High price for Amazon and Disney still in the race | Calamatta Cuschieri

Market update, Amazon hitting an all-time high, Disney still in the race and Facebook to expand search Jobs 

European stock markets closed lower on Wednesday to end the month in the red, after a fresh set of data on the Eurozone and Germany, as well as updates on the Brexit front. The European Union published inflation estimates, whereas investors also monitored German unemployment and consumer sentiment figures.

Meanwhile, the EU released the first legal draft of the Brexit withdrawal agreement, saying the United Kingdom has to allow Northern Ireland to remain inside the customs union. UK Prime Minister Theresa May said her government is still committed to avoiding a hard border between Northern Ireland and Ireland.

London's FTSE 100 declined 0.10%. Media house ITV Plc plummeted 7.39% citing advertising troubles. Germany's DAX fell 0.45% at the closing bell, as the electric utility service provider E.ON SE lost 2.36%. French CAC 40 finished the session 0.40% lower. Belgian chemical company Solvay dropped 3.28% after its quarterly earnings report.

Amazon hits all-time high after deal to acquire Ring

Amazon.com Inc. shares saw an all time high price with an intraday record value. The surge to $1,528.7 in the giant retailer follows its acknowledgment that it purchased privately held Ring, which supplies home security systems including smart doorbells and cloud recording. Media speculation put the price for the business in the range of $1 billion.

The most recent valuation landed at $760 million, while the firm has raised $209 million from investors. Amazon, which makes complementary product Amazon Key, earlier invested in the start-up based in Santa Monica, California, through its Alexa Fund. In December, the conglomerate led by Jeff Bezos took over Blink.

Disney still in the Race

Comcast Corp.'s surprising offer of £22.1 billion in cash for the takeover of Sky Plc, with a minimum of 50% plus one ordinary share, won't deter the push by Twenty-First Century Fox Inc. to buy the rest of the business, in which it holds 39%. This may as well be interpreted as a counteroffer for the British company may be underway.

Fox's holding in Europe's largest pay-tv service operator is set to be transferred to Disney in a separate acquisition, which has now become more complicated and difficult to be executed. The owner of National Geographic has already run into a lengthy regulatory hurdle in the United Kingdom.

Facebook to expand search Jobs

Facebook Inc. announced that it is expanding the ability to apply to jobs on its social media platform to over 40 countries. The feature was originally limited to the United States and Canada when it rolled out last year. The company said the motivation behind the move is that it wants to help local businesses by facilitating the hiring process.

 

Disclaimer:

This article was issued by Rodrick Duca, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

More in Business Comment
It’s time for IPOs | Calamatta Cuschieri
Business Comment
Calamatta Cuschieri
Mixed markets | Calamatta Cuschieri
Business Comment
Calamatta Cuschieri
Mirror, mirror on the wall, which coin is the fairest one of all?
Markets down on trade war fears | Calamatta Cuschieri
Business Comment
Calamatta Cuschieri

Get access to the real stories first with the digital edition

Subscribe