Episode 45: Spooky Market Meltdown.
Happy Halloween! This week has been really spooky as the market is experiencing its worst week since March, 2020. We are down almost 5% for the week and as I projected, this is going to be more of a W-recovery than a V-shaped kind.
Big Tech reported solid third-quarter results on the top and bottom line, but some of the technology heavyweights led the market decline on Friday.
Apple reported fourth-quarter earnings Thursday that slightly exceeded Wall Street expectations, but the company did not offer investors any guidance for the fourth quarter. The absence of company guidance left investors and analysts without a basis for estimating projected sales of the iPhone 12, which went on sale in October.
Amazon reported a better-than-expected third-quarter on Thursday, including soaring profits and 37% revenue growth.The stock bounced around in extended trading, falling as much as 2%, after Amazon provided wide-ranging guidance for the fourth quarter.
Although companies posted gains, the lack of guidance left investors scratching their heads about corporate earnings.
Friday Market Close
Dow 30 26,501.60 -157.51 (-0.59%)
S&P 500 3,269.96 -40.15 (-1.21%)
Nasdaq 10,911.59 -274.00 (-2.45%)
IPO
Ant's record-breaking IPO attracted $3 trillion in retail-investor bids. Ant Group aims to raise more cash through its initial public offering than any other company in history, and the massive debut is fueling unprecedented demand among retail investors. The financial-services company — a branch of Jack Ma's Alibaba empire — took in more than $3 trillion in orders from retail investors across its dual listings in Hong Kong and Shanghai. Roughly 19.1 trillion yuan ($2.9 trillion) worth of bids were raised in the Shanghai portion of the IPO, according to regulatory filings. The sum was 872 times the exchange's supply of shares.
Airbnb has selected the Nasdaq exchange for the listing of its stock. The vacation rental company is seeking to raise around $3 billion at a valuation of more than $30 billion, Reuters reported earlier this month. We are wishing Airbnb much success as I worked closely with many of them to prepare for this moment.
We hope you enjoy our special Halloween video! Have a great weekend.