Shares of Affirm soar over 40% on news of Amazon partnership! 🚀
Monday, 30th August 2021 by Gotrade
Hey Gotraders,
If you are holding shares of Affirm (AFRM), you will be happy to know that shares are up a whopping 40% in extended trading, adding over $6 billion to their market cap!
What happened? Shares of Affirm skyrocketed as soon as news of their partnership with Amazon (AMZN) hit the media. Yes, Amazon is getting into the “buy now, pay later” space. Affirm’s buy now, pay later checkout option will be available to certain Amazon customers in the U.S. starting Friday, and a broader rollout is planned in the coming months. Amazon customers will be able to split purchases of $50 or more into smaller, monthly installments.
“By partnering with Amazon we’re bringing the transparency, predictability and affordability that Affirm provides today to the millions of people who shop on Amazon.com in the U.S.” - Eric Morse, Senior Vice President of Sales at Affirm.
Why is this important? The lending market is booming as younger consumers switch from borrowing lump sum amounts from banks to breaking up their purchases into smaller, monthly installments.
Just this month, Square (SQ) announced a $29 billion deal to buy Australian fintech Afterpay to offer the same service. Apple (AAPL) is also planning to partner with Goldman Sachs (GS) to launch installment lending.
📈 Cristiano Ronaldo rejoins Manchester United! ⚽
Here’s a news update for football fans - Cristiano Ronaldo will be returning to Old Trafford. Manchester United (MANU) has reached an agreement with Juventus to re-sign Cristiano Ronaldo for 2 years for €15 million ($17.7 million) plus €8 miliion ($9.44 million) in add-ons. The deal is subject to the agreement of personal terms, visa, and medical.
“Everyone at the club looks forward to welcoming Cristiano back to Manchester” - Manchester United.
Fans have been posting “welcome home” messages all over social media since the news was announced.
Shares of Manchester United closed 5.84% higher on Friday, at $18.29. Shares are up a further 4.43% in extended trading.
📉 Uh oh… The City of Chicago sues DoorDash & Grubhub 👨⚖️
Uh oh… DoorDash (DASH) and Grubhub, which was acquired by Just Eat Takeaway (GRUB) recently, are in some legal trouble. Both companies are being sued by the City of Chicago.
Restaurants on the platform claim that the platforms advertise delivery services for their businesses without their consent and conceal lower prices that restaurants offer directly to customers outside of the platforms.
Both platforms are also being accused of using a “bait-and-switch” method to attract customers. This means that they lure customers with low delivery fees, but charge higher fees when they are about to place their order. Tsk, tsk…
Both DoorDash and Grubhub called the lawsuits “baseless.”
DoorDash and Just Eat Takeaway closed 1.57% and 7.40% lower respectively on Friday.
Top movers & shakers 🎢
What else is making headline news 📰
Powell sees taper by the end of the year but says there’s ‘much ground to cover’ before rate hikes.
A race against Covid: How Moderna (MRNA) and Pfizer (PFE)-BioNTech developed vaccines in record time.
Fauci says he hopes the U.S. will have ‘some good control’ over Covid by spring 2022.
India could begin trials for a digital rupee by December, the central bank governor says.
Cuba’s central bank now recognizes cryptocurrencies such as Bitcoin.
Congressional panel investigating Jan. 6 insurrection demands records from Facebook (FB), Twitter (TWTR), other tech firms.
Popular companies releasing earnings this week 💰
Monday: Zoom (ZM), Li Auto (LI), Telkom Indonesia (TLK), Catalent (CTLT), China Southern (ZNH)
Tuesday: Crowdstrike (CRWD), Futu (FUTU), PVH (PVH)
Wednesday: Chewy (CHWY), Copart (CPRT), Jack Daniel’s (BF.B), Asana (ASAN), Five Below (FIVE), Campbell Soup (CPB), C3AI (AI)
Thursday: Broadcom (AVGO), DocuSign (DOCU), MongoDB (MDB), Hormel Foods (HRL), Hewlett Packard Enterprise (HPE)
A company’s market value may fluctuate considerably around the time that the earnings report is expected to be published. Stock prices may rise or fall according to analysts' speculative estimates, released prior to the actual earnings announcement.
The earnings season can be a time of great opportunity since better-than-expected figures could cause a company’s stock to greatly increase in value. Worse-than-expected results could have the opposite effect.
That’s all from us for now.
Signing out,
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The legal stuff 🤓
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