Markets See Fireworks With Netflix & Amazon Seeing All-Time Highs – Daily Financial News Summary for Monday, July 6, 2020

The markets saw post-Fourth of July fireworks on Monday. The Dow Jones rose by 1.78%, the S&P 500 by 1.59%, and the NASDAQ by 2.21%. The Russell 2000 rose at 0.77%, but did not feel the rally as much as the primary indexes. This was an all-time high for the NASDAQ composite.

The markets saw a couple deals that influenced the rallies, including Warren Buffett’s Berkshire Hathaway making its first major deal amid market turmoil for the year. Berkshire Hathway acquired natural gas storage and transmission assets from Dominion Energy, which caused the Berkshire Hathaway A-class of shares to jump 2.4%, while Dominion Energy dropped 11%.

Food delivery app Postmates was also acquired by Uber Technologies, in a $2.65 billion all-stock deal. This is likely going to give Uber Eats a gain in market share against competitors and sources said the deal was struck as Postmates experienced cashflow issues.
READ MORE: https://callputstrike.com/2020/07/06/markets-see-fireworks-with-netflix-amazon-seeing-all-time-highs-daily-financial-news-summary-for-monday-july-6-2020/

Deal Insights: Uber Signs Deal To Acquire Postmates For $2.65 billion

Uber Technologies Inc (NYSE: UBER) has reportedly inked a deal that will allow it to acquire a food delivery company called Postmates for $2.65 billion through an all-stock deal.

The acquisition aligns with Uber’s plan to double down on the food delivery business, and Postmates is the perfect match since it has already built a strong reputation through its food delivery app. The Initial reports about the colossal acquisition deal popped up during the weekend after Uber’s board of directors approved the deal.

Uber already has a food delivery business called Uber Eats that it has been working towards improving so that it can compete more effectively with rivals in the same segment. The food delivery business aligns with its ride-hailing business model, allowing it to tap into those synergies to generate more revenue.

Uber is expected to reveal whether Postmates will be operated under Uber Eats as part of the acquisition or whether it will entirely absorb it. Pierre-Dimitri Gore-Coty, the current executive in charge of Uber Eats, is expected to operate the expanded food delivery business. Sources familiar with the matter claim that Postmate’s CEO, Bastian Lehmann, will stay on board with his team to help run the food delivery business even after the acquisition deal is complete.

READ MORE: https://callputstrike.com/2020/07/06/uber-signs-deal-to-acquire-postmates-for-2-65-billion/