Tuesday’s Headlines: Stock Market’s Worst Day In Months

Tuesday’s Headlines: Stock Market’s Worst Day In Months

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Stitch Fix (SFIX) +2.4%

Boston Beer Co. (SAM) +1.4%

Booking Holdings (BKNG) +0.7%

Coupa Software (COUP) +0.6%

Vail Resorts (MTN) +0.4%

Moving Down ⬇️

Tripadvisor (TRIP) -7.6%

Baozun (BZUN) -7.3%

Lemonade (LMND) -5.9%

DraftKings (DKNG) -5.7%

Chegg (CHGG) -5.5%

1. Big Tech stocks tanked yesterday amid speculation that China’s real estate industry is slowing. A potential debt default for Chinese real estate giant Evergrande sent shockwaves across global markets as analysts think the situation could spark a credit crisis, hammer big firms with exposure to Evergrande’s debt, and cause economic distress in China. Strategists believe that the Chinese government might bail out onshore investors but officials might leave offshore investors in the lurch. On Monday, Apple (AAPL) and Amazon (AMZN) led the losses, falling 2% and 3% respectively while the S&P 500 (VOO) had its worst day since May. However, many investors in these mega stocks are taking now as the perfect opportunity to buy the dip. Read more here

2. While many of us spent our weekend relaxing, Facebook (FB ) spent theirs defending itself after ‘The Wall Street Journal’ exposed just how much it has prioritized profits over the health of its billions of users. The Journal’s findings stated how it has repeatedly failed to address crucial problems, including how hostile content surfaces in so many of its news feeds because of its high engagement. The investigation comes just two months after President Joe Biden said Facebook is “killing people” with misinformation about vaccines and criticism over how it brushed over the mental health problems caused by Instagram. While Facebook has come under fire recently for numerous accusations, investors have yet to punish the company, which is valued at $1 trillion. See more on the story here

3. Netflix’s (NFLX) domination plans are on track as it gets set to roll out a free plan in Kenya within weeks, to boost growth. This move is part of the streaming services’ goal of tapping into the East African country, which is home to over 20 million internet users, offering huge potential as many sign-ups might convert to paid subscribers after the trial. Netflix is already available in 190 countries but has experimented with various methods to lure in customers from developing countries, like when it tested a $3 mobile-only plan in India in 2018. This move might also help it become the favored streaming service in Africa over rivals Disney {DIS)+ and Amazon Prime Video. Check out more on this story here

There are two companies on the MyWallSt shortlist that will report earnings today:

FedEx (FDX)
Stitch Fix (SFIX)

Get this week’s full earnings calendar here