Disney
Disney released its earnings report for Q1 of 2021
Disney released its earnings report on Thursday afternoon. The earnings per share (EPS) sat at $0.32 at the end of the fiscal quarter compared to an expected loss of $0.34 per share. Additionally, Disney’s revenue sat at $16.25 billion compared to the $15.9 billion expected as predicted by Refinitiv. Overall, Disney representatives have claimed that the company’s Q1 reports have been drastically impacted by COVID-19 as people are unable to go to the parks. According to CEO Bob Chapek, the reopening of Disney parks is fully dependent on the public’s rate of vaccination. Chapek believes that parts of the parks will be open by the end of the year with adequate social distancing taking place. However, Disney posted stronger than expected numbers for streaming subscribers. Disney claims to know have a total of 146 million subscribers, and the number can only go up with the launch of the Star-branded general entertainment offering.
Cannabis
Cannabis stocks heads for largest one day selloff
Unlike the past few weeks, Cannabis stocks took a nosedive due to the halt of reforms on the strict US laws. Although President Joe Biden and Vice President Kamala Harris are in favor of reforming the US cannabis laws, the drug is still being considered a Schedule 1 drug alongside heroin. As such, the cannabis market is confined to the states that have legalized the drug and has kept many companies out of the federally insured banking system. As such, there have been larger purchases of Canadian cannabis stocks while the US continues to keep strict cannabis laws. However, interest in the cannabis industry is expected to continue as more states add legalization to their ballots in November.
Medicine
Diabetes drug makes breakthrough for weight loss
According to a recent study, a drug used to treat diabetes has led to noticeable weight losses in the average participant. One of the researchers in the study claimed that the majority of patients saw a 10% weight loss while a third saw up to 20% weight loss. There were 1,961 adults from North America, South America, Asia, and Europe that took part in the 68-week trial. During the trial, some participants were given a placebo shot while the others received a shot of semaglutide underneath their skin. The participants who received semaglutide experienced weight loss in the range from 5% to 20%. Currently, semaglutide is sold under the names Ozempic and Rybelsus by Novo Nordisk, a Danish drug company. Since this article was published, the price of Novo Nordisk (NVO) stock has increased 2.56% with the price continuing to increase after hours.
FinTech
MoneyLion goes public through a SPAC
MoneyLion, America’s leading digital platform, is set to be publicly traded after its merge with Fusion Acquisition (FUSE). Fusion Acquisition is a special purpose acquisition company (SPAC) that raises capital through IPOs. As a part of the merger, MoneyLion is also set to receive a $250 million private investment from BlackRock and Apollo Global Management. MoneyLion’s equity value will jump to $2.9 billion and will receive $526 million in net proceedings. Once the merger is complete, Fusion Acquisition will be renamed MoneyLion and traded on the NYSE. By going public, MoneyLion hopes to raise awareness of its service to the many Americans who are disadvantaged through the current financial system. MoneyLion looked at different ways to go public, but ultimately decided that a SPAC would lead to the most efficient way of going public.
Works Cited
Beltran, Luisa. “Another Fintech Is Going Public Through a Blank-Check Company, in a $2.9B Deal.” MoneyLion Is Merging With a SPAC in $2.9B Deal, Barrons, 12 Feb. 2021, www.barrons.com/articles/fintech-moneylion-going-public-spac-51613169998.
Feiner, Lauren, and Sarah Whitten. “Disney Smashes Streaming Subscriber Expectations, Boosting Segments Hurt by Covid.” CNBC, CNBC, 12 Feb. 2021, www.cnbc.com/2021/02/11/disney-dis-q1-2021-earnings.html.
Kollmeyer, Barbara. “Diabetes Drug Hailed as a Breakthrough for Weight Loss.” MarketWatch, MarketWatch, 11 Feb. 2021, www.marketwatch.com/story/diabetes-drug-hailed-as-a-breakthrough-for-weight-loss-11613041104?mod=home-page.
Linnane, Ciara, and Tomi Kilgore. “Cannabis Stocks Nosedive as Rally Driven by Hopes for U.S. Legal Reforms Comes to a Screeching Halt.” MarketWatch, MarketWatch, 11 Feb. 2021, www.marketwatch.com/story/cannabis-stocks-nosedive-as-rally-driven-by-hopes-for-u-s-reforms-comes-to-a-screeching-halt-11613069414?mod=mw_more_headlines.