Uber the rideshare tech company, its stock tanked on its first official trading day on the NYSE, Friday, May 10, 2019 will be a day of turmoil on the Uber corporate calendar. It was a horrible trading day for the mammoth ride sharing tech company.
Uber declined close to 8% during the stock market trading day. The stock plummeting so much (in which it did), is the first time any stock has come out the gates on Wall St and lost so much market share. The valuation of Uber was at $76 billion dollars, when analysts had predicted that it would be valued around $90-$100 billion dollars, well that didn’t happen. Not only that, Uber has been bleeding money and the perception is that, Uber won’t actually make any real money until the year 2024, hopefully.
Uber being one of the biggest IPO companies probably since Alibaba, Facebook and a few others. So it to falter as it did was a shocker to some and to others, not so much. Technology companies tend not to fare well in the beginning of their IPO presence. Facebook had a rocky start coming out the gates and other big tech companies before it, have gone through similar revelations.
It’s the test of time that will dictate the longevity of Uber’s existence and if they can navigate their ship in theses rough and turbulent stock market waters. -SB
On Monday, January 28, 2019, the United States Attorney General Department, indicted Hauwei Technologies with 13 counts of banking fraud, wire transfer fraud, and violating Iranian sanctions imposed by the United States.
Hauwei Technologies Ltd. (the biggest global telecom equipment maker and provider) have been accused of misleading authorities of its relationship with subsidiary banks that had connections with Iran, as well as stealing technology trade secrets for USA companies, such as T-Mobile. The charges were filed in the state of Washington.
US authorities have accused the CFO of Hauwei, Weng Wanzhau as being the mastermind of the schemes that have played out in the federal indictment charges.
Weng & Hauwei Technologies Ltd deny the charges put forth by the US. -SB
1) The arrest of a top Chinese executive of Huawei, a major Chinese high technology company, caused world markets, including the Dow, to fall. The Dow dropped 777 points before news that the Feds planned to slow down on increasing the interest rate was announced.
2) Research finds that millennials don’t have the money to spend that previous generations had. The assumption has been a shift in spending habits, but with a millennial male making $6,600 dollars less than 1978 men, it appears they just don’t have the disposable income. Working women haven’t made up the difference, opening the question about the future viability of our hyper-consumerism economy.
3) The EPA is expected to rollback back emission standards allowing coal fire powerplants to operate again without having to remove the carbon dioxide from burning coal.
4) 6 DEC 18 Stock market closings:
Dow 24,947.67 down 79.40
Nasdaq 7,188.26 up 29.83
S&P 500 2,695.95 down 4.11
1) President Trump continues to play hardball with China to hammer out a trade agreement more favorable and equitable to the United States. But he did praise China for taking new measures to control addictive drugs into America.
2) Facebook finds itself under the gun for giving personal data to select users. New documents have surfaced showing that Facebook intended for these select users to have wide spread access to data in exchange for advertising on Facebook. Facebook is adamant they didn’t sell any personal data to any third parties, but nevertheless, they profited from providing data.
3) Price increases are spreading broadly through the economy, driven by tariffs and the trade war. Furthermore, the interest rate is expected to rise again in December, which may put further pressure to raise prices. Chinese tariffs have had a very adverse effects on American agriculture.
4) 4 DEC 18 Stock market closings: Markets closed.
1) World stock markets fell dramatically, the Dow down 800 points, a result of uncertainty about China and American trade war. There wasn’t any signing of agreements at G20, nor has China made any public statements about resolving the conflict since then, adding to the uncertainty. Also contributing are fears of the American economy sliding downward in the near future.
2) A recall of 12 million pounds of beef because of salmonella outbreak, has stretched across the country. So far, there has been 240 cases of infection in 6 states.
3) New carbon taxes in France aimed at reducing global warming effects has resulted in extensive riots forcing France to back off the taxes.
4) 4 DEC 18 Stock market closings: The stock market is like a rectal thermometer- rude and crude, but surprisingly effective in showing sickness.
Dow 25,027.07 down 799.36
Nasdaq 7,158.43 down 283.09
S&P 500 2,700.06 down 90.31
1) Qatar announced they are dropping out of OPEC to focus on natural gas production, which is what their oil fields mostly produce. Being a small producer of oil, Qatar considered itself too small to be a part of OPEC, despite being a member for 57 years.
2) For the best bets in the stock market during this next 90 days of trade war truce, experts are saying to watch where China spends money in the US that best strengthens it’s position with America. Look for such things as agriculture products like pork and grains, and big ticket machinery such as construction equipment and aircraft.
3) Walmart is buying robots, autonomous floor scrubbing machines, and will have 360 units in stores by end of January. Walmart is already using robots which scan for ‘out of stock’ items on shelves. Both robots operate by themselves on the store floor while customers are present.
4) 3 DEC 18 Stock market closings: Oil prices rise as Saudi Arabia and Russia agree to limit oil production.
Dow 25,826.43 up 287.97
Nasdaq 7,441.51 up 110.98
S&P 500 2,790.37 up 30.20
1) President Trump has signed USMCA, the new trade agreement with Mexico which will replace the NAFTA, the current agreement.
2) Microsoft has been awarded a $480 million dollar contract from the military to adapt their HoloLens for virtual reality training and combat. This could mean sales of up to 100,000 units.
3) Microsoft surpassed Apple as the most valuable publicly traded company, closing with a total stock value of $851.2 billion compared to Apple’s value of $847.4 billion. Apple’s stock dropped 20% last month.
4) 30 NOV 18 Stock market closings: Ninety day truce of American-China trade war is expected to boost markets.
Dow 25,538.46 up 199.62
Nasdaq 7,330.54 up 57.45
S&P 500 2,760.17 up 22.41
1) President Trump goes to G20 conference amid concerns for the near and far future of world economies, as countries are withdrawing into nationalism and protectionism. While flying to the conference, Trump tweeted his cancellation of meeting Putin because of Russia’s recent aggressive actions against Ukraine.
2) Because of sever shortages of pork, a result of widespread disease in Chinese hog herds, China has resumed buying pork from America despite the trade war.
3) The pharmaceutical company Bayer announced plans to cut 12,000 jobs as a result of the Monsanto takeover. This action is a result of restructuring because of losing a massive lawsuit over the weedkiller Roundup.
4) 29 NOV 18 Stock market closings: The three day market rally ends.
Dow 25,338.84 down 27.59
Nasdaq 7,273.08 down 18.51
S&P 500 2,737.76 down 6.03
1) America had the fastest expanding GDP by growing 3.5% in the third quarter. The Feds hint that they might hold interest rates at present level, which would further stimulate growth.
2) There are threats of a partial government shutdown next week over funding for the border wall, the shutdown coming one week from this Friday.
3) Google is facing a $4 billion dollar fine for using smart phones to track people without their consent. Last May, Europe passed regulations controlling the use of digital technology with people, which allows them to level such a large fine. The American Congress is considering similar legislation to regulate the digital industry.
4) 28 NOV 18 Stock market closings: Biggest Dow rally in eight months.
Dow 25,366.43 up 617.70
Nasdaq 7,291.59 up 208.89
S&P 500 2,743.79 up 61.62
1) There are reports that Apple stock holds key to end market slide, that the markets can’t turn around until Apple is going up, because the markets are being driven by the tech stocks, and Apple is the lead technology stock. In the last two months, Apple stock has lost 25% of its value.
2) While home values have continued rising, the gains have shrunk to their lowest amount in the last two years.
3) Economy tiny houses are being offered in Silicon Valley costing $280,000. The houses are prefabricated units.
4) GM has spent $10 billion dollars in buying back its stock, but then cut jobs to save $4.5 billion dollars.
5) 27 NOV 18 Stock market closings:
Dow 24,748.73 up 108.49
Nasdaq 7,082.70 up 0.85
S&P 500 2,682.17 up 8.72