Spring has sprung and it’s hard to believe summer is fast approaching!
April’s stock market was all over the board, as investors weathered the fallout from an interest rate hike and ongoing disruptions in the food and energy sectors caused in part by the Russia_Ukraine war. It was an eventful month for two notable tech companies, as Twitter accepted billionaire Elon Musk’s offer to buy the company, while Netflix shares dropped after announcing disappointing subscriber growth.
Elon Musk agrees to buy Twitter. The social media platform’s board of directors initially bristled at Musk’s takeover bid before changing their minds and accepting the tech titan’s $44 billion offer. Musk, whose frequent tweets are followed by nearly 84 million Twitter users, plans to take the company private. Critics complain that Musk’s less restrictive view on content moderation will open the door to toxic contributors, sending users running for the exits and potentially endangering advertising revenue. Proponents of the deal cite Musk’s track record of challenging conventions to improve products, an approach they feel will help Twitter remain competitive.
Netflix stock price crashes -35% in a day. Traders punished the streaming giant after the company announced the loss of 636,000 subscribers in the United States and Canada last quarter (global subscriptions were down 203,000 for the quarter). The drop represents about a -1% fall in global subscriber figures, quarter-over-quarter. Netflix also announced plans to crack down on password sharing and add a new advertising-based subscription tier in the next year or two.
Crude oil prices moderate. After spiking to nearly $125/barrel, oil prices (as measured by WTI Crude) have slipped below $100/barrel as of this writing. Gas prices have followed suit, retreating from previous highs to around $4/gallon nationally. It’s too soon to tell if this recent pullback indicates a return toward gas’s 52-week average price of $3.35/gallon. Fingers crossed!
Kickoff to nest season. Georgia’s Travon Walker was the first overall pick in the annual National Football League (NFL) Draft, held in Las Vegas this year. While first-round picks generate the most buzz, the real focus should be on players selected in the middle of the second round – at least according to Richard Thaler, who won a Nobel Prize for his work in behavioral economics. Read his blog about the intersection of game theory and player selection in the NFL Draft.
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