MARKET HIGHLIGHTS
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market highlights
GOOD WEEK
Airbnb's (ABNB +1.78%) stock has surged in 2023, driven by strong Q2 results and robust travel demand. The company consistently outperformed earnings estimates, with revenue up. Airbnb expects continued growth, benefiting from rebounding international travel and an expanding property supply.
Aurora Cannabis (ACB +14.75%) and other marijuana stocks have seen rising highs due to positive developments. The U.S. Department of Health and Human Services suggested reclassifying cannabis from Schedule I to Schedule III. President Biden endorsed medical marijuana, and Senator Chuck Schumer aims to advance the SAFE Banking Act, facilitating banking services for cannabis businesses.
BAD WEEK
E.W. Scripps (SSP -17.1%) stock plummeted this week, driven by an ongoing conflict between Disney and Spectrum cable. Scripps, a major TV station and network owner, experienced a sizable drop. The dispute revolves around fee negotiations, with Disney seeking higher fees while Spectrum wants free access to Disney's streaming services for its customers. This uncertainty in the cable industry has negatively impacted Scripps and similar TV stocks, signalling potential challenges in the evolving TV landscape.
VinFast Auto's (VFS -4.65%) shares plummeted this week, following its recent SPAC merger and soaring debut. The Vietnamese electric vehicle manufacturer's stock, which initially surged, is now down from its debut price. The volatile trading is attributed to a low float, with only a small percentage of VinFast Auto's shares available for trading, despite the company's ambitions to scale its EV operations and build a plant in North Carolina.
WHAT ELSE HAPPENED
Alphabet (GOOG/GOOGL): Dominating the global Internet search market with a large share, Alphabet's revenue is primarily driven by advertising, particularly Google advertising, which accounts for majority of its revenue. Despite challenges during economic downturns, Alphabet has remained resilient. The company's investment in artificial intelligence (AI) and the growth of Google Cloud provide promising avenues for future growth.
Amazon (AMZN): Amazon is a leader in e-commerce and cloud computing, two sectors experiencing double-digit growth. Amazon's stock has risen this year, reflecting its adaptability and resilience. The company's efforts to enhance cost efficiency, reorganize its fulfillment network, and capitalize on the expansion of Amazon Web Services (AWS) have contributed to its improved financial performance. Despite the gains, Amazon's valuation remains relatively attractive.
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