The fading hopes of a coronavirus revival and rising cases in the United States and Europe are pushing investors to press the ‘sell’ button on stocks this morning, with the tech sector having to bear the brunt when Wall Street opens.
In the spotlight on Thursday, the actions of Fastly FSLY,
are down 30% in pre-market commerce. The cloud platform company cut its revenue forecast and canceled its full-year forecast after its biggest customer, parent company TikTok, Bytedance, did not use its product as much as expected due to tensions between the United States and China.
“The interesting aspect of the current environment is that the market appears to be picking the winners for the next generation based on the atypical events of 2020,” O’Rourke says, in a note to clients. Sure, people need more computers, laptops, and other gadgets to set up the home office, but it’s “essentially a one-time purchase,” he adds.
“There is no doubt that some applications, products and services have enjoyed a historic pace of widespread adoption due to the pandemic,” says O’Rourke, focusing on Fastly. “But when these companies trade 30 to 70 times their futures sales, extreme optimism is built in.”
He looks back at what the company itself had to say: “The current global environment has, in some ways, fueled our business, but has also created areas of uncertainty.”
“So much for ordering generational winners in an abnormal year,” says O’Rourke.
An individual investor can already be a step back here. According to the Financial Times, some hedge funds are starting to take the view that the best is over for some of these so-called COVID-19 winners.
Meanwhile, O’Rourke notes, the “much maligned” banks that reported this week generate net income of $ 20 billion per quarter. It is then that they continue to build reserves for credit losses that are expected to appear next year due to the pandemic.
Lis: This investment house says Tesla, Amazon and Nvidia are not too expensive
YM00 equity futures contracts,
are deeply in the red, with the future Nasdaq-100 NQ00s,
down 1.8%. European SXXP shares also retreated precipitously,
and Asian markets.
Available data includes weekly jobless claims, the Philadelphia Federal Reserve Index, Empire State Index, and import prices.
The results are ahead of the Walgreens WBA drugstore chain,
and banking giant Morgan Stanley MS,
Wells Fargo WFC has laid off more than 100 employees for suspected pandemic fraud.
An army of teenage fans have helped the company that runs South Korean boy group BTS increase its commercial debt.
On the second day of the confirmation hearings, Supreme Court candidate Amy Coney Barrett said climate change is a controversial topic that is still the subject of public debate.
explained why he blocked sharing of a New York Post article about Hunter, the son of Democratic presidential challenger Joe Biden.
Private briefings by two senior White House associates at a conservative institution in early 2020 on the severity of COVID-19 reportedly led some investors to bypass the stock market, and even stock up on toilet paper.
COVID-19 cases increase in northern Italy
An unidentified jetpack pilot has been spotted near Los Angeles International Airport.
Absent from the San Francisco Zoo: Maki, the ring-tailed lemur.
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