Markets
Nikkei 225
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Straits Times
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BMV IPC
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Dow Jones
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DAX 30
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BSE SENSEX
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FTSE 100
7,544.55
▲ +35.36 / +0.47%
JSE Top 40
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Last Week’s Highlights
Amazon stocks losing its prime
Amazon recorded its worst day since 2006 after its shares fell 14% last week. The company presented a revenue outlook for the current quarter that fell short of Wall Street’s expectations and this alerted investors. In addition, Amazon also posted a $7.6 billion loss following its investment in electric vehicle maker Rivian, which lost more than half of its value in the quarter. This investment weighed on the company’s earnings. Analysts were estimating an average of $125.5 billion for the second half of the year, while Amazon’s projections estimated revenues of between $116 billion and $121 billion.
Coca-Cola reached an all-time high
Coca-Cola recorded a spectacular start of the year and its shares reached an all-time high. The beverage company’s revenues rose 16% year-on-year to $10.49 billion, beating Wall Street estimates of $9.83 billion. The growth was driven by a 7% rise in price/mix and an 11% increase in concentrate sales. Coca-Cola halted all its operations in Russia following conflicts with Ukraine. For the remainder of 2022, this is expected to have a 1% impact on unit case volumes, 1%-2% on net revenue and operating income, and a $0.04 impact on adjusted earnings. Coca-Cola CEO James Quincey said, “We are pleased with our first-quarter results as our company continues to execute effectively in a very dynamic and uncertain operating environment.”
Coming Up This Week
Apple facing supply problems
Apple’s stock fell 2.2% in late trading last week after executives outlined negative previews on a conference call. Demand for Apple products in China is clearly down after COVID-19 shutdowns slow production, and conflicts between Ukraine and Russia are affecting the company’s sales in both nations. The company’s CEO, Tim Cook, said that nearly all Chinese factories doing the final assembly of Apple products had resumed operations after the recent COVID shutdowns, but the company does not foresee when the chip shortage will end, which would be the main problem being faced by all technology companies. Other companies, such as Amazon, also showed their concern about this situation and also released a disappointing outlook on Thursday as they were overwhelmed by rising costs. The Nasdaq index, to which both companies belong, has fallen nearly 19% this year, as rising inflation leads investors to look for other stocks.
Mattel stock rising surprisingly
Mattel’s stock rose during the last week due to the news of a possible sale of the company to Apollo Global Management Inc. and L Catterton, according to The Wall Street Journal. Mattel is known for toy brands such as Barbie, Hot Wheels, Fisher-Price, and UNO. Over the past year, the company’s stock gained just 1.4%. Following the news of the potential acquisition, the stock soared nearly 13% in Wednesday’s pre-market session. If the deal goes through, the stock would get a much-needed boost.
