Hey Gotraders,
TGIF! Before we end off the week, let’s take a quick look at a couple of stocks making headline news - Merck (MRK) and Moderna (MRNA).
💊 Merck (MRK) - Big news for Merck! Their oral antiviral medication, known as Lagevrio (molnupiravir), has been approved by UK regulators! This is a HUGE deal as this is THE FIRST antiviral medication to be approved for use to treat Covid. The pill reduces the severity of the symptoms by preventing the virus from multiplying, and keeping virus levels low in the body. The antiviral pill has been authorized for use in people who have mild to moderate Covid and at least one risk factor for developing severe illness, such as obesity, diabetes mellitus, or heart disease and anyone over the age of 60. The U.S. FDA will decide whether to approve it for emergency use authorization in the U.S. on the 30th Nov.
Shares of Merck closed at $90.54, up 2.10% for the day.
💉 Moderna (MRNA) - Shares of Moderna are down a whopping 18% after the company reported lower-than-expected earnings for its third quarter. They missed analysts’ expectations on both the top and bottom lines. Yikes! They are dealing with production and shipment issues and need to push some of its deliveries back to 2022, especially for overseas shipments.
Shares of Moderna closed at $284.02, down 17.89% for the day.
Why is this important? Merck’s anti-viral pill is a game-changer as patients can take the medication by mouth instead of having it administered intravenously. This means that patients can recover at home, which will ease the burden on healthcare systems. Moderna’s shipping delays isn’t great news at all as people who need the vaccine aren’t going to get it on time!
📉 Peloton is down over 30% in extended trading 🤕
Uh oh… Shares of Peloton (PTON) aren’t doing well in extended trading. The company lost one-third of its market cap overnight. Ouch!
Peloton reported weakening sales growth and a wider-than-expected loss on its earnings call. That’s not all. Peloton also slashed its outlook for the full year. This is due to declining demand for its exercise equipment, as well as ongoing supply chain challenges.
“We anticipated fiscal 2022 would be a very challenging year to forecast, given unusual year-ago comparisons, demand uncertainty amidst re-opening economies, and widely-reported supply chain constraints and commodity cost pressures” - John Foley, CEO of Peloton.
Shares of Peloton closed at $86.03 yesterday, down 4.30%. Shares are down a further 32% in extended trading at the time of writing.
📈 Wells Fargo raises price target of Nvidia to $320 🤑
Wells Fargo (WFC) seems to think that shares of Nvidia (NVDA) are worth $320 a pop. That’s right. They raised the price target on the stock from $245. That’s a massive hike!
The reason Wells Fargo is super bullish on the stock is because of the company’s Omniverse platform (an open virtual platform that allows creators to collaborate in real-time physically accurate simulations/3D renderings.)
“We see NVIDIA Omniverse as a key enabler/platform for the development of the Metaverse across a wide range of vertical apps - industrial, manufacturing, design & engineering, autonomous vehicles /robotics, etc” - Wells Fargo.
Shares of Nvidia closed at $298.01, up 12.04% for the day. Shares are up a further 1.59% in extended trading at the time of writing.
Top movers & shakers 🎢
What else is making headline news 📰
MGM Resorts (MGM) is selling Mirage casino: 'We have enough of Las Vegas.'
Google Play (GOOG) to support alternative billing systems in South Korea, following new law.
Businesses have until after the holidays to implement Biden Covid vaccine mandate.
OPEC+ agrees to stick to oil production plan, defying U.S. pressure.
Uber (UBER) revenue up 72% from last year, but Didi Chuxing (DIDI) stake contributed to big loss.
Kroger (KR) is taking on Publix in Florida without opening a single grocery store — and building a blueprint for its future.
Ford (F) to repurchase up to $5 billion in junk bonds as it restructures its balance sheet in hopes of restoring credit rating.
Credit Suisse (CS) scales back investment banking as earnings beat estimates.
Popular companies releasing earnings this week 💰.
Friday: Berkshire Hathaway (BRK.B), Toyota (TM), Dish Network (DISH), DraftKings (DKNG), Pinnacle West Capital (PNW), Canopy Growth (CGC)
A company’s market value may fluctuate considerably around the time that the earnings report is expected to be published. Stock prices may rise or fall according to analysts' speculative estimates, released prior to the actual earnings announcement.
The earnings season can be a time of great opportunity since better-than-expected figures could cause a company’s stock to greatly increase in value. Worse-than-expected results could have the opposite effect.
That’s all from us for now.
Signing out,
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The legal stuff 🤓
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