Today we are watching…
1. Etsy (#etsy)
There’s no major brand that could survive the public backlash from profiting from face masks, except a global marketplace for independent artisans. Etsy’s stock is roaring. The business makes money with a listing fee on the arts and crafts sellers and a commission on arts and crafts sales. The swell in jobless claims has also been a positive indicator for Etsy, as more people have signed up to launch online businesses. Over the long-term, Etsy needs to fend off Amazon from stealing its market share. The e-commerce giant has a bigger marketplace, more competitive pricing, and rapid shopping options. Etsy for more gifts, or fashion masks!
2. vmware (#vmware)
Dell Technologies owns 81% of vmware, the software that lets you start up a computer (or operating system) inside a computer. Yesterday, market players discovered that Dell was either going to top that up to 100%, or sell it all. It wasn’t public from 2013 to 2018, and tried to return to markets with a vmware reverse merger. vmware is growing much faster than Dell Technologies, and so investors want to see a complete buyout on both sides. Dell shares rose 21% on rumors about what might happen next, while vmware rose 15%. This will be the do-or-die deal for both companies if it comes together.