To the moon. Tesla’s stock has gone bananas. Think back to October, when investors weren’t sure the electric vehicle maker would be able to make good on its yearly delivery estimate. The stock dropped to $250 and the infamous “$420” tweet seemed like it was a lofty goal.
Fast forward to 2020 (dare I say the year of the MUSK-rat?) and Tesla exceeded its EV deliveries, opened a factory in Shanghai (which might be closed until coronavirus is all cleared up), and crushed its quarterly earnings. Oh, and did I mention the company passed Volkswagen AG in market value along the way?
The final straw? Argus’ analyst Bill Selesky upped his estimate from $556 to $808, sending TSLA up 20% in a day, closing at $780. To the moon Elon, to the moon.
Big tree fall hard. While US stocks bounced back yesterday after Friday’s melee, the Chinese stock market has not had the same fortune. The CSI, China’s benchmark stock index of 300 companies dropped 8% on the first day back from an extended Lunar New Year. The worst-case scenario of new year new me. In total 3.5k stocks dropped the maximum amount of 10% on the day, wiping out $400B in market value.
On the plus side – Gilead Sciences is said to be testing a vaccine for coronavirus in human trials, and the UK has offered to provide $26M in aid to help find a vaccine for the disease as well.
Stacking chips. FanDuel has finally picked a partner to provide the technology for its online sports betting and online-casino platforms. Scientific Games has hit the jackpot, partnering with one of the biggest names in the upstart US gambling market. The news sent SG’s stock up 8% on the day. Go taxes, amirite?!
It was touch and go for Scientific Games as it invested $631M in sports technology provider XYZ games in hopes of landing whales like this one. The move officially gives investors confidence that SG is in bed with FanDuel, which is locked into the sports betting market, a market that expects to reach $7B by 2025.
Young Forever. Forever 21 has reached a deal with two of its biggest real estate partners to take over the company for $81M. The beleaguered retailer has shuttered nearly 100 of its locations globally since filing for Chapter 11 bankruptcy in September.
Luckily for F21, they inked enough deals with two major mall owners that the company will not go completely belly up. Simon Property Group and Brookfield Property Partners, along with Authentic Brands, are the power couple behind the takeover. The two own a few hundred stores between them, and a liquidation would have left the malls emptier than before. So they’ve chosen a slow death…