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Facebook Ad Boycott Sinks Stock, Raises Pressure on Zuckerberg

(Bloomberg) — Critics of Facebook Inc. who have assailed the social network as failing to adequately police hateful and misleading content on its service found a powerful ally Friday: Unilever, one of the world’s largest advertisers, said it would stop spending money with Facebook’s properties this year.The decision by the maker of major consumer goods like Dove soap and Hellmann’s mayonnaise to follow other brands in an advertising boycott, prompted a rare reaction from Facebook’s investors. Shares plunged 8.3% on the news, eliminating $56 billion in market value. Unilever’s pledge applies immediate pressure on other big companies and presents a …read more […]

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American Airlines: Equity Raise Reduces Bankruptcy Fears

The biggest worry surrounding American Airlines Group (AAL) was the large debt load and whether the company could get back to cash flow positive quick enough to repay debt. For this reason, a lot of people have speculated on whether the weaker airline would go bankrupt.The airline just raised about $2 billion reducing the bankruptcy fears. The bigger question all along was whether the airline had value here around $12.50, not whether American Airlines was ever going to end up bankrupt. Equity RaiseAmerican Airlines raised nearly $2 billion via an equity offering of 74.1 million shares and $1 billion via …read more […]

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The Right Time to Buy Protection

Markets are uncertain all the time, but sometimes they might be even more uncertain.
The concept of “even more” is interesting when it comes to uncertainty. It implies there are degrees of uncertainty!
Well, there are…
And the market has a measure for those degrees in the form of the volatility index. But that’s not what I am going to teach you today.
Today is all about when you should make a trade on an event that may hurt your position and put pressure on the long positions in your portfolio. You see, the clear majority of people bet only one way – on …read more […]

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Occidental Plans to Issue Stock Warrants After Slashing Dividend

(Bloomberg) — Occidental Petroleum Corp., the oil producer that earlier this year slashed its dividend to a penny per share, plans to issue roughly 113 million warrants to holders of its common shares.Investors will get an eighth of a warrant for every share held and each warrant will entitle them to purchase one share at $22, the Houston-based company said in a statement. The stock closed Friday at $17.69.The move won the support of one the company’s largest investor, Carl Icahn. “I am glad that at this juncture the entire board as well as management is committed to enhancing stockholder …read more […]

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Facebook, Twitter Tumble on Unilever’s Social-Media Pullback

(Bloomberg) — Facebook Inc. and Twitter Inc. shares tumbled Friday after Unilever, one of the world’s largest advertisers, said it will halt all U.S. advertising on both platforms, fueling concerns that other major consumer brands may follow suit.Unilever, which owns names like Hellmann’s mayonnaise and Axe shower gel and has an annual advertising budget of almost $8 billion, said it won’t advertise on Facebook, Twitter and Facebook-owned Instagram for the rest of the year because of the hate speech and polarized politics that users often post.“Continuing to advertise on these platforms at this time would not add value to people …read more […]

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Market Recap: Friday, June 26

Stocks closed out Friday’s session sharply lower after Texas and Florida reversed their reopening processes and closed bars and limited restaurant capacity following surges in coronavirus cases. Each of the three major indices fell more than 2%, and the S&P 500 dropped to its lowest level in two weeks. …read more […]

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Inovio (INO) Stock Is a Winner, but Its Valuation Is Getting Stretched

Recent headlines were saturated with the alarming uptick of new coronavirus cases in several states. Accordingly, the stock market experienced a sell off. Yet, stocks of companies engaged in the search for a COVID-19 vaccine or treatment took the news as a bullish signal. Inovio Pharmaceuticals (INO) skyrocketed over 100% this week, after the coronavirus vaccine maker disclosed it had been given $71 million by the U.S. Department of Defense (DOD). This will go toward the manufacturing of its Cellectra 3PSP smart device and the purchase of Cellectra 2000 devices. These are the devices through which Inovio’s COVID-19 DNA vaccine …read more […]

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Fang Fortress Rattled as Facebook Takes Biggest Hit Since Crisis

(Bloomberg) — At record highs on Tuesday, the popular group of megacap tech stocks known as the Fangs is ending the week with the worst plunge since the depths of the Covid crash.While intermittent stumbles have been a regular feature of the broad market during the recovery phase, ones involving its core constituency of the biggest online companies have been all but unheard of. The group’s automated, algorithmic, stay-at-home moat has insulated them from day-to-day ups and downs, making them a central holding of hedge funds and other institutions who have shied away from retail favorites in the airline and …read more […]

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Hedge Funds Cautiously Watching NIO Inc. (NIO)

We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds’ and investors’ portfolio positions as of March 31st, near the height of the coronavirus market crash. In this article, we look at what those funds think […] …read more […]