Google's Potential Breakup 📉

And, the reason why DraftKings fell.

August 14, 2024

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Today is Wednesday, August 14, 2024.

The Early Bird Index today is 68.48.

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Google's Potential Breakup 📉

Shares of Google parent Alphabet (Nasdaq: GOOGL) slipped by 0.90% in after-hours trading on Tuesday after an alarming report about the tech giant’s future was published.

Details: Bloomberg reported Tuesday that the Justice Department is considering breaking up Google because the company has monopolized the online search market.

  • The government is also considering other alternatives, such as forcing Google to share more data and blocking it from gaining an unfair advantage in AI products, according to the report.

Early Bird’s Nest Egg Gains: If the government were to break up Google and split it into different companies, it would likely have significant impacts on the company and the tech industry as a whole.

  • Breaking up Google's ad business from search could significantly reduce the company's profits and revenue streams.

  • A breakup could potentially hinder Google's AI efforts if it reduces funding or disrupts research teams.

Final Thoughts: A breakup could also be rough for investors. The stock is up 18% this year.

Whiskey: A Hedge Against Market Volatility

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Notables

Notable Earnings Today: Cisco Systems (Nasdaq: CSCO), Brinker International (NYSE: EAT), Dole (NYSE: DOLE), AST SpaceMobile (Nasdaq: ASTS), Cardinal Health (NYSE: CAH), CAE (NYSE: CAE), UBS (NYSE: UBS), dLocal Limited (Nasdaq: DLO), Performance Food Group (NYSE: PFGC), StoneCo (Nasdaq: STNE), Arcos Dorados (NYSE: ARCO), Arcutis Biotherapeutics (Nasdaq: ARQT), Dragonfly Energy Holdings (Nasdaq: DFLI), Global-E Online (Nasdaq: GLBE), Longeveron (Nasdaq: LGVN), Lulu's Fashion Lounge Holdings (Nasdaq: LVLU), Lumentum (Nasdaq: LITE), Marex Group (Nasdaq: MRX), MediWound (Nasdaq: MDWD), Paycor (Nasdaq: PYCR), PSQ Holdings (NYSE: PSQH), Riskified (NYSE: RSKD), SFL Corp (NYSE: SFL), Smith Douglas Homes (NYSE: SDHC), uCloudlink Group (Nasdaq: UCL), Workhorse Group (Nasdaq: WKHS).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Chow420 (StartEngine).

Notable Economic Events Today: Consumer Price Index / Core Consumer Price Index (8:30 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).

The Reason Why DraftKings Fell

Sports betting platform DraftKings (Nasdaq: DKNG) slipped 0.64% in after-hours trading on Tuesday after its competitor Flutter Entertainment (NYSE: FLUT) posted strong financial earnings results and jumped 7.89%.

Background: This comes two weeks after DraftKings posted mixed financial earnings results.

Final Thoughts: DraftKings is down 6% this year.

Nu Holdings Posts Record High

The digital banking platform Nu Holdings (NYSE: NU) jumped 3.73% in after-hours trading on Tuesday after reporting strong financial results.

Financials: Revenue for Nu Holdings in the past quarter grew 65% (wow!) to a new record high of $2.8 billion.

Final Thoughts: The stock is up 56% in 2024 as fintech companies gain the attention of investors.

Leadership Change: Starbucks Replaces C.E.O. With Chipotle’s Brian Niccol (The New York Times)

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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.