From Wall Street to Silicon Valley, these are the top stories that moved markets and had investors, business leaders, and entrepreneurs talking this week on Cheddar.
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SLACK FILES: The workplace messaging service Slack put out its prospectus ahead of an unconventional direct listing on the New York Stock Exchange. Revealing its financials for the first time, Slack said it lost $141 million last year ー down from $181 million the year before but still far from profitable. But like other tech "unicorns" tapping the public markets for equity, Slack showed rapid user growth, reporting 88,000 paying customers. Slack is currently valued at around $17 billion on the private market. See more.
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UBER PRICES: New details also emerged at the end of the week about the forthcoming Uber IPO, which is set to be the biggest since Alibaba went public in 2014. The ride-hail giant is set to price its shares between $44 and $50, which would value the company between $74 billion and $84 billion. That's a lot of money, but far below the $120 billion some analysts had recently predicted. The pricing reflects the bumpy IPO of Uber's North American archrival Lyft ($LYFT), which is down around 20 percent since its March debut. Uber reportedly plans to price on May 9 and start trading the following day. See more.
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AMAZON SOARS: Amazon ($AMZN) reported first-quarter earnings that blew past expectations, showing that the e-commerce juggernaut doubled profits on the back of its cloud-services and fledgling advertising units. But Amazon also warned investors that the second quarter may be more dicey, as it is about to sink $800 million into a plan to get shipping for Prime members cut in half ー from two days to one. Shares are up almost 25 percent this year and the company is once again flirting with the elusive $1 trillion market cap. See more.
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FACEBOOK SHRUGS: During its earnings call, Facebook ($FB) CEO Mark Zuckerberg revealed that the company was setting aside $3 billion for a fine it expects to get hit with from the F.T.C. over privacy violations ー a fine that could be as much as $5 billion. No matter what the final number is, it will be the largest fine ever levied against a company by U.S. regulators. By far. Still, Facebook shares rose after the announcement as the social giant reported monthly active users numbering 2.4 billion ー 1.6 billion of whom log on every day. With growth like that, and annual revenues approaching $50 billion, even a $5 billion fine is more like a speeding ticket than an existential threat to the company's core product. See more.
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TESLA SPUTTERS: Meanwhile, Tesla ($TSLA) missed the mark in its earnings report as demand fell for its electric cars following the expiration of a crucial tax credit at the beginning of the year. Tesla had previously warned investors that income would come in soft due to delivery issues and pricing cuts. Indicating that the bad news was largely baked in to the stock price, shares remained mostly flat in the aftermath. Perhaps more worrisome: Tesla ended the quarter with just $2.1 billion in the bank. Some investors believe Elon Musk will need to tap the capital markets if he wants to continue production at the current levels, an idea he said now has "merit." See more.
ーby Carlo Versano