Musk reconsiders his Twitter purchase


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Last Week’s Highlights

Twitter stock trembles with Musk’s reconsideration

The hype on social networks about Elon Musk’s purchase of Twitter could collapse. Several reports claimed that the deal is on hold and could even be canceled. Musk is said to have stopped the deal, because he was waiting for the results of several studies that will determine the exact level of fake or spam accounts on the platform. Prior to the announcement of the buyout, Twitter was in free fall. The last 12 months of trading were mostly down, until Elon Musk came in as a savior announcing he wants to buy the company and make some innovative changes. There are two sides to this situation. If the purchase does not go through, Twitter will be left in a terrible position, behind its competitors. However, if Musk does buy Twitter, his desire is to increase the company’s revenue fivefold, to $26.4 billion by 2028.

Rivian faces a foggy road ahead

Following the results presented by Rivian for the first quarter of 2022, one would expect the worst for this automotive company. Its stock dropped its value by 40% during the week leading up to the report, and for the year as a whole, they have lost 80%. However, the company has a large amount of demand for its vehicles, and it maintained its target of producing 25,000 cars this year. The company claims to have more than 90,000 reservations for its R1 series truck and SUV, which would be a relief for investors. Despite the problems Rivian has had to go through, the outlook is encouraging. An investment near to $5 billion is expected at its Georgia plant to speed up the production process, and the company is expected to do well.

Coming Up This Week

General Electrics surprises investors

General Electrics’ forecast for the second half of 2022, and its investment in Pulsenmore is a great surprise to investors. Both announcements drove the $82.7 billion valued company’s stock higher. They rose 1.2% to close at $73.28 on Thursday, and were up another 2.6% on Friday. GE said its business will improve in the second half of 2022, in addition to the conglomerate’s healthcare branch, making its debut in the home care market. General Electrics’ CFO, Carolina Dybeck Happe, assures that the company is steadfast in the face of headwinds like inflation and supply chain issues. It was made clear that the company is working to ensure parts availability, improve its productivity and benefit from higher prices for its products.

Zoom’s new acquisition lifts stock price

Video communications technology provider Zoom Video Communications’ stock rose 8% after the company announced the acquisition of Solvvy. The financial terms of the deal were not clarified, however, it is presumed that the deal will be closed in the second quarter of fiscal 2023. Solvvy is a conversational artificial intelligence and automation platform focused on customer service. The purchase will be a direct reinforcement for Zoom Contact Center, the first omnichannel contact center platform ideal for video. Zoom Contact Center will now have access to Solvvy’s scalable self-service and conversational AI. The 8% increase in Zoom’s stock may be a preview of the company’s potential upside going forward.

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Market News

The weekly losing streak continued despite Wall Street’s recovery. Last week, markets were very volatile. There was relief that inflation had already peaked; but on the other hand, there were fears that the Fed’s tightening policy could push the economy into recession.

The Dow Jones Industrial index gained 466.36 points, or 1.47%, the S&P 500 increased 93.81 points, or 2.39%, and the Nasdaq Composite rose 434.04 points, or 3.82%. Despite the gains, the S&P 500 and Nasdaq posted their longest losing streaks in the past decade, while the Dow Jones posted its longest losing streak since 1980.

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