Apple drops, Netflix and Spotify pop after judge rules in favor of Epic Games in lawsuit targeting in-app purchases

tim cook apple
  • A ruling in the Apple vs. Epic Games lawsuit sent shares of the iPhone maker down as much as 3% on Friday.
  • The ruling said Apple must allow other forms of in-app purchases that would not be subject to a commission paid to the company.
  • While shares of Apple fell, companies that rely on the app store to generate business surged, including Netflix, Spotify, and Roblox.
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Shares of Apple fell as much as 3% on Friday after a judge ruled that the iPhone maker must allow other forms of in-app purchases for app developers and their customers.

The ruling – which came in the Apple vs. Epic Games lawsuit – means Apple can’t restrict app developers use of external links when directing customers to sign up for a service. Apple forced app developers to restrict sign-ups to within the app store, allowing the company to collect a percentage of the revenue generated from subscription signups and in-app purchases.

The ruling led to a Friday afternoon pop in shares of companies that rely on the app-store to generate business. Shares of Netflix, Spotify, Roblox, Bumble, and Match.com all popped following the ruling, with some shares up as much as 5%.

The ruling said Apple is “permanently restrained and enjoined from prohibiting developers from including in their apps and their metadata buttons, external links, or other calls to action that direct customers to purchasing mechanisms, in addition to In-App Purchasing and (ii) communicating with customers through points of contact obtained voluntarily from customers through account registration within the app.”

But the ruling also favored Apple in some aspects, and the judge said that “the court cannot ultimately conclude that Apple is a monopolist under either federal or state antitrust laws.” That could represent relief for some investors who are concerned about the ongoing anti-trust investigations into Apple.

Apple said in a statement: “As the Court recognized ‘success is not illegal. Apple faces rigorous competition in every segment in which we do business, and we believe customers and developers choose us because our products and services are the best in the world.”

The company plans to appeal the ruling. If the ruling does stand, Apple’s revenue generated from its app store could fall significantly, as the company warned late last year.

The Apple vs. Epic lawsuit stems from Apple’s decision in August of 2020 to remove the popular video game Fortnite from its app store after Epic developed its own in-app payment system to circumvent Apple’s 30% commission rate.

Apple stock chart
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The SPAC boom is dying down as post-merger companies flounder. These are the 10 worst-performing SPACs of the past year.

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  • The SPAC boom over the past year is beginning to deflate, as scores of post-merged companies flounder below their $10 IPO price.
  • Even high profile names like 23andMe, Blade Air Mobility, and MetroMile have plummeted.
  • These are the 10 worst performing SPACs that completed their merger over the past year.
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The SPAC boom over the past year is beginning to deflate, as issuances slow down and investors sell-out of post-merged companies that are well below their $10 IPO price.

The Defiance Next Gen SPAK ETF is down more than 22% year-to-date, and down more than 37% from its mid-February high. High profile SPAC names like 23andME, Blade Air Mobility, and MetroMilehave plunged at least 25% from their $10 IPO Prices.

The broad decline in the stock prices of companies that went public via SPAC is partly due to poor fundamentals, with some being pre-revenue companies, and most not yet profitable. As these companies first quarterly earnings report as a public company begin to trickle in, investors are heading for the exits.

This trend could continue and ultimately spill over into SPAC listings that have not yet completed a merger, as they trade closer to the $10 IPO price.

That’s because the often 2-year deadline for hundreds of SPACs to complete a deal is not far away as management teams scramble to find a deal. Those deals will likely be of sub-par quality given the many hundreds of SPACs that are desperate to get a deal done and get paid before they have to return the funds raised to investors.

These are the 10 worst performing SPACs that completed their merger over the past year.

10. UpHealth

Ticker: UPH
Market Value: $601.2 million
% Below $10 IPO Price: -42%

UPH Stock chart

9. Romeo Power

Ticker: RMO
Market Value: $655.9 million
% Below $10 IPO Price: -52%

Romeo Power stock chart

8. Metromile

Ticker: MILE
Market Value: $538 million
% Below $10 IPO Price: -56%

Metromile stock chart

7. View

Ticker: VIEW
Market Value: $993.6 million
% Below $10 IPO Price: -58%

VIEW Stock chart

6. Play Studios

Ticker: MYPS
Market Value: $598.7 million
% Below $10 IPO Price: -58%

MYPS stock chart

5. ATI Physical Therapy

Ticker: ATIP
Market Value: $869.1 million
% Below $10 IPO Price: -60%

ATI Physical Therapy stock chart

4. CarLotz

Ticker: LOTZ
Market Value: $479.2 million
% Below $10 IPO Price: -61%

LOTZ stock chart

3. Gemini Therapeutics

Ticker: GMTX
Market Value: $155.4 million
% Below $10 IPO Price: -63%

GMTX stock chart

2. SOC Telemed

Ticker: TLMD
Market Value: $382.2 million
% Below $10 IPO Price: -74%

TLMD Stock Chart

1. UCommune International

Ticker: UK
Market Value: $90.8 million
% Below $10 IPO Price: -90%

UK Stock chart
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Pfizer jumps 6% to eclipse record high reached in 1999 as strength from COVID-19 vaccine continues

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  • Shares of Pfizer surged as much as 6% on Tuesday to surpass its record all-time-high reached in 1999.
  • Pfizer hit a high of $48.57 on Tuesday, more than a dollar over its previous record of $47.39.
  • The pharmaceutical giant has seen its revenue soar on the strength of its COVID-19 vaccine.
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Shares of Pfizer surged as much as 6% on Tuesday to a record all-time-high, surpassing its previous record reached in April of 1999.

The move higher in Pfizer comes amid ongoing strength of its COVID-19 vaccine, which was developed by its partner, BioNTech. Second-quarter earnings results from BioNTech on Monday revealed their view that demand for its COVID-19 vaccine will be strong into 2022 and beyond.

The COVID-19 vaccine has helped Pfizer grow its revenue by 61% in the second-quarter to nearly $19 billion. That revenue could continue to grow as vaccines are approved for children, and the potential for a third booster shot is explored.

Shares of Pfizer jumped to a high of $48.57 on Tuesday, more than a dollar higher than its previous record of $47.39. Year-to-date, shares of Pfizer are up as much as 35%.

The move to new record highs for Pfizer could signal significant upside potential in the stock as it breaks out of a 22-year old base. With no resistance levels above it, the stock has room to rise into unchartered territory and continue to trend higher.

The 161.8% fibonacci extension of Pfizer’s 1999 high and 2009 low suggest an initial price objective of about $70, representing potential upside of 44% from current levels. Technical analysts would likely wait for a confirmation in the breakout of Pfizer, defined by consecutive daily closes above its 1999 record high, before entering long.

Pfizer isn’t the only stock benefiting from its COVID-19 success. Shares of Moderna have soared to a valuation of nearly $200 billion and is now worth more than Merck as it sees revenue explode from its vaccine sales.

Pfizer stock chart
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Robinhood soars 29% to post-IPO high as investors like Cathie Wood’s ARK Invest build positions

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  • Robinhood soared as much as 29% on Tuesday to a post-IPO record of $48.59.
  • The online trading app is seeing buying interest from long-term investors like Cathie Wood’s Ark Invest.
  • Ark Invest has built a stake in Robinhood worth about $250 million since the company went public last week.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Shares of Robinhood soared as much as 29% on Tuesday to a post-IPO record high of $48.59 as long-term investors like Cathie Wood’s Ark Invest begin to build a position in the fintech platform.

Robinhood experienced a choppy debut last week, with shares falling as much as 12% from its IPO price of $38 per share. The IPO was unique in that Robinhood allocated shares to its user base, allowing retail investors to get in on the ground level. That access is typically reserved for institutional investors and their clients.

While only 1% of Robinhood’s user base participated directly in its IPO, other investors appear more bullish on the long-term prospects of the online trading app.

Ark Invest has built a near-$250 million stake in Robinhood since it went public last week. Across Ark Invest’s Disruptive Innovation, Next Generation Internet, and Fintech Innovation ETFs, the firm owns more than 6 million shares of Robinhood.

But not all are bullish on Robinhood, with David Trainer of New Constructs arguing that Robinhood is worth no more than $9 billion, representing downside potential of more than 75% from current levels.

“The mounting regulatory risk Robinhood faces makes us concerned that the public may see Robinhood’s stated goal to ‘democratize investing’ as a ruse to lure them into speculative trading and gambling that benefits Robinhood more than the individual investor,” Trainer said in a report last month.

Robinhood stock chart
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Virgin Galactic drops 17% as announcement of $500 million share sale outweighs successful space flight

richard branson with spaceshiptwo space plane
Richard Branson poses with the new SpaceShipTwo, a six-passenger two-pilot vehicle meant to ferry people into space, in Mojave, California,February 19, 2016.

  • Virgin Galactic dropped more than 17% on Monday after announcing a $500 million share sale.
  • The company successfully completed a space flight with founder Richard Branson over the weekend.
  • Branson thereby beat rival entrepreneurs Jeff Bezos and Elon Musk to be the first billionaire to reach space.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Shares of Virgin Galactic sank by more than 17% on Monday as the company announced a large share sale after completing a successful space test flight with founder Richard Branson on board over the weekend.

A filing with the Securities and Exchange Commission showed the space company was conducting a $500 million share offering. The shares finished the session with a loss of 17.7% at $40.51.

The news comes on the heels of a major development on Sunday, when Virgin Galactic flew a full crew – including founder Richard Branson – to the edge of outer space in its VSS Unity spacecraft, which reached 55 miles above sea level.

Last week, UBS analyst Myles Walton downgraded Virgin Galactic to “neutral” as he believed the majority of optimism around achieving space travel was already considered in the current stock price and it could therefore not skyrocket further. The company has soared almost 200% since mid-May.

With the successful space flight, Branson beat fellow space company founder Jeff Bezos into space by just over a week – the Blue Origin founder is due to fly on July 20 on the New Shepard rocket. Blue Origin’s CEO Bob Smith had played this down earlier in the month, saying that Bezos’ flight would go higher than Branson’s and break through the Kármán line – a heavily contested, imaginary boundary used by some space experts to determine the end of Earth’s atmosphere and beginning of outer space.

Virgin Galactic secured approval from the Federal Aviation Administration to fly customers into space last month, becoming the first company to do so. Over 600 customers are waiting for a spaceflight, including billionaire and CEO of space technology company SpaceX, Elon Musk. Tickets for space flights with Virgin Galactic cost $250,000.

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Virgin Galactic drops as much as 15% after the company announced a $500 million share sale

richard branson with spaceshiptwo space plane
Richard Branson poses with the new SpaceShipTwo, a six-passenger two-pilot vehicle meant to ferry people into space, in Mojave, California,February 19, 2016.

  • Virgin Galactic dropped by as much as 15% on Monday after announcing a $500 million share sale.
  • The company successfully completed a space flight with founder Richard Branson over the weekend.
  • Branson thereby beat rival entrepreneurs Jeff Bezos and Elon Musk to be the first billionaire to reach space.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Shares of Virgin Galactic dropped by as much as 15% on Monday as the company announced a large share sale after completing a successful space test flight with founder Richard Branson on board over the weekend.

A filing with the Securities and Exchange Commission showed the space company was conducting a $500 million share sale. Virgin Galatic shares were last at $41.98, down 14.67% at 12:26 pm E.T.. They hit an intraday low of $41.70 at one point.

On Sunday, Virgin Galactic flew a full crew, including founder Richard Branson, to the edge of outer space in its VSS Unity spacecraft, which reached 55 miles above sea level.

Last week, UBS analyst Myles Walton downgraded Virgin Galactic to “neutral” as he believed the majority of optimism around achieving space travel was already considered in the current stock price and it could therefore not skyrocket further. The company has soared almost 200% since mid-May.

With the successful space flight, Branson beat fellow space company founder Jeff Bezos into space by just over a week – the Blue Origin founder is due to fly on July 20 on the New Shepard rocket. Blue Origin’s CEO Bob Smith had played this down earlier in the month, saying that Bezos’ flight would go higher than Branson’s and break through the Kármán line – a heavily contested, imaginary boundary used by some space experts to determine the end of Earth’s atmosphere and beginning of outer space.

Virgin Galactic secured approval from the Federal Aviation Administration to fly customers into space last month, becoming the first company to do so. Over 600 customers are waiting for a spaceflight, including billionaire and CEO of space technology company SpaceX, Elon Musk. Tickets for space flights with Virgin Galactic cost $250,000.

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Virgin Galactic rises as much as 9% in premarket trading after Richard Branson’s successful space flight

richard branson with spaceshiptwo space plane
Richard Branson poses with the new SpaceShipTwo, a six-passenger two-pilot vehicle meant to ferry people into space, in Mojave, California,February 19, 2016.

Shares of Virgin Galactic rose by as much as 9% in pre-market trading on Monday after the space company completed a successful space test flight with founder Richard Branson on board over the weekend.

This was the first time Virgin Galactic flew a full crew to the edge of outer space in its VSS Unity spacecraft, which reached 55 miles above sea level.

In pre-market trading on Monday, shares of Virgin Galactic were last at $53.08, up 7.89% at 7:13 am E.T., after having closed 6.62% lower at $49.20 after Friday’s regular session.

Last week, UBS analyst Myles Walton downgraded Virgin Galactic to “neutral” as he believed the majority of optimism around achieving space travel was already considered in the current stock price and it could therefore not skyrocket further. The company has soared almost 200% since mid-May.

With the successful space flight, Branson beat fellow space company founder Jeff Bezos into space by just over a week – the Blue Origin founder is due to fly on July 20 on the New Shepard rocket. Blue Origin’s CEO Bob Smith had played this down earlier in the month, saying that Bezos’ flight would go higher than Branson’s and break through the Kármán line – a heavily contested, imaginary boundary used by some space experts to determine the end of Earth’s atmosphere and beginning of outer space.

Virgin Galactic secured approval from the Federal Aviation Administration to fly customers into space last month, becoming the first company to do so. Over 600 customers are waiting for a spaceflight, including billionaire and CEO of space technology company SpaceX, Elon Musk. Tickets for space flights with Virgin Galactic cost $250,000.

Read the original article on Business Insider

LegalZoom spikes 39% in IPO debut, valuing the company at more than $7 billion

A stock trader claps at the end of trade at the New York Stock Exchange

Shares of LegalZoom spiked as much as 39% in its IPO debut on Wednesday, giving the firm a valuation of more than $7 billion.

The online legal services provider priced its initial public offering at $28 per share and hit an intraday high of $38.68 in the afternoon trading session. LegalZoom had initially guided for an IPO range of $24 to $27. The firm sold 19.1 million shares in the IPO, raising about $535 million in proceeds.

The company generated $10 million in net income on $471 million in revenue in 2020, representing year-over-year revenue growth of 15%, according to its S-1 filing.

LegalZoom was formed in 2001 and co-founded by Robert Shapiro, a prominent lawyer who was on OJ Simpson’s defense team amid his 1995 murder trial.

In 2018, LegalZoom raised $500 million at a $2 billion valuation from Francisco Partners, GPI Capital, Franklin Templeton, and Neuberger Berman.

Read more: Oppenheimer says these 5 under-the-radar gaming stocks will lead gains in the red-hot sector through year-end – including two that look cheap right now

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AMC jumps 10% as the Reddit favorite reports the most customers in a weekend since reopening

Vin Diesel driving a car in "Fast and Furious 9."
Vin Diesel in “Fast and Furious 9.”

  • AMC Entertainment jumped as much as 10% on Monday after it reported strong traffic at its theaters over the weekend.
  • The company said more than 2 million customers visited its movie theaters over the weekend.
  • The new ‘Fast and Furious’ movie installment helped drive a post-pandemic box office record.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Meme stock and Reddit favorite AMC Entertainment soared on Monday, surging as much as 10% following a strong weekend at the movies.

Driven by hot weather and the opening of “Fast and Furious 9,” AMC saw more than 2 million guests visit its theaters over the weekend, representing a post-pandemic record for the company.

“Fast and Furious 9” also broke records, with the movie generating $70 million in ticket sales over the weekend. That’s the biggest opening weekend for a movie since 2019’s Star Wars: The Rise of Skywalker.

According to AMC, six of its movie theater locations represented the top 10 busiest theaters in the US. And an additional 500,000 people visited AMC’s international locations over the weekend, according to the company.

“The combination of widespread vaccination and the release once again of blockbuster movies is proving to be the magic formula for the return of moviegoing,” AMC CEO Adam Aron said.

Shares of AMC are up more than 2,600% year-to-date and have cost short-sellers billions in losses.

Despite the near-record stock price and an improving outlook for movie ticket sales, some investors remain unconvinced that AMC is worth its current market valuation of nearly $30 billion. Short interest as a percentage of AMC’s entire share float still stands at just below 20%, according to data from ShortSqueeze.

AMC Entertainment stock chart
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Eli Lilly jumps 10% after it says it will seek approval for its Alzheimer’s drug following designation as a breakthrough therapy by the FDA

The logo of Lilly is seen on a wall of the Lilly France company unit, part of the Eli Lilly and Co drugmaker group, in Fegersheim near Strasbourg, France, February 1, 2018.  REUTERS/Vincent Kessler
The logo of Lilly is seen on a wall of the Lilly France company unit, part of the Eli Lilly and Co drugmaker group, in Fegersheim near Strasbourg

  • Eli Lilly jumped 10% on Thursday after the company said it would seek accelerated approval for its Alzheimer’s drug.
  • Donanemab received a breakthrough therapy designation from the FDA on Thursday following phase two data.
  • The move comes just weeks after Biogen received FDA approval for its Alzheimer’s drug despite criticisms around insufficient data.
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Shares of Eli Lilly jumped as much as 10% on Thursday after the company said it would seek accelerated approval for its Alzheimer’s drug candidate, donanemab.

The announcement from the Indianapolis-based firm comes alongside news that the FDA designated the drug as a breakthrough therapy, setting it up for an expedited approval process. Donanemab met its primary endpoint in a phase two trial earlier this year.

Investors are likely bullish on the potential approval for Eli Lilly’s Alzheimer’s drug candidate, given that the FDA recently approved a controversial Alzheimer’s treatment, called Aduhelm, from Biogen. Many argued, including some scientists on an FDA panel reviewing the drug, that the data provided by Biogen was insufficient to receive approval.

Eli Lilly said it would file for accelerated approval of donanemab later this year, even though it is still in the midst of running its phase 3 trial of the drug. Eli Lilly’s decision surprised one Wall Street analyst.

Goldman Sachs analyst Terence Flynn said in a note on Thursday that Eli Lilly seeking accelerated approval for the drug “is ahead of our expectations as we believed there was a likelihood the FDA could have requested additional safety data from the ongoing Phase 3 trial.”

Flynn added that the potential approval of donanemab could “lead to questions on nearer-term market share for Biogen’s Aduhelm.” Shares of Biogen fell as much as 7% in Thursday trades.

Goldman Sachs rates Eli Lilly as a Buy with a $270 price target, representing potential upside of 24% from Wednesday’s close.

Eli Lilly stock chart
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