Take-Two, Microsoft, Capital One: Stocks That Defined the Week -- WSJ
August 08 2020 - 3:02AM
Dow Jones News
By Francesca Fontana
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (August 8, 2020).
Take-Two Interactive Software Inc.
The Covid-19 lockdown is helping videogame companies level up.
Take-Two Interactive Software, the publisher behind Grand Theft
Auto and other gaming franchises, saw its earnings jump as pandemic
restrictions limited entertainment options for many. Take-Two's
results came days after Electronic Arts reported the strongest June
quarter sales in its 38-year history. Take-Two shares rose 5.9%
Tuesday.
Microsoft Corp.
Microsoft's pursuit of a TikTok trophy just got more
complicated. The tech giant said Aug. 2 that talks to buy the U.S.
operations of the Chinese-owned video app would continue after an
11th-hour intervention from President Trump over perceived security
risks. Mr. Trump had expressed opposition after a deal seemed close
on July 31, saying he preferred an outright ban of the app. The
app's future is still uncertain. Mr. Trump on Monday said the U.S.
government should receive payment for allowing a deal, and he has
since issued a pair of executive orders that effectively set a
45-day deadline for an American company to purchase TikTok's U.S.
operations. Microsoft shares fell 1.8% Friday.
Wayfair Inc.
Life is getting more comfortable for this online furniture
seller. Wayfair turned a profit for the first time since going
public in 2014, as more housebound online shoppers bought home
goods during the pandemic. The company saw an 84% jump in sales to
$4.3 billion and boosted its active customer base to 26 million, a
46% year-over-year increase. Chief Executive Niraj Shah said the
trend is so new and volatile that it is hard to predict whether it
will last, but the company has seen repeat business from new
customers and plans to invest to keep them engaged. Wayfair shares
added 3.6% Wednesday.
Walt Disney Co.
Walt Disney lost nearly $5 billion this past quarter, but
investors don't seem to mind. The entertainment giant reported the
loss, its first since 2001, as the pandemic closed its theme parks,
halted movie distribution and shut down live sports events that
Disney TV networks broadcast. But shareholders appeared to focus on
the strong results from Disney+, which reported strong subscriber
growth during the period. The company has also announced that the
long-postponed live-action remake of "Mulan" will premiere on the
streaming platform next month as a premium-priced download. Disney
shares rose 8.8% Wednesday.
Capital One Financial Corp.
Capital One is paying the price for a giant 2019 hack. The
Office of the Comptroller of the Currency fined the company $80
million over the incident, which compromised the personal
information of about 106 million card customers and applicants. The
OCC and the Federal Reserve also ordered the bank to make
risk-management changes and fortify its cybersecurity defenses.
Capital One said it has already made many of the changes. The hack
-- one of the largest-ever data breaches of a big bank -- exposed
addresses, dates of birth and self-reported incomes of individuals
and small-business owners. Capital One shares fell 1.7%
Thursday.
Bausch Health Cos.
Bausch has a spinoff in its sights. The pharmaceutical company
-- formerly Valeant Pharmaceuticals -- said Thursday that it plans
to break off its faster-growing eye-care business from its core
operations. The eye-care unit, known as Bausch & Lomb, would
return to being a separate company, as it was before Valeant
acquired Bausch & Lomb for $8.7 billion in 2013. Over the last
several years, the Canada-based company has sought to climb out of
the roughly $30 billion in debt accumulated through acquisitions
and distance itself from past controversies. Bausch shares rose
3.4% Thursday.
Uber Technologies Inc.
The road is getting bumpy for Uber. The ride-hailing company
posted another big loss on Thursday as the coronavirus pandemic
drags on, weighing on ridership. Gross bookings were down 75%
year-over-year, but Chief Executive Dara Khosrowshahi on Thursday
said business was bouncing back in Asia and some lucrative cities
including New York. The company's food-delivery business, Uber
Eats, has been a bright spot, and its bookings more than doubled
year-over-year. But the Eats segment lost $232 million in the
quarter on an adjusted basis in the cutthroat food-delivery market
where profit has largely been elusive. Uber shares fell 5.2%
Friday.
Write to Francesca Fontana at francesca.fontana@wsj.com
(END) Dow Jones Newswires
August 08, 2020 02:47 ET (06:47 GMT)
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