Amazon’s iRobot Deal Blocked

Plus, Super Micro Computer outshines.

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Today is Friday, January 19, 2024.

The Early Bird Index today is 62.70.

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Amazon’s iRobot Deal Blocked 

iRobot (Nasdaq: IRBT), the company that makes the Roomba vacuum, plunged 39.88% in after-hours trading on Thursday due to an unfriendly report about the company’s future.

Details: The Wall Street Journal reported on Thursday that the European Union’s competition watchdog intends to block a deal from Amazon (Nasdaq: AMZN) to acquire iRobot. Amazon, iRobot, and officials from the European Commission did not comment on the report.

Background: Amazon announced in August 2022 that it was going to buy iRobot for $1.7 billion. Since then, iRobot’s stock has gone up and down on reports suggesting either approval of the deal or that it was going to be blocked. Well, now we know that it has been rejected.

Stock Price: Before Thursday’s news, iRobot’s stock dropped 49% in the previous 12 months. Ouch.

Final Thoughts: The official ruling from the European Union will come in February. Amazon reports earnings on February 1.

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Notable Earnings Today: Travelers (NYSE: TRV), SLB (NYSE: SLB), Fifth Third (Nasdaq: FITB), Huntington Banc (Nasdaq: HBAN), Ally Financial (NYSE: ALLY), Regions Financial (NYSE: RF), State Street (NYSE: STT), Comerica (NYSE: CMA), World Acceptance (Nasdaq: WRLD).

Notable IPOs Today: Joint Stock Company American Depository Shares (Nasdaq: KSPI), iShares Paris-Aligned Climate MSCI World ex USA ETF (Nasdaq: PABD), JVSPAC Acquisition Corp. Unit (Nasdaq: JVSAU).

Notable Equity Crowdfunding Campaigns Ending Today: MoonRise Garden Bar & Food Trucks (Honeycomb), Pariah Brewing Company (Honeycomb), Marshall Grain Company (Honeycomb), IronCircles (Wefunder), Dogs and Humans (Netcapital), Phenomenal Foods Co (Honeycomb), AccuShoot (Netcapital), Anchor Island Coffee (Honeycomb), Karis Family Daycare (Mainvest), Fire Canyon Barbeque (Honeycomb).

Notable Economic Events Today: Existing Home Sales (10:00 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET).

Super Micro Computer Outshines

Super Micro Computer (Nasdaq: SMCI) jumped 10.94% in after-hours trading on Thursday after the server company claimed that it had exceeded its prior financial outlook.

Details: The company said that it expects net sales in the quarter to be between $3.6 billion to $3.65 billion, better than the original projection of $2.7 billion to $2.9 billion. Earnings per share are also expected to be higher.

Background: Super Micro Computer has benefited greatly in the past year due to the artificial intelligence hype train. The stock is up 339% in the last 12 months.

Final Thoughts: Super Micro Computer reports full earnings on January 29. While the company is strong, the stock price is a bit overvalued for some.

Bitcoin Loses ETF Hype Gains

The price of Bitcoin dropped over 3% on Thursday, a week after spot Bitcoin ETFs (exchange-traded funds) launched in the United States.

Background: Spot Bitcoin ETFs allow average investors to get direct exposure to Bitcoin. There was a lot of excitement building up before these ETFs were approved last week.

Final Thoughts: Bitcoin has lost 11% of its overall value since the ETFs launched. Now, Bitcoin is trying to find its new footing in a world where more investors have access to it.

Slashing More Than Just Prices: Macy’s to Cut About 2,350 Jobs, Close Five Stores (The Wall Street Journal)

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