vestact posted: " Market Scorecard Yesterday, US markets saw their fourth straight day of decline. Major indices are headed for large weekly losses amid fears that the Fed may trigger a widespread recession with their aggressive tightening policies. Apple tumbled o" Vestact - Money with a dash of funny
Yesterday, US markets saw their fourth straight day of decline. Major indices are headed for large weekly losses amid fears that the Fed may trigger a widespread recession with their aggressive tightening policies. Apple tumbled over 4% and Amazon suffered its longest slide since 2019 as tech dragged down US equities.
In company news, Moderna reported earnings that offered a preview into the future of Covid-19 vaccine sales. It doesn't look pretty at all as it lowered its outlook. Elsewhere, Starbucks shares jumped 4% after earnings that came in higher than expectations thanks to accelerating demand in the US which managed to offset China weakness.
In summary, the JSE All-share closed down 1.60%, the S&P 500 dropped 1.06%, and the Nasdaq was 1.73% softer.
Our 10c Worth
Byron's Beats
During the week Airbnb released their Q3 numbers which at face value looked very good. Nights and experiences booked increased by 25% to 99.7 million, gross booking revenue increased by 31% to $15.6 billion, revenues increased by 29% to $2.9 billion and net income increased by 46% to $1.2 billion. These were all records for the company.
The share closed down 13% after the release. Ouch, it is not easy being listed. In their defence the whole market was down on the day after Jerome Powell opened his big mouth. Stocks like Airbnb are usually quite volatile to interest rate moves. Having said that, the company is growing up fast and has its first-ever price-to-earnings ratio of 36. That is actually not bad for a business growing so quickly.
Travel is still booming, be it short-term holidays or remote workers booking longer stays. Management reminded us that Airbnb was born during the recession of 2008. During tough times people try and earn extra income by renting out their holiday homes/spare rooms/garden flats. This means the supply side of Airbnb's business should be just fine if we see recessions around the globe. Renting self-catering units on Airbnb is also a lot cheaper than going to a hotel.
Airbnb is not a Vestact-recommended stock but I personally own some and really like the theme.
Michael's Musings
Coming down the 18th at St Andrews, with the hole surrounded by hotels, bars and grandstands, gives a stadium-type atmosphere. This is rare in golf though. Apart from the majors and the Ryder Cup, golf lacks the high energy of many other sports.
A new golf format, spearheaded by Tiger Woods and Rory McIlroy looks to change that, through a venture called TMRW Sports. With the introduction of the controversial LIV tour, the older and more established PGA has been forced to relook at their business model. The result is TMRW Sports and the PGA teaming up to launch TGL in January 2024.
The idea is to build a custom stadium, where players will tee off by driving into a digital screen. To end the hole, players will putt on a physical green. By combining digital with physical, the entire round of golf can take place in a confined arena full of cheering fans. It also saves time, as players won't have to walk long distances between shots. It sounds like a great idea.
The new league is a reminder that competition is good for innovation. If LIV Golf hadn't threatened the PGA's monopoly this year, nothing would have changed, no innovation.
Giving the venture great momentum is the list of sporting personalities investing in the new league. It includes people like Serena Williams, Lewis Hamilton, and Justin Timberlake - A bunch of sports legends are investing.
Bright's Banter
Activision announced that its new game Call of Duty: Modern Warfare 2 has obliterated every Call of Duty before it. The latest instalment of its first-person shooter sold over $800 million worth of copies in just its first three days of release, beating Modern Warfare 3 which was released in 2011 (excuse the naming convention).
The previous MW topped $400 million in sales on day one, then $775 million within five days before hitting a billion dollars in sales in 16 days. The only game to top it is Grand Theft Auto 5, which saw $1 billion in just three days.
The blockbuster opening tops any of the biggest worldwide box office openings of 2022, surpassing Top Gun and Doctor Strange combined. Currently, the best-selling movie in 2022 is Top Gun: Maverick which has accumulated worldwide box office sales of $1.49 billion to date. Modern Warfare 2 will net that in less than a month.
Linkfest, Lap It Up
SpaceX is now NASA's second-largest vendor according to federal procurement data. The California-based company had been allocated $2.04 billion by the space agency, surpassing Boeing - SpaceX is growing.
Asian markets are mixed this morning. Japan is down, while a rebound in Chinese equities and a surge in Hong Kong-listed tech companies helped offset the broader weakness in the Southeast Asia region.
Today's big economic number is the US jobs numbers which will be released later in the day.
US equity futures are in the green in early trade. The Rand is trading back at R18.29 to the US Dollar.
It has been a tough week on the markets, hopefully the Bokke can cheer us up tomorrow.
No comments:
Post a Comment