MARKET HIGHLIGHTS
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market highlights
GOOD WEEK
Clearway Energy, Inc. (CWEN +11.5%) experienced significant price fluctuations in recent months. While its current price appears reasonable compared to industry peers based on the price-to-earnings ratio, its stable share price and moderate growth prospects may limit substantial gains. However, expected profit growth could lead to higher cash flow and share valuation in the future.
Nikola Corp. (NKLA +2.94%) Despite a recent drop of over 10%, Nikola Corp. has had a strong performance. This slight decline follows a period of notable stock price increases. It's important to remember that even with this dip, the company has achieved overall gains, which is a positive sign for investors.
BAD WEEK
Agiliti's (AFTI -13.4%) stock fell and has dropped more than 65% this year. The decline happened after the company announced a change in its CEO. Although Agiliti is still making money, it had a $4 million loss in the second quarter due to lower sales in one part of its business and higher costs for big contracts. This made investors worried, even though the company's yearly sales are expected to grow.
AT&T (T -0.70%) saw its stock drop after reports suggested the company is considering selling its 70% stake in DirecTV. The telecommunications giant entered a joint venture with private equity firm TPG in 2021, with a commitment to potentially sell its stake. DirecTV has been struggling to compete with streaming platforms, losing customers and reducing cash distributions to AT&T. Selling the stake may allow AT&T to refocus on its core wireless and broadband businesses.
WHAT ELSE HAPPENED
The US housing market is too expensive. To make it affordable again, one of the three big changes would need to happen:
1. Prices to drop by 35%
2. Mortgage rates to go down by 4%
3. People's incomes to rise by 55%
High prices and mortgage rates are causing problems, and there aren't enough homes for sale. This is making it harder for people to buy houses, and demand has gone down.
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