Shares of Twitter (TWTR) and Snapchat parent Snap (SNAP) are up big on the year after reporting strong quarters last week and continuing to ride the wave of good news and the markets' return to bull mode.
Sure, the moves put some pressure on Action Alerts PLUS holding Facebook (FB) , but what about the positive spin on the news? Does the success of the social media laggards mean anything concrete for the overall convergence of tech, media and telecommunications?
It's tough to tell. Today at the Goldman Sachs tech conference Twitter CEO Jack Dorsey threw cold water on the chances his company would be bought out, putting the kibosh on one of the more obvious themes emerging from the social network's strong earnings. As for Snap, let's see another couple of quarters of this and maybe the M&A buzz will perk up again there. After all, Alphabet (GOOGL) had been interested at one point, right? Why not look again once the company is actually making money?
Whatever the larger picture for TMT convergence, one thing seemed pretty clear: The recent successes of Twitter and Snap bode well for Pinterest.
I am not claiming any insider knowledge here, and yes, the company reportedly put its IPO on ice until 2019, but when you see the Pinterest banner hanging outside the NYSE after a week of strong social media earnings, the mind starts running. Still, the anticipation around the unicorns is so immense that even if it did go public, investors would be wise to wait on the stock much like that of Snap, Twitter and Facebook, all which traded down in the days after their high-flying IPOs.
To be sure, in a market rife with volatility, going public doesn't scream "logical." And after a January that saw almost 80% more volume than the previous year, February's volatility may have cooled the IPO hot streak for now. But if we continue to rally back and beyond the year's late-January highs, that window may open up again not just for Pinterest, but for others.
For those dealmakers looking to take advantage of the recent volatility, Citi is out with its latest analysis of the M&A landscape.
Of the firm's observations, the firm found that "deals announced in periods of high volatility outperformed deals announced in less volatile periods."
That could mean that company's including Apple (AAPL) , Oracle (ORCL) , and other big technology company, which hold more than $2 trillion in fresh dry powder, could find themselves beneficiaries of pulling the trigger on a big deals during this time of uncertainty. At least according to Citi data, history tells us there's a good chance the bets could pay off.
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Photo of the day: Back in style
"Why spend the next 20 years in jail cause somebody smudged your Puma?," asks Chris Rock in his 1999 musical debut "No Sex (in the Champagne Room)." Well, Gucci parent, Kering, which also owns a substantial stake in Puma, could making sure it doesn't have any Pumas to smudge. French luxury goods maker Kering SA gave investors good reason to back a planned spin-off of sports brand Puma SE after its sneakers and sportswear unit nearly doubled its income on a 14% increase in sales, which topped €4 billion ($4.9 billion) for the first time. Puma was founded in 1948 by Rudolf Dassler, as a competitor to the shoe company he and his brother Adolf Dassler founded in 1924, Adidas. Both Adidas and its younger German brother Puma has enjoyed success recently as new styles and retro fashion trends bring the German sneaker makers back in vogue. Read more
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