NY/CA DAs Sue to Block T-Mobile / Sprint Merger
Federal antitrust officials are already reviewing the proposed merger between Sprint (S) and T-Mobile (TMUS), but a group of state attorneys from California and New York are challenging the deal. The suit claims that the merger between the two consumer cellular giants would harm consumers by driving up prices for mobile services.
Hong Kong Protests
Violence erupted during demonstrations in Hong Kong to protest the imposition of a new extradition treaty with mainland China. Police fired rubber bullets and tear gas in an attempt to disperse crowds from blocked roadways and other areas where they had created disruptions. The demonstrators caused the closing of the city’s legislature before lawmakers were able to vote on the proposed law.
Oil Prices Down
The U.S. Energy Information Administration lowered its demand forecast to 1.2 million barrels on Tuesday, 15% lower than the previous month’s figure. Brent crude fell 2.7% on the London ICE Futures Exchange to $60.61 a barrel. On the NY Mercantile Exchange, WTI fell 3% to $51.70 a barrel. Crude is down 14% for the past month, and WTI is down 16%.
Shares of Tesla (TSLA) are rallying following the latest round of statements from CEO Elon Musk. On Tuesday evening at Tesla’s annual shareholder meeting Musk boasted, “Sales have far exceeded production and production has been pretty good so we’re actually doing well.” He further predicted that the company has a “decent shot at a record quarter on every level.” Musk also stated that Tesla does not have a demand problem – despite weakening sales – and promised that “it won’t be long” before the company produces a 400-mile range vehicle. Shares of Tesla were up 4% in pre-market trading.
Beyond Meat (BYND) incredible bull run has raised a lot of eyebrows, but the market seems willing to pay any price for the alternative meat producer. It’s been a party for BYND shareholders but, on Tuesday, JP Morgan was a buzzkill. The lead underwriter for the BYND IPO, JP Morgan downgraded Beyond Meat to ‘sell’.
The stock has surged over 600% since its IPO, but JP Morgan analyst Ken Goldman thinks that the current price levels are beyond reason. “This downgrade is purely a valuation call. As we wrote last week, ‘At some point, the extraordinary revenue and profit potential embedded in BYND… will be priced in’ – we think this day has arrived.” The stock is currently trading at 65% above its average 12-month price target of $103.85
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