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Tag: Ownership changes

  • Electrolux Starts Preparations For Potential Divestment of Zanussi and Other Non-Core Brands During Coming Yrs

    Electrolux Starts Preparations For Potential Divestment of Zanussi and Other Non-Core Brands During Coming Yrs

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    By Dominic Chopping

    STOCKHOLM–Electrolux on Thursday swung to an unexpected second-quarter net loss and said it is considering selling its Zanussi brand and other non-core assets during the coming years that together could raise around 10 billion Swedish kronor ($973.3 million).
    

    

    The Swedish home-appliance manufacturer posted a second-quarter net loss of SEK648 million from a profit of SEK257 million as earnings were weighed by SEK643 million provision, significantly lower volumes due to weaker market demand, currency headwinds, labor cost and energy inflation.
    

    A FactSet analyst poll had expected a net profit of SEK350 million.
    

    Sales fell 3.2% to SEK32.65 billion, versus the SEK34.05 billion expected in a company-compiled consensus.
    

    The weak demand environment, with lower consumer purchasing power resulting in more consumers shifting to lower price points, continued in the second quarter, it said.
    

    Although price increases contributed somewhat positively in the quarter, earnings promotions also increased significantly and Electrolux now expects the net price effect to turn negative from the third quarter.
    

    “In the challenging times we are now experiencing, it is vital to continue with strategic portfolio management,” Chief Executive Jonas Samuelson said.
    

    “Further structural simplification and complexity reduction are thus being evaluated.”
    

    Demand in 2023 is now expected to be negative in all regions.
    

    Write to Dominic Chopping at dominic.chopping@wsj.com
    

    

    

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    Cathie Wood’s ARK funds dump $26 million more in Coinbase stock, shed $13 million more of Tesla shares
    
			
    Cathie Wood’s ARK funds dump $26 million more in Coinbase stock, shed $13 million more of Tesla shares
    
			
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    Funds associated with Cathie Wood’s ARK Investment continued to cull shares of Coinbase Global Inc. and Tesla Inc. on Monday, according to recent trade disclosures. 
    

    The ARK Fintech Innovation ETF
    
        ARKF,
    
        +1.58%
    
       dumped 76,788 Coinbase shares
    
        COIN,
    
        +0.23%
    
       on the day, while the ARK Innovation ETF
    
        ARKK,
    
        +2.29%
    
       sold 127,266 and the ARK Next Generation Internet ETF
    
        ARKW,
    
        +2.23%
    
       sold 44,784 shares. 
    

    

    Those were worth $26.3 million based on Coinbase’s Monday closing price of $105.55, and the sales follow ARK’s move to dump about $50 million in Coinbase’s stock Friday. 
    

    Coinbase represents 0.78% of the Fintech Innovation ETF, along with 0.15% of the Innovation ETF and 0.30% of the Next Generation Internet ETF. ARK disclosed the transactions and weightings in the daily trade notifications it posts to its website.
    

    Read: Coinbase’s spectacular stock surge after Ripple ruling sparks fierce debate
    

    Meanwhile, the ARK Innovation ETF shed 38,329 Tesla shares
    
        TSLA,
    
        +3.20%
    
       on Monday, while the ARK Next Generation Internet ETF sold 6,855. Those shares were worth $13.1 million based on Tesla’s Monday closing level of $290.38. Tesla represents about 0.12% of both funds as they continue to unload shares.
    

    Don’t miss: Tesla is looking at its best sales quarter ever
    

    ARK scooped up 455 shares of Meta Platforms Inc.
    
        META,
    
        +0.57%
    
       within its Next Generation Internet ETF and bought up 3,729 shares within the ARK Innovation ETF. That amounted to $1.3 million worth of stock based on Meta’s $310.62 Monday close. 
    

    Two ARK funds bought a combined $790 million in Robinhood Markets Inc.’s stock
    
        HOOD,
    
        +0.89%    ,
    
       with the fintech fund scooping up 25,641 shares and the Next Generation Internet ETF buying 37,630 shares. ARK added 4,608 shares of SoFi Technologies Inc.
    
        SOFI,
    
        +4.41%
    
       to the fintech fund, worth $43,683 based on Monday’s close. 
    

    See also: SoFi’s stock catches another downgrade as analyst says it ‘needs to be valued more like a bank’
    

    ARK was also active in shares of Twilio Inc.
    
        TWLO,
    
        -0.63%    ,
    
       buying 15,702 within the Fintech Innovation ETF, 133,499 within the Innovation ETF and 22,748 within the Next Generation Internet ETF. That amounted to $11.4 million in Twilio’s stock based on Monday’s $66.47 closing price.
    

    

    

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    AT&T’s stock sinks toward 30-year low as it nabs another downgrade
    
			
    AT&T’s stock sinks toward 30-year low as it nabs another downgrade
    
			
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    Shares of AT&T Inc. were falling again Monday after a Citi Research analyst weighed in with a more cautious view in light of recent reporting on legacy use of lead-sheathed cables within the telecommunications industry.
    

    Citi’s Michael Rollins cut his rating on AT&T’s stock
    
        T,
    
        -6.69%
    
       to neutral from buy Monday, writing that it was among names that could see an “overhang” following The Wall Street Journal’s recent reporting on risks related to industry’s historical use of lead-sheathed cabling as Wall Street works to understand potential financial implications. 
    

    

    He also downgraded shares of Frontier Communications Parent Inc.
    
        FYBR,
    
        -15.79%
    
       and Telephone & Data Systems Inc.
    
        TDS,
    
        -8.38%
    
       to neutral from buy, and he already had a neutral rating on Verizon Communications Inc.’s stock
    
        VZ,
    
        -7.50%    .
       
    

    “First, copper network deployed with possible lead sheathing could be a significant percentage of the legacy network deployed nationally with varying exposures for each firm,” Rollins wrote. He said he was “unable to specifically quantify financial risks (if anything material)” for wireline telecommunications companies stemming from these issues, though “the timing to receive more information could take at least a couple months and full resolution could take years.”
    

    AT&T’s stock was off 3.8% in Monday morning action, to a recent $13.95, and on track to close at its lowest level since March 24, 1993, according to Dow Jones Market Data. The stock is on pace to spend a ninth-straight session without a daily gain, factoring in one day of flat performance last week alongside a string of daily losses. 
    

    “We still expect the company to display forward progress on cash flow generation and setting the stage to reduce net debt leverage over the next two years before considering any potential liabilities, if anything material, associated with lead sheathed cables,” Rollins wrote, though he called out “uncertainty from the industry’s use of lead-sheathed cabling” as a key reason for the downgrade.
    

    See also: AT&T sees ‘incredibly healthy’ wireless market, even as several factors will ding growth this quarter
    

    Frontier shares were down 8.2%, while TDS shares were off 5.0%. Verizon’s stock was down 1.6% and on pace for its eighth consecutive losing session. 
    

    USTelecom, a trade association that counts AT&T and Verizon as members, said in a statement that the telecommunications industry “has a long tradition of closely following science and evidence as it relates to public health, environmental protection, and worker safety issues,” while “safe work practices within the industry have proven effective in reducing potential lead exposures to workers.”
    

    There are “many considerations” that go into deciding whether to remove legacy cables, “including those regarding the safety of workers who must handle the cables, potential impacts on the environment, the age and composition of the cables, their geographic location, and customer needs as well as the needs of the business and infrastructure demands,” the spokesperson continued. 
    

    The trade group said in a prior statement that it had “not seen, nor have regulators identified, evidence that legacy lead-sheathed telecom cables are a leading cause of lead exposure or the cause of a public health issue.”
    

    Representatives from Frontier and TDS couldn’t immediately be reached for comment.
    

    Rollins noted in his report that “Verizon and AT&T indicated their expectation as that the exposure should be small,” though he said that “for Verizon, we learned the term ‘small’ could be as much as 20% of its copper network infrastructure.”
    

    Don’t miss: Verizon CEO says the wireless market isn’t such a bad business after all
    

    He joined JPMorgan’s Philip Cusick, who downgraded AT&T’s stock Friday and mentioned potential lead-cable liabilities as a concern.
    

    SVB MoffettNathanson analyst Craig Moffett weighed in on the issue as well Monday, calling out heavy uncertainty. 
    

    “The unsatisfying, but honest, answer is that at this point we have nothing but unknowns to work with and no real way to quantify the companies’ exposures,” he wrote. “Lead risk is clearly not a good thing, but we don’t know how bad it will ultimately be. It would be disingenuous to try putting firm numbers around it.”
    

    

    

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    FTC files appeal, again seeks to block Microsoft-Activision deal
    
			
    FTC files appeal, again seeks to block Microsoft-Activision deal
    
			
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    The Federal Trade Commission on Thursday asked an appeals court to temporarily block Microsoft Corp.’s $69 billion acquisition of Activision Blizzard Inc. while it challenges a ruling earlier this week green-lighting the deal.
    

    The FTC on Thursday asked U.S. District Judge Jacqueline Scott Corley to postpone her ruling — which she promptly denied — and also appealed to the Ninth U.S. Circuit Court of Appeals in San Francisco to pause the acquisition “to preserve the status quo” while the case is reviewed, claiming it is likely to succeed in its appeal.
    

    

    According to the filing, the FTC claims the judge applied the wrong legal standard to its request for a preliminary injunction, and erred in a number of other matters.
    

    The deal is set to close in the coming days, and letting it happen will “irreparably harm the public interest and the FTC,” regulators said.
    

    Also see: GOP blasts FTC Chair Khan as a ‘bully’ after agency’s loss in Microsoft case
    

    In a response filed with the court, Microsoft said the FTC “failed to carry its burden on independent, fact-based grounds” and “dragged its heels” before appealing.
    

    “The court has already found that it would be inequitable” to order an injunction that could lead to “the potential scuttling of the merger,” Microsoft said, in asking for the FTC’s request to be denied.
    

    The FTC has claimed the tie-up of a major videogame platform — Microsoft’s
    
        MSFT,
    
        +1.62%
    
       Xbox — with a major videogame publisher — Activision
    
        ATVI,
    
        -0.51%
    
       makes the wildly popular “Call of Duty,” among other titles — would be harmful to the videogame industry and consumers. 
    

    Microsoft has pledged to keep “Call of Duty” available to Sony’s
    
        SONY,
    
        +2.82%
    
       PlayStation console for 10 years, and will make it available for Nintendo’s 
    
        7974,
    
        -0.36%
    
       Switch and some cloud-gaming platforms.
    

    In her ruling clearing the deal Tuesday, Corley said the FTC did not show “this particular vertical merger in this specific industry may substantially lessen competition.”
    

    Bloomberg News reported late Thursday that Microsoft and Activision are considering giving up some control of their cloud-gaming business in the U.K. to win approval of British regulators, who — if the U.S. appeals court does not act — are the final hurdle to the deal closing on time.
    

    FTC Chair Lina Khan testified on Capitol Hill on Thursday, where Republican lawmakers assailed her actions and sharply criticized her agency’s court losses in trying to block the Microsoft-Activision deal and Meta’s
    
        META,
    
        +1.32%
    
       acquisition of a virtual-reality gaming company earlier this year.
    

    Read more: After Microsoft defeat, ‘toothless’ FTC needs to pick better battles if it wants to rein in Big Tech
    

    Also: FTC’s probe of OpenAI marks key moment in Khan’s push to rein in Big Tech
    

    

    

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    FTC will appeal judge’s ruling clearing Microsoft-Activision deal
    
			
    FTC will appeal judge’s ruling clearing Microsoft-Activision deal
    
			
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    The Federal Trade Commission late Wednesday filed notice that it will appeal a judge’s ruling this week that gave Microsoft Corp. the green light to proceed with its $69 billion acquisition of Activision Blizzard Inc.
    

    In a filing with the Ninth Circuit Court of Appeals in San Francisco, the FTC is seeking to overturn U.S. District Judge Jacqueline Scott Corley’s ruling Tuesday, which said the deal would not hurt competition.
    

    

    “The District Court’s ruling makes crystal clear that this acquisition is good for both competition and consumers,” Brad Smith, Microsoft’s vice chair and president, said in a statement.” We’re disappointed that the FTC is continuing to pursue what has become a demonstrably weak case, and we will oppose further efforts to delay the ability to move forward.” 
    

    The FTC has claimed the tie-up of a major videogame platform — Microsoft’s
    
        MSFT,
    
        +1.42%
    
       Xbox — with a major videogame publisher — Activision
    
        ATVI,
    
        -1.09%
    
       makes the wildly popular “Call of Duty,” among other titles — would be harmful to the videogame industry and consumers.
    

    “The facts haven’t changed,” an Activision spokesperson said Wednesday. “We’re confident the U.S. will remain among the 39 countries where the merger can close. We look forward to reinforcing the strength of our case in court, again.”
    

    Microsoft has pledged to keep “Call of Duty” available to Sony’s
    
        SONY,
    
        +1.78%
    
       PlayStation console for 10 years, and will make it available for Nintendo’s
    
        7974,
    
        +1.63%
    
       Switch and some cloud-gaming platforms.
    

    The deal faces a July 18 deadline, and still must gain regulatory approval in the U.K.
    

    Tuesday’s ruling was yet another antitrust setback for the FTC, which has failed to do much to rein in Big Tech, and one analyst told MarketWatch on Tuesday that the regulators need to do ” a much better job of picking their battles,”
    

    Read more: After Microsoft defeat, ‘toothless’ FTC needs to pick better battles if it wants to rein in Big Tech
    

    

    

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    After Microsoft defeat, ‘toothless’ FTC needs to pick better battles if it wants to rein in Big Tech
    
			
    After Microsoft defeat, ‘toothless’ FTC needs to pick better battles if it wants to rein in Big Tech
    
			
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    The U.S. Federal Trade Commission’s defeat as it sought to block Microsoft Corp.’s acquisition of videogame maker Activision Blizzard is yet another setback for an increasingly toothless regulator that needs to pick better battles with Big Tech.  
    

    On Tuesday morning, a federal judge denied the FTC’s injunction that was seeking to block the software giant’s proposed $69 billion acquisition of Activision
    
        ATVI,
    
        +10.02%    ,
    
       best known for its hit videogame “Call of Duty.”  The FTC argued that Microsoft
    
        MSFT,
    
        +0.19%
    
       could withhold “Call of Duty” and other Activision games from rival console platforms such as Sony’s PlayStation, and keep the games on its Xbox only.
    

    

    Microsoft, in a show of faith, committed in writing to keep “Call of Duty” on  PlayStation on parity with Xbox for 10 years, agreed with Nintendo
    
        7974,
    
        +1.10%
    
       to bring “Call of Duty” to Switch and entered into several pacts to bring Activision content to several cloud gaming services, U.S. District Court Judge Jacqueline Scott Corley noted in her decision.
    

    “With these 10-year contracts that Microsoft made across the board with so many vendors, Nvidia
    
        NVDA,
    
        +0.53%    ,
    
       Nintendo and others, 10 years is a really long time, in my opinion,” said Sarah Hindlian-Bowler, an analyst at Macquarie Equity Research, in an interview Tuesday. “It is long enough to cover the arrival and maturity of the cloud gaming market….She understands  that 10 years is a very long long time to make a guarantee of this kind.”
    

    Also read: Regulators face an antitrust dilemma after Meta launches Threads
    

    Hindlian-Bowler said that she had been in the minority of Wall Street analysts in not believing the U.S. government would be able to block this deal. 
    

    “The assumption that this somehow decreases the market is going to prove to be wildly incorrect,” she said, adding that she does not believe that the U.K.’s  Competition and Markets Authority will be able to block the deal either.
    

    The latest upset at the FTC was also not too surprising to other Capitol Hill watchers, especially in the light of other high-profile setbacks by the agency and its once-heralded commissioner, Lina Khan. When she was sworn in as chair of the FTC in mid-2021, Khan was hailed as the sheriff who would rein in Big Tech. 
    

    “It’s hard to say I am surprised by the ruling because Khan has had a fairly unsuccessful track record,” said Owen Tedford, a senior research analyst at Beacon Policy Advisors. “The regulators are pushing the boundaries, deals that previously would have gone unchallenged have now gone challenged. And they are breaking precedent because Khan and company have expressed a dislike of settlements.”
    

    The FTC’s attempts to sue Meta Platforms Inc.
    
        META,
    
        +1.42%
    
       have had some defeats so far. In February, a California judge denied the FTC’s attempts to block Meta from buying a virtual-reality startup called Within Unlimited. The FTC’s suit to reverse Meta’s acquisitions of WhatsApp and Instagram, filed in 2021, is still plodding along.
    

    Additionally, the FTC recently filed a suit against Amazon.com Inc.
    
        AMZN,
    
        +1.30%    ,
    
       alleging that it is too difficult for consumers to cancel their Prime accounts, and the agency is reportedly also mulling another far-reaching suit against Amazon alleging that the e-commerce giant punishes merchants who do not use its logistics services. One analyst has already made a case that the FTC will lose that fight too.
    

    “I think that the FTC is in need of some change, in need of some refreshing and in need of doing a much better job of picking their battles,” said Hindlian-Bowler. “This does feel toothless, a lot of the fights they are picking are toothless. And unfortunately, they are missing the real battle. They are missing TikTok, they are missing the real fights where we actually have national security at risk.”
    

    In February, one of the Republican commissioners on the FTC resigned, and wrote an op-ed in the Wall Street Journal accusing Khan of disregarding the rule of law and due process.
    

    Compared to the European Union, which has had far more success implementing regulation to rein in Big Tech, the U.S. is still much weaker. “The EU seems to be having somewhat more success, levying big fines, getting these companies to change,” said Beacon’s Tedford. “The EU has passed these bills, but the U.S., despite these efforts, has not gotten there and is not going to get there for the next two years.”
    

    Money spent by Big Tech to lobby Congress in a huge part of the problem, whereas in Europe, “those lawmakers feel less beholden,” he added. 
    

    More than a century ago, President Teddy Roosevelt, known for his “speak softly and carry a big stick” foreign policy, also used his bully pulpit to bust industrial monopolies.
    

    If Khan and her staff want to follow his lead and rein in Big Tech,  they need to start picking their future battles more carefully — and carry bigger sticks.
    

    

    

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    FTC Loses First Bid to Block Microsoft’s Acquisition of Activision Blizzard
    
			
    FTC Loses First Bid to Block Microsoft’s Acquisition of Activision Blizzard
    
			
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    FTC Loses First Bid to Block Microsoft’s Acquisition of Activision Blizzard. The Focus Turns to U.K. Regulators.
    

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    Cava Group’s stock soars 11% as analysts start coverage on a bullish note
    
			
    Cava Group’s stock soars 11% as analysts start coverage on a bullish note
    
			
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    The stock of Mediterranean-style fast-casual restaurant chain Cava Group Inc. soared 11% Monday, after analysts initiated coverage on the stock which made its debut on public markets in mid-June with a flurry of buy ratings.
    

    At least four of the banks that were underwriters on the initial public offering — JP Morgan, Stifel, William Blair and Jefferies — assigned the stock a buy rating or the equivalent.
    

    

    FactSet shows one bank has a hold rating but it’s a restricted listing so it’s not clear who it’s from.
    

    The company
    
        CAVA,
    
        +8.04%
    
       raised $317 million in its initial public offering, which priced above its proposed range at $22 a share and immediately rallied on opening. The company issued 14.4 million shares at a valuation of $2.45 billion. The stock was last trading at $43.83.
    

    See also: Like choosy shoppers at a retail store, IPO investors are demanding discounts and displaying price sensitivity
    

    The company is not profitable and has high cash burn and just $23 million in cash and cash equivalents on its balance sheet, according to its IPO filing documents.
    

    But analysts were unfazed, with William Blair analysts calling it a clear leader in a fast-growing category with proven geographic appeal.
    

    “CAVA has hit upon a winning formula with its customizable menu of bowls and pitas featuring bold Mediterranean flavors that can fit in any dietary preference,” wrote analysts led by Sharon Zackfia.
    

    “CAVA’s customer appeal is evident in average unit volumes (AUVs) of roughly $2.5 million and a 44% five-year revenue CAGR through 2022.”
    

    The company accelerated its growth with the 2018 acquisition of Zoës Kitchen, “which provided immediate access to attractive real estate in new markets while enabling capital-efficient densification in top-tier trade areas (Zoës conversions roughly half the cost of a typical greenfield CAVA),” they wrote. 
    

    That has set the company up to end 2023 with roughly triple the number of locations as it had in 2020.
    

    William Blair estimates that there’s room for at least 1,200 domestic Cava restaurants based on the population per restaurant already achieved in Virginia, where it’s still adding locations. 
    

    That supports management’s target of 1,000-plus locations by 2032.
    

    “We also see the potential for digital drive-thrus to further lengthen CAVA’s growth runway while lifting AUVs (and potentially returns), with about one-third of this year’s new units having drive-thrus, ramping up to about half in 2024 (versus roughly 20 drive-thrus today),” they wrote. William Blair initiated coverage with an outperform rating.
    

    JP Morgan launched coverage with an overweight rating and a December 2024 $45 stock price target. Analysts cheered the entrepreneurial sprit of Founder and CEO Brett Schulman with help from Chairman Ron Shaich, the founder of Panera Bread.
    

    “In-store design/operational procedures and back-end support for the network allows CAVA to be efficient, safe and consistent as the brand leverages these systems for its goal national brand penetration,” they wrote in a note to clients. 
    

    Mediterranean cuisine covers many types of food and occasions, so the end-market is large, topping out at more than $1 trillion in U.S. sales.
    

    While bowl builds priced at $10.95 to $16.95 will likely limit a high frequency of lower-income consumers, “we believe the brand has an enduring appeal to a very broad customer base for at least occasional usage.” 
    

    And suburbs are 82% of the site mix and are expected to remain a key location base, they added. 
    

    Stifel and Jefferies analysts initiated coverage with a buy rating and $48 price target. Stifel analysts led by Chris O’Cull also cheered the wide appeal of the food and compelling unit-level returns and highlighted the company’s healthy balance sheet.
    

    “The company is in strong financial condition with no funded debt and roughly $340M in cash on hand following the company’s IPO,” they wrote in a note to clients. “We project the company’s average quarterly cash balance will remain above $200M with no funded debt for the foreseeable future. We project positive annual free cash flow starting in 2026.”
    

    Still, not everyone is convinced the company is a buy. David Trainer, chief executive of New Constructs, an independent equity research firm that uses machine learning and natural-language processing to parse corporate filings and model economic earnings, published a series of critical reports before the IPO.
    

    Trainer questioned Cava’s ability to reach profitability and its high valuation. He even compared it to WeWork 
    
        WE,
    
        +5.80%    ,
    
       the infamous startup created by Israeli entrepreneur Adam Neumann, that at its peak was valued at $47 billion, but is now trading at just 26 cents a share, or a market cap of $521 million.
    

    The Renaissance IPO ETF 
    
        IPO,
    
        +0.52%
    
       has gained 32% in the year to date, while the S&P 500 
    
        SPX,
    
        -0.07%
    
       has gained 15%.
    

    For more, see: Fast-casual restaurant chain Cava Group’s IPO documents raise some red flags: analyst
    

    Read now: Cava Group CFO is confident restaurant chain will be profitable—but she won’t say when
    

    Related: 5 things to know about the fast-casual Mediterranean restaurant chain Cava 
    

    

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    Mullen Automotive’s stock more than doubles in 2 days. Here’s why.
    
			
    Mullen Automotive’s stock more than doubles in 2 days. Here’s why.
    
			
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    Shares of Mullen Automotive Inc. rocketed on massive volume for a second-straight day, after the electric vehicle maker announced plans to buy back a chunk of its shares.
    

    The company
    
        MULN,
    
        +29.02%
    
       said it believes its stock is “significantly undervalued,” given its current cash position of about $235 million. Therefore, the board of directors have authorized the repurchase of up to $25 million worth of its outstanding shares through the end of this year.
    

    

    The buyback amount represents 17.1% of Mullen’s current market capitalization of about $145.8 million.
    

    “We are initiating this buyback program as an attractive opportunity to deploy capital and return value to our shareholders,” said Chief Executive Officer David Michery.
    

    The stock soared as much as 88.2% intraday, before paring gains to be up 32.8% in afternoon trading. Trading volume swelled to an already record 1.78 billion shares, compared with the full-day average over the past 30 days of about 205.0 million shares.
    

    On Wednesday, the stock blasted 69.4% higher, the biggest one-day gain since it ran up 145.6% on Feb. 28, 2022, on then-record volume of 1.39 billion shares. That followed the company’s announcement that it retained a law firm to combat illegal naked short selling.
    

    

    

    
          
    
            FactSet, MarketWatch
    
          
    
  
    

    

    A short sale is a way for investors to bet that prices will fall. The short seller must pay to borrow stock owned by another investor so they can sell it with the hope of buying the stock back at a lower price. If the investor who originally owned the stock sells their stock, the borrower must cover their short so they can return the stock.
    

    “Naked” short selling refers to the illegal act of shorting a stock without borrowing it first. While that is often blamed for what companies believe are unwarranted declines in their stock, market structure experts have often refuted those claims.
    

    Read: Short sellers are not evil, but they are misunderstood.
    

    Before the stock’s two-day bounce, it had closed Monday at a record low of 10.1 cents, even after the company reported last week that it recorded revenue for the first time, and that it received additional financing that put it in the “best financial position” in its history.
    

    Mullen had said on Wednesday that it “believes it may have been” targeted by naked short sellers, and therefore decided to investigate any “potential wrongdoing.”
    

    

    

    
        
      
    
          
    
            FactSet, MarketWatch
    
          
    
  
    

    

    The latest exchange data showed that the percent of Mullen’s public float, or shares freely available to trade, that have been shorted was 16.2%, according to FactSet data. That’s less than half what the percentage was a month ago.
    

    In comparison, fellow “meme” stock AMC Entertainment Holdings Inc.
    
        AMC,
    
        +0.94%
    
       has 23.6% of its float shorted and 20.8% of GameStop Corp.’s
    
        GME,
    
        -4.48%
    
       float is shorted.
    

    

    

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    Meta’s Twitter-rival Threads: How to sign up, what it costs and what we know so far
    
			
    Meta’s Twitter-rival Threads: How to sign up, what it costs and what we know so far
    
			
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    Meta’s Twitter-rival Threads launches tomorrow: What we know so far
    

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    Activision’s Microsoft Saga Is Almost Over. It May Be Time to Sell the Stock.
    
			
    Activision’s Microsoft Saga Is Almost Over. It May Be Time to Sell the Stock.
    
			
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    The fate of
    
        
    
          
    
            Microsoft
    
          
    
        
    
       $69 billion purchase of
    
        
    
          
    
            Activision
    
          
    
        
    
       Blizzard will finally be known in the coming weeks—and investors may want to consider taking profits on the videogame maker’s stock before then. 
    

    

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    Ford Venture Gets Record $9.2 Billion Government Loan for EV Batteries
    
			
    Ford Venture Gets Record $9.2 Billion Government Loan for EV Batteries
    
			
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    Ford Venture Gets Record $9.2 Billion Government Loan for EV Batteries
    

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    Intel Stock Drops Despite Plan for Cost Savings. This Is Why.
    
			
    Intel Stock Drops Despite Plan for Cost Savings. This Is Why.
    
			
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    Chip maker
    
        
    
          
    
             Intel
    
          
    
        
    
       offered positive news on its foundry business Wednesday as it continues to build out new facilities to expand the custom chip-making service. Investors sold the stock anyway. 
    

    

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    Cathie Wood Sold More Tesla Stock. She Might Not Be Done.
    
			
    Cathie Wood Sold More Tesla Stock. She Might Not Be Done.
    
			
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    Cathie Wood Sold More Tesla Stock. She Might Not Be Done.
    

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    Amazon’s $1.7 Bln Takeover of iRobot Cleared by UK Regulator
    
			
    Amazon’s $1.7 Bln Takeover of iRobot Cleared by UK Regulator
    
			
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    By Joe Hoppe
    

    The U.K. Competition and Markets Authority on Friday said it has cleared Amazon.com’s proposed $1.7 billion acquisition of iRobot Corp.
    

    The regulator, which had launched an initial formal investigation in April into the takeover of the Roomba maker, concluded that the deal wouldn’t lead to competition concerns in the U.K.
    

    

    The deal remains under regulatory review in other jurisdictions. In September, iRobot said the U.S. Federal Trade Commission formally requested documents from both companies explaining the deal’s purpose and rationale. A securities filing by iRobot said both companies would cooperate with the FTC’s investigation.
    

    After an investigation, which typically takes up to a year, the FTC can sue to block a merger, seek concessions such as divestitures or decline to take action, allowing a deal to close.
    

    “We’re working cooperatively with the relevant regulators in their review of the merger,” an Amazon spokesperson said at the time.
    

    Write to Joe Hoppe at joseph.hoppe@wsj.com
    

    

    

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    Adobe Earnings Are Coming. The Focus Remains on AI.
    
			
    Adobe Earnings Are Coming. The Focus Remains on AI.
    
			
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            Adobe
    
          
    
        
    
       Systems reports financial results after the close of trading on Thursday, but the stock is more likely to move on any tidbits the company shares about its push into artificial intelligence—and the status of its pending $20 billion acquisition of the collaborative design software company Figma.
    

    

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    Judge temporarily blocks Microsoft’s $69 billion purchase of Activision
    
			
    Judge temporarily blocks Microsoft’s $69 billion purchase of Activision
    
			
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    A federal judge late Tuesday approved a request by the Federal Trade Commission to temporarily block Microsoft Corp.’s $69 billion acquisition of Activision Blizzard Inc.
    

    U.S. District Judge Edward Davila in San Francisco issued a temporary restraining order in order to “maintain the status quo,” and set a evidentiary hearing to be held June 22-23 on whether a preliminary injunction should be issued.
    

    

    The deal was set to be finalized as soon as this Friday. Tuesday’s order said the deal may not close until at least five days after the court’s preliminary injunction ruling.
    

    The acquisition has raised antitrust concerns that Microsoft
    
        MSFT,
    
        +0.74%    ,
    
       with its Xbox gaming console, could withhold hit Activision Blizzard
    
        ATVI,
    
        +1.17%
    
       videogame franchises such as “Call of Duty” and “Overwatch” from competing console platforms.
    

    On Monday, the FTC filed for a restraining order and injunction to block the deal, arguing “a preliminary injunction is necessary to maintain the status quo and prevent interim harm to competition.”
    

    “This loss of competition would likely result in significant harm to consumers in multiple markets at a pivotal time for the industry,” the FTC said in its filing Monday.
    

    In a statement Tuesday evening, a Microsoft spokesperson said: “Accelerating the legal process in the U.S will ultimately bring more choice and competition to the gaming market. A temporary restraining order makes sense until we can receive a decision from the court, which is moving swiftly.” 
    

    While EU regulators approved the deal in May, British regulators have tentatively scheduled appeal hearings after saying in April they would prohibit the purchase.
    

    

    

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    Tesla stock surges to its 10th straight gain
    
			
    Tesla stock surges to its 10th straight gain
    
			
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    Shares of Tesla Inc. rose Thursday to a 10th straight gain, as data out of China showed that the electric vehicle giant sold more cars in May than the previous month.
    

    The stock
    
        TSLA,
    
        +4.58%
    
       surged 4.6% to $234.86, for its highest close since Oct. 6, when it closed at $238.13, and its largest one-day percentage increase since May 30, when it rose 4.14%. Shares continued rising around 3% in after-hours trading Thursday.
    

    

    It has charged up 27.3% over the past 10 days, its longest win streak since the 11-day streak that ended Jan. 8, 2021.
    

    The China Passenger Car Association reported overnight that May retail sales of new-energy vehicles, which includes electric and plug-in hybrids, jumped 60.9% from a year ago to 580,000 vehicles, or 33.3% of the total passenger cars sold of 1.74 million, according to a Dow Jones Newswires report.
    

    Tesla delivered 77,695 cars that were made at its Shanghai facility in May, the DJ report said, which is up from 75,842 cars delivered in April but down from the more than 88,800 EVs delivered in March.
    

    Meanwhile, shares of other China-based EV makers were mixed, as Nio Inc.’s stock
    
        NIO,
    
        +0.39%
    
       dropped 1.5%, but Xpeng Inc. shares
    
        XPEV,
    
        +0.95%
    
       climbed 0.9% and Li Auto Inc.’s stock
    
        LI,
    
        +0.66%
    
       tacked on 0.7%.
    

    See also: Tesla Model 3s now qualify for $7,500 in federal tax credits
    

    Tesla generated $4.89 billion in sales from China during the first quarter, or 21.0% of total sales. In 2022, the company’s China sales totaled $18.15 billion, or 22.2% of total sales for the year.
    

    Separately, the Associated Press reported that late Wednesday that Tesla may face a class-action lawsuit after 240 Black factory workers described racism and discrimination at the company’s plant in the San Francisco Bay Area.
    

    Tesla’s stock has soared 91% year to date, while the Global X Autonomous and Electric Vehicles exchange-traded fund
    
        DRIV,
    
        +0.77%
    
       has run up 25.4% and the S&P 500 index
    
        SPX,
    
        +0.62%
    
       has advanced 11.6%.
    

    

    

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    STMicroelectronics, Sanan Optoelectronics to Form $3.2 Bln China Joint Venture
    
			
    STMicroelectronics, Sanan Optoelectronics to Form $3.2 Bln China Joint Venture
    
			
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    By Adria Calatayud
    

    STMicroelectronics and Sanan Optoelectronics said Wednesday that they are forming a semiconductor-manufacturing joint venture in China, with $3.2 billion in total build-out funding.
    

    The European and Chinese semiconductor companies said they have signed an agreement to create a silicon-carbide-device manufacturing project in Chongqing, China, to tap into rising demand for semiconductors for car electrification as well as for industrial power and energy applications in the country. Production is expected to start in the fourth quarter of 2025, with full build-out anticipated in 2028, the companies said.
    

    

    The expected $3.2 billion for the full build-out of the joint venture includes capital expenditures of about $2.4 billion over the next five years, which will be funded by contributions from STMicroelectronics and Sanan Optoelectronics, support from the local government and loans, the companies said.
    

    Sanan will separately build a silicon-carbide-substrate manufacturing plant to fulfill the needs of the joint project, the companies said.
    

    Completion of the project remains subject to regulatory approvals, STMicroelectronics and Sanan said.
    

    Write to Adria Calatayud at adria.calatayud@dowjones.com
    

    

    

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