Lyft versus Uber
On Wednesday, the stock of American cab hailing company Lyft (LYFT) fell by nearly 8%. These losses came after Reuters reported that Lyft’s rival Uber Technologies is seeking “to sell around $10 billion worth of stock in its initial public offering.” The report claimed that “Uber is seeking a valuation of between $90 billion and $100 billion,” and it is likely to make its IPO registration public on Thursday.
Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.
Lyft stock, which was listed on the NASDAQ (QQQ), on March 29 has underperformed the broader market in April so far. Excluding today’s losses, the stock was down 13.9% month-to-date as compared to 2.3% gains in the NASDAQ Composite Index. The news related to its rival Uber’s IPO plans pressurized Lyft stock further today.
Good news for electric carmakers
Earlier today, “a bipartisan group of U.S. lawmakers introduced legislation” that would make more electric car buyers eligible for tax credits in the US, Reuters reported. The report added that new legislation if passed, “would grant each automaker a $7,000 tax credit for an additional 400,000 vehicles on top of the existing 200,000 vehicles eligible for $7,500 tax credits.”
This news helped electric carmaker Tesla (TSLA) and mainstream automakers including General Motors (GM) and Ford (F) rise today. On Wednesday at 2:24 PM EST, GM, Ford, and TSLA were up by 1.3%, 1.2%, and by 1.4%, respectively, for the day.
Apple downgraded by HSBC
On Wednesday, tech giant Apple (AAPL) was trading on a mixed to negative note after ending its nine-day winning streak yesterday. Today’s weakness in AAPL was primarily driven after HSBC (HSBC) downgraded its ratings on iPhone maker today to “reduce” from “hold.” The investment bank gave a price target of $180 on Apple, which was lower than its yesterday’s closing price of $199.50.
Under Armour’s adjusted EPS rose to $0.09 in the fourth quarter of 2018 compared to $0.00 in the fourth quarter of 2017.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Amazon is discontinuing its Amazon Restaurants service, which has been delivering food for restaurants in parts of the United States. Amazon Restaurants launched in the United States in 2015 and entered the British market the following year. However, it met strong opposition in the British market.