Jack Dorsey is leaving Twitter
Plus: Its Lululemon vs. Peloton in design feud & Visa and Mastercard are sinking
Hello there,
Jack Dorsey announced that he is stepping down as Twitter (TWTR) CEO.
Why this matters: He will be replaced by CTO, Parag Agrawal, who has been with the company for over a decade. Dorsey said that he decided to leave Twitter because he believes that the company is ready to move on from its founders. He also said that he deeply trusts in the new CEO. This is good news for investors because they believe that Twitter has so much potential. (CNBC)
Its Lululemon vs. Peloton in design feud
Lululemon (LULU) filed a suit against Peloton (PTON) in a feud over designs of its sports bras and leggings.
Why this matters: The company said it is seeking an injunction against Peloton’s infringement of its intellectual property rights. It’s also asking for damages and other monetary relief. Peloton, in response, maintained that its own athletic apparel merchandise is easy to decipher from Lululemon’s. It also said Lululemon’s clothing designs are too “obvious” to merit patent protection. (CNBC)
Visa and Mastercard stocks are sinking
Visa (V) and Mastercard (MA) are already looking like early casualties of the Omicron Variant.
Why these matters: The companies rely heavily on revenues from travel and may need to reduce their profit forecast if the Omicron variant decides to put a stop to cross-border travels as countries impose bans and quarantine rules. International transactions are highly profitable to payment companies thanks to foreign exchange fees, more countries had started relaxing their restrictions before the Omicron variant threw a spanner in the works. (Barron's)
That’s it from us
See you tomorrow.