Public Markets 3h Briefing
×Market Turmoil
KKR ft.com shares plunged 15% after the private credit fund reported a surge in troubled loans, highlighting growing strains in debt extended to unlisted companies. Meanwhile, Nvidia bloomberg.com stock declined, dulling sentiment across Asian markets as AI once again transfixed traders despite in-line results.
Major M&A Moves
Brink's wsj.com announced a $4 billion deal to acquire NCR Atleos, boosting its scale and geographic footprint with 78,000 owned-and-operated ATMs added to its network. In Hollywood, Netflix bloomberg.com dropped out of the fight to buy Warner Bros. Discovery, clearing the way for Paramount Skydance to clinch its $111 billion deal for the historic studio.
Earnings Roundup
Monster Beverage wsj.com posted higher fourth-quarter profit as energy drink sales rose, logging $449.2 million in profit with net sales in its Monster Energy Drinks and Strategic Brands segments growing 19% and 7.8% respectively. Duolingo wsj.com saw slower revenue growth ahead as it shifts focus toward its goal of 100 million daily active users by 2028. MP Materials wsj.com revenue fell 14% after halting rare earth sales to China as part of an agreement with the U.S. government.
Tech Sector Developments
Autodesk investing.com shares rose 7% after Q4 and outlook beat estimates, while Dell investing.com surged as AI server demand drove record fourth-quarter results. Block investing.com slashed its workforce by 40% to embrace an AI-native future, with shares gaining on the news. Zscaler investing.com saw shares fall despite Q2 results and outlook beating estimates.
Defense & Government Contracts
Drone maker Kratos Defense bloomberg.com seeks $1 billion in a share sale as government spending on defense ramps up. The company is positioning itself to capitalize on increased military budgets and AI warfare developments highlighted in the ongoing Anthropic vs Pentagon bloomberg.com conflict over military use of AI technology.
Gaming & Gambling
Flutter Entertainment wsj.com posted results missing Wall Street expectations as customer and betting growth slowed due to improved competitor products. The company's struggles underscore investor fears that prediction markets are eating into the $14 billion US sports gambling sector, as reported in recent Flutter results ft.com.
Corporate Governance
Electronic Arts bloomberg.com failed to win bondholder support for its buyback by a key deadline, unable to gain enough backing to buy back bonds at a steep discount to face value and change some lending terms. The setback highlights challenges facing major gaming companies in restructuring their debt portfolios.