There Was A Lot of Hoot This Week…
And not to spook you out- but we’ve consolidated it all just for you!
Told Ya So!
Apple (APPL) stunned with 1M credit card registrations in the first week of ApplePay’s launch. Despite its success recruiting consumers, the payment system has encountered some roadblocks negotiating with businesses. Several retail giants, including Walmart (WMT), RiteAid (RAD) and CVS (CVS), have maintained a distance from the platform. These three retailers have joined a new, competing payment system called CurrentC, offered through the Merchants Customer Exchange (MCX) Consortium. Unfortunately, the MCX mobile payments system was hacked Wednesday. Once again, Cook can laugh about that one to the bank.
Growth Spurt for Tweeners Slows
Facebook (FB) and Twitter (TWTR) both indicated slower growth this week, trends that rocked stock performance Wednesday. While Facebook showed strong growth over Q3 with revenues up 59%, its future is more uncertain. Facebook stock took a clobbering when Zuckerberg finished Tuesday’s earnings call by explaining the company’s 2015 growth plan includes heavy investment which would likely reduce 2015 profits. Analysts viewed this as an indication that the company is no longer freely growing, and will need to substantially invest to continue expansion.
Twitter’s stock value also took a whacking this week due to lower-than-anticipated user engagement rates over Q3. Like Facebook, the company also posted record revenues, reporting $361M in the third quarter, but the achievement was blemished by a $175.5M profit-loss. The report worried analysts about Twitter’s ability to compete against Facebook. A glimmer of hope came for investors Wednesday when the company announced a data-sharing partnership with IBM (IBM), showing a capacity to drive large scale data purchases.
Wilson: The Name of a Lifeline from Castaway to Board Rooms
RadioShack (RSH) is bringing on a former Blackstone (BX) and Goldman Sachs (GS) executive that executed the post-financial-crisis turnaround at GM. Harry Wilson was named Chief Revitalization Officer on Wednesday. He will be charged with pumping life back into the flailing consumer electronics firm. First up on his list: bring a pulse back by January so turnaround partners that invested in RadioShack earlier this month can convert their cash investment to equity. We were surprised by the move as strategically we’d expect Radioshack to seek more expertise in the software or online retail space.
Ever Had Ferrari Buyers Remorse?
At Ferrari things must just have to move fast. After less than 2 months after Ferrari CEO Luca Cordero di Montezemolo announced he was stepping down due to disagreements with parent company Fiat, chairman Sergio Marchionne Fiat-Chrysler is planning to offer 10% of Ferrari on the stock exchange, separating it from the parent company. The move is supposed to help the car maker preserve its “cherished Italian heritage,” which is odd given Fiat’s Italian roots and the reality that going public will only open the brand to a multitude of stakeholders. Recently listed on the NYSE, Fiat-Chrysler’s stock rose upon the announcement.
Squeeze Me Harder But I’ll Be Fine
…Is what most large US oil companies are saying to OPEC officials who are claiming that American fracking initiatives will slow as the price for oil drops. CononcoPhilips’ (COP) chief economist said that oil prices would need to fall below $50/barrel to hurt the company. Occidental Petroleum (OXY) Corp’s CEO said that his firm would continue exploring drilling opportunities in the Permian Basin; because most large oil companies have improved efficiency in production they are not likely to be hit too hard. However, companies that provide services to fracking companies, like Halliburton (HAL) Co, may find themselves pinched as produces seek to reduce spending on services.
Discovery Company of the Week: Kidizen
A real trick – solving the problem of consumption one toy at a time! Kidizen seeks to provide parents a market place for pre-loved children’s wear and toys. The company raised $135K this week from Gopher Angels.
Follow the companies mentioned in this blog post on Owler:
Apple | Walmart | RiteAid | CVS | CurrentC | Merchants Customer Exchange | Facebook | Twitter | IBM | RadioShack | Blackstone | Goldman Sachs | Ferrari | Fiat-Chrysler | ConocoPhilips | Occidental Petroleum | Halliburton | Kidizen | Gopher Angels