Square (NYSE:SQ) intends to offer $750M of convertible senior notes due 2023 in a private placement; sees greenshoe option for added $112.5M.
Related to the pricing of the notes, Square expects to enter into privately negotiated convertible note hedge transactions with one or more of the initial purchasers.
Square traded -0.7% to $56.00 in after-hours trading.
The company sees using the net proceeds to pay the cost of the convertible note hedge transactions and use the rest for general corporate purposes.
Square expects that--in connection with establishing their initial hedge of convertible note hedge and warrant transactions--the hedge counterparties or their affiliates may buy Class A shares and/or enter into derivatives transactions relating to the Class A common stock at the same time or soon after the pricing of the notes.
Pure Storage (NYSE:PSTG) drops 6.6% aftermarket on Q1 results that beat EPS and revenue estimates with a 40% Y/Y revenue growth. In-line Q2 guidance has revenue of $296M to $304M (consensus: $299.43M). Non-GAAP gross margin expected from 63.5% to 66.5% and operating margin from -7% to -3%.
In-line FY19 guidance has revenue from $1.32B to $1.37B (consensus: $1.34B). Non-GAAP gross margin expected from 63.5% to 66.5% and operating margin from 0% to 4%.
SilverSun Technologies's (SSNT +7%) subsidiary (SWK Technologies) has acquired Info Sys Management for $1.7M. The deal will be effective June 1, 2018.
Info Sys Management is reseller of Sage Software and Acumatica solutions, also provides hosting services for business applications to customers throughout the United States. The company currently has offices in Portland, San Diego, Phoenix and Washington, D.C.
Altice (OTCPK:ALLVF) is off 1.8% in U.S. trading after word from MSCI that it will delete Altice A shares from its global standard and large-cap indexes.
The move is effective May 22, the day the stock goes ex-dividend for a separation of Altice USA (ATUS -3.3%), where Altice shareholders will get 0.4163 share of Altice USA for each share of Altice held.
Shares of Altice Class A are down 7.8% in Amsterdam.
Nomura Instinet reiterates its Neutral rating on Apple (NASDAQ:AAPL) with a $175 price target, a 6% downside to Friday’s close.
Analyst Jeffrey Kvaal says the last quarter’s figures showed soft iPhone X demand and services business growth that was “good not great.”
Kvaal: “iPhone volumes are not deteriorating though iPhone X remains uninspiring.” Apple guidance implied third fiscal-quarter iPhone unit volumes that were better than feared. We do not believe, however, sell through has meaningfully improved.”
"Flawless execution" on tactics means the bear case on Roku (NASDAQ:ROKU) is falling apart, Needham says in a bullish reiteration.
Shares are up 2.6% premarket, setting the stok up to build on a Friday where it gained 3.3%.
In particular, since the stock's debut the company has added the Roku Channel app, which Needham expects will appear on all of Roku's competitors' connected televisions, adding revenue optionality. User adds from Roku TVs are deepening the company's moat as well. (h/t Bloomberg)
Analyst Laura Martin reiterated her Buy rating and Street-high $50 price target, implying 41% upside.
Wedbush reiterates an Outperform rating on Turtle Beach (NASDAQ:HEAR) and raises the price target from $12.50 to $20, a 25% upside to Friday’s close.
Analyst Alicia Reese: “Fortnite exposes a large audience to multi-player games, which is greatly enhanced by communication and directional audio cues. This should benefit Turtle Beach for years to come.”
Source: Bloomberg First Word.
Turtle Beach shares are up 4.8% premarket to $16.74.
NXP Semiconductors (NASDAQ:NXPI), Micron (NASDAQ:MU), AMD (NASDAQ:AMD), and Acacia Communications (NASDAQ:ACIA) are among the companies moving after Treasury Secretary Steve Mnuchin said the U.S. and China will “put the tariffs on hold for now.”
Mnuchin says the countries will work on a trade framework.
NXP Semiconductors gains 2.7% on the improved conditions for an approved acquisition by Qualcomm (NASDAQ:QCOM), which is up 1.6% premarket.
AMD gains 1.1% premarket, Micron gains 2.2%, and Nvidia (NASDAQ:NVDA) is up 1.1%.
Acacia Communications shares are up 5.2% because the company gets 20% of revenue from China’s ZTE.
Other ZTE suppliers that could move on the news: Oclaro (NASDAQ:OCLR), Skyworks (NASDAQ:SWKS), and Silicon Labs (NASDAQ:SLAB).
The company's subsidiary Cogeco Connexion was the successful bidder on the licenses of 2500 MHz and 2300 MHz spectrum, mainly in the Ontario and Quebec wireline footprint.
“As stated in the past, the company has an interest in entering the mobile market only to the extent that it can operate a profitable business within its financial means," says Chief Technology and Strategy Officer Luc Noiseux.
"A wireless offering would be complementary to Cogeco Connexion’s current offering to its customers. This is a first positive step in the exploration of our options in the mobile wireless market.”
Some Square (SQ +0.1%) customers are using the payment company's Cash app more like a bank account than the company had expected. CEO Jack Dorsey, plans to make the most of it.
The money-transfer app had 7M active customers in December, the company told investors in its latest quarterly letter.
"People are using this as their primary banking account, and in some cases it's their only bank account," Dorsey said at the Consensus blockchain conference in New York. That shows there's an under-served audience that Square is reaching, he added.
Banking aspirations weren't totally out of the blue, though. Last September, Square had announced plans to apply for a banking license in Utah.
Google (GOOG, GOOGL) is planning meetings with publishers at four of its global offices in the coming week to hear concerns over preparations for Europe's General Data Protection Regulation, the WSJ reports.
That comes amid a general climate of unease in publishing over Google's dominance (along with Facebook (NASDAQ:FB)) of the digital advertising market.
Google and the publishers will need to hash out some contentious concerns, including who's got the burden of getting user consent for use of personal information, and how that will be done.
Google's invited leadership from four critical trade bodies -- the News Media Association, News Media Alliance, European Publishers Council and Digital Content Next -- to attend meetings with its execs next Thursday.
After warning of possible litigation due to an "ill-advised" merger, activist investors Mudrick Capital have sued Globalstar (GSAT -0.9%) in an attempt to open the books.
The merger -- with FiberLight and other assets also controlled by Globalstar CEO Jay Monroe -- is "self-dealing," Mudrick says: “Globalstar will materially overpay for assets already controlled by Mr. Monroe, while at the same time significantly diluting its minority stockholders’ interests."
Jason Mudrick's funds converted to an active stake in April and hold more than 5% of stock but would face significant dilution if the merger goes forward.
Thinly traded nano cap ENDRA Life Sciences (NDRA -14%) adds to its retreat since debuting at $5/unit on May 9. Each unit consisted of one share of common stock and one five-year warrant to purchase one share of common at $6.25. Shares are currently exchanging hands at $1.93.
The company develops technologies that improve the performance of ultrasound systems.
A proactive dig into company issues leaves Gogo (GOGO +0.9%) bear Northland Securities even dimmer on the company prospects, advising "grab a parachute before continued equity erosion."
The firm slashed its price target to $1.50, a whopping 72% downside implied, after re-examining issues that it says are deep and extensive.
A lot of risks are "essentially being swept under the rug," says analyst Paul Penney, who says the root issues center on consistent and excessive capex levels that are "simply not sustainable" -- in part due to owning its own expensive network. (h/t Bloomberg)
PayPal's (PYPL +2.1%)agreement to buy Sweden's iZettle solves some challenges for both the buyer and the seller, according to a Bloomberg opinion piece.
The $2.2B deal gives PayPal some traction in in-store payments, an area it's had trouble breaking into. It also gives PayPal a firm footing in some regions where competitor Square (NYSE:SQ) has little presence.
For unprofitable iZettle, it eliminates the uncertainty of a planned IPO, which was seeking a value of more than 10B Swedish kronor ($1.1B), more than 10 times its revenue of 776M kronor. Square, which has a profit, trades at less than 10 times net revenue.
While expensive, the acquisition is far cheaper than buying Square, an oft-speculated scenario, Alex Webb writes.
PayPal can afford the $2.2B price tag--it gets $6.8B from the sale of loans and receivables to Synchrony Financial (NYSE:SYF) later this year and has a market capitalization of more than $90B and net debt 10% below annual EBITDA.