Hey Gotraders,
Recently there has been a severe shortage of semiconductor chips globally which has affected several companies. Semiconductor chips are used in millions of devices such as space vehicles, cars, computers, smartphones, medical equipment, appliances, and practically any other electronic gadget out there!
Several companies were forced to either pause, reduce or halt their productions while other companies sourced for new suppliers. Apple(AAPL) decided to get creative and build their own manufacturing facility! 🤨 They will be investing over $1 billion in Germany over the next three years to build a 30,000-square-meter chip lab in Munich.
Apple announced that they intend to make Munich its “European Silicon Design Center.” The new facility will be Europe’s largest research and development site and will provide employment to hundreds of people.
“I couldn’t be more excited for everything our Munich engineering teams will discover — from exploring the new frontiers of 5G technology to a new generation of technologies that bring power, speed, and connectivity to the world,” said Tim Cook, Apple’s CEO.
How does this affect me? Apple isn’t the first company that has decided to build their own chip factory. Huawei got the green light to build a £1 billion chip research facility in England last year.
This is a great move by Apple to gain control over their supply chain and ultimately their margins. They can build as many chips as they want and need, according to the specs they need. What a better way to do so than to bring the production in-house! Brilliant move! 👏
📉 Facebook is developing augmented reality glasses 👓
Facebook(FB) is developing augmented reality glasses to “teleport” people and change the way we communicate virtually.
Rather than calling someone or having a video chat, you just kind of snap your fingers and teleport, and you’re sitting there and they’re on their couch and it feels like you’re there together - Mark Zuckerberg, CEO of Facebook.
Exciting times ahead for the company as they venture into augmented reality. Stocks of Facebook are down 1.5% since the start of the year, trading at $264.90.
📈 Bumble reports its first profitable quarter after going public! 🤑
Stocks of Bumble(BMBL) are up over 5% in after-hours trading as the company reports its first profitable quarter after going public last month.
Bumble had 2.7 million paying users for its fourth quarter, earning them $165.6 million in revenue. They exceeded analysts’ estimates by over $2 million. Well done, Bumble! Keep buzzing! 🐝
Top movers & shakers 🎢
What else is making headline news
General Electric(GE) to merge aircraft leasing unit with rival AerCap in a $30 billion deal as the industry faces more pandemic turmoil.
JPMorgan(JPM) to launch ‘Cryptocurrency Exposure Basket’ of Bitcoin proxy stocks.
Upcoming earnings for this week
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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