Today is Tuesday, April 19, 2022.
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Twitter’s Newest Suitor
Shares of Twitter (NYSE: TWTR) jumped 0.72% in after-hours trading on Monday after a report indicated that private equity firm Apollo Global Management might participate in a bid to buy the social media platform.
Details: According to the report from The Wall Street Journal, Apollo has held discussions about backing a possible buyout deal for Twitter, which may include equity or debt financing. The deal could help Tesla (Nasdaq: TSLA) CEO Elon Musk acquire the company or even another bidder.
Deeper: While Apollo may be open to financing the bid, the firm doesn’t want to be part of a private equity consortium to acquire Twitter, according to CNBC.
Background: Last week, Elon Musk presented a $43 billion offer to buy Twitter, causing the board to back a shareholder rights plan to dilute Musk’s stake.
Related: Buyout firm Thoma Bravo also contacted Twitter last week about making an offer to acquire the company, according to Reuters.
Final Thoughts: When Musk offered to buy Twitter last week, some saw the news as a joke. But now that a major private equity firm is involved, investors should take this news seriously.
Notable Earnings Today: Johnson & Johnson (NYSE: JNJ), Netflix (Nasdaq: NFLX), Halliburton (NYSE: HAL), International Business Machines (NYSE: IBM), Lockheed Martin (NYSE: LMT), Interactive Brokers Group (Nasdaq: IBKR), Silvergate (), Marten (Nasdaq: MRTN), Hasbro (Nasdaq: HAS), Hancock Whitney (Nasdaq: HWC), Truist Financial (NYSE: TFC), Stride (NYSE: LRN), Signature Bank (Nasdaq: SBNY), Rexford Industrial Realty (NYSE: REXR), Travelers (NYSE: TRV), First Horizon (NYSE: FHN), Prologis (NYSE: PLD), PacWest Bancorp (Nasdaq: PACW), Fifth Third Bancorp (Nasdaq: FITB), United Community Banks (Nasdaq: UCBI), Citizens Financial Group (NYSE: CFG), Fulton Financial (Nasdaq: FULT), ManpowerGroup (NYSE: MAN), Wintrust Financial (Nasdaq: WTFC).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: IntriEnergy (StartEngine), VOWburger (StartEngine), Flip Group (Wefunder).
Notable Economic Events Today: Building Permits (8:30 a.m. ET), Housing Starts (8;30 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).
NetGear’s WiFi Market Declines
Shares of NetGear (Nasdaq: NTGR) dropped 11.41% in after-hours trading on Monday after the computer networking company posted negative earnings.
Financials: NetGear reported revenue of $251 million, representing a decrease of 31.6%, and a net loss of three cents per share.
Challenges: The U.S. WiFi market declined in the quarter, according to the company. NetGear also faced supply challenges, including “elongated transit times” and elevated sea transportation costs. NetGear reduced its revenue guidance for the quarter.
Numbers: Shares of NetGear are down 29% in the past six months. The stock hasn’t recovered since its share price peaked back in 2018.
Final Thoughts: NetGear hopes that transportation costs will ease and supply challenges will improve later in the year. Will this actually help?
The Advantages of Defensive Investing
Defensive investing, a strategy used by investors to preserve capital during times of economic volatility, offers several advantages.
Consistency: Investors who turn to a defensive strategy, which usually includes the use of dividends and bonds, could expect to see consistently stable returns.
Lower Risk: Turning to stable stocks and bonds usually means lower risk and fewer losses.
Final Thoughts: For those investors who want steady cash flow during times of economic volatility, a defensive investing strategy can be ideal.
Trends to Watch
New Opportunity: Yieldstreet Adds Startup Investments in Greycroft Partnership (Crowdfund Insider)
Sold: Zendesk working with Qatalyst on its potential sale (Reuters)
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