Thursday’s Headlines: Are Your Chinese Investments Safe?
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Spotify (SPOT) +12.6%
Eventbrite (EB) +5.6%
Lemonade (LMND) +5.0%
Nordstrom (JWN) +4.8%
GoPro (GPRO) +4.4%
Moving Down ⬇️
Bill.com (BILL) -5.0%
Boston Beer Co. (SAM) -4.7%
Veeva Systems (VEEV) -4.2%
Ctrip (TCOM) -3.7%
TrueCar (TRUE) -3.6%
1. On Wednesday, Congress passed “The Holding Foreign Companies Accountable Act” by unanimous vote, which allows for Chinese companies to be kicked off of U.S. stock exchanges if they do not fully comply with the country’s auditing rules, adding yet another weapon to President Trump’s arsenal before he exits the Oval Office in January. It is unclear yet how this will affect Chinese businesses on U.S. exchanges such as Alibaba (BABA), or Baozun (BZUN), but it is unlikely that this will be the last we hear of it, with Beijing yet to respond to the bill’s passing. So, should investors be worried about their Chinese stocks? If they meet U.S. accounting standards, then they should be fine, otherwise, it could be time to rethink your portfolio. Read the full story here.
2. Ford’s (F) newfound transparency when it comes to monthly sales has gotten off to a rollercoaster start following a dramatic drop in November sales. Following October’s surprise sales boost, vehicle deliveries in November fell 20.9% year-over-year to 1.24 million vehicles, coming as a real disappointment ahead of the new year. The main culprit of this decline is said to be the COVID-19 pandemic — surprise, surprise — as further lockdown measures forced the legendary Detroit automaker to cut down on production, most notably in its popular F-150 pickup series. This supply versus demand issue has been a growing one in 2020 for car manufacturers, but also, with so much financial uncertainty for consumers, sales have taken a hit across the globe, with Ford’s overall sales numbers down 16.8% this year through November. Read the official press release here.
3. Want to know why Spotify (SPOT) stock soared 12.6% on Wednesday? We might have an answer, but it’s a strange one: Spotify Wrapped. Yep, that nifty feature that churns out a little information about what you listened to the most over the last year has really gotten users going, with social media swamped all day yesterday — we were pleasantly surprised by how many people had our Stock Club podcast as a favorite. Ok, in Spotify’s defense, they did also release a slew of new features such as in-app quizzes, premium badges for certain power users, new personalized playlists, and — *shudder* — social media stories format. They also went further in their quest to rule the world of podcasts by announcing that creators on their platform will get deeper insights into audiences and episode performance. Check out the full story here.
There are 5 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.