© Reuters.
By Davit Kirakosyan
Investing.com — Here is your weekly Pro Recap of the biggest headlines out of hedge funds and company top brass that you may have missed on InvestingPro. Start your free 7-day trial to get this news first.
Third Point takes a stake in Salesforce
Daniel Loeb’s hedge fund holds a stake in Salesforce (NYSE:), according to the Wall Street Journal. Loeb joins the list of five known activist investors with positions in Salesforce, including Elliott Investment Management, Starboard Value, ValueAct Capital Partners, and Inclusive Capital.
The size of Loeb’s position and his plans are not mentioned in the report. While Third Point is known for advocating for changes to increase shareholder value, the report suggests they may not take action this time.
Salesforce recently announced a 10% global workforce reduction after admitting to excessive hiring post-pandemic.
The company will report its Q4 results on March 1 after the market close.
ValueAct Capital Management invests in Spotify
ValueAct Capital Management has acquired a position in Spotify (NYSE:), according to Bloomberg, supporting CEO Daniel Ek’s plan for spending control and efficiency. CEO Mason Morfit calls it the firm’s “newest investment,” citing Spotify’s innovative business model. Morfit praised Spotify for combining engineering and organizational skills, leading to the creation of a new economic model that benefits all parties.
Spotify received upgrades from Wells Fargo and Atlantic Equities last week. Wells Fargo upgraded the stock to Overweight (from Equal Weight) and increased the price target to $180 from $121, citing the company’s accelerating commitment to margin improvement. Atlantic Equities also upgraded the stock to Overweight (from Neutral), raising the target to $160 from $110, as non-music initiatives drive margin expansion and the ad market shows signs of improvement.
PayPal CEO to retire
Turning to big management changes, PayPal (NASDAQ:) said CEO Dan Schulman plans to retire at the end of the year. The board will hire a search firm to assist in the search for a replacement for Schulman, who joined the company in 2014 during its separation from eBay (NASDAQ:). Schulman will continue to serve on the Board of Directors.
PayPal shares gained around 3% on Friday after the company reported its Q4 results, with of $1.24 coming in better than the consensus of $1.20. Revenue was $7.4 billion, compared to the consensus estimate of $7.39B.
For Q1/23, the company expects net revenue to rise 7.5% and adjusted EPS of $1.08 to $1.10, slightly below expectations for $1.07. It expects full-year adjusted EPS to be around $4.87, above the consensus estimate of $4.75.
Shares closed the week with more than a 5% loss.
Pinterest CFO resigns
Pinterest (NYSE:) announced that CFO Todd Morgenfeld will resign from the company “to pursue new career opportunities” in July.
The company reported its Q4 results last week, with of $0.29 coming in better than the consensus of $0.27. The company also announced a plan to buy back $500M of its shares over 12 months.
During the earnings call, management stated their expectation of improved margins in 2023, indicating that cost-cutting measures may be taken.
Shares fell nearly 10% last week.
Genworth Financial CFO/CIO Dan Sheehan to depart
Genworth Financial (NYSE:) said Dan Sheehan, who is both CFO and CIO, will leave his position in March. The two roles will at that point be separated: Jerome Upton has been named incoming CFO and Kelly Saltzgaber will be CIO.
The company reported its Q4 results last week, with of $0.33 coming in better than the consensus estimate of $0.19. Revenue was $1.9B, missing the consensus estimate of $1.95B.
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