(Bloomberg) -- Critics of Facebook Inc. who have assailed the social network as failing to adequately police hateful and misleading content on its service found a powerful ally Friday: Unilever, one of the world’s largest advertisers, said it would stop spending money with Facebook’s properties this year.The decision by the maker of major consumer goods like Dove soap and Hellmann’s mayonnaise to follow other brands in an advertising boycott, prompted a rare reaction from Facebook’s investors. Shares plunged 8.3% on the news, eliminating $56 billion in market value. Unilever’s pledge applies immediate pressure on other big companies and presents a risk to Facebook’s dominant business. Later Friday, Coca-Cola Co. said it would pause ads on all social media platforms for at least 30 days, while Honda Motor Co.’s U.S. unit, Hershey Co. and several smaller brands said they would join the boycott.Facebook Chief Executive Officer Mark Zuckerberg attempted to address advertiser...
[Editor's Note: "Wait For Another Pullback Before Buying AAL Stock" was originally published April 22, 2020. It is regularly updated to include the most relevant information.]Source: GagliardiPhotography / Shutterstock.com Is American Airlines (NASDAQ:AAL) stock headed back to the single-digits? Earlier this month, shares went parabolic. Speculators chomped at the bit to wager on a rapid recovery post-novel coronavirus.But now, a resurgence in coronavirus cases threatens the bull case for air travel. A quick rebound looks more like a long-shot.InvestorPlace - Stock Market News, Stock Advice & Trading TipsGranted, with the airline boosting its travel schedule, the situation may not be as bad as it seems. But, keep in mind the many fleas on this legacy carrier. Even before the pandemic affected air travel.As I previously discussed, American Airlines already had a heavy debt load and other operating issues.And despite the company receiving $5.8 billion in payroll support from the $2 trillion...
[Editor's Note: "Even as Penn National Gaming Stock Rebounds, Consider Other Casino Plays" was originally published April 17, 2020. It is regularly updated to include the most relevant information.]Source: Jeffrey J Coleman / Shutterstock.com What's next for Penn National Gaming (NASDAQ:PENN) stock? Shares have skyrocketed from their lows. With casinos reopening after the novel coronavirus shutdowns, investors are betting on a quick rebound. But, who's to say we'll see a V-shaped recovery at the gaming tables?Casino stocks offer high risk, but high potential returns. Yet, Penn National has pulled back after retracing its past high. But even as shares hold steady around $32 per share, there's many reason why shares could dip further.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFirstly, the company mostly leases the real estate under its casinos. This may have been a smart financial engineering move. But it leaves them fewer liquidity options relative to peers.Secondly,...
The biggest worry surrounding American Airlines Group (AAL) was the large debt load and whether the company could get back to cash flow positive quick enough to repay debt. For this reason, a lot of people have speculated on whether the weaker airline would go bankrupt.The airline just raised about $2 billion reducing the bankruptcy fears. The bigger question all along was whether the airline had value here around $12.50, not whether American Airlines was ever going to end up bankrupt. Equity RaiseAmerican Airlines raised nearly $2 billion via an equity offering of 74.1 million shares and $1 billion via convertible notes. In addition, the airline raised another $2.5 billion via a notes offering in anticipation of raising $4.75 billion via the Loan Program portion of the CARES Act.The airline issued the common shares at $13.50 for a steep discount from the $16.00 when the week started before the news of...
(Bloomberg) -- When the coronavirus pandemic sent shares plunging, you didn’t have to be a professional investor to spot a buying opportunity. In fact, it might be better if you weren’t.The can’t-miss rise of equity markets around Asia is fueling the explosion of interest among retail investors in the region, mirroring their exuberance worldwide. Millions of investors who had never so much as opened a trading account before have been piling into the market.Just as the pandemic led bored Americans to make the Robinhood investing app a household name, it’s the amateurs who have helped to lift equities from India to Thailand despite some of the worst macroeconomic fundamentals in memory. But it’s also giving professionals pause - what happens when these investors are no longer around?“If everyone is going into the same name and something happens, those names are likely to be sold off quite aggressively,” said Catherine Yeung, Fidelity...
The high costs of legal settlements and “nuclear verdicts” have made it harder for fleets to get affordable insurance, but motor carriers can beat those trends with technology, tightly run safety programs, and intelligent risk financing. ...
