Friday's Headlines: Ticketmaster: “I’m the problem, it’s me”

Friday's Headlines: Ticketmaster: “I’m the problem, it’s me”

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Baozun (BZUN) +10.0%

Nordstrom (JWN) +5.8%

Hasbro (HAS) +4.4%

Redfin (RDFN) +3.7%

Copart (CPRT) +3.4%

Moving Down ⬇️

Cloudflare (NET) -8.1%

Stitch Fix (SFIX) -7.9%

Trex (TREX) -6.1%

Atlassian (TEAM) -5.9%

StoneCo (STNE) -5.7%
 

Ticketmaster: “I’m the problem, it’s me” 🎟

In a heartbreaking statement, Taylor Swift and Ticketmaster announced the cancellation of the general public sale of the singer’s upcoming “Eras Tour”. The announcement came after unprecedented demand for the tour’s presale that overwhelmed the company’s ticketing system and left an “insufficient remaining ticket inventory to meet demand.”

According to Ticketmaster, Swift’s 52-date tour sold over two million tickets during the fan-exclusive presale on Tuesday, more than any other artist in a single day. The ticketer stated it saw 3.5 billion system requests for its site — four times its previous peak.

Many fans were left frustrated and disappointed after waiting hours for tickets, some were even booted from the system due to errors. When many finally got through the digital queue, the only remaining tickets were incredibly expensive thanks to Ticketmaster’s surge pricing.

This sparked a renewed outcry for the break up of Ticketmaster and Live Nation. The two live events companies merged in 2010, creating a significant monopoly. According to critics, this allows the pair to drive up prices and add extra fees as they are immune to competition. Some also feel this demotivates Ticketmaster from seeking technical improvements to its system.

On Wednesday, Senator Amy Klobuchar of Minnesota, the chair of the Senate antitrust subcommittee, stated:

“Ticketmaster’s power in the primary ticket market insulates it from the competitive pressures that typically push companies to innovate. That can result in dramatic service failures, where consumers are the ones that pay the price.”

Ticketmaster and Live Nation’s stock trades under the name Live Nation Entertainment Inc and the ticker LYV. The stock is down almost 7% this week.
 

More Chaos at Twitter After Musk Ultimatum 🐦

Operations at Twitter appear to be in disarray once again after a wave of resignations. According to multiple reports, hundreds of employees have chosen to leave the company rather than accept new working conditions proposed by Elon Musk.

The new boss had reportedly demanded that all employees return to their offices and sign a pledge to be “extremely hard core” in order to “build a breakthrough Twitter 2.0”. However, as the Thursday deadline loomed, it appeared that many staff members had chosen to take the three months severance pay, forcing Musk to reverse course or face the service shutting down. Musk now says that some employees can continue to work remotely if their managers believe they are making an excellent contribution.

Twitter has now temporarily closed their offices with no explanation. The news saw users take to the platform, concerned that it may cease services. #RIPTwitter, #TwitterDown, and “Mastodon” — an alternative microblogging service — were all trending last night.

For his part, Musk seemed to find the whole incident rather funny. “How do you make a small fortune in social media?”, he tweeted. “Start with a large one.” He also posted a meme showing a gravestone with the Twitter logo.

It’s been a chaotic month at the social media company after Mr. Musk acquired it for $44 billion. Approximately half of Twitter’s employees have already been let go according to reports. Meanwhile, many advertisers have abandoned the platform amid fears that Musk will pull back on content moderation.
 

Sonos Bounces Back 🔊

Audio manufacturer Sonos (SONO) managed a positive fourth quarter after a problematic summer. In August, management warned that consumer demand had begun to wane and its revenue would likely not meet projections. This resulted in the stock dropping by double-digits.

However, Sonos was able to get its act together and deliver a revenue and earnings beat. The company posted sales of $316 million versus $299 million expected and earnings per share of negative 32 cents versus 44 cents anticipated.

In good news for the long-term future, CEO Patrick Spence stated Sonos supply-chain issues have diminished and the speaker-maker should have enough inventory to offer a holiday promotion, unlike the last two years. It was also announced the company managed to scoop up market share and outperform its competitors over the last few months. That being said, year-over-year comps remain challenging as Sonos witnessed a significant pull-forward during the pandemic. Not to mention, the impact of a strong dollar.

Looking forward to the next few quarters, consumer demand is described as “stable” but revenue growth will be “below the typical double-digit rate” management would expect. Most likely, Sonos’ sales will be flat year-over-year.

Sonos’ stock was up 3% on Thursday.

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