Good Evening! On Wednesday, the stock market experienced fluctuations, ultimately concluding with a mixed outcome.
The S&P 500 barely finished the day in the green by 0.02%, while the Nasdaq Composite gained 0.22%. The Dow Jones was the odd one, falling 0.20%.
PERFECT TIMING!
A five-year collaboration has been established between Peloton (PTON) and Lululemon (LULU), in which PTON will serve as the only supplier of digital fitness content for LULU. This will strengthen their alliance in the realm of at-home exercise.
So what does this deal include? Lululemon has been selected as the principal supplier of athletic gear for Peloton, with some Peloton teachers being appointed as Lululemon Ambassadors. Furthermore, starting on October 11th, Peloton will begin the sale of co-branded items in collaboration with Lululemon.
Why is this a perfect moment for PTON? The collaboration comes at an important moment for Peloton, as the company deals with challenges in expanding its income subsequent to a jump in demand at the peak of the COVID-19 outbreak. During the month of August, the stock saw a decline of 20% within a single day following the company’s announcement about a deceleration in subscriber growth and the unexpected financial burden resulting from the bike seat recall.
4TH TIME THIS YEAR?!?!
The Federal Trade Commission (FTC) and 17 states jointly filed a comprehensive complaint against Amazon, alleging that the trillion-dollar e-commerce corporation has engaged in monopolistic practices that violate antitrust laws. This is the fourth legal action initiated by the FTC against Amazon in the current year. The actions have significant implications for both US antitrust laws and consumers’ ability to get a product within 24-hours.
So what’s happening? The FTC and state attorneys general assert that Amazon engaged in the improper use of its market dominance by imposing penalties on sellers who provided cheaper pricing on other platforms. According to reports, sellers operating on the platform were purportedly compelled to use Amazon’s logistical and advertising services under pressure, or else face penalties such as diminished visibility.
The overall goal? While the overall objective of the FTC is the potential dissolution of Google and Facebook, the goal for Amazon remains uncertain. A request has been made for a permanent injunction in order to cease the alleged misbehavior. Representative for Amazon responded by asserting that if the FTC achieves its objectives, there would be a rise in prices and a decrease in delivery speeds.