Porsche's IPO Hits the Skids
A Delaware court ruled that a five-day trial would begin in October. Musk and his lawyers had asked the court to push the proceedings to next year.
The Point: Twitter successfully argued that delaying the trial would adversely impact the company. And it's hard to see how that wouldn't be the case. The earlier trial date could also up Twitter's odds of prevailing. Here's why. Musk's argument hinges on his ability to prove that Twitter's user base consists of more bots than the company has publicly revealed. To substantiate that claim, Musk's team will have to conduct and present a thorough forensic analysis of Twitter's user data. That will undoubtedly take a lot of time. The sooner Musk needs to present his case, the less time he'll have to uncover the data (assuming it exists) necessary to convince the court that he's right to back out of the deal.
The streaming giant defied expectations by "only" losing 970,000 subscribers in Q2. Netflix previously said it anticipated losing as many as 2 million subscribers during the quarter.
The Point: Expectations are everything. And for Netflix, the company and Wall Street analysts set the bar exceptionally low for Q2 "growth." Obviously, the company isn't happy about losing paying customers. However, the results were far less gloomy than what the market expected. As a result, the company's shares soared by more than 6% after the earnings report. Impressing onlookers will be much tougher next quarter. The company has set expectations for a million new subscribers during the current three-month period.
According to Reuters, the automaker's initial public offering faces an "uphill" battle.
The Point: Despite its sterling reputation, Porsche is struggling to generate excitement for its massive IPO. Reuters says that's due mainly to prevailing macroeconomic headwinds and geopolitical tensions. Porsche's IPO was set to be one of the biggest ever. Now the company will have to consider going public at a lower valuation or, potentially, delaying the offering. Either way, that's going to impact the automaker's ambitions. Porsche planned to use the money raised from the listing to fund its transition to electric vehicles. If it has to scale back or delay the IPO, it may not be able to reach its goal of 80% of sales being electric by 2030.
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