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Google's Europe Ad Business đź“Š

And, Steelcase's largest customers.

September 19, 2024

Today is Thursday, September 19, 2024.

The Early Bird Index today is 70.32.

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Google's Europe Ad Business đź“Š

It turns out that Alphabet's Google (Nasdaq: GOOGL) may have reportedly offered a major concession to keep its advertising business in Europe.

Details: Reuters reported Wednesday that Google offered to sell its ad marketplace AdX to end an antitrust investigation against the company but European publishers rejected the deal.

Background: This report comes as U.S. regulators are also considering breaking up Google’s online search business.

Early Bird’s Nest Egg Gains: The potential breakup of Google's advertising business would have significant impacts on the company, especially since the ad business accounts for 78% of Alphabet's total revenue.

  • A forced divestiture of key ad tech components could substantially reduce Google's income and market dominance. 

  • The company currently keeps about $36 out of every $100 spent through its advertising tools.

Final Thoughts: Despite the regulatory pressures, Google’s stock is up 15% this year.

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Notables

Notable Earnings Today: FedEx (NYSE: FDX), Lennar (NYSE: LEN), Darden Restaurants (NYSE: DRI), FactSet (NYSE: FDS), Endava (NYSE: DAVA), MillerKnoll (Nasdaq: MLKN), Cracker Barrel (Nasdaq: CBRL), iPower (Nasdaq: IPW), MoneyHero (Nasdaq: MNY), LightPath Technologies (Nasdaq: LPTH), Research Solutions (Nasdaq: RSSS).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: The Brooklyneer (SMBX), 24 HR Truck Services (SMBX), Mae's (Honeycomb).

Notable Economic Events Today: Building Permits (8:30 a.m. ET), Housing Starts (8:30 a.m. ET), Crude Oil Inventories (10:30 a.m. ET), Fed Interest Rate Decision (2:00 p.m. ET), FOMC Press Conference (2:30 p.m. ET), TIC Net Long-Term Transactions (4:00 p.m. ET).

Steelcase's Largest Customers

The office furniture manufacturer Steelcase (NYSE: SCS) plunged 11.48% in after-hours trading on Wednesday after posting mixed financial earnings results.

Financials: Steelcase reported earnings of 39 cents per share in the past quarter, which was better than expected. But revenue was lower than expected at $855.8 million.

Quote: “We expect order patterns from our largest corporate customers to return to growth in the second half of the year.” - Sara Armbruster, president and CEO.

Stock Price: Steelcase’s stock was up 6% this year before these results.

Final Thoughts: Despite the sales miss, the company is optimistic about its future.

Avalanche’s Strong Wednesday

The broader cryptocurrency market experienced an upward trend Wednesday, with Avalanche sticking out in a good way with an 8% jump.

Background: Recent news has highlighted growing interest and investment in the Avalanche ecosystem, potentially attracting more investors to Avalanche.

Final Thoughts: Avalanche’s price is still negative for the year.

Constructive Regulation: It's time to update the SEC's disclosure process for crypto (Cointelegraph)

Post-Rate Cut Strategy: Where to Put Your Money After the Fed Rate Cut (Wall Street Journal)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.