Thursday's Headlines: Is Roku Going To Be Acquired?

Thursday's Headlines: Is Roku Going To Be Acquired?

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️
Baozun (BZUN) +11.5%
Nautilus (NLS) +8.2%
Spotify (SPOT) +7.7%
Sea Limited (SE) +6.0%
Chegg (CHGG) +5.8%

Moving Down ⬇️
Under Armour (UAA) -5.3%
Nordstrom (JWN) -5.5%
Chuy's (CHUY) -6.6%
Duluth Trading (DLTH) -6.7%
Tripadvisor (TRIP) -7.6%

1. Shares of Roku (ROKU) are up some 10% this week amid speculation over a potential acquisition. On Monday, a former Goldman Sachs portfolio manager tweeted (twote?) that "somebody must know $ROKU is going to get acquired" due to recent trading activity relating to the stock. Although nothing has been substantiated by Roku or anyone else for the matter, the company would likely prove an attractive target for the likes of Google (GOOG) — who lack an advertising arm in the connected device market — or Amazon (AMZN) — who seems to just like buying companies up. However, with its share price up by more than 700% since its 2017 IPO, Roku shareholders will be hoping that the company remains independent for another few years. You can check out the tweet that sparked it all off here.

2. Speaking of acquisitions, Google is running into fresh trouble over its planned purchase of Fitbit (FIT). The Australian Competition and Consumer Commission (ACCC) has warned that the deal might give it too much of people’s data, potentially hurting competition in health and online advertising markets. Although the ACCC generally doesn't have much influence on deals beyond its jurisdiction, other organizations like the Dept. of Justice and the European Commission are currently reviewing the deal and will have much more sway over the final decision. Read more here.

3. Investors will be looking closely at the weekly jobless claims report due to be published today to see how the reopening efforts in the U.S. are coming along. Despite employers hiring a record 2.5 million workers in May, millions of Americans are still collecting unemployment checks and the total is estimated to currently be roughly double the peak during the 2007-09 Great Recession. The reopening efforts also appear to be contributing to a spike in COVID-19 cases across states like Arizona, Florida, Oklahoma, Oregon, and Texas, which means that the threat of a second wave is looming ever-closer on the horizon. Read more here.