Netflix, T-Mobile, Alphabet: Stocks That Defined the Week
By Francesca Fontana
A new drama is spooking investors of Netflix: the launch of
Disney+. Walt Disney Co.'s new streaming service locked up 10
million subscribers in its first 24 hours despite a glitch that
made Disney+ difficult to watch for several hours. The service's
aggressive debut Tuesday boosted Disney's shares by 7% the next day
and sent Netflix shares down 3.1%. Netflix is still the industry's
dominant streamer, with 158 million subscribers.
T-Mobile US Inc.
Could WeWork be replacing one eccentric leader with another?
WeWork has been in talks with T-Mobile Chief Executive John Legere
to take over leadership of the troubled office-sharing startup, The
Wall Street Journal reported Monday. WeWork's parent, formally
known as We Co., is searching for a CEO who can stabilize the
company following the erratic tenure of co-founder Adam Neumann.
Like Mr. Neumann, Mr. Legere is known for his aggressive,
unconventional style. The 61-year-old has turned around T-Mobile's
operations, luring millions of cellphone customers from larger
competitors and initiating the pending Sprint Corp. takeover.
T-Mobile shares fell 1.6% Monday.
Southwest Airlines Co.
U.S. regulators recently considered grounding more than three
dozen Southwest jets because the airline couldn't show that they
met all mandatory safety standards, according to government
documents. The Journal reported Monday that the carrier indicated
in letters to the Federal Aviation Administration that it
previously found dozens of problematic repairs on other planes,
done before it bought those aircraft. Senior FAA officials
permitted the planes to continue carrying passengers once Southwest
agreed to accelerate required inspections. Shares fell 0.7%
Alphabet's Google already knows what you read online. Now it is
interested in your medical records. The internet search giant is
working with one of the U.S.'s largest health-care systems to
collect and crunch the detailed personal-health information of
millions of people across 21 states, The Wall Street Journal
reported Monday. The initiative, code-named "Project Nightingale,"
has sparked a federal inquiry and concern from regulators and
lawmakers about whether Google and St. Louis-based Ascension are
adequately protecting patient data. Ascension, without notifying
patients or doctors, has begun sharing with Google personally
identifiable information on millions of patients, including names
and dates of birth; lab tests; doctor diagnoses; and medication and
hospitalization history. Alphabet shares fell 0.8% Monday.
The Everything Store is losing one of its top-selling brands:
Nike. The sneaker giant said late Tuesday it would stop selling its
clothes and sneakers directly to Amazon.com Inc. as it has decided
to focus on its direct business, though it will continue to seek
partnerships with other retailers and platforms. The company agreed
in 2017 to sell products to Amazon in exchange for stricter
policing of counterfeits and restrictions on unsanctioned sales.
Nike itself only sold a relatively small amount of goods on the
site and mostly offered down-market items, The Journal reported.
Nike shares gained 2% Wednesday.
Walmart provided some early holiday cheer for retailers when it
released results showing that sales rose in the most recent
quarter. The news alleviated some uncertainty about the resilience
of the American shopper heading into a crucial year-end period for
the retailing industry. E-commerce sales rose 41% in the U.S.
bolstered by online grocery orders as Walmart competed with
Amazon.com to be the most convenient shopping option for Americans.
In the U.S., Walmart now has more than 3,000 locations where
customers can drive up to pick up groceries and more than 1,400
locations that offer home delivery from stores. Still, Walmart
shares slipped 0.3%.
Under Armour Inc.
Former executives of Under Armour said they took aggressive
measures to keep a winning streak going for the sportswear company.
These executives told The Wall Street Journal they borrowed
business from future quarters to mask slowing demand, leaned on
retailers to take products early and redirected goods intended for
its factory stores to off-price chains to book sales in the final
days of a quarter. The goal was to extend a 26-quarter streak of
20% sales growth. The company, whose accounting is now under
scrutiny by federal investigators, said it is confident in its
accounting practices, revenue recognition and investor disclosures.
It said it operated within standard industry practices and in
compliance with generally accepted accounting principles. Shares
rose 3.9% Friday.
Write to Francesca Fontana at email@example.com
(END) Dow Jones Newswires
November 15, 2019 19:03 ET (00:03 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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