The second-quarter technology earnings season is about to kick into gear and take center stage for many investors for the next few weeks.
But, before all of those reports start rolling in, there was still time this for more drama in the saga of Twitter (NYSE:TWTR) and its one-time, and possibly future acquirer, Elon Musk.
Just days after Musk said he was terminating this $44B deal to take over Twitter (TWTR), the company sued Musk in Delaware Chancery Court in an attempt to force Musk to stick to his acquisition agreement. Twitter (TWTR) didn’t hold back with its thoughts on the matter, saying in its suit that Musk had engaged in “bad faith” efforts, and calling his effort to get out of the deal “a model of hypocrisy.”
Investors seemed to believe that Twitter (TWTR) might have a chance in prevailing in the courtroom. Short-seller Hindenburg Research said it had taken a long position in Twitter’s (TWTR) stock, and that the company’s lawsuit was a “credible threat” to Musk’s business empire.
For his part, Twitter (TWTR) Chief Executive Parag Agrawal sent an email to company employees telling them that they should expect to hear a lot of “distracting” speculation about their future, but that Twitter (TWTR) “will prevail” in its battle with Musk.
By the end of the week, some Twitter (TWTR) watchers on Wall Street laid out four different scenarios for the conclusion of the Twitter-Musk dispute.
Netflix (NASDAQ:NFLX) is set to report its second-quarter results on July 19. And despite the streaming TV leader being able to claim a massive hit with the new season of Stranger Things, there’s a cloud hovering of the company in the form of an expected decline in its subscriber numbers.
Netflix (NFLX) is expected to report that it lost 2 million net subscribers during the quarter, which has led many analysts to say the company is running uphill in the face of multiple challenges. Some Netflix (NFLX) analysts said the company is facing a “nightmare” scenario in the months ahead.
But, it wasn’t all bad new for Netflix (NFLX), as the company said it had lined up Microsoft (MSFT) to be its global ad sales and technology partner for an upcoming ad-supported subscription option.
Apple (NASDAQ:AAPL) grabbed some attention following a report that it had ended a consulting agreement with Jony Ive, its one-time design chief. Ive, who over nearly three decades was responsible for designing the look and feel of nearly every Apple (AAPL) product, left the company in 2019 to start his own design consulting firm, but had maintained a close consulting deal with Apple (AAPL). Ive and Apple (AAPL) reportedly had a falling out over how how much he was being paid, and his wanting to take on clients aside from Apple (AAPL).
Meanwhile, Apple (AAPL) was said to be the front runner to be the streaming TV partner for the NFL’s Sunday Ticket package of games, with a rights package that could cost as much as $3B a year.
In the streaming TV world, Disney (NYSE:DIS) shares got a lift on Friday following a report that it will raise the price of its ESPN+ service by $3, to $9.99 a month. The price hike is said to not affect the cost of the Disney Bundle package, where subscribers can get Disney+, ESPN+ and Hulu, with ads, for $13.99 a month.
And anyone in the market for a new PC, or a business looking for some near data center gear, might want to go shopping now, as Intel (INTC) began informing some customers that it will start raising the prices of it chips.
