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Crypto stocks hit by Bitcoin drop

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Last Week’s Highlights

Bitcoin selloff makes crypto stocks fall

The cryptocurrency market has suffered heavy losses due to the falling value of Bitcoin, affecting companies such as Coinbase, Marathon Digital Holdings, Riot Platforms, and Microstrategy. Bitcoin’s latest drop, which lost as much as 7.7% at one point, is attributed to several adverse factors, including increased government regulation and economic weakness in China. The combination of these problems has led to a massive sell-off in the market. Although Bitcoin has recovered slightly from its lows of the day, its value is still below previous levels. Against this backdrop, companies such as Marathon Digital and Riot Platforms have been a tough hit, although these declines are expected to present buying opportunities for investors with a bullish outlook.

Estee Lauder misses forecasts

Estee Lauder has announced a weak annual profit due to slower than expected recovery in its travel retail business in Asia, especially in China, and declining demand in the United States. This has led to a forecast for annual sales and profit below estimates, resulting in a 3% drop in its shares. The Asia-Pacific region, where Estee earns approximately 30% of its annual revenue, has been impacted by falling consumer demand in China and a slow recovery in travel retail. Although business is expected to improve, uncertainty persists in Hainan and mainland China. Estee expects annual sales growth of 5% to 7%, compared with a previous estimate of 8.8%, and forecasts lower-than-anticipated adjusted yearly earnings per share.

Coming Up This Week

Investors dislike Amazon’s changes

Amazon has implemented changes to its operations to improve the company, but this has left investors unhappy, resulting in a slight drop in trading on Friday. One of the changes allows third-party sellers to use Amazon’s internal delivery services, expanding its shipping network. However, implementing a new product rating system has led to instability in product ratings, which could affect perceptions of quality. Despite this, analysts consider Amazon stock a “strong buy,” backed by 40 buy ratings and an upside potential of 30.84% with an average price target of $174.13.

Hawaiian Electric shares rise significantly

Hawaiian Electric Industries shares rose more than 10% after the company said it has no intention of restructuring, although it is consulting experts in the face of questions about its role in the Maui wildfires. Although the exact reason for seeking expert advice was unclear, the company acknowledged doing so in a presentation. The stock had fallen 60% in the week due to the fires, which destroyed part of Maui and left at least 110 dead, and rating agency Moody’s downgraded its credit rating to “junk.” Despite comparisons to the PG&E case in California, Hawaiian Electric argues that there is no precedent in Hawaii for applying “inverse condemnation” to private utilities.

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Market News

On Friday, the S&P 500 closed nearly flat as gains in the energy and defensive sectors offset losses in growth mega-caps. Investors were awaiting Federal Reserve Chairman Jerome Powell’s upcoming speech.

Tech stocks giants such as Alphabet and Tesla, declined due to concerns about possible continued interest rate hikes.

The S&P 500 lost just 0.01%, the Nasdaq Composite fell 0.2%, while the Dow Jones rose 0.07%.

Wild Card

Bill Gates is picking up BUD shares.

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