Today is Thursday, May 26, 2022.
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Musk's $33.5B Twitter Pledge
Shares of Twitter (Nasdaq: TWTR) jumped 5.62% in after-hours trading on Wednesday after a filing suggested that Elon Musk was advancing his takeover of the company.
Details: Musk is increasing his personal financial commitment to acquire Twitter from $27.25 billion to $33.5 billion. This represents an additional $6.25 billion in equity financing to fund the deal, according to the filing on Wednesday afternoon. He is also in talks with former Twitter CEO Jack Dorsey and others to get more funding for the deal.
Background: Musk announced in late April that he was acquiring Twitter and turning it into a private company. Then he announced that the deal may have been off, which caused the stock to drop 25% in the past 30 days.
Meeting: During a Twitter shareholder meeting on Wednesday, the board said that the company was still moving forward with a deal. However, shareholders voted against re-electing a Musk ally to the board.
Final Thoughts: Musk still wants to acquire Twitter. However, is he really going to acquire Twitter or will he walk away from the deal?
Notable Earnings Today: Dollar General (NYSE: DG), Alibaba Group Holding (NYSE: BABA), Costco Wholesale (Nasdaq: COST), Macy's (NYSE: M), Marvell Technology (Nasdaq: MRVL), Dollar Tree (Nasdaq: DLTR), Zscaler (Nasdaq: ZS), Autodesk (Nasdaq: ADSK), Buckle (NYSE: BKE), Ulta Beauty (Nasdaq: ULTA), Baidu (Nasdaq: BIDU), Dell Technologies (NYSE: DELL), Medtronic (NYSE: MDT), Gap (NYSE: GPS), Jack in the Box (Nasdaq: JACK), Workday (Nasdaq: WDAY), Build-A-Bear Workshop (NYSE: BBW), American Eagle Outfitters (NYSE: AEO), Burlington Stores (NYSE: BURL), Farfetch (NYSE: FTCH), American Woodmark (Nasdaq: AMWD), Baozun (Nasdaq: BZUN), Brady (NYSE: BRC), Buckle (NYSE: BKE), Genesco (NYSE: GCO), Golar LNG (Nasdaq: GLNG), iQIYI (Nasdaq: IQ), Lions Gate Entertainment (NYSE: LGF.A), Red Robin Gourmet Burgers (Nasdaq: RRGB), Royal Bank of Canada (NYSE: RY), Titan Machinery (Nasdaq: TITN), Toronto-Dominion (NYSE: TD), VMware (NYSE: VMW).
Notable IPOs Today: SaverOne 2014 Ltd. American Depositary Shares (Nasdaq: SVRE).
Notable Equity Crowdfunding Campaigns Ending Today: N/A.
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), GDP (8:30 a.m. ET), Pending Home Sales (10:00 a.m. ET).
Terra’s Users Approve Plan to Resuscitate Cryptocurrency
Details: Terra used voted to pass Proposal 1623, which will create a new blockchain aimed at preserving the community called Terra. The old blockchain will be called Terra Classic.
Background: A few weeks ago, Terra fell below its $1 peg as a stablecoin. Then volatility in the crypto market crashed Terra down to 5 cents. The price reached 9 cents on Wednesday. This new Terra chain will be created without the algorithmic stablecoin.
Final Thoughts: Terra has a lot to prove now. In fact, the entire crypto market has a lot to prove.
Nowhere to Hide from the 2022 Stock Market Crash
If you think stocks are the only ones suffering, check out the performances of these other investments.
Bonds: Treasury yields have also declined, meaning bond prices are down.
Crypto Crash: Cryptocurrencies are seen as risky assets and have also fallen.
Final Thoughts: It seems like investors don’t have too many options so far in 2022, especially with the stock market down.
Trend to Watch
Welcome Back to Earth: ‘Touchdown Starliner!’ Boeing’s space taxi lands in New Mexico after first robotic trip to space station (GeekWire)
Blaming Russia and China: Nvidia stock falls on light guidance, CFO says company will slow hiring (CNBC)
Move Over, Real Estate: Consider Digital Assets Instead of Still-Pricey Real Estate, Say JPMorgan Strategists (CoinDesk)
Taking the L: Zuckerberg’s Metaverse to Lose ‘Significant’ Money in Near Term (Bloomberg)
Can’t Stop, Won’t Stop: The average retail investor's portfolio has lost 32% of its value in this year's sell-off — but that hasn't stopped them from buying the dip in stocks, research firm says (Insider)
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