Shopify (SHOP, Financial) experienced a significant surge following record Black Friday sales, with the platform's sales jumping 22%, surpassing the overall spending increase of 2.5% for the year. The company's shares rose by 5.2% as a result. The average cart price on Shopify increased by approximately 5%, with an average cart value of around $110. Merchants on the platform generated a whopping $4.1 billion in global sales, setting a new record for Black Friday. Ken Wong, an analyst at Oppenheimer, expressed optimism about the stock's target price, suggesting a potential gross merchandise value (GMV) increase to 17%.
In the realm of large-cap tech stocks, Microsoft (MSFT, Financial) stood out as the most under-owned this quarter, according to a report by Morgan Stanley. The report highlighted a correlation between low active ownership and positive future stock performance. While Microsoft was the least owned, Meta Platforms (META, Financial) remained the most over-owned among mega-cap stocks. The gap in under-ownership of mega-cap stocks slightly decreased by the end of the third quarter.
The U.S. Department of Justice appears to have an advantage over Google (GOOG, Financial) (GOOGL, Financial) in the ongoing antitrust trial. The focus is on whether Google's payments to Apple (AAPL, Financial) and Samsung (SSNLF, Financial) for default search engine status have anticompetitive effects. Analysts believe that the judge may rule in favor of the Justice Department, as Google's payments could be seen as an attempt to prevent competition from companies like Microsoft (MSFT, Financial).
Broadcom (AVGO, Financial) has reportedly laid off many employees from VMware, which it recently acquired. An internal memo indicated that the layoffs were part of an organizational needs assessment following the acquisition. Broadcom aims to streamline its operations, though the exact number of affected employees has not been disclosed.
President Joe Biden is set to invoke the Defense Production Act to enhance domestic production of essential drugs. This action is part of a broader initiative to bolster supply chain resilience, with the Department of Health and Human Services identifying $35 million for investments in the production of critical medical supplies.
Biodexa Pharmaceuticals (BDRX, Financial) saw its stock value more than double after announcing an exclusive worldwide license agreement for Tolimidone, a Phase 2 ready candidate for type 1 diabetes. The agreement involves upfront and milestone-based payments, as well as royalties on net sales.
The airline industry is expected to maintain positive momentum into the next year, supported by steady leisure demand and adjusted capacity. Analyst Savi Syth from Raymond James noted strong demand for travel during peak periods, with the Transportation Security Administration reporting record-breaking numbers of passengers screened at airports. Despite a decline in affordability, airlines are quickly adjusting to market demands.
Baytex Energy (BTE, Financial) announced the sale of some of its Viking assets in Saskatchewan for approximately C$153.8 million. The proceeds from the sale will contribute to reducing the company's bank debt. The assets currently produce around 4,000 barrels of oil equivalent per day.
Cyber Monday saw online retail stocks mostly on the rise, with early reports indicating higher-than-expected spending. Adobe Analytics predicted that spending could reach $12.4 billion, with significant usage of buy-now-pay-later services. Notable gainers included Qurate Retail (QRTEA, Financial), Wayfair (W, Financial), and Etsy (ETSY, Financial), among others. Amazon (AMZN, Financial) also saw an increase, outperforming the S&P 500 Index.
iRobot (IRBT, Financial) experienced a sharp decline following concerns from the European Union about its sale to Amazon (AMZN, Financial). The European Commission expressed preliminary concerns that the acquisition might restrict competition in the robot vacuum cleaner market. The EC has until February 14 to make a final decision on the deal.
Bayer AG's (BAYZF) potential divestiture of its consumer health business could result in a significant tax bill. The company is exploring various breakup scenarios, but any such move is expected to be complex and challenging.
Crown Castle (CCI, Financial) received attention from activist investor Elliott Investment Management, which has taken a stake worth over $2 billion in the company. Elliott is pushing for board changes and a review of the company's fiber business, believing that Crown Castle could benefit from new leadership and strategic adjustments.
Small-cap stocks are under the spotlight as Seeking Alpha's Quant Rating systems identify potential opportunities. The list includes companies with market caps below $1 billion and high Quant, SA Analyst, and Wall Street Analyst Ratings.
Silvercorp Metals (SVM, Financial) saw a positive movement after a challenge to its dilutive deal for Australia's OreCorp (ORECF) by Perseus Mining (PMNXF), which increased its stake in the miner. OreCorp's shareholder Perseus plans to vote against the Silvercorp deal.
Citi analyst commented on Crown Castle's (CCI, Financial) potential for share price growth if improvements are made to its fiber segment. The fiber business currently trades at an EV/EBITDA of approximately 9x, but could reach 12x-15x with strategic enhancements.
GAM Investments' Niall Gallagher reduced his stake in Novo Nordisk (NVO, Financial) due to the hype around weight loss drugs like Wegovy and Eli Lilly's (LLY, Financial) Zeptide. Despite the popularity of these drugs, Gallagher expressed caution due to the heightened market excitement.
Bernstein maintained an Outperform rating on BYD Company Limited (BYDDF), arguing that the valuation gap between BYD and Tesla (TSLA, Financial) should not be as wide given their comparable size and growth rates in the EV market.
