The Market Mover #6
We look to the past to help us predict the future. Behold below a selection of events that occurred last week that shape the market this upcoming week.
Tech:
- Microsoft TikTok deal boom or bust? Microsoft has till September 15 to buy TikTok before its banished from the US in order to “safeguard” data from American users
- Microsoft isn’t the only buyer in town, According to the rumor mill Twitter is also said to be in the race to acquire TikTok, but can’t afford the $15 — $50B price tag by itself. Who would they team up with?
- The Apple double tech standard, music and video streaming developers can offer their services in Apples’ Appstore, but streaming platforms for video games can’t. Every new game that is added to Microsofts’ xCloud platform has to be screened by Apple regardless of Microsofts’ own approval policies. This process doesn’t seem different from adding new artists or music on Spotify or Netflix. Microsoft is prepared to take the fight public
- Uber and Lyft existence in question, as both companies are still on their road to profitability, they’re getting hammered with another law suit. The Department of Industrial Relations from the state of California has sued both companies for wage theft for misclassification of drivers as independent contractors. The outcome of this lawsuit can have a dramatic affect on both companies’ bottom line for years to come
Stock market:
Ordering in is the new dining out, Uber’s rides segment plummeted by 73% YoY while the eats segment rose by 113% YoY. With COVID-19 weighing on the results the stock was sent in a 5% downward spiral
Disney seeks war with movie theaters, as Disney’s Trolls D2C (direct to consumer) release seemed to yield positive results. After delaying the theatre release of Mulan several times due to COVID-19 Disney decided they didn’t want to wait any longer to earn back their investment. Mulan will be released on their streaming platform Disney+ for a hefty $30
Futures are set to open mixed tomorrow, the market is in standby mode waiting for news on the COVID-19 stimulus package as well as economic figures pointing to the state of economic recovery
Health:
The US now has over 5M Corona cases and 162K deaths, the latest tally as of this Sunday is primarily due to the states that lifted social distancing measures early in the summer.
Social distancing -> effective against Corona spread, since governor Newsom reinstated social distancing measure the past week of starting to show off results. Corona hospitalizations in San Francisco decreased by 25% as well as across the state of California
A $400 employment benefit smokescreen, the executive order signed by the President is filled with red tape and partially hinges on his reelection in November (the payroll tax cut). It is unclear how that individual states can afford to pay $100 to every impacted person of the $400
If you have any questions or comments please reach out below. Views expressed in the articles are my own.
