Square was up almost 6% yesterday. Here’s why.
Plus, Amazon nears deal to buy MGM Studios and Nvidia announces 4-for-1 stock split
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Square (SQ) shares closed up 5.5% after reports that the company could offer savings and checking accounts in the near future.
Why this matters: It sounds like Square customers may get access to checking and savings accounts soon. Square said, its financial services division will be able to “offer business loan and deposit products." It didn't directly confirm or deny so we’re just going to have to watch what happens. (CNBC)
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Amazon nears deal to buy MGM Studios for nearly $9 billion
Amazon’s (AMZN) is finalizing the acquisition of MGM Studios and we’re hearing it could be between $8.5 billion and $9 billion.
Why this matters: This would be Amazon’s biggest acquisition since it bought Whole Foods in 2017 for $13.7 billion. As we’ve said before, Amazon’s move to acquiring a movie studio will be the company’s biggest move into the entertainment industry. As Amazon’s Prime Video competes with Netflix (NFLX), Disney (DIS), and other streaming video services, acquiring MGM sounds like a solid plan due to its plethora of content. MGM owns a number of famed movie and TV franchises, including James Bond Rocky, Legally Blonde, The Pink Panther, and The Handmaid’s Tale. (CNBC)
Nvidia announces 4-for-1 stock split
Nvidia (NVDA) announced last week a four-for-one stock split, causing the chipmaker's shares to go up 3%.
Why this matters: Even as Covid-19 triggered shortages that have affected the semiconductor industry, Nvidia has stayed on top and was even able to release a new generation of its graphics-processing units or GPUs for video games. Thanks to the videogame boom during the pandemic, Nvidia’s videogame-related revenue grew 41% to $7.76 billion. The company has split its stock several times before, but this will be the largest split. (Yahoo Finance)
What else are we reading?
Lordstown Motors (RIDE) slashed its production guidance for the year and said it will need to raise additional capital. (CNBC)
That’s it from us today.
See you tomorrow.