As of last week, Warren Buffett’s Berkshire Hathaway had $91.3bn worth of Apple stock, according to MarketWatch. This means that just one company makes up 43% of the firm’s 46-stock, $214bn portfolio. This is no surprise however, as Buffett has previously stated that “diversification is protection against ignorance”.
Is Shanghai in a bubble?
While European markets continued to drop yesterday as rising COVID-19 cases rattled investors around the globe, the message from markets in the US and Asia was less clear. Some major indices suffered despite a strong performance in Hong Kong and Shanghai in particular. Yesterday, Morgan Stanley increased its target for the CSI 300 index to 5,360, a 12.3% upside on yesterday’s close and just 0.4% off its 9 June 2015 peak that preceded a 30% drop, Bloomberg reports.
- FTSE 100 – 6,156.16 (-0.55%)
- Dow Jones – 26,059.66 (+0.55%)
- S&P 500 – 3,166.24 (+0.67%)
- NASDAQ – 10,473.31 (+1.25%)
- Stoxx 600 – 366.48 (-0.67%)
- SSE Index – 3,403.44 (+1.74%)
Nio Shares Shot up
Nio shares shot up 14% on heavy volume in morning trading Wednesday. The China-based electric vehicle company saw trading volume balloon to 129.2 million shares, making the stock the most actively traded on major U.S. exchanges.
Is Netflix one to watch?
Those confined to their homes in recent months turned to Netflix for entertainment, driving the stock up 40.6% in H1. Investors will be keen to see the effect this has had on Netflix’s upcoming earnings report, due 16 July, and if the stock will continue climbing even as theatres and sports venues return to normal.
Will Lyft’s recovery stall?
Lyft’s stock climbed 92% since its mid-March low to close at $30.94 on 7 July. But it is at risk. The Wall Street Journal highlighted that gross bookings in Lyft rival Uber’s ride-hailing segment were down 75% compared to Q2 2019. As a pure-play stock in the ride-hailing space, Lyft looks more vulnerable than its peer.
Alibaba’s uncertain future
The Chinese retail giant broke out at the start of the month, climbing 11.1% to $240 on 6 July. Wall Street expects the company to be able to repeat sales growth of 22% in Q1, in the current quarter. However, trade tensions between the US and China, which include concerns over the delisting of Chinese companies in the US, could rattle investors.
Stocks to watch ahead of earnings
Goldman Sachs has highlighted 20 stocks to watch ahead of Q2 earnings, Seeking Alpha reports. Those included have underperformed the S&P 500 in 2020, have market caps in excess of $5bn and EPS estimates from Goldman Sachs above the consensus. The list includes the likes of Morgan Stanley, Fortune Brands, Kellogg’s and First Solar.
From zero to hero
Hong Kong Exchanges and Clearing’s share price gained 43.2% YTD to 8 July — a new record according to the Financial Times. Less than a year after its failed bid for the London Stock Exchange Group, the exchange has benefitted from billions of dollars raised in secondary listings by Chinese companies, looking for security amid trade tensions between the US and China.
$3.2bn solar deal knocks Tesla off top
In what may be news to some, Tesla accounted for 14% of cumulative US residential solar installations in 2019, the largest single company share, The Wall Street Journal reports. But a $3.2bn all-stock deal between Sunrun and Vivint announced this week, besides boosting their share prices, unseated Tesla as the combined installations of the pair makes up 16% of the market.