Business and Finance News - 7.15.24

Alphabet in Talks to Acquire Wiz Inc. for Up to $23B Amid Antitrust Scrutiny, Potential Largest Deal Yet

• Alphabet is in talks to acquire cybersecurity startup Wiz Inc. for up to $23 billion.

• If completed, this would be Alphabet's largest acquisition to date.

• An agreement hasn't been reached, and talks could still end without one.

• Alphabet recently shelved efforts to acquire customer relationship management company HubSpot Inc.

• Alphabet faces multiple antitrust challenges, including lawsuits from the US Justice Department.

• Wiz connects to cloud storage providers like AWS and Microsoft Azure to remove security risks.

• Wiz was valued at $12 billion in a May funding round with investors like Andreessen Horowitz.

*Alphabet (GOOG) - Alphabet Inc. is a multinational conglomerate and the parent company of Google. It operates through various subsidiaries, primarily focusing on technology and internet-related services and products.

*Wiz - Wiz is a cybersecurity company that provides a cloud security platform designed to help organizations detect and manage risks across their cloud environments.

Citigroup's Profit Rises 10% to $3.2B, Revenue Up 4% to $20.1B Across All Divisions Despite Shares Dropping 2.5%

• Citigroup's profit increased by 10%, reaching $3.2 billion.

• Total revenue grew by 4%, amounting to $20.1 billion.

• The bank's revenue rose across all divisions.

• Cost-cutting measures contributed to the rise in profit.

• Citigroup set aside more provisions for potential credit-card losses.

• Equity trading, investment banking, and securities services saw double-digit revenue increases.

• Citi's shares fell by 2.5% to $64.05 in early trading.

*Citigroup (C) - Citigroup Inc., commonly known as Citi, is a global financial services corporation with a wide range of financial products and services.

JPMorgan's Q2 Profit Soars 25% to $18.15B, Revenue Up 20% Amid Rising Banking Fees and Trading Gains, Shares Fall 1%

• JPMorgan's second-quarter profit rose 25% to $18.15 billion, or $6.12 per share.

• Revenue increased by 20% to $50.99 billion, exceeding the $49.87 billion estimate.

• Investment banking fees surged 52% from a year earlier, reaching $2.3 billion.

• Equities trading revenue grew 21% to $3 billion, driven by strong derivatives results.

• The bank set aside $3.05 billion for credit losses, above the $2.78 billion estimate.

• CEO Jamie Dimon warned of future risks, including inflation, interest rates, and geopolitical complexities.

• JPMorgan's shares fell by 1% on Friday.

*JPMorgan Chase & Co (JPM) - JPMorgan Chase & Co. is a multinational investment bank and financial services holding company.

StubHub Delays IPO to Post-Labor Day Amid Stagnant Market, Initially Sought $16.5B Valuation, Rival SeatGeek Eyes IPO

• StubHub is delaying its IPO until after Labor Day due to stagnant market conditions.

• StubHub initially aimed for a summer IPO with a valuation of at least $16.5 billion.

• Lack of major consumer IPOs in recent months influenced StubHub's decision to postpone.

• StubHub has worked with JPMorgan and Goldman Sachs for the past two years on the IPO.

• StubHub was purchased by eBay for $310 million in 2007 and reacquired by co-founder Eric Baker for $4 billion in 2020.

• Online ticketing rival SeatGeek is also considering an IPO, seeking a valuation above $1.35 billion.

• The live events marketplace has grown post-Covid-19, boosting revenues for ticketing companies.

*StubHub - StubHub is an online ticket marketplace that allows users to buy and sell tickets for sports events, concerts, theater performances, and other live entertainment, providing a platform for both primary and secondary ticket sales.

Wells Fargo Q2 Net Interest Income Falls 9% to $11.92B, Beats EPS and Revenue Estimates, Shares Drop 7%

• Wells Fargo's Q2 net interest income fell 9% to $11.92 billion, below the $12.12 billion expected.

• The decline in net interest income was due to higher interest rates impacting funding costs.

• Q2 earnings per share were $1.33, exceeding the $1.29 expected by analysts.

• Q2 revenue reached $20.69 billion, surpassing the $20.29 billion estimate.

• Wells Fargo's Q2 net income dipped slightly to $4.91 billion from $4.94 billion a year ago.

• The bank set aside $1.24 billion as provision for credit losses in Q2.

• Wells Fargo's stock fell nearly 7% on Friday but is up over 22% this year.

*Wells Fargo (WFC) - Wells Fargo & Company is a diversified, community-based financial services company with a significant presence in the United States and a growing international footprint.

A Few Companies Expected to Report Earnings This Week…

• Goldman Sachs (GS) and BlackRock (BLK) are expected to report today.

• UnitedHealth Group (UNH), Bank of America (BA), Morgan Stanley (MS), and Charles Schwab (SCHW) are all expected to report on Tuesday.

• Johnson & Johnson (JNJ) is expected to report on Wednesday.

• TSMC (TSM), Netflix (NFLX), and Novartis (NVS) are expected to report on Thursday.

• American Express (AXP) is expected to express on Friday.

*American Express (AXP) - American Express provides financial services, primarily known for its credit and charge card offerings, along with travel-related services, merchant acquisition, and network services for both individuals and businesses.

*Bank of America (BA) - Bank of America is a multinational financial institution that provides a wide range of banking and financial services to individuals, businesses, and institutions.

*BlackRock (BLK) - BlackRock is a global investment management corporation that provides a range of financial services. It primarily manages assets for institutional and retail clients across various asset classes, including equities, fixed income, cash management, alternative investments, and advisory services.

*Charles Schwab (SCHW) - Charles Schwab is a financial services company that offers a broad range of investment and banking services, including brokerage accounts, financial advisory, retirement planning, wealth management, and trading platforms for individual investors and institutions.

*Goldman Sachs (GS) - Goldman Sachs is a global investment banking, securities, and investment management firm that provides a wide range of financial services to corporations, financial institutions, governments, and individuals.

*Johnson & Johnson (JNJ) - Johnson & Johnson is a multinational corporation that develops, manufactures, and sells a wide range of healthcare products, including pharmaceuticals, medical devices, and consumer health products.

*Morgan Stanley (MS) - Morgan Stanley is a leading global financial services firm that offers a wide range of investment banking, securities, wealth management, and investment management services. 

*Netflix (NFLX) - Netflix is a streaming service that offers a vast library of movies, TV shows, documentaries, and original content, allowing subscribers to watch on-demand entertainment across various devices.

*Novartis (NVS) - Novartis is a global healthcare company that researches, develops, manufactures, and markets a wide range of pharmaceuticals, including prescription medications and generic drugs.

*Taiwan Semiconductor Manufacturing Company (TSM) - Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest contract chip manufacturer. 

*UnitedHealth Group (UNH) - UnitedHealth Group is a diversified health care company that provides health insurance and related services through its divisions, UnitedHealthcare and Optum.

Here’s how the markets closed on Friday:

• Dow Jones Industrial Average: 40,000.90 +247.15 (+0.62%)

• S&P 500: 5,615.35 +30.81 (+0.55%)

• Nasdaq Composite: 18,398.44 +115.04 (+0.63%)

• Bitcoin (BTC): $60,796.86 (5:00PM PST on 7/14/24)

• Ethereum (ETH): $3,241.89 (5:00PM PST on 7/14/24)

Here’s how leading market ETFs did on Friday:

• SPDR S&P 500 ETF Trust (SPY): 559.99 +3.51 (+0.63%)

• iShares Core S&P 500 ETF (IVV): 563.04 +3.58 (+0.64%)

• Vanguard S&P 500 ETF (VOO): 514.55 +3.16 (+0.62%)

• Vanguard Total Stock Market ETF (VTI): 275.64 +1.81 (+0.66%)

• Invesco QQQ Trust (QQQ): 494.82 +2.89 (+0.59%)

Here’s how the THE SUPER SIX STOCKS did on Friday:

• Apple (AAPL) [3.535T]: 230.54 +2.97 (+1.31%)

• Microsoft (MSFT) [3.371T]: 453.55 -1.15 (-0.25%)

• Nvidia (NVDA) [3.184T]: 129.24 +1.84 (+1.44%)

• Alphabet (GOOG) [2.308T]: 186.78 -0.52 (-0.28%)

• Amazon (AMZN) [2.024T]: 194.49 -0.56 (-0.29%)

• Meta Platforms (META) [1.265T]: 498.87 -13.83 (-2.70%)