Nature is messing with Black Friday
Plus, Facebook is acquiring Kustomer and EU regulators don't like it & Take-Two reports earnings
Hello there,
The 2021 holiday shopping season, “Black Friday”, could be ruined by out-of-stock goods and shipping delays caused by devastating floods in Europe and China.
Why this matters: Key business and transport hubs in Western Europe and China are currently grappling with the aftermath of devastating floods which may affect shipping and production. Some of the worst-hit industries include automobile, technology and electronics. Black Friday, the busiest shopping day of the year, will likely face the brunt of the impact as there may be fewer deals and discounts while prices of some goods could increase.Supply chains have already been majorly disrupted this year by the shortage of shipping containers, the Suez Canal incident and Covid cases causing delays. (CNBC)
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Facebook is acquiring Kustomer and EU regulators don’t like it
Facebook (FB)'s acquisition of Kustomer has sparked some concerns from EU antitrust regulators.
Why this matters: Another day, another antitrust case. EU regulators cited that FB’s move may hurt competition and boost Facebook’s market power in online advertising. They believe that this deal may result in the closing down of budding rivals by blocking their access to Whatsapp, Messenger or Instagram, which are key to the CRM software. FB said that the transaction is pro-competitive and will bring more innovation to businesses and customers in the dynamic CRM space. (Yahoo Finance)
Take-Two beats earnings but stock is down
Video game maker, Take-Two (TTWO), reported earnings that exceeded expectations but fell short in management’s forecast.
Why this matters: Video game companies did well during the pandemic (with everyone at home playing video games) but it seems the pandemic growth is waning. Take-Two shares sank 5.5% after the company disclosed that they fell short of the bookings forecast. Net bookings, an adjusted measure of revenue used by video game companies, declined 29% to $711.4 million. Company CEO, Strauss Zelnick, said the company is expected to achieve growth and plans to bring 60 game titles to market in the next few years. (Barron's)
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