Sony plans to spend $18.39 billion on strategic investments over the next 3 years 💰
Wednesday, 26th May 2021 by Gotrade
Hey Gotraders,
Sony (SONY) plans to spend roughly $18.39 billion over the next 3 years on strategic investments.
What do they have in mind? Well, they plan to use the money to do the following:
Increase the number of its gaming and entertainment services subscribers
Accelerate investments in mobile and online services with the aim of expanding the number of consumers directly connected to its services from 160 million people currently to 1 billion people
Increase its focus on movies, games, and other content that is sold through its platforms eg PlayStation games consoles
Encourage online game downloads and sign-ups for its subscription services
Why is this important? Sony has seen strong demand for its PlayStation 5 consoles since they launched it in key markets in November. However, the global chip shortage has impacted their ability to keep up with the demand for their games consoles. Several other companies are facing the same issue and had to pause/delay production or look for other suppliers. Apple (AAPL) for example, decided to tackle the chip problem by building their very own chip lab. Sony on the other hand has decided to spend money to try and encourage its users to download games online and sign up for its subscription services instead.
📈 Nvidia stock closed higher after 4:1 stock split announcement ☝️
Stocks of Nvidia (NVDA) rose following the announcement that they plan to do a 4:1 stock split with the intention of making their stock more accessible (affordable) to new investors. The additional 3 shares will be distributed to investors as stock dividends. Nvidia plans to seek approval from its investors at its 2021 Annual Meeting of Stockholders on June 21, 2021 via a shareholder vote. If the stock split gets approved, the extra shares of Nvidia will be distributed to shareholders when markets close on July 19, 2021. This will mean that shares of Nvidia will be trading on a stock split-adjusted basis when markets open the following day.
Stocks of Nvidia are up over 19% year-to-date and closed at $625.91 yesterday.
📈 Moderna says its Covid vaccine is 100% effective in teens 💉
More good news on the vaccine front. Moderna (MRNA) said earlier this week that their Covid-19 vaccine is 100% effective in adolescents between the ages of 12 to 17. They plan to seek FDA approval early next month. Moderna is the second company behind Pfizer (PFE) to demonstrate high vaccine efficacy in adolescents! Great news indeed! 👏
Moderna stock is up 51.49% year-to-date and closed at $169.26 yesterday.
Top movers & shakers 🎢
What else is making headline news 📰
Microsoft’s (MSFT) cloud boss says the company doesn’t want to compete with doctors.
Google (GOOG) gets the green light to build multi-billion dollar mega campus in San Jose.
Bitcoin attempts to close in on $40,000 after Elon Musk said he spoke to miners about energy usage.
DC attorney general sues Amazon (AMZN) on antitrust grounds, alleges it illegally raises prices.
Tesla (TSLA) is ditching radar, will rely on cameras for Autopilot in some cars.
Popular companies releasing earnings this week 💰
Wednesday: Nvidia (NVDA), Snowflake (SNOW), Bank of Montreal (BMO), Workday (WDAY), Li Auto (LI), Williams-Sonoma (WSM), Michael Kors (CPRI), Abercrombie & Fitch (ANF)
Thursday: Salesforce (CRM), Medtronic (MDT), Costco (COST), Dell (DELL),Autodesk (ADSK), CIBC (CM), Dollar General (DG), HP (HPQ), Best Buy (BBY), Dollar Tree (DLTR), Ulta Beauty (ULTA), Plug Power (PLUG), Gap (GPS), Box (BOX)
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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