production volume of new phones to be impacted. The true cost of this won’t be seen until its next quarterly report. Read more here.
3. The share price of educational technology company 2U (TWOU) sank by almost 18% yesterday following a costly downgrade from a noted analyst. 2U’s rating was downgraded from ‘buy’ to ‘hold’ by analysts at Piper Sandler, with its price target reduced from $37 per share to just $23. While this sell-off is far from insignificant, investors need to be acutely aware of the stock’s movement over the past number of weeks. 2U saw its stock skyrocket on the back of reports that Byju — an edutech company based in India — was making inquiries about acquiring both 2U and Chegg. While a close to 18% drop is never pleasant reading for shareholders, this merely brings 2U back to the price it was trading at before acquisition rumors started swirling. You can read more on this story here.
Get this week’s full earnings calendar here.