Participating financiers try to bend the Box management. New York cabinet filling dynamics threaten REIT difficulties. Factories threaten positive to the entire US real sector. DoorDash is blamed for the bad, but understandable things. Robinhood in the sights of the regulators.
Disclaimer: when we talk about that, that something has grown up, we mean a comparison with the same quarter a year ago. Since all issuers from the United States of America, then all indicators in dollars. Sources were used in the development of the material, hard-to-reach for users from Russia. Putting our hopes on, Do you understand, what to do.
Cloud-shaped Box
Cloudy Service Box (NYSE: BOX) presented a report on revenue growth of twelve percent, but losses increased from 7,656 to 8,7 mln - indicators turned out to be better than expected. At the moment, a war is raging inside the company between its management and large minority shareholders from the Starboard Value investment fund., owned by approximately 8% Box. Starboard Value wants to promote its own applicants to the company's board of directors, which the Box controls are intensely opposed to.
Difficult to communicate, how this story will end: the chances of winning at Starboard Value are not extremely high yet, but most of the shareholders of the company are satisfied with its development. The theoretical victory of Starboard Value could lead to higher prices. The fund very obviously wants to earn money and will force Box to reduce costs and reach income - after all, Starboard Value thinks, that the company does not realize its full potential. For example, for example, came out with financiers-active participants in Dropbox: with their participation, the company miraculously reached revenues in the last quarter. Well, in principle, such financiers-participants will not interfere with the lion's share of IT startups, years of losses floundering in the swamp. To paraphrase Pussy Riot: investor whip needs IT.
Less offices
American NGO "Partnership for the City of New York" has released the results of a survey of the largest employers in Manhattan regarding their plans for the timing of workers' return to their offices. As it turned out, employers expect, what only 41% their workers will be working in offices by the end of September, which is noticeably less 62%, who expected in May. By January 2022 employers expect, what 76% workers will work in offices, - but, as we already understood, it's not accurate.
The increase in the incidence of coronavirus forced 44% of employers to postpone the return to their offices - but at the same time 54% old plans still stand, only 2% still undecided. In any case, compared to, what came before, better situation: if only in May 12% employees worked in offices, now there 23%.
Looking at industry performance, then everything is very different for workers from different fields. If the property already 85% workers in offices, then in the financial industry and consulting there are much less - 29 And 26% respectively.
This research, of course, does not mean anything good for office REITs. Also, suppliers of office products should be mentally prepared for, what awaits them at least a couple of not the most pleasant neighborhoods. At the same time, this is good news for corporations.: a low level of office occupancy will strengthen their negotiating position and will save on renting premises.
Factories don't stand
National Federation of Independent Business (NFIB), bringing together American small businesses, released a new US small business sentiment report. There is a lot written there, but we are most interested in the part about industrial enterprises.
According to the report, manufacturing companies are more optimistic on average, than others: industrial companies have an optimism index of 105,2 - against 99,7 all small businesses on average. Also, according to the report, among manufacturing companies 41% plan to hire new employees and 31% plan to invest in the renewal of fixed assets.
Overall, this is good news for all issuers., working in the real sector of the United States or engaged in its maintenance. Obviously, that things are going quite well there, despite all the uncertainty with new strains of coronavirus.
I forbid you to deliver
DoorDash food delivery services (NYSE: DASH) and Grubhub, which is now part of the Dutch Just Eat Takeaway, now they are not held in high esteem in one of the largest cities in the United States. Chicago authorities sued both companies, accusing them of predatory practices and defrauding consumers.
For example, DoorDash is accused of, that the company hides the true price of delivery from users until the very last screen, on which the purchase is made. According to the municipality, services manipulate users in this way, who spend a lot of time collecting the order before, than to see the true price. Presumably, users would not buy anything on the platform at all, if they knew from the very beginning about the full cost. The company is also accused of, what money, which users leave as a tip, the company picks up and then subsidizes drivers for them.
Both companies face fines, the amount of which is still difficult to determine, And, which is much more important, they may be forced to change their business practices. Considering, that both businesses are monstrously unprofitable and the path to profitability is not yet visible for them, concealment from users of the true price of the order until the moment of payment for the order is, certainly, not very good, but quite effective.
For example, When do you get sale notifications in the Audible audiobook app?, then caring Amazon, which Audible belongs to, leaves buyers blissfully unaware of the final purchase price. The advertised price does not include VAT., which can be seen on the purchase screen at the very end. If food delivery services poke the user in the face with the full cost of the order at the very beginning, this could have a negative impact on their earnings.. It's unclear, how the Chicago case will end, - may be, even nothing. But it still reminds me, How low-margin and inherently risky is the food delivery business?.
Not an investment recommendation
US Securities Commission (SEC) Looks, as we say in T—J, "under the squint" on the legendary exchange trading app Robinhood (NASDAQ: HOOD) and the work of their colleagues.
The company is suspected of, that she manipulates her users. Presumably, Robinhood's simplicity of trading and the gamification of the entire process on the company's platform makes consumers get involved in risky transactions - to their own detriment and to the benefit of Robinhood. The SEC is trying to determine, whether practices of this kind are considered investment advice or not. It's not an easy question, since we are talking about graphical interfaces.
Basically, there is no investigation yet, not to mention accusations. But, as in the case of the above situation with food delivery services, probably, SEC suspicions are not unfounded. For Robinhood, the SEC initiative is potentially dangerous because, that the regulator can come to such a conclusion: the company is really misleading users, to earn more. And then she can be forced to make adjustments, due to which the trading volume on the platform may fall. After all, on the same, eventually, and worth the whole Robinhood business: in a crowd of not very knowledgeable investors, who were convinced, that trading is actually “easy and fun”. All in all, Robinhood shareholders should keep this situation in mind and monitor further developments.
