Tag Archives: slumped

Niantic Refutes Claims That Pokémon Go’s Revenue Has Slumped To Five Year Low – IGN

  1. Niantic Refutes Claims That Pokémon Go’s Revenue Has Slumped To Five Year Low IGN
  2. Pokémon Go developer dismisses “incorrect” report that claimed revenue down to lowest since 2018 Eurogamer.net
  3. Niantic Dismiss Claims of Low Monthly Revenue and Tease New Features | Pokémon GO Hub Pokémon GO Hub
  4. Niantic responds to “incorrect” Pokemon Go revenue report for April 2023 Dexerto
  5. Pokémon GO Developer Says Reports Of Monthly Earnings At Five-Year Low Are “Incorrect” Nintendo Life
  6. View Full Coverage on Google News

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Elon Musk’s wealth drops by nearly $13 billion — the biggest slide this year — after Tesla’s share prices slumped and SpaceX’s Starship rocket exploded – Yahoo! Voices

  1. Elon Musk’s wealth drops by nearly $13 billion — the biggest slide this year — after Tesla’s share prices slumped and SpaceX’s Starship rocket exploded Yahoo! Voices
  2. Elon Musk Net Worth Tumbles on Day Tesla Earnings Miss, SpaceX Rocket Explodes Bloomberg
  3. Elon Musk’s Disastrous Week The Atlantic
  4. Elon Musk Celebrates 4/20 With SpaceX Launch, Twitter Check Removal and More Bloomberg
  5. S&P 500: Elon Musk’s $55.8 Billion Blowup Boosts Mark Zuckerberg’s Gain | Investor’s Business Daily Investor’s Business Daily
  6. View Full Coverage on Google News

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Peloton Co-Founder John Foley Faced Repeated Margin Calls From Goldman Sachs as Stock Slumped

John Foley,

the co-founder and former chief executive of

Peloton Interactive Inc.,

PTON -3.41%

faced repeated margin calls on money he borrowed against his Peloton holdings before he left the fitness company’s board last month, according to people familiar with the situation.

As Peloton’s shares slumped over the past year,

Goldman Sachs Group Inc.

GS -2.11%

asked Mr. Foley several times to provide fresh funds or additional collateral for personal loans the bank had extended to him, the people said. The company’s share price has fallen nearly 95% from its $160 peak in December 2020.

Resigning from the board gave Mr. Foley flexibility to sell or pledge more Peloton shares, though he said the margin calls weren’t the reason he left the company.

“I didn’t resign from the board because I was underwater,” he said. “To the extent that I took on debt through Goldman, it was because I am bullish on Peloton and still am. It was and is a great company.”

The former chairman and CEO had pledged as collateral about 3.5 million Peloton shares as of the end of September 2021, or about 20% of his stake at the time, securities filings show. The pledged shares were worth more than $300 million a year ago. At current prices, they are worth roughly $30 million.

Peloton has cut thousands of jobs this year to stem its losses.



Photo:

John Smith/VIEWpress/Getty Images

Mr. Foley was able to secure private financing and avoid stock sales by Goldman, the people said. He declined to say on Monday how much of his current stake had been pledged or how much he had borrowed against his holdings.

His seat on the board limited his ability to raise additional funds because most public companies prohibit directors and executives from selling their shares during certain trading periods. In addition, Peloton’s policy limits pledges for margin loans by directors or executives to 40% of the value of an individual’s shares or vested options.

Mr. Foley’s decision to leave the board on Sept. 12 followed a tumultuous several months at the company he co-founded a decade ago, as well as a sharp decline in his personal wealth as Peloton’s sagging fortunes diminished the value of his holdings. His stake in the company, worth $1.5 billion a year ago, is currently worth less than $100 million.

“Everyone can see I had a rocky year,” Mr. Foley said. “This was not a fun personal balance-sheet reset.”

Barry McCarthy, a Silicon Valley veteran, became Peloton’s CEO in February.



Photo:

Angela Owens/The Wall Street Journal

In February, Mr. Foley stepped down as Peloton’s CEO and was succeeded by

Barry McCarthy,

a former

Netflix Inc.

and Spotify Technology SA executive. Mr. Foley kept his position as Peloton’s executive chairman and continued to hold a controlling stake in the company through Class B shares with 20 votes apiece.

A few weeks later, Mr. Foley reported selling $50 million worth of Peloton shares in a private transaction. At the time, Peloton said the sale was part of the executive’s personal financial planning. The sale left him and his wife,

Jill Foley,

a former Peloton executive, with 6.6 million shares and options on another 8.4 million, according to securities filings, which combined are currently worth less than $100 million. He hasn’t reported any stock or option sales since March. Business Insider reported in March that Mr. Foley was in discussions with Goldman about restructuring his personal loans.

Peloton’s business deteriorated throughout the spring and summer, with the company in August reporting a $1.2 billion loss and the first ever quarter in which its subscriber numbers failed to grow. The company has cut thousands of jobs this year to stem its losses, including a round of layoffs unveiled last week.

Mr. Foley’s 10-year tenure as CEO was marked by rapid growth and sometimes lavish spending. He took heat from Peloton employees last December for hosting a black-tie holiday party that included some of the company’s celebrity instructors weeks after implementing a hiring freeze. Pictures circulated on Instagram of gown-clad instructors dancing at New York’s luxury Plaza Hotel. Mr. Foley acknowledged on social media that the event caused “frustration and angst” among employees.

Peloton has been on a wild ride, announcing its CEO was stepping down and thousands of jobs would be cut, despite seeing a surge in sales early in the pandemic. Here’s why Peloton became a viral success, and why it’s spinning out now. Photo illustration: Jacob Reynolds

That same month, Mr. Foley paid $55 million to purchase an oceanfront mansion in East Hampton, N.Y., according to real-estate records and people familiar with the transaction. He and Ms. Foley in September put their Manhattan penthouse up for sale. The property, last priced at $6.5 million, is in contract to be sold, according to listings website StreetEasy.

Margin loans, or borrowing against portfolios of stocks and bonds, come with the risk that a broker can call for additional cash or collateral to meet the minimum equity required if a security’s price drops too low. Sharp drops in stock prices during the 2000 dot-com burst and the 2008 financial crisis generated margin calls for executives at well-known companies.

John Foley paid $55 million to purchase this oceanfront mansion in East Hampton, N.Y.



Photo:

PICTOMETRY

Peloton requires directors, executives and employees to get approval for pledging their shares as collateral for margin loans. Other Peloton executives also have pledged some of their Class B holdings, and in the annual report Peloton filed last month, the company warned that investors could be harmed if its stock fell and executives were forced to sell shares.

Goldman has worked closely with Peloton, including when Mr. Foley was the CEO. The investment bank was one of the lead underwriters of the company’s initial public offering in 2019. Goldman bankers also co-led a $1 billion stock offering in November 2021.

Investors initially soured on Peloton—its shares fell 11% the day they made their debut at $29. The stock surged in 2020 during the onset of the Covid-19 pandemic, giving the company a peak market value of $50 billion and making Mr. Foley a billionaire on paper. The shares closed down 3.4% Tuesday at $8.78.

and Katherine Clarke contributed to this article.

Write to Sharon Terlep at sharon.terlep@wsj.com and Suzanne Vranica at suzanne.vranica@wsj.com

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Stock Market Today: Dow Rose as Moderna Slumped Again

The


Dow Jones Industrial Average

had one of its best days this year on Monday, as value and defensive stocks led a rebound from last week’s market declines.

The news Monday was relatively positive, with signs that the Omicron variant of Covid-19 might be less severe than earlier strains and reports that China is considering easing monetary policy. On the Federal Reserve policy front, the latest reporting suggested that the central bank could announce plans at its next meeting to more quickly pull back from its bond-buying program.

The Dow surged 647 points, or 1.9%, for its best one-day point gain since November 2020 and the largest percentage increase since last March. The


S&P 500

closed up 1.2% and the Nasdaq Composite rose 0.9%, while the small-cap


Russell 2000

gained 2.1%, for its fourth-straight daily move of 2% or more.

Post-pandemic reopening stocks were among the biggest gainers on Monday. The


U.S. Global Jets

exchange-traded fund (ticker: JETS) added 5.3%, as


American Airlines Group

(AAL) added 7.9% and


United Airlines Holdings

(UAL) jumped 8.3%. Cruise lines


Carnival

(CCL) and


Royal Caribbean Cruises

(RCL) surged 8.0% and 8.3%, respectively.


Marriott International

(MAR) added 4.5%,


Live Nation Entertainment

(LYV) rose 6.1%, and


Cinemark Holdings

(CNK) gained 7.7%.

S&P 500 value stocks as a group gained 1.4% on Monday, versus a 0.9% rise for growth stocks in the index.

Investor attention remains focused on the newly discovered Omicron variant of coronavirus, news of which recently brought about the Dow’s worst day of the year and saw volatility rock markets last week. The latest headline driving sentiment comes from South Africa, where data—though from a small sample size—suggest that symptoms caused by Omicron were milder than with other variants.

Investors aren’t out of the woods yet, however. The broad market will remain sensitive to daily headlines about Omicron—both good and bad.

“It still feels like we’re in the guesswork stage of working out what the impact of Omicron will be,” said Russ Mould, an analyst at broker AJ Bell. “It would be naive to rule out further volatility as markets attempt to work out exactly what’s going on.”

On Monday, the news was positive and investors bought the market. All 11 S&P 500 sectors closed in the green.

Fed policy has been pushing investor sentiment the other way. Chair Jerome Powell indicated last week that the central bank would consider speeding up its slowing, or tapering, of monthly asset purchases, which add liquidity to markets, amid higher inflation.

“We’re really at a fascinating crossroads in markets at the moment,” said Jim Reid, a strategist at Deutsche Bank. “The market sentiment on the virus and the policy makers at the Fed are moving in opposite directions.”

Those trends mean different things for different kinds of stocks and indexes.

If Omicron is less severe than feared, then the economy might hold up better than expected. That would be good for economically-sensitive cyclical stocks, like many of those in the Dow. Higher bond yields and interest rates, however, can put downward pressure on stock valuations, particularly those with nosebleed price-to-earnings ratios, many of which are found in the Nasdaq.

“Like Friday, how the Nasdaq trades will likely determine the day, as markets want to see the tech sector stabilize after intense weakness late last week,” wrote the Sevens Report’s Tom Essaye. “If the Nasdaq can stabilize, the broad market can bounce.”

The tech-heavy index bounced from a loss of about 1% shortly after Monday’s opening bell.

In the commodity space, oil prices rose Monday after Saudi Arabia raised its January prices for Asian and U.S. customers over the weekend by $0.60, in a sign of firmer demand expectations.

Futures contracts for the international oil benchmark Brent rose 4.6%, to above $73 a barrel, with U.S. futures for West Texas Intermediate crude up 4.9% to about $69.50 a barrel.

“Given that OPEC+ is proceeding with its planned 400,000 barrels per day increase this month, it appears that Saudi Arabia is taking a punt that Omicron is a virus in a teacup,” said Jeffrey Halley, an analyst at broker Oanda. “Saudi Arabia’s confidence, along with the South African Omicron article over the weekend, is a boost to markets looking for good news in any corner they can find it.”

Cryptocurrency markets remained depressed after digital assets took a tumble over the weekend.


Bitcoin

and


Ether,

the two leading cryptos, remained off their lows following the stark fall Saturday, but were slipping after steadying Sunday. Bitcoin was trading hands around $49,000—down from more than $57,000 as recently as Friday—with Ether holding above $4,000.

Here are several stocks on the move Monday:


Nvidia

(ticker: NVDA) was among the most actively traded stocks in the U.S. Monday, closing down about 2.1%. Shares of fellow semiconductor firm Advanced Micro Devices (AMD) lost 3.4%.


Lucid Group

(LCID) stock dropped 5.1% after the electric-vehicle startup revealed that it had received a subpoena from the Securities and Exchange Commission, without offering many details.


Kohl’s

(KSS) gained 5.4% after an activist investor said it should explore selling itself.


Moderna

(MRNA) fell 13.5% after its president said that the risk that vaccines don’t work as well against Omicron is high. Pfizer (PFE) stock slid more than 5%.

Alibaba Group Holding (BABA) stock closed up 10.4% after a management shakeup at the e-commerce giant.


Deutsche Bank

(DB) rose 3.6% after JPMorgan upgraded the bank to Overweight from Neutral, adding that the group shows positive revenue developments in key divisions.

Pharma giant


Roche

(ROG.Switzerland) rose 1.5% in Zurich after announcing that it would release rapid antigen tests for Covid-19 and flu viruses next month.

Food delivery group


Just Eat Takeaway.com

(JET.U.K.) fell 4.9% in London following a price target cut and downgrade to Market Perform from Outperform by Bernstein, which sees few positive catalysts in the pipeline for the company.

Write to Jack Denton at jack.denton@dowjones.com

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Covid vaccinations have slumped in parts of the U.S. and Europe

Volunteers are trained by St John Ambulance instructors in the correct use of PPE during their course to administer Covid-19 vaccines at Manchester United Football Club on January 30, 2021 in Manchester, England.

Christopher Furlong | Getty Images News | Getty Images

When coronavirus vaccines were developed, trialed and authorized for emergency use in record time, millions of people eagerly awaited the protection and peace of mind they afforded.

But around nine months after vaccination rollouts began in the West there has been a slowdown in some national and state-wide immunization drives across the U.S. and Europe.

This slowdown, combined with a slow uptake in some areas, is worrying experts. Particularly as many Covid preventative measures have been relaxed and cases are rising in both the U.S. and parts of Europe.

“The stagnation in vaccine uptake in our region is of serious concern,” Dr. Hans Kluge, regional director of WHO’s European region, said in a press statement last week.

“Now that public health and social measures are being relaxed in many countries, the public’s vaccination acceptance is crucial if we are to avoid greater transmission, more severe disease, an increase in deaths and a bigger risk that new variants of concern will emerge.”

He said there had been 64 million confirmed cases and 1.3 million deaths in the region, which comprises 53 countries ranging from those in Western Europe to Russia and its surrounding countries. Kluge added that 33 countries in the region had reported a greater-than-10% increase in their 14-day case incidence rate.

“This high transmission is deeply worrying — particularly in the light of low vaccination uptake in priority populations in a number of countries,” Kluge said. 

“In the past 6 weeks, vaccination uptake in the region has slowed down, influenced by a lack of access to vaccines in some countries and a lack of vaccine acceptance in others. As of today, only 6% of people in lower and lower-middle-income countries in our region have completed a full vaccination series.”

The picture in the U.S. and Europe

Vaccination programs kicked off late last year in both Europe and the U.S. at varying speeds. While the U.K. and U.S. were quick to start vaccinating the elderly and health care workers, the EU’s drive was more sluggish as a result of late ordering, supply constraints and contentions over clinical data (mainly with the AstraZeneca shot) hindering the progress of some rollouts in the EU.

These teething problems have largely been ironed out, however, and now a large proportion of adults and young people in the U.S. and Europe are fully vaccinated.

To date, 69.2% of adults in the EU are now fully vaccinated, according to the European Centre for Disease Prevention and Control (although the European Commission announced last Tuesday that it reached its goal of vaccinating 70% of the EU’s adult population).

In the U.K., 79.8% of all over-16s are fully vaccinated and in the U.S., 62% of the population over the age of 12 is fully vaccinated, according to the U.S.’ Centers for Disease Control and Prevention.

Vaccinating millions at short notice and under pressure during a public health crisis is an undeniable achievement, but as vaccination drives have progressed, they have slowed down in a number of countries, figures from Our World in Data show.

The sharp slowdown in vaccinations in early summer led to the U.S. reaching President Biden’s target of giving one dose to 70% of all adults by July 4 a month late, with the milestone hit instead on August 2. The miss was largely attributed to younger adults, aged between 18-29, not coming forward for their shots.

“The country has more work to do… particularly with 18- to 26-year-olds,” White House COVID-19 senior adviser Jeffrey Zients said in late June when it became apparent the target would be missed. “The reality is many younger Americans have felt like Covid-19 is not something that impacts them, and they’ve been less eager to get the shot.”

Likewise, in Europe, there has been a lower (and slower) uptake among young adults and, again, this has been attributed to a more relaxed attitude among young people toward Covid. They are at much less risk than older people from hospitalization and death, and the reopening of societies this summer looks to have removed the incentive to get immunized for some.

As the U.S.’ vaccination rollout has progressed, the divergence in vaccination rates across the U.S. has become more pronounced, varying widely across the country with southern states tending to lag behind their northern counterparts. Some states have been encouraged by the president to offer cash incentives in a bid to attract people to get a shot.  

A slowdown in vaccination rates is worrying because it allows the virus to spread. This, in turn, could allow new variants to emerge, which could weaken the efficacy of the existing Covid vaccines.

The U.S. has been experiencing the spread of the highly infectious delta Covid variant this summer. It has been particularly virulent in states with low vaccination coverage, such as Louisiana, Idaho and Mississippi, where the state’s top health official said in early August that the virus was sweeping across the state “like a tsunami.”

Vaccine objectors remain

Experts say there is no one reason for the slowdown in vaccinations, given that vaccine supply is not currently an issue in the U.S. or Europe.

While younger people might not feel a pressing need to get vaccinated, others are still refusing vaccines due to concerns about the long-term safety of rapidly-developed shots. This is despite health agencies and experts backing the Covid jabs as “stunningly effective.”

As vaccination drives progress, those refusing the shot are likely to become more conspicuous, one epidemiologist told CNBC.

“My gut feeling is it’s a combination of all of the obvious — considering how much better vaccine uptake everywhere has been relative to opinion poll expectations in the early days (remember some of the dire predictions from the USA and France?), we may now be left with the residual refuseniks who, through age-group and belief, may be among the hardline objectors,” Danny Altmann, a professor of immunology at Imperial College London, told CNBC on Tuesday.

There is a wide divergence in rates of Covid vaccine acceptance and hesitancy in the U.S. and Europe.  Vaccine uptake is traditionally high in the U.K. and Spain, a factor that has facilitated Covid vaccination programs, while France has seen a much more pervasive hesitancy toward the Covid vaccine.

Vaccination rates differ wildly across Europe currently, with eastern and southern European countries, Russia and its neighbors all lagging behind their western European counterparts.

Covid vaccine hesitancy remains highest in Russia and the U.S., according to the latest vaccine tracking poll from Morning Consult, which conducts over 75,000 weekly interviews across 15 countries on the Covid vaccine rollout.

The latest data, based on surveys conducted between Aug. 17-Aug. 23 (and with 45,604 interviews conducted in America) showed that Russia and the U.S. still have the highest rates of vaccine opposition among all the countries surveyed. Some 31% of Russians said they were unwilling to get the Covid vaccine (and a further 16% were uncertain over whether to receive it) and 18% of Americans polled unwilling to get the shot, with a further 10% uncertain.

Meanwhile, millions of people in other countries have no choice whether to receive a Covid vaccine or not. Although 40.3% of the world’s population has received at least one dose of a Covid-19 vaccine, only 1.8% of people in low-income countries have received at least one dose, according to Our World in Data.

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