ELECTRIC VEHICLES
Electric vehicle companies are on the rise with many new additions to the market.
Tesla is the leading manufacturer of electric vehicles in the world with its potential to grow continues to expand. However, companies in China and other EV manufactures are on the rise with the intention of overtaking Tesla. One name that is clear to stand out is Nio, a Chinese electric-vehicle maker. NIO was up approximately 4.6% with the news that it reached a record in electric vehicles delivered. In addition, NIO is on track to boost production due to the high demand for its vehicles. In other news, Churchill Capital IV (CCIV) is down almost 8.25% following news that the SPAC’s deal with Lucid is not imminent. Lucid is an up and coming electric vehicle company on track to compete with Tesla in the US EV market.
UPDATE ON REDDIT TRADES
Retail traders rally to “hold the line” in hopes of reviving plummeting stock prices
Today, GameStop (GME) and AMC saw a rise of 2.68% and 14.71% respectively following yesterday’s plummeting prices. This has seen prominence in the Reddit community, specifically on the “Wall Street Bets” page in which retail traders converse about their moves regarding the stock market. These members have seen great potential for GME and AMC among other stocks to rise again following its enormous increase last week. However, it is clear that the chances that will occur again are quite low due to the number of traders who were forced to sell following the sudden drop of these stocks. AMC is currently trading at $8.97 while GME is trading at 92.41. To put these numbers into perspective, last week, GME was trading above $400 while AMC neared $20. Retail traders should be wary of such volatile stocks, especially due to the uncertainty of what will occur in the near future.
COVID-19
Vaccine rollouts are picking up in many areas of the country
In recent news, there has been an increase in the number of Americans being vaccinated daily. According to Bloomberg, more than 108 million shots have been given to citizens and this number is expected to rise rapidly. Following the news that companies such as CVS and Kroger are preparing for more than 100 million vaccines, there has been an increase in the stock prices for these companies. Specifically, CVS Health has seen a 1.96% increase today. In other news, there has been reports that more companies have been on track in releasing the COVID-19 vaccine for public use. Novavax and Johnson & Johnson have reported that their vaccines offer good protection against the disease, including the new strains that have come up. While cases are still rising around the world, the news of such vaccines brings hope to the fact that there may be a change in the way this virus impacts businesses and the lives of many people.
Technology
Tech stocks are on the rise following strong earnings and new speculations, while some struggle.
Following earnings reports recently, many tech companies have seen an increase in stock price. Amazon was able to see an increase following record quarterly results. In addition, news that Apple (AAPL) is close to partnering with Hyundai to build autonomous electric vehicles is projected to have an impact on its shares. Additionally, it is rumored that Apple has planned to invest close to $3.6 billion dollars in Kia to produce such cars as well. With this news, Apple is on track to surpass almost all other companies in the tech industry due to its wide range of influences. In other news, PayPal (PYPL) has seen an increase in its share prices following news that its profits have been tripled after the pandemic started. This has been seen to be caused by the sudden switch to online payment platforms. In the semiconductor industry, companies have seen struggle to keep up with rising demand. The shortage in the semiconductor industry does not lie on just one company, rather most of them. General Motors is one company that was severely impacted by the news. GM was forced to idle three plants in North America due to this shortage and companies like Ford and Stellantis have been impacted as well. In addition to these companies, Apple, AMD, Qualcomm, and more that rely on these semiconductors took a major hit in the stock market with lagging prices.
Works Cited
Brewer, Reuben Gregg. “Why AMC Entertainment Stock Jumped 14% out of the Gate Today.” The Motley Fool, The Motley Fool, 3 Feb. 2021, www.fool.com/investing/2021/02/03/why-amc-entertainment-stock-jumped-14-out-of-the-g/.
Repko, Melissa. “Covid Vaccinations Offer CVS, Walgreens and Rite Aid a Chance to Showcase How Drugstores Have Changed.” CNBC, CNBC, 10 Jan. 2021, www.cnbc.com/2021/01/10/drugstore-disruption-cvs-walgreens-and-rite-aid-have-a-new-playbook.html.
Slingerlend, Brad, and Jon Bathgate. “Opinion: Shortage in Chips Puts U.S. National Security at Risk.” MarketWatch, MarketWatch, 3 Feb. 2021, www.marketwatch.com/story/shortage-in-chips-puts-u-s-national-security-at-risk-11612373012?mod=home-page.
“These Stocks Could Soar As The U.S.-China Electric Vehicle War Heats Up.” Yahoo!, Yahoo!, www.yahoo.com/entertainment/stocks-could-soar-u-china-003000940.html.
Thomas, Katie, and Rebecca Robbins. “Vaccine News Gives Hope for Spring, If Enough People Get the Shots.” The New York Times, The New York Times, 3 Feb. 2021, www.nytimes.com/2021/02/03/health/covid-vaccines.html.
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