AMC, Tesla, Zoom: Stocks That Defined the Week
By Francesca Fontana
AMC Entertainment Holdings Inc.
Meme stocks are rocketing higher again. AMC surged 83% in the
week ended June 4, cementing its status as the darling of investors
who post rocket-ship emojis and online calls to take stocks "to the
moon." Shares of other stocks popular with individual investors
such as GameStop Corp. have also surged over the past two weeks, a
rally reminiscent of the Reddit-fueled craze of late January. AMC
shares rose 95% Wednesday.
Zoom Video Communications Inc.
The reopening of offices isn't slowing Zoom's connection. Zoom's
customer count rose and revenue nearly tripled in the first
quarter, as the company expands beyond its initial focus on
communications and collaboration to offer services such as
webinars, chat and third-party applications. Zoom has also
introduced features to aid businesses that have some staff
returning to offices while others continue to work remotely. These
include Zoom Rooms, the company's take on the traditional
conference room, and Zoom Phone, which the company sells as a
telephone option for huddle rooms and executive offices. Zoom
shares fell 2.5% Thursday.
Securities regulators are trying to cage Elon Musk's tweets. The
Wall Street Journal reported Tuesday that the Securities and
Exchange Commission told Tesla last year that its chief executive's
use of Twitter had twice violated a court-ordered policy requiring
his tweets to be preapproved by company lawyers. Tesla and the SEC
settled an enforcement action in 2018 alleging that Mr. Musk had
committed fraud by tweeting about a potential buyout of his
company. The SEC told Tesla in May 2020 that the company had failed
" to enforce these procedures and controls despite repeated
violations by Mr. Musk," who also publicly mocked the SEC even
after settling fraud claims with the agency. Tesla shares fell 3%
Etsy is placing a large bid on the booming secondhand goods
market. The online marketplace on Wednesday said it agreed to buy
Depop for $1.63 billion. Etsy said the deal, consisting mainly of
cash, gives the company access to the privately held marketplace's
younger, fashion-conscious audience. Depop's gross merchandise
sales and revenue both more than doubled last year, to about $650
million and $70 million, respectively. London-based Depop, founded
in 2011, has a community of roughly 30 million registered users
across nearly 150 countries, with four million active buyers and
two million active sellers in 2020, Etsy said, and many of its
sellers begin by listing items from their own wardrobe. Etsy shares
added 7.2% Wednesday.
Pershing Square Tontine Holdings Ltd.
A hedge-fund billionaire has the ear of the world's largest
music business. A special-purpose acquisition company controlled by
William Ackman is nearing a deal with Universal Music Group that
would give the SPAC a stake in Universal and value the business at
about $40 billion. A deal, if consummated, would be the largest
SPAC transaction on record. Universal is the record label behind
artists including Lady Gaga, Taylor Swift, Billie Eilish and the
Weeknd. Its stable also includes classic acts such as Queen and the
Beatles, and last year it bought Bob Dylan's entire publishing
catalog. Pershing Square Tontine shares declined 12% Friday.
United Airlines Holdings Inc.
United is planning to fly faster than sound. The airline said on
Thursday that it would acquire 15 supersonic planes being developed
by Boom Technology Inc. that would cut travel times and appeal to
higher-paying fliers. United said it would buy Boom's planned
Overture jets if the plane meets safety, operational and
sustainability standards. Boom hopes to fly a scaled-down prototype
later this year or early in 2022, with the full-size, 88-seat
version targeted to carry passengers by 2029. The deal would
resurrect high-speed flights more than two decades after that
method of travel was grounded because of high costs and concerns
about the noise it generated. United shares lost 4.3% Thursday.
Apple is slicing up its workweek this fall. In an email to
staff, Chief Executive Tim Cook told office employees that they are
expected to return to their workspace three days a week starting in
September. The iPhone maker said it wants most office workers to
show up Mondays, Tuesdays and Thursdays, with the option to work
remotely on Wednesdays and Fridays. Apple has already gradually
reopened its retail stores around the world. All of its 270 U.S.
retail outlets welcomed back shoppers in March, and in his note to
employees Mr. Cook said all stores in other markets would open
their doors again by the end of the month. Apple shares fell 1.2%
Write to Francesca Fontana at email@example.com
(END) Dow Jones Newswires
June 04, 2021 19:08 ET (23:08 GMT)
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