"Facebook Inc.’s strategy of copycatting virtually every feature of the Snapchat app [has been] taking a toll" on Snapchat's share price and overall investor confidence after announcing slower growth than projected in their first quarterly earnings this past May. Many analysts are deeming the stock a buy recommendation with an additional driver to lower stock - the end of this month marks all investors who had their "shares in a lockup after the IPO will start to be able to share them". It will be important for Snap to find sustainable revenue streams in order to boost long term shareholder value.
Amazon & Whole Foods: The $13.8 Billion Deal
Things are about to get interesting in the online marketplace. Today Amazon announced the intended purchase of Whole Foods for $13.7 billion. Whole Foods, who has been struggling over the past few years to maintain profits, growth, and market share, has been actively searching for avenues to appease their shareholders and rise out of their rut. This acquisition could be just the path they've needed. Granted, there were discussions of other chains looking to take in the organic grocery store (including Wal-Mart), Amazon ultimately outbid contenders with an offer of 28% premium on their closing share price Thursday. Amazon has been looking to expand their fresh food offering; however, it'll be intriguing to see just how the giant plans to incorporate Whole Foods' products. As Juda Engelmayer, crisis communication and reputation management expert at HeraldPR, told CNBC in an email, "Amazon is known for its competitive pricing, and if it had bought a chain like Shoprite or Acme, it would have made more sense, but Whole Foods is a store with generally very expensive real estate, and high prices, which is the opposite of what Amazon is all about, so it'll be interesting to see how Amazon brings Whole Foods into the fold and adapts to a completely different model."
Ford Focuses on Future
Amidst a continuous decline in stock price, Ford is forced to reassess their strategic direction in an effort to appease Wall Street and find their long term stride. A few plans have been cited on the CEO's agenda including "scaling back production of cars [during time of increased demand in larger vehicles], paying down debt..., willingness to exit businesses or parts of the world..., and/or creating new companies...to be a big player in the autonomous industry". However, in the meantime, there has been discussion of a cut in headcount in order to quickly start this rebound period. Although losing valued employees is never easy, personnel is one of the higher costs in a company's expenses and an understandable initial focus area.
AkzoNobel turns down $29 billion
"Dutch industrial paints and chemicals company AkzoNobel on Monday rejected a third unsolicited takeover bid from American rival PPG Industries, worth $28.8 billion, saying it was not in the interests of shareholders." AkzoNobel CEO, Ton Buchner, looks forward to future plans of spinning off a specialty chemical division amidst this offer. Although a large offer, Mr. Buchner seems to have the longevity of his corporation in mind rather than a dollar amount. The article cites "a lack of cultural understanding, no substantive commitments to stakeholders, [as well as] significant risks and uncertainties". Share value had dropped over the past couples of days, but it will be interesting to see how the company's future plays out.