Pre-market Actions: Apple is the world’s most valuable public company. 2 trillion dollars invite

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What’s happening: Apple shares jumped more than 10% on Friday after the company reported earnings, reaching an all-time high. The stock rose another 2.5% on Monday to $ 435.75, giving Apple a valuation of $ 1.86 trillion.

Saudi Aramco, which topped the list since its IPO late last year, is worth $ 1.76 trillion. Before the collapse in oil prices, it was worth over $ 2 trillion.

Apple’s Victory: The company’s breathtaking streak was fueled by its hit results for the April-June period. Despite the pandemic, the company posted sales of $ 59.7 billion, an 11% increase from the same period last year. He also announced a four-to-one stock split that could help make stocks more affordable.

Now Wall Street is playing catch-up. According to Refinitiv, 29 analysts believe Apple shares are worth buying, while only four have a “sell” rating. But Apple’s stock has risen so quickly that it exceeds the consensus price target set by analysts of $ 415.90, Bespoke Investment Group observed in a note to clients on Monday.

While some believe Big Tech stocks are too hot, the business climate should favor Apple in the medium term.”Look at the next one [six] at 12 months, we believe investors will continue to favor companies capable of growing sales organically, especially in a low growth environment, ”said Ryan Detrick, chief market strategist at LPL Financial, in a statement. recent note to customers.

The loss of Big Oil: Oil companies like Saudi Aramco, on the other hand, appear structurally disadvantaged as crude prices remain under pressure. Some experts believe that the demand for oil may never fully recover from the pandemic shock.

Brent crude futures, the global benchmark, last traded at $ 43.42 per barrel, 34% lower than at the start of the year.

Mardi, BP (BP) unveiled a major strategic overhaul alongside a huge second quarter loss and dividend cut. The company plans to cut oil production and invest money in clean energy. Shares in London rose almost 8%.

Trump wants part of Microsoft-TikTok deal

After days of boosting TikTok’s future, President Donald Trump has said he will allow the short-form video app to continue operating in the United States under a US owner, possibly Microsoft. But there is a big problem.

Trump has set the deadline for Chinese ByteDance to find a US buyer for TikTok on Monday September 15, failing which he has announced he will close the app in the country.

Watch this space: But in an extraordinary statement, Trump also said any deal should include a “substantial sum of money” for the US Treasury, report my CNN Business colleagues Rishi Iyengar, Oliver Effron and Nikki Carvajal.

“At the moment, they have no rights unless we give them. So if we’re going to give them the rights, then… it has to come into this country, ”Trump said. “It’s a great asset, but it’s not a major asset in the United States unless they are approved in the United States.”

Trump described his proposal as being similar to a lease between a landlord and a tenant, adding that TikTok owes the United States for its success.

Gene Kimmelman, former chief counsel in the US Department of Justice’s antitrust division, says the president’s requirement that some of the deal’s money go to the US Treasury has no basis in antitrust law .

“It’s pretty unusual, it’s out of the norm,” said Kimmelman, who is currently a senior adviser to the Public Knowledge policy group. “It’s not uncommon for transactions to have broader geopolitical implications between countries, but it’s quite remarkable to think of some sort of money on the table in relation to a transaction. ”

What’s the point Microsoft (MSFT)? The software giant confirmed on Sunday that it is moving forward with talks to acquire TikTok following a conversation between CEO Satya Nadella and Trump. My CNN Business colleague Clare Duffy reports that picking up TikTok would allow Microsoft to expand its mainstream offerings, some of which have had mixed success.

Investors seem to like it. The shares closed 5.6% higher on Monday.

Retail Investors Drive Rise in Kodak Stocks

Want another example of how sparkling stock markets have turned out? Just look at the dramatic increase in Eastman Kodak stock, writes my CNN Business colleague Paul R. La Monica.

Kodak (KODK) stocks are still up 470% in the past five trading sessions – even after big slips late last week and dropping more than 30% on Monday.

Investors are excited to hear that the U.S. government is lending $ 765 million to Kodak to help produce drugs under a new pharmaceutical unit.

Much of this enthusiasm comes from casual day traders. According to data from Robintrack, a firm that tracks traders’ holding patterns using the popular investment app Robinhood, Kodak is the most traded stock on the platform over the past week.

But you have to be careful, notes Paul. Although Kodak has experience in producing chemicals for the film industry, there can be no assurance that the company can easily switch to manufacturing drugs.

And Kodak has a habit of trying to take advantage of hot trends. He launched KODAKCoin in response to the bitcoin and cryptocurrency craze in 2018.

following

Cinemark (CNK) and Edgewell Personal Care (EPC) publish the results before the US markets open. Activision Blizzard (Mountain biking), Beyond meat (BYND), Disney (DIS), WW (WW) and Wynn Resorts (WYNN) follow after the close.

Coming tomorrow: Modern (RNAm) publishes quarterly results as its Covid-19 vaccine candidate launches its phase 3 clinical trial.

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