Twitter and Shopify team up, Netflix turns to Google and Comcast for ad help, Revlon stock pops

Yahoo Finance Live looks at several of today's trending stocks, including Revlon's stock action amid its bankruptcy news and the unveil of Twitter Shopping features for retailers.

Video transcript

RACHELLE AKUFFO: It is time for our triple play. And I'm going to kick us off with my pick, which is Revlon. Now the stock is actually getting a boost on news of a potential takeover by Reliance Industries. You see they're getting a boost there of about 35% right now. But trading activity was actually higher than usual, with 85 million shares changing hands in the first hour of trading. It actually jumped 57% in intraday trading to $10 a share. Now keep in mind two weeks ago, shares were $1.08.

Now the legacy beauty brand has struggled amid the pandemic. And many expected a bounceback. You had people coming back to work. You had mask mandates coming down, and obviously, people perhaps wanting to wear more makeup as they go out and about. But as we've seen several of Revlon's subsidiaries recently filed for Chapter 11 bankruptcy, it's also expected to miss on earnings per share, but beat on revenue in its next earnings report. So a tough time for Revlon, but perhaps a little light at the end of the tunnel.

SEANA SMITH: I don't know, Rachelle. I think it's just the latest meme stock. And retail investors need to be careful. When you take a look at the performance over the last three days, it's up over 300%. It's trending on Reddit right now. People need to be careful about piling into these names. It really reminds me of what happened to Hertz back in 2020 when we saw a lot of retail investors seeing an opportunity there and building up Hertz after it filed for bankruptcy. But we'll see how this one plays out.

Well, my play today is Netflix. "Wall Street Journal" reporting that Google and Comcast are among the frontrunners to help the streaming giant create an ad-supported tier, something that Netflix has been considering as it looks to combat subscriber losses. Now, "The Journal" reporting that a partnership with NBC Universal would likely be exclusive with Comcast video ad unit Free Will, supplying the technology. Google already has a relationship with Netflix. It's a big customer of its ad buying tools. Roku has also been floated as a possible partner for ad partnerships.

But Dave, we've been talking so much about Netflix potentially doing this ad-supported tier. There was an analyst from Cowen on Yahoo Finance earlier this week, calling it a multi-year revenue opportunity for the company. So it makes sense maybe at a time like this for Netflix.

DAVE BRIGGS: Maybe a multiyear transition. And that was the question all along. People just made the assumption that Twitter-- or that Netflix could, rather, just turn the page and have ad-supported content. But they don't have the infrastructure. They don't have the staff. They don't know how to do this. They've never been in that game. So not only do they have to hire a partner here, but they have to take that period of what it's going to take, six months to a year, to actually institute it. So it's not as simply as flipping on a switch for them. It's going to take some time. You know I'm in. We know Rachelle wants nothing to do with ad-supported content--

RACHELLE AKUFFO: Nope.

DAVE BRIGGS: --there at Netflix, right? Still committed.

RACHELLE AKUFFO: Nope.

DAVE BRIGGS: Nope, no chance. My play is a twofer. It is both Twitter and Shopify. The two companies are partnering on an integration that will keep a seller's Twitter profile page updated with direct links to the products they have for sale. Shopify users who install the new Twitter ad-- add-on, excuse me, can connect their Twitter account with Shopify and then start building out a store with Twitter platform shop module.

The new add-on automatically loads the merchant's products from Shopify onto Twitter, which then appear in a carousel on the Twitter profile users could browse through or expand the carousel to view up to 50 products, selecting a product that redirects users to the merchant's website for purchase.

This almost sounds like something Elon Musk might do, like they could have done five, 10 years ago, but maybe they are finally evolving. Shopify, meanwhile, shares down 75% this year. They got a nice pop today, though, up 3% on the news Twitter well short of that $54.20 that Elon offered. They are trading below 40 bucks and down less than 1% on the day, Rachelle.

RACHELLE AKUFFO: And speaking of things that Twitter could have already done, they actually launched a new feature called Notes today. You can actually publish articles and go over 280 characters in a single piece of content. You can include your photos, your videos, your GIFs, your tweets. So instead of writing your article elsewhere and then coming on Twitter for commentary, you can write directly into Twitter and get your comments there. Now they're currently testing this with a small public group in the US, UK, Canada, and Ghana. And in this test group, if you're in it, you'll find yourself in the Notes via the Write tab on Twitter.

DAVE BRIGGS: Is it just coincidence that they're finally evolving after 16 years now that Elon has given that knowledge, yeah.

RACHELLE AKUFFO: The pressure is on. The pressure, I think.

DAVE BRIGGS: It is, indeed.

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