Weekly Stock Market Recap (July 10-14): Focus on Delta Air Lines, Activision Blizzard, Roku, and Recursion Pharmaceuticals

Microsoft Corporation, Activision Blizzard Inc., Roku Inc., Shopify Inc., Delta Air Lines Inc., and Recursion Pharmaceuticals Inc. were in the spotlight this week. Let’s find out how their stocks reacted to the latest developments.

Roku and Shopify announce a partnership

Roku Inc., a streaming TV platform company, which produces software and equipment for video streaming and is engaged in digital and video advertising, announced on Monday 10 July that it would partner with the e-commerce software company Shopify Inc.

Ads of Shopify merchants will soon be displayed in the Roku streaming service. Viewers will be able to buy products online through their TVs, while watching video content, and pay through the Roku Pay payment system.

Roku Inc. (NASDAQ: ROKU) stock added 21.61% since the beginning of the week, rising to 76.41 USD per unit. Over the same period, Shopify Inc. (NYSE: SHOP) shares went up 14.11% to 70.37 USD.

US court does not block Microsoft-Activision deal

It was announced on Tuesday 11 July that the district court in San Francisco denied the motion of the Federal Trade Commission (FTC) to block the merger of Microsoft Corporation and Activision Blizzard Inc., which is worth 69 billion USD.

The US regulator claimed that after purchasing Activision Blizzard Inc., the technology corporation would push up the prices of games and restrict access to the products of the gaming company, including the popular Call of Duty series, to users of game consoles made by Xbox competitors. The  FTC argued that this deal could significantly reduce competition in the gaming industry and expose other representatives of this segment to a risk.

Activision Blizzard Inc. (NASDAQ: ATVI) stock ended Tuesday’s trading session at 90.99 USD per unit amid this news, up 10.02%. Microsoft Corporation (NASDAQ: MSFT) shares reacted much more calmly, adding only 0.19% and reaching 332.47 USD.

Recursion Pharmaceuticals stock up 78% in a day

Recursion Pharmaceuticals Inc. (NASDAQ: RXRX) stock surged 78.17% on Wednesday 12 July, reaching 12.08 USD per unit. The biotechnology company, which uses artificial intelligence to discover treatment methods for various diseases, and develop and produce medicines, announced that it has received a 50 million USD investment from NVIDIA Corporation (NASDAQ: NVDA).

This news had a positive impact on the quotes of other medicine manufacturers who actively employ AI technology in their work. On that day, Exscientia Ltd. (NASDAQ: EXAI) shares gained 11.96%, rising to 7.30 USD, Abcellera Biologics Inc. (NASDAQ: ABCL) was up 11.85% to 7.55 USD, Relay Therapeutics Inc. (NASDAQ: RLAY) added 7.10%, reaching 12.97 USD, and Schrodinger Inc. (NASDAQ: SDGR) rose 3.63% to 54.55 USD.

Delta Air Lines report: net profit surged 149%

The US airline company Delta Air Lines Inc. announced its Q2 2023 results on Thursday 13 July. Revenue for April to June increased by 12.69% compared to the statistics for the corresponding period of last year, reaching 15.58 billion USD against the consensus forecast of 14.44 billion USD. Passenger revenue added 20.51%, rising to 13.21 billion USD, while cargo revenue dropped by 36.76% to 172 million USD.

The quarterly net profit of Delta Air Lines Inc. surged 148.57% to 1.83 billion USD or 2.84 USD per share. The passenger load factor increased to 88%, with experts forecasting an increase of up to 87.2% on average. In addition, the airline’s management raised the annual net profit forecast from 5-6 USD to 6-7 USD per share. However, on the same day, Delta Air Lines Inc. (NYSE: DAL) shares reacted to the report with a slight drop of 0.5% to 47.71 USD. It should be noted that the corporation’s stock has risen 45.19% since the beginning of the year.

Summing up

Roku Inc. and Shopify Inc. announced a partnership this week, with their shares rising 22% and 14% respectively since Monday.

The US court denied the FTC’s motion to block the deal between Microsoft Corporation and Activision Blizzard Inc. The gaming company’s stock added 10%, and that of the IT giant increased by 0.2%

The quotes of Recursion Pharmaceuticals Inc. surged 78% in a single day on the news of a 50 million USD investment raised from  NVIDIA Corporation.

Delta Air Lines Inc. reported its Q2 2023 results, recording a 149% increase in net profit, and its stock price reacted with a slight drop.