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Revlon stock’s 600% increase

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Last Week’s Highlights

Revlon goes bankrupt and shares rise

The stock of the multinational cosmetics company, Revlon, has risen nearly 600% in the last couple of days. Since the company made public the news of its possible bankruptcy, double-digit rises have been recorded for the seventh consecutive session. On June 13, it plummeted 50% in a single day, hitting an all-time low of $1.17. However, on June 22 it gained close to 35% and closed the session at $8.14. Analysts are bullish on Revlon’s stock. They give it a “hold” rating, as its average price is $8.50 and it has an upside potential of 4.42%. It is not the first time that a company that is about to go bankrupt has a rally in its shares. Something similar happened in 2020 with the car rental company, Hertz Corp.

Nike’s full exit from Russia

After three months of suspended activities of Nike stores in Russia, the US sportswear manufacturer confirmed its exit from the country. In response to Russia’s actions against Ukraine, Nike joins other major brands that left the country, such as McDonald’s and Renault. “Nike has taken the decision to leave the Russian market. Our priority is to ensure that we fully support our employees while responsibly scaling back our operations in the coming months,” Nike clarified in an emailed statement. Several foreign companies have accelerated their exit from Russia amid the possibility that new laws allowing Moscow to seize assets and impose criminal sanctions will be passed in the upcoming weeks.

Coming Up This Week

Netflix gets ready for ads

Following the loss of subscribers, Netflix confirms that they are in talks with several companies to partner on advertising. For the first time in a decade, the world’s largest streaming platform posted big subscriber losses, and it is projected to be even bigger with a decline of around 2 million subscribers in the next quarter. The company’s co-CEO, Ted Sarandos, said on Thursday that they are talking to several companies in search of a possible partnership. Several media outlets report that Netflix’s possible marketing partnerships would be with Alphabet Inc. and NBC Universal. It is speculated that the Netflix ad system would be a cheaper plan in the subscription to the platform, so it does not affect those who continue with their traditional plan.

Zoom levels up its game

After more than a year of pandemic, professionals are returning to work. It would seem that this news affects Zoom Video Communications Inc, but this is not the case. Faced with a decline in the number of active Zoom users, the company introduced its new Zoom One offering. It’s a convenient package for customers because it will integrate chat, phone, meetings, and whiteboarding, among other things. Online meetings are here to stay and this is reflected in the company’s numbers, which improved following the Zoom One announcement. The stock was up by 2.2% and closed Thursday’s session at $117.67. Zoom’s average price target is $127 and has an upside potential of 7.9%. The Zoom One suite has six offerings: Zoom One Basic, Zoom One Pro, Zoom One Business Plus, Zoom One Enterprise, and Zoom One Enterprise Plus. These are sure to propel the company to gain new users.

MARKET NEWS

Despite ongoing concerns about a possible recession, Wall Street’s major indexes closed Thursday with gains. The market is volatile in the face of so much uncertainty; for example, the S&P 500 index was swinging between positive and negative numbers during the session, but recovered towards the end.

The rally was driven by defensive group stocks, safer bets in tough economic times, and technology stocks. Utilities rose 2.4%, healthcare rose 2.2% and real estate rose 2%. For its part, the technology sector gained 1.4%, with Microsoft up 2.3% and Apple up 2.2%.
Musk says Tesla’s new car factories are ‘losing billions of dollars’.

More Things to Sip On…

Amazon has a plan to make Alexa mimic anyone’s voice.
Apple looks to get into gaming.
Toyota recalls 2,700 vehiclesless than 2 months after launch.

FlexACADEMY

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– Benjamin Franklin –

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