Tuesday's Headlines: Elon Musk Finally Meets With Twitter
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Facebook (FB) 0.0%
Stitch Fix (SFIX) 0.0%
Coca-Cola (KO) -0.1%
Calavo Growers (CVGW) -0.6%
Yext (YEXT) -1.4%
Moving Down ⬇️
DraftKings (DKNG) -15.8%
Farfetch (FTCH) -15.7%
Block (SQ) -12.7%
Cloudflare (NET) -12.2%
The New York Times (NYT) -11.5%
Here are the stories that you need to know ahead of market-open today, Tuesday the 14th of June:
Musk Finally Meeting With Twitter 🐦
Elon Musk is set to address the employees of Twitter for the first time since his audacious takeover bid was launched in April. The social media platform has called an all-hands meeting for this Thursday, with employees being given the chance to submit questions for Tesla’s enigmatic owner ahead of time.
It’s been an extremely difficult couple of months for Twitter’s employees, as uncertainty about their futures has been ramping up since Musk revealed his plans to acquire the company. The subsequent rollercoaster has seen Twitter fire two popular senior executives and instigate a freeze on hiring, while Musk has already once put a hold on the deal citing inaccuracies with Twitter’s reporting of the prevalence of spam accounts on the platform.
Following a significant share price spike after Musk’s initial interest in the company, Twitter is now down close to 30% since, as speculation continues to build as to whether or not Elon will follow through with the proposed deal. Shares are currently trending upwards in pre-market trading following the announcement of the all-hands meeting, with more movement likely to be expected following Musk’s appearance on Thursday.
Investors will be looking for assurance that the deal is still on track, while also keeping a keen eye on any hints as to what Musk plans to do with the platform once it’s in his control. He has already touted the idea of taking Twitter private in order to rebuild, so significant volatility could occur should Musk double down on this plan.
Microsoft Greenlights Unionization 🤝
Ahead of its planned acquisition of Activision Blizzard, Microsoft has turned a few corporate heads by entering into an agreement that will allow employees at the gaming company to unionize more easily.
In a move that goes against the grain compared to other big U.S. employers at the moment, this so-called labor neutrality agreement with the Communications Workers of America will permit employees and union representatives at Activision Blizzard to communicate easily and provide a streamlined process for employees in deciding whether to join a union or not. This follows on from an announcement by Microsoft earlier this month which said that it wouldn’t discourage its own employees from using their legal right to form and join unions.
Part of this announcement by Microsoft is surely intended to aid the company’s ongoing acquisition of Activision Blizzard, which is currently being assessed by the FTC in terms of its impact on workers and competition in the video game market. However, with a wave of unionization efforts ongoing across many large firms in the U.S., it might also be the case that Microsoft wants to get in front of any potential employee discord.
Over the past few months, we’ve witnessed a wave of unionization efforts at large employers like Starbucks, Amazon, and Apple — along with widespread pushback from management. But with no signs of the push toward unionization slowing and an extremely hot labor market with plenty of highly-skilled jobs to choose from, it’s very likely that we will start seeing more companies embrace some positive PR like Microsoft.
Oracle Shares Rise on Revenue Beat ⬆️
Shares of Oracle are up 13% in pre-market trading after the software-giant posted revenue that beat analyst estimates.
Oracle reported a 5% increase in total revenue, bringing in $11.84 billion for the fourth quarter. That narrowly beat analyst expectations of $11.61 billion. However, management was optimistic in the face of a continued downward trend in technology stocks, saying that revenue and earnings would continue to grow next quarter.
Speaking on the conference call, CEO Safra Katz said he believed earnings per share would be in a range of $1.09 to $1.13 a share, with revenue growing between 20% and 22%.
Oracle is one of the largest software companies in the world, with a host of solutions that span database infrastructure, enterprise resource planning, and customer relationship management. However, the biggest growth driver currently comes from their cloud-computing segment, which saw a 19% increase in sales in the fourth quarter.
Oracle is still far behind companies like Amazon, Google, and Microsoft when it comes to cloud computing. Co-founder Larry Ellison once dismissed the term, but has since pivoted in an attempt to make Oracle a major player in the space. Earlier this month, Oracle said it had received regulatory approval for its proposed acquisition of medical-records giant Cerner Corp. for $28.3 billion. That will fast-track Oracle’s entrance into the healthcare space — one of the top growth drivers for cloud computing.