Business and Finance News - 7.2.24

BlackRock to Acquire Preqin for $3.23 Billion, Enhancing Alternative Investments and Expanding Aladdin Tech Business

• BlackRock agreed to buy UK data firm Preqin for $3.23 billion in cash.

• The acquisition will expand BlackRock's presence in alternative investments.

• BlackRock manages over $10 trillion in assets.

• BlackRock outbid London Stock Exchange Group and S&P Global for Preqin.

• The deal complements BlackRock's Aladdin tech business for fund managers.

• Preqin will continue as a standalone solution post-acquisition.

• Preqin expects $240 million recurring revenue in 2024, growing 20% annually.

*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.

Boeing to Acquire Spirit AeroSystems for $4.7 Billion, Aiming to Resolve 737 MAX Quality Issues and Improve Safety

• Boeing agreed to buy Spirit AeroSystems for $4.7 billion in an all-stock deal.

• Spirit AeroSystems had $6 billion in revenue last year but has been losing money.

• Spirit has faced quality issues affecting Boeing's 737 MAX jets.

• Boeing aims to improve safety and quality by controlling Spirit's operations.

• Spirit's factories, including some in Europe, may be shed post-acquisition.

• The deal includes Spirit's defense and aftermarket operations.

• Departing Boeing CEO David Calhoun initiated this acquisition to address manufacturing woes.

*Boeing (BA) - Boeing is a leading American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, telecommunications equipment, and missiles worldwide.

*Spirit AeroSystems (SPR) - Spirit AeroSystems, Inc. is one of the largest and most prominent manufacturers of aerostructures for both commercial and defense aircraft.

Chewy Shares Drop 4% After Rally on Roaring Kitty's $245M Stake; GameStop Shares Fall, Gill Faces Fraud Lawsuit

• Chewy shares fell 4% Monday after initial rally due to Roaring Kitty's stake.

• Keith Gill, aka Roaring Kitty, bought over 9 million Chewy shares, a 6.6% stake.

• Gill is now the third-biggest Chewy shareholder, with a stake worth $245 million.

• The SEC filing humorously included "I am not a cat" from Gill's congressional testimony.

• Chewy shares surged 34% last Thursday after Gill's social media post.

• GameStop shares dropped over 5% following Gill's Chewy investment news.

• Gill faces a class-action lawsuit alleging securities fraud for manipulating GameStop stock.

*Chewy (CHWY) - Chewy is an online retailer specializing in pet products and supplies known for its convenient online shopping experience, competitive pricing, and exceptional customer service, including a subscription-based auto-ship program for regular deliveries of pet essentials.

EU Accuses Meta of Violating Digital Rules with "Pay or Consent" Ads, Faces Potential 10% Revenue Fines

• EU accuses Meta of breaking digital rules with "pay or consent" ad model.

• Meta offered ad-free Facebook and Instagram for 10 euros per month.

• EU's top court ruled Meta must get user consent for targeted ads.

• European Commission says Meta's model violates the Digital Markets Act.

• Users can't freely consent to personal data use across Meta services.

• Meta must offer a non-personalized option equivalent to its social networks.

• Meta faces potential fines up to 10% of annual global revenues by March 2025.

*Meta (META) - Meta, formerly known as Facebook Inc., is a multinational technology conglomerate that operates a variety of social media platforms and technology products.

Robinhood Acquires AI Platform Pluto Capital to Enhance Investing App with Real-Time Insights and Personalized Strategies

• Robinhood acquires AI-powered research platform Pluto Capital, Inc. to enhance its investing app.

• Pluto will help identify trends, guide investment strategies, and offer real-time portfolio optimization.

• Pluto founder Jacob Sansbury will join Robinhood to accelerate AI technology adoption.

• Pluto's data analysis will use large language models for real-time market and user data.

• Personalized investment strategies will be created based on user behavior and goals.

• Investors will receive real-time updates and insights for informed decision-making.

• Pluto was valued at $12 million pre-money, backed by investors including at.inc/ and Switch Ventures.

*Robinhood (HOOD) - Robinhood is a financial services company that offers a range of investment and trading products primarily through its mobile app and website.

Here’s how the markets closed yesterday:

• Dow Jones: 39,169.52 +50.66 (+0.13%)

• S&P 500: 5,475.09 +14.61 (+0.27%)

• Nasdaq: 17,879.30 +146.70 (+0.83%)

• Bitcoin (BTC): $62,758.07 (3:30PM PST on 7/1/24)

• Ethereum (ETH): $3,424.29 (3:30PM PST on 7/1/24)

Here’s how the THE SUPER SIX STOCKS did yesterday:

• Microsoft (3.395T): 456.73 +9.78 (+2.19%)

• Apple (3.324T): 216.75 +6.13 (+2.91%)

• Nvidia (3.063T): 124.30 +0.76 (+0.62%)

• Alphabet (2.28T): 184.49 +1.07 (+0.58%)

• Amazon (2.052T): 197.20 +3.95 (+2.04%)

• Meta Platforms (1.28T): 504.68 +0.46 (+0.09%)