Goldman Sachs Offers Home Improvement Loans, Blackberry Stock Drops, Activision Investigates


Goldman Sachs to start offering $10,000 home improvement loans, Blackberry shares fall after mixed earnings and Activision’s CEO comes under intense scrutiny.

Video transcript

BRAD SMITH: Welcome everyone to Yahoo Finance. It’s triple play time today. Dave, Rachelle and I have three tickers that we tracked throughout the day’s session. And I’m going to kick things off here that day because it’s an interesting topic that I’ve been following. Goldman Sachs shares here, and it’s the news that they’re going to approve these $10,000 home improvement loans. And if it sounds interesting, that’s because it is, and the timing should also seem important to you. This is a time when we know that in a rising rate environment, banks are already going to be among the beneficiaries there. And now with the $10,000 home improvement loans that they’re also going to be deepening and looking more into that consumer loan market, that’s all the more important that in a rising rate environment, the banks, of course, are naturally will be among the beneficiaries. But they got even closer to consumers. You’ll recall they launched Marcus and on top of that, like all lenders, Goldman should get a boost if the Federal Reserve pushes short-term rates even higher and long-term rates to follow in the future. And so, with all of that in mind, I think that’s also happening at this point where we’ve seen some of the financial institutions buying real estate as well. And so that begs the question of what the housing market might look like if you have more people tapping into loans to do home improvement projects, while at the same time some banks are putting in place their own efforts to gobble up real estate wherever possible. RACHELLE AKUFFO: And like you mentioned Marcus, because a lot of people wonder, why are they going down this path? But you see some of these smaller banking options for people. They literally bring it home with these home improvement loans. I think it’s a fascinating development. I’d be curious to see how popular it eventually becomes. Obviously, when you have a big institutional bank like that now morphing into something so much smaller, I’ll be curious to see how many people end up accepting them. And speaking of some of those old school brands, I’m going with BB, stock symbol for BlackBerry. Now, their fourth-quarter earnings were better than expected, but they missed their total quarterly revenue, falling 11.9% year-over-year to $185 million. Now, that has caused the stock to fall even further than it was in the hours leading up to market. Right now it’s down – it was down about over 11% there. And so, as we see, it’s also down almost 30% since the start of the year. Today, the company has grown from making mobile phones to things like cybersecurity, as well as its Internet of Things business. Now, IoT sales have actually increased by more than $50 million, according to CEO John Chen. But he added that production challenges remained due to continued pressures on the supply chain, as well as further disruptions from the Russia-Ukraine conflict. So there’s still a bit of shaky territory left for the IoT developer turned old-school phone maker. DAVE BRIGGS: You just picked it because you still have one, right? RACHELLE AKUFFO: I always miss the buttons. I used to have one. But now I’m ruined with this… all this sweetness. So I’m ruined now. DAVE BRIGGS: Yes, it’s unfortunate. I knew you were very nostalgic about it. Mine is a stock I may be talking too much about, Activision Blizzard. It’s ATVI, talking about it today for good reason. Well, gaming shares are trading 15% below Microsoft’s offer of $95 per share. And now we learn that the DOJ and the SEC are investigating an Activision options trade by media moguls David Geffen and Barry Diller, just days before Microsoft announced the acquisition. Additionally, some US senators want the FTC to review the deal. There’s a lot of smoke around Activision Blizzard. As for the title, ATVI, it is up slightly over the day, less than 1%, or around 0.67. But since the beginning of the year, we can’t complain, up almost 20%. BRAD SMITH: Yeah, we had seen that really play out, I believe, in late February with respect to some of the allegations that may have triggered some of the initial investigations around the wrongdoings that at least one shareholder alleged and reported there . And so we’ll see what the SEC and what this investigation will ultimately turn up as well, and if there are any penalties that will be offered as well.


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