Apple Shares Decline After Downgrade by Barclays
Apple shares lost 2% in premarket trading after Barclays downgraded the company to underweight. The downgrade was attributed to weak iPhone 15 volumes, as well as lower sales of Macs, iPads, and wearables. Additionally, Barclays expressed concerns about Apple’s widening P/E multiple, which it deemed unsustainable.
Tesla Prepares for Fourth-Quarter Delivery Numbers Release
Tesla’s shares slipped approximately 1% ahead of the release of its fourth-quarter delivery numbers. Analysts expect Tesla to report 477,000 deliveries for the quarter. However, this falls short compared to Chinese EV giant BYD’s reported 3 million new vehicle deliveries in 2023. U.S.-listed shares of Chinese EV makers Li Auto, Nio, and XPeng also fell after announcing their latest delivery numbers.
Estee Lauder Faces Downgrade by Deutsche Bank
Estee Lauder experienced a 2.4% decline in share price following a downgrade by Deutsche Bank from buy to hold. The bank expressed concerns regarding the near-term risks associated with Estee Lauder’s China inventory and economic rebound, as well as potential slowdowns in the U.S. market.
GoodRx Shares Tumble After Downgrade by Bank of America Securities
Shares of GoodRx plummeted nearly 7% after Bank of America Securities downgraded the company from buy to underperform. The downgrade was influenced by changes in the competitive landscape, including new offerings from large pharmacy benefits managers.
Baidu Halts Planned Acquisition of Joyy’s Live-Streaming Business
Baidu’s U.S.-listed shares dropped almost 2% when the Chinese tech giant announced the suspension of its planned acquisition of Joyy’s live-streaming business in China. As a result, Joyy’s shares also tumbled by 10%.
ASML Faces Obstacles in Shipping Chipmaking Equipment to China
The U.S.-traded shares of Dutch semiconductor equipment company ASML fell more than 3% after the Netherlands prohibited the shipment of certain chipmaking equipment to China. This development has raised concerns about potential disruptions in the supply chain.
Southwest Airlines Downgraded by Evercore ISI
Southwest Airlines experienced a 1% decline in stock price after Evercore ISI downgraded the carrier from outperform to in line. The downgrade was influenced by the recent surge in the airline’s stock value, which has increased by nearly 30% since October.
Coinbase Shares Rise as Bitcoin Hits 21-Month High
Coinbase’s shares increased by 2% following Bitcoin’s surge above $45,000, reaching its highest level in almost 21 months. The rise in Bitcoin’s value is likely to have a positive impact on Coinbase’s performance.
Hot Take: Market Reactions to Downgrades and Delivery Numbers
The market has responded with declines in share prices for companies such as Apple, Estee Lauder, GoodRx, and Southwest Airlines following downgrades from prominent banks. Additionally, Tesla and several Chinese EV makers faced drops in their share prices after reporting lower-than-expected delivery numbers. On the other hand, Coinbase witnessed a boost in its share price due to Bitcoin’s significant increase. These reactions highlight the impact of analyst opinions and delivery figures on investor sentiment and market performance.
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