Streetbeat News

Acquisitions Mergers

AMZN

IRBT

iRobot Corporation (NASDAQ:IRBT) shares have declined following uncertainty around Amazon.com, Inc.'s (NASDAQ:AMZN) proposed acquisition. The EU antitrust authorities are expected to give unconditional approval, but Amazon's decision to not settle with the European Commission has cast doubt on the $1.7 billion deal. iRobot's stock experienced a sell-off, dropping 8.44% to $27.66.

Portfolio Pulse from Ryan Gustafson

January 17, 2024 | 8:05 pm

ALB

GS

SQM

Albemarle Corporation (NYSE:ALB) sold its 4% stake in Liontown Resources after an unsuccessful attempt to take over the company. The sale was managed by JPMorgan, resulting in a drop in Liontown's share price. Albemarle's interest had previously driven Liontown's share price up, but resistance from Gina Rinehart and subsequent withdrawal of the takeover bid led to a significant price drop. Liontown continues to focus on its lithium projects, Kathleen Valley and Buldania, in Western Australia. Goldman Sachs Group (NYSE:GS) and Timothy Rupert Goyder increased their holdings in Liontown, while Albemarle's exit ends speculation of a partnership similar to the one Rinehart arranged with Azure Minerals and SQM (NYSE:SQM).

Portfolio Pulse from Stjepan Kalinic

January 17, 2024 | 7:21 pm

JBLU

SAVE

The proposed merger between JetBlue Airways Corp (JBLU) and Spirit Airlines Inc (SAVE) was blocked by a U.S. District Court judge, causing a significant drop in stock prices for both companies. Analysts have downgraded Spirit Airlines stock, with BofA Securities rating it as Underperform and Susquehanna Financial Group downgrading it from Neutral to Negative, both setting a price target of $5. JetBlue's CEO is stepping down, and the incoming CEO may lead without pursuing the merger further.

Portfolio Pulse from Surbhi Jain

January 17, 2024 | 6:59 pm

JBLU

SAVE

Spirit Airlines, Inc. (NYSE:SAVE) stock is trading lower due to a federal judge blocking its acquisition by JetBlue Airways Corporation (NASDAQ:JBLU). The $3.8 billion deal was halted as it was deemed harmful to consumers relying on Spirit's low-price model. President Biden supported the ruling, emphasizing the importance of competition. Spirit's shares dropped over 60% since the block, while JetBlue's shares fell 8.5%.

Portfolio Pulse from Erica Kollmann

January 17, 2024 | 5:48 pm

IVPAF

Ivanhoe Mines (OTC:IVPAF) has entered into a joint venture with Gécamines to revive the Kipushi mine in the DRC, inactive for 30 years. The mine is known for its rich zinc orebody and other metals. Gécamines will increase its stake in Kipushi Corporation to 38%, and eventually to 80% after certain reserves are mined. Production is expected to start in Q2 2024 with an annual output of over 250,000 tons of zinc. However, the zinc market is currently facing challenges with flat prices and oversupply predicted for 2024.

Portfolio Pulse from Stjepan Kalinic

January 17, 2024 | 5:16 pm

NUKK

Nukkleus Inc. (NASDAQ:NUKK) plans to increase its investment in Jacobi Asset Management, the sponsor of Europe's first approved Bitcoin spot ETF. Nukkleus signed an MOU on January 16, 2024, to potentially acquire an additional 10% of Jacobi and has an option to acquire One Hoxton Holding Ltd for another 6% stake, which could bring its total ownership to around 20%. The MOU includes a right of first refusal and is effective for 90 days, extendable by mutual agreement. NUKK shares dropped 3.47% to $1.44.

Portfolio Pulse from Akanksha Bakshi

January 17, 2024 | 5:04 pm

GPRO

GoPro, Inc. (NASDAQ:GPRO) has announced its intention to acquire Forcite Helmet Systems, a company specializing in technology-integrated helmets. The acquisition aims to enhance the motorcycling experience by improving performance and safety through tech-enabled helmets, with plans to expand into other helmet categories. The financial terms of the deal were not disclosed, and the acquisition is expected to close in Q1 of 2024. GoPro will discuss further details during its earnings conference call on February 7, 2024. Meanwhile, GPRO shares dropped by 0.94% to $3.17.

Portfolio Pulse from Nabaparna Bhattacharya

January 17, 2024 | 4:02 pm

LAD

Lithia Motors (NYSE:LAD) has been analyzed by four financial analysts, with one being somewhat bullish and three indifferent. The average 12-month price target for LAD is $313.5, with a high of $400 and a low of $259. Analysts from Evercore ISI Group, JP Morgan, Goldman Sachs, and Wells Fargo have provided recent evaluations, with one maintaining an 'Outperform' rating and three giving 'Neutral' ratings. Lithia Motors has shown strong financial performance with a 13.45% revenue growth rate, a net margin of 3.16%, an ROE of 4.45%, an ROA of 1.45%, and a debt-to-equity ratio of 1.7. The company has expanded through acquisitions and is the largest U.S. auto dealer.

Portfolio Pulse from Benzinga Insights

January 17, 2024 | 4:00 pm

AMZN

DIS

SBGI

Amazon.com Inc (NASDAQ:AMZN) has acquired a minority stake in Diamond Sports Group, a subsidiary of Sinclair Broadcast Group Inc (NASDAQ:SBGI), as part of a deal to become the primary partner for streaming regional sports networks. This move follows Amazon's success with NFL Thursday Night Football and includes Sinclair's $495 million cash payment to Diamond Sports to settle litigation. The deal is part of Diamond Sports' bankruptcy restructuring and will allow Amazon to stream MLB, NBA, and NHL games on Prime Video. Sinclair will provide management and transition services during Diamond's reorganization. The Walt Disney Company (NYSE:DIS) previously divested Diamond Sports, which was then known as Fox Sports Networks.

Portfolio Pulse from Chris Katje

January 17, 2024 | 3:57 pm

USB

U.S. Bancorp (NYSE:USB) reported Q4 earnings with net revenue of $6.7 billion, slightly below analyst expectations of $6.8 billion. Net interest income decreased by 4.2% to $4.1 billion, while noninterest income increased by 28.2% to $2.6 billion. The net interest margin dropped to 2.78% from 3.01% in the previous year. The results included one-time costs due to a special assessment and a charitable contribution, but were offset by favorable tax settlements. The provision for credit losses was down 57% year over year to $512 million. CEO Andy Cecere highlighted the achievement of $900 million in cost synergies from the Union Bank acquisition. The company saw loan growth of 3.6% and deposit growth of 4.3%, with adjusted EPS of $0.99 beating the consensus by $0.01. The CET1 capital ratio improved to 9.9%. Shares of USB rose by 0.35% to $41.53.

Portfolio Pulse from Nabaparna Bhattacharya

January 17, 2024 | 2:57 pm