The most important news from last week 9.5.2022
Adidas lowers 2022 expectations
Because of bad first quarter results, which were affected by new lockdowns in China due to Covid cases spike, Adidas lowered its expectations for 2022. Worldwide sales were lower for 3%, while profit fell for 38%. Even though the company lowered expectations, they still see 11-13% increase in currency neutral sales.[1] Adidas added, that because of current events around the world, it is hard to follow their objectives and strategy.
USA limited use of J&J vaccine
The American regulator is limiting the use of Johnson and Johnson vaccine due to the high risk of blood clotting syndrome. It is no surprise that this setback was eclipsed by its rivals. J&J can still be used where other vaccines are not accessible or if an individual refuses to use other brands vaccine. FDA demanded in January, that J&J puts risk of blood cloths to its fact sheet. Company after that already lowered expectations of sales for this year.
Virgin Galactic delayed launch of space flight
Virgin Galactic Holdings will delay the launch of their commercial space flight service to the first quarter of next year. The reason for this, as stated by the company, is supply chain disruption and working constraints. At first, commercial space flights were planned to happen in the last quarter of 2022. However, company is already cutting losses, as this year’s loss was for around 36 million dollars lower compared to the last years reports.
ARK Innovation Fund dropped nearly 9%
Cathie Wood's ARK Innovation fund fell over 9% on Thursday, as fears about rising prices and sluggish GDP pushed the benchmark S&P500 down.* The decreases resulted in ARK Innovation's fourth-worst performance in company history, dating back to 2014. The three larger drops all occurred in March 2020, when the first economic constraints imposed in the United States during the coronavirus epidemic were implemented. The fund is down 49.5 percent so far this year.
Performance of ARK Innovation in the last 5 years. (Source: Google) *
Musk expected to be temporary CEO of Twitter
Elon Musk, the owner of Tesla and SpaceX, is expected to become temporary CEO of Twitter for a few months when and if the deal will go through. As it was reported, Elon came to an agreement with Twitter to buy it for 44 billion dollars. The funding for buying the company will come from Morgan Stanley, which will cover around 25.5 billion dollars. The remaining will be covered by Elon himself. He has already sold more than 9 million shares of Tesla he has owned.
Sources: CNBC, Investing, Google, Reuters, Yahoo Finance
*Past performance is no guarantee for future results.
[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.
The content of this material constitutes marketing communication and should not be considered as any type of investment advice and/or investment research and/or a solicitation for any transactions. This material was prepared for informational/educational purposes only and does not imply an obligation to perform investment transactions nor does it guarantee or predict future performance. BCM Begin Capital Markets Cy Ltd and its relevant persons including affiliates, agents, directors, or employees do not guarantee the accuracy, validity, timeliness, or completeness of any information/data provided by third parties and assume no liability for any loss arising from any investment made based on the said information/data. Past performance is no guarantee of future results.
