Tesla taking a bite of the restaurant business comes on the heels of other players taking a bite of the EV market share that saw Tesla’s global share falling to 11% in April, from 29% in March.
With these hybrid charging stations, Tesla can offer an ecosystem that other EV players haven’t built yet. Tesla owners could soon tank up on some pressed juice while they juice up their Model S.
Meanwhile, stocks dipped on Thursday, catalysed by tech. In other news, AMC stock plunged 21% after the company sold millions of shares for the second time in the week.
It was a week of modest gains, however, as Nasdaq (IXIC) S&P 500 (GSPC) and Dow Jones Industrial Average (DJI) made less impressive gains of 0.48%, 0.61% and 0.66% respectively.
Grab your popcorn! AMC’s share sink paints a grim picture
It was an action packed week for the movie-theater operator as investors began backpedaling from AMC Entertainment Holdings Inc. (AMC) after it said that it plans to sell more stock, even as it cautioned potential buyers of its shares that they might lose all their money.
The stock surged over 120% on Wednesday, to hit a new peak of $70 with increased volatility as the exchanges halted trading several times during the session to close at $62.55 on Wednesday’s trade with a whopping 95% rally in one session.
The company made the most of this rally by selling around 11 million shares and helped them raise over $500 million additional capital. Post the sale, the stock dropped as low as $37.66 to close 18% lower at $51.34 during the week. It’s worth noting that the stock has rallied over 3000% in 2021 which is higher than what Gamestop (GME) experienced, which was the original darling of retail investors on reddit and other internet forums.
The recent drama aside, investing should always be about the bigger picture, and the reality of AMC’s business paints a pretty grim one: Given the current dynamic and the rise of video streaming, it’s safe to assume that the in-person movie-viewing experience is in extremely deep trouble if a complete re-imagining of the company’s business model isn’t on the cards.
It’s fair to say that an investor considering AMC stock as a long-term holding is likely experiencing recency bias.
Cybersecurity stocks could beef-up after the JBS ransomware attack
Cybersecurity is more critical than ever, especially in a world already reeling from supply disruptions and bottlenecks caused by the coronavirus pandemic. The rise in attacks, therefore, could spell gains for key cybersecurity players like CrowdStrike (CRWD), Palo Alto Networks (PANW), and Cisco (CSCO) who could stand to benefit from a renewed focus on devastating ransomware attacks.
As a high-growth segment of the tech industry, investing in cybersecurity offers investors lots of upside in the decade ahead. But if picking the best security stocks isn’t your thing, there are several exchange traded funds (ETFs) that allow an investor to participate in the growth of the whole cybersecurity industry.
Of these, First Trust Nasdaq Cybersecurity ETF (CIBR) is the largest, with $3.5 billion in assets under management, and composed of more than 40 stocks.
In the post-pandemic landscape, retaining small businesses as well as corporate accounts will be one key to Zoom’s continued success. Another, will be its ability to convert free users into paying subscribers. Zoom may be downgraded from a buy rating, but the current consensus is to hold stock in Zoom Video Communications Inc.