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📉 Market Surprises: Meta’s Fresh Approach, a $10Bn Footwear Reveal, and The Next Legal Drug?
This week our newsletter is loaded with insights into everything from the top winners and losers of the last 7 days, to IPO previews, entertainment investing and a cocaine stock...
Market Snapshot (Past Week)
S&P500: 4,308.50 (+0.56%)
Dow Jones Industrial Average: 33,407.58 (-0.14%)
NASDAQ Composite: 13,431.34 (+1.61%)
Russell 2000: 1,745.56 (-1.98%)
S&P/TSX Composite index: 19,246.07 (-1.41%)
PHLX GOLD and SILVER SECTOR: 106.66 (+0.75%)
News from the last 7 days
The past week has seen investors recover slightly from the extreme fear that was rife on Monday, though chaos in Washington and extreme violence in Israel could well return to spook the markets in the week ahead. Below is a roundup of some of the stock stories we’ve been tracking, which include new Facebook subscriptions, an IPO preview and an examination of a stock which is banking on cocaine decriminalization…
👨🏻⚖️ Legal Cocaine?
Safe Supply Streaming Co. (CSE: SPLY) has entered the Canadian Securities Exchange with an intriguing focus on the potential legalization of cocaine. The company anticipates a third wave of policy changes that could decriminalize hard drugs, following the path of cannabis and psychedelics. It will seek to support businesses that could benefit from these shifts, including producers of fentanyl test strips, addiction clinics, and coca leaf-infused energy drink makers.
💻 Meta Jumps on Subscription Bandwagon
Subscription models are becoming all the rage in the social media space. Meta Platforms Inc. is the latest to dip its toes in the water, exploring the introduction of monthly subscriptions starting at €10 for EU-based Facebook users who want to avoid targeted ads. The move comes as a response to evolving regulatory standards in the EU concerning data collection practices for advertising purposes. Could this model become the new norm?
🤔 How to Invest in Entertainment…
The digital transformation sweeping the entertainment industry continues, bolstered chiefly by the emergence of streaming services as household staples. However, audience demographics and consumption habits are ever-changing, leading companies to adopt new storytelling methods and business models. But how can investors navigate this environment?
🩴 Selling Sandals
Birkenstock, the well-known German footwear brand, is gearing up for a big splash in the U.S. stock market with a targeted valuation of $10bn. The company aims to sell a minimum of 32 million shares at a price range of $44 to $49 each, aiming to raise up to $1.58bn. This move comes at a time when the IPO market is showing signs of revival, although investor sentiment remains cautious due to lingering high-interest rates.
📈 Top 5 gainers in last 7 days
Orchard Therapeutics ORTX 0.00%↑ - $16.00 (+106.99%) - This outfit soared after Japanese pharma giant Kyowa Kirin confirmed it will snap it up for $478m, delighting shareholders.
Point Biopharma Global Inc PNT 0.00%↑ - $12.39 (+85.76%) - More acquisition action boosted Point Biopharma, which looks to be in line to be bought by Eli Lilly for $1.4bn.
ALX Oncology Holdings ALXO 0.00%↑ - $8.35 (+73.96%) - We’re not done with pharma yet, as this clinical-stage outfit unveiled positive data from phase 2 trials of its gastric cancer treatment.
Gritstone bio, Inc GRTS 0.00%↑ - $2.85 (+65.70%) - Landing a $433m contract from the US government to study COVID-19 vaccines can do wonders for your share price. That’s what Gritstone and its investors found out over the past week.
Fusion Pharmaceuticals Inc FUSN 0.00%↑ - $3.75 (+44.23%) -
Note: Figures from StockAnalysis.com - Settings: Market Cap > $100M, Stock Price > $1, Period last 7 Days. All prices are correct as of pre-market on 25 September.
📉 Top 5 losers in the last 7 days
Nvni Group Ltd NVNI 0.00%↑ - $3.72 (-68.28%) - This Brazilian B2B SaaS provider dipped after making its debut on the NASDAQ via a SPAC deal.
Conduit Pharmaceuticals Inc CDT 0.00%↑ - $2.68 (-55.11%) - Another relatively new face on the NASDAQ, Conduit Pharmaceuticals fell following the closure of its own SPAC deal.
Beneficient BENF 0.00%↑ - $1.29 (-50.19%) - This Texas-based alternative asset specialist has seen its share price decline by more than 80% since its market debut in June.
Jin Medical International Ltd ZJYL 0.00%↑ - $13.77 (-41.15%) - This outfit’s share price decline was a sign of its continued volatility over the past month, though its share price remains more than 20% higher across the whole period.
CF Acquisition Corp VIII CFFE 0.00%↑ - $15.91 (-38.76%) - It remains unclear exactly why this SPAC has seen such a major share price drop.
Note: Figures from stockanalysis.com - Filters: Market Cap > $100M, Stock Price > $1, Period Last 7 Days. All prices are correct as of pre-market on 25 September.
Stocks Trending on Google Search
Here are some of the top stocks trending in Google Search in the past week, aside from those already covered like
Pioneer Natural Resources Co
Share Price: $237.43
Weekly Change: +3.23%
Google Search Interest: +190%
This stock is generating major interest amid reports that hydrocarbon giant ExxonMobil is nearing an acquisition deal worth $60bn. The prospective purchase, which would see ExxonMobil become North America’s largest oil producer, saw PXD shares climb as investors salivated at the prospect of high returns.
Share Price: $160.29
Weekly Change: -5.30%
Google Search Interest: +110%
Food and drinks giant PepsiCo endured a share price decline ahead of its third-quarter earnings update scheduled for the week ahead. Shares have sunk to their lowest price since June 2022, with investors likely spooked by slowing consensus growth projections and muted enthusiasm for dividend stocks. However, this could be an opportunity to pick up a blue-chip stock on the cheap!
Rivian Automotive Inc
Share Price: $18.92
Weekly Change: -20.84%
Google Search Interest: +90%
Electric vehicle specialist Rivian took a bit of a beating over the last few days following its announcement it will issue $1.5bn worth of convertible green bonds. Meanwhile, the company said it achieved its highest-ever levels of vehicle production and deliveries during its third quarter, but revenue projections for the period skirted just under analyst expectations. Confidence in the ambitious business’ ability to continue chugging towards profitability appears to be waning.
Share Price: $2.21
Weekly Change: -25.84%
Google Search Interest: +80%
It’s safe to say that Wework is not in a good place. The company has seen its share price crater by 96.05% across the year to date, taking another sizable hit in the week as the office space provider revealed it had missed interest payments of $95m. Additionally, ratings agency Fitch downgraded the company to a C, indicating that bankruptcy and a major rejig could be on the way.
Share Price: $7.62
Weekly Change: 5.98%
Google Search Interest: +50%
Novavax rounds off our list of the top trenders on Google search, with the company climbing after the US Food and Drug Administration signed off its updated COVID-19 vaccine. The stock is a big gamble, as the company has previously stated it could struggle to remain a going concern if commercial sales don’t lend a major helping hand. However, snatching victory from the jaws of defeat (so to speak) remains a possibility.
Alternate Investing Signals
This week’s discussions about chipmaker Nvidia largely concerned the enormous sums of money forum members have won or lost betting for or against the stock. The stock is now up by nearly 300% over the last 12 months and has truly secured its status as THE pre-eminent topic on the forum.
Elon Musk’s electric vehicle giant has also been a mainstay of discussion among WallStreetBets users. However, opinion appears to be turning, with an apparently increasing number of posts about investors sinking sizable amounts into Tesla puts. This could be an indication that retail investor sentiment is slowly turning against the popular stock, which many consider overvalued.
Walt Disney Co
Enthusiasm for shorting Disney stock appeared to grow on the forum during the week, with losers expressing little confidence in the company’s decision to increase subscription prices for its streaming services. The stock is at its lowest point for more than five years, though AllianceBernstein gave it a “Buy” rating and highlighted it as the sole viable competitor to Netflix.
🇨🇳 Still unsure about the Evergrande story that has rocked China’s real estate development industry? The Guardian’s Helen Davidson and Amy Hawkins have everything you need to know.
🤢 Is cryptocurrency a poisonous business? The Financial Times’s Jemima Kelly seems to think so in her latest piece about FTX founder Sam Bankman-Fried’s legal battle.
Meme of the Week
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