Welcome to the new Opening Bell from The Water Coolest. We think you're gonna like it here ...
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Snap back to reality, oh there goes gravity [The Water Coolest]
Snap is facing subpoenas from both the SEC and DOJ over whether or not it misled investors prior to its IPO regarding how Instagram's copy-cat features would adversely affect the firm's stock price. The action stems from a lawsuit set forth by investors.
For what it’s worth, Snap’s pre-IPO filing had this to say: “Instagram, a subsidiary of Facebook, recently introduced a “stories” feature that largely mimics our Stories feature and may be directly competitive.” However, salty "traders" who probably got Snap as their free Robinhood stock claim the company didn’t go far enough.
You can't blame the angry horde of investors for shooting their shot ... Snap has had nothing short of a pathetic run as a public company.
Dead man walking [The Water Coolest]
Please, make it stop. Sears is reportedly finalizing a $350M bankruptcy loan that will keep the lights on ... through the holidays. As in 39 days from now. Combined with the $300M already secured by the retailer, Eddie Lampert should be able to drag out his perverse Green Mile metaphor at least through Q1.
Sweetening the Dell [The Water Coolest]
World-renowned curmudgeon, Carl Icahn who owns 8.3% of Dell's tracking stock is claiming that the buyout deal is undervaluing the DVMT stock and robbing shareholders of $11B in value. Dell is said to be upping the ante with a $13B cash portion of the deal.
What else is happening today?
- Despite a 38% increase in revenue, Uber's loss hit almost $1B, an increase quarter-over-quarter. The self-reported financials were released ahead of a (slightly less highly) anticipated 2019 IPO.
- Victoria's Secret hasn't exactly been at the forefront of the women's empowerment movement. Exhibit A: scantily clad "Angels" leaving little to the imagination in primetime (and in 3D!). As a result, sales have slumped at the L Brand owned lingerie peddler. And now, CEO Jan Singer is on her way out as the brand struggles to find its way in 2018.