Facebook’s Pieces
By Fri, Dec 11, 2020
Hey Scoopers,
The rise in the new jobless claims number prevented the stock market from digging its way out of the dip. — More on that in the “Overall Market” section.
Beyond the overall market, genome editing progress drove one stock’s price high up, while a concept-stage car manufacturer got a downgrade. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, what does it mean for Facebook’s shareholders if the company gets broken into pieces? — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
Market Recap
- U.S. markets: The stock market indices didn’t agree on the direction. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price has lost more momentum and fell below $18,000 per share.
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Jobless Claims
The stock market indices tried to dig themselves out of Wednesday’s dip. They moved upward for most parts of the day, but not enough to reach the green zone. Among the three indices, the Nasdaq index was the only one that ended Thursday in the green. The number of new jobless claims surged to 853,000, much higher than what was expected. That could be the main reason why the market couldn’t get out of its dip.
Gene-editing Is Exciting
So what happened?
Shares of Editas Medicine Inc (Ticker: EDIT) were up by more than 30% on Thursday. This genome editing company has been growing for a few days in a row, and today it got an upgrade from Wells Fargo. The company announced it had submitted its application for Investigational New Drug (IND) with the FDA to start a new clinical trial phase for a gene-editing medicine to treat sickle cell disease.
Up to 100,000 companies now using “6G”?
Jeff Brown has made some incredible revelations before…
The angel investor predicted the top tech stock on the S&P 500 in three of the last four years…
He unveiled the key piece inside Apple’s new iPhone – on stage in New Haven, CT – months before the phone has even hit the market.
In this video, I’m going to give you the name of this company for free – including the stock symbol.
Just A Concept
So what happened?
Shares of Fisker (Ticker: FSR) were down by more than 11%. The company is a pre-product electric vehicle designer that plans to build a car brand without owning the manufacturing facility. It is a fascinating concept by an ex-executive from Tesla (Ticker: TSLA). However, without a product and just innovative ideas, it isn’t too surprising to see that stock falling from its all-time high record of more than $21 per share. Specifically, the price drop came after the downgrade by analysts from Wolfe Research.
What If Facebook Gets Broken Into Pieces?
So what happened?
Facebook (Ticker: FB) may get broken up by regulators. Should we panic?
The talk of the town is pretty scary. The Federal Trade Commission and 46 state attorneys general believe that the company uses its power to bend developers and 3rd party developers to do whatever it wants. Such investigations turn into quite a lot of negative sentiment, and it may mean Facebook has to break up its Instagram and WhatsApp businesses. However, the results may not be as scary as some investors assume.
Breaking up a business like Facebook means investors get a share of the broken pieces. Each piece goes on its own, and suddenly, instead of one profitable company, investors have access to 2 or three either rapidly growing or extremely profitable companies. Yes, the process would be painful, but the result may be much favorable to shareholders.
If you have any questions, or suggestions let us know by emailing us at members@tradestocks.com. We look forward to hearing from you.
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
