Weekly Stockwatch: Tesla Stock-Split Intention, Baidu Delisting Fears, Apple Stock 11-Day Rally & More
Tesla Seeks Stock-Split
The King of the Electric Vehicle (EV) arena, is pushing for another stock-split, as a filing with the U.S. Securities and Exchange Commission revealed on Monday [1].
According to the filing, Tesla plans to ask for shareholder approval for a stock-split at the upcoming 2022 Annual Meeting. The firm's last such action had taken place in August 2020, with a 5-to-1 split.
Last week, Tesla opened its first European production plant, the Gigafactory Berlin-Brandenburg and delivered the first German-made Model Ys. [2]
TSLA.us surged nearly 8% on Monday after the stock-split news and runs its third straight profitable week.
NIO, XPeng Delivery Updates
The two Chinese Tesla-rivals provided their latest delivery figures today. Nio delivered 25,768 vehicles during the first quarter of the year, marking an increase in both quarterly and yearly basis. At the end of last month, the company handed over its first ET7 flagship premium sedans, while cumulative deliveries amounted to 192,838 units as of March 31. [3]
A week ago, Nio had announced its financial results for the fourth quarter of the previous year. It reported Revenues of RMB 9.9 billion – up 6.7% from the prior quarter and up 49.3% from Q4 2020. [4]
XPeng delivered 34,561 cars in Q1 2021, which constituted a 159% year-over-year increase, but was lower than Q4's 41,751. Total deliveries stood at 172,514, as of March 1. [5]
On Monday, XPeng had announced a 200.1% Revenue increase year-over-year, which amounted to RMB 8.556.0 billion in Q4 2021, while Net Loss narrowed to RMB 1.287,2 billion, from RMB 1.594,8 billion in Q3. [6]
Apple Oscar Success and 11-Day Stock Rally
The technology giant's streaming service, Apple TV+ made history on Sunday, as it became the first streamer to win the Oscar for Best Picture, with CODA [7]. AppleTV+ launched in 2019 and has produced some critically acclaimed series as well, such as Ted Lasso which got the Emmy for Outstanding Comedy Series in September. [8]
Netflix had been eying the award for a few years now and went into Sunday's ceremony with two entries in the category, but lost to Apple and left with just one award, for the Power of the Dog and Ms Campion's Directing.
Despite the high-profile victories, the two streaming services collected just four statuettes, while Warner Bros came on top with seven victories, followed by Disney's six awards.
Apart from the Oscars success, Apple made history with its recent stock performance. AAPL.us posted its 11-straight profitable day on Tuesday, its best streak in more than a decade. It rejected $180.00 however and the following two days were negative.
Sony PlayStation New Subscription
Sony unveiled on Tuesday a new subscription service for its gaming consoles. The new service is called PlayStation Plus and will have three tiers, consolidating the existing Now and Plus packages. It will begin rolling out in June, starting with several markets in Asia, followed North America, Europe and other applicable regions. [9]
Sony noted that the two higher tiers – Extra & Premium – represent "a major evolution for PlayStation Plus". Among other features, the Extra subscription will have a catalog of up to 400 PS4 and PS5 games, while the Premium offering adds another 340 titles.
The new subscription service is seen as a move to challenge Xbox's Game Pass offering, with Sony and Microsoft competing in the gaming arena. The latter recently announced plan to buy gaming publisher and developer Activision Blizzard in a massive $68.7 billion deal [10], "forcing" Sony to reply with the acquisition Bungie, Inc for $3.6 billion [11].
Baidu US Delisting Fears
On Thursday, the U.S. Securities and Exchange Commission (SEC) added Chinese technology giant Baidu, to a list of companies that face risk of delisting from the US stock market. [12]
This publication is based on the 2020 Holding Foreign Companies Accountable Act ("HFCAA") around firms whose auditors cannot be inspected. This needs to occur for three consecutive years, In order for a firm to be delisted.
After this week's additions, the SEC's list has now grown to eleven companies, including social media firm Weibo (WB.us).
Baidu said in a filing that it "has been actively exploring possible solutions. Baidu will continue to comply with applicable laws and regulations in both China and the United States, and strive to maintain its listing status on both Nasdaq and the HKEx." [13]
On March 1, Baidu had reported a 9% Revenue rise in Q4 2021 year-over-year. Its autonomous ride-hailing service, Apollo Go, saw rides rising to 213,000 in the quarter. [14]
BIDU.us shed almost 8% on Thursday and heads towards a negative week.
Nikos Tzabouras
Senior Market Specialist
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
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