After a slightly less volatile period in the markets, the CPI data have forcefully reinvigorated this trend that first sent Wall Street plunging and then granted a breather to the stock of Google, Meta, Apple and Ferrari.
Google, Meta, Apple and Ferrari on the stock market
After a slightly less volatile period in the markets, the CPI data forcefully reinvigorated this trend that first sent Wall Street plunging and then granted it breathing room.
The Nasdaq index and the Standard & Poor 500 suffered a common fate following the new CPI data that saw inflation fall (great news) but not as expected among insiders (forecasts were 8.1% while the figure stopped at 8.2%).
This news, soon after its release, gave rise to a cascade of red that permeated all sectors (the figure affects across the board in any sector) and then granted a recovery on the session’s end.
Among the daring declines and rises, we find some companies in the Social and Tech sectors, such as Google (Alphabet), Apple, Ferrari, and Meta.
The most impressive figure is precisely from Meta (Facebook); Zuckerberg’s company managed to register +5.74%, bringing its value to $134.
New partnerships, net of the economic aspect that brings new life to a balance sheet struggling as a result of the decline in the marketing sector above all are an injection of confidence from Meta’s partner and satellite companies.
Moreover, recently Meta, which is moving in the due direction (Metaverse) albeit very slowly, has brought out its own visor, the Meta Quest Pro which is designed for professionals so that they can enhance their creativity through VR (Virtual Reality).
The price, despite a 5% increase that shows an eagerness to innovate and invest in the stock, is the same as it was back in July 2016, proving just how big a plunge Zuckerberg’s “toy” suffered in the market.
The extended reality (XR) market was valued at $42.86 billion in 2021 and is expected to grow to $465.26 billion by 2027, registering a huge CAGR of 46.20%.
In light of these facts, analysts believe that now is the time to invest and that a price of around $130 a share is the right social for the real value that Facebook (Meta) also expresses from a Metaverse perspective, which is the trend of the future.
Google’s stock on the stock market
Another major company that is betting heavily on augmented reality, metaverse and whatnot is Alphabet Inc Class A (Google) which is starring just as the blue social has been in a portentous recovery in the market.
The session registered an important +3.53% on Wall Street, which brings GOOGL back to the psychological threshold of $100 a share ($99.97 to be precise).
Also equipped with its visor and in continuous development of augmented reality, the recovery of the stock is also the result of the news that from 2023 the search engine will allow payments for its services to be made in Bitcoin, Dogecoin and other cryptocurrencies, opening itself up to an important and expanding asset.
Not-so-great news, however, unites Meta, Amazon and Google, which are being investigated by the European Parliament for an alleged lack of transparency and related crimes.
According to Bloomberg reports, the complaint was filed by three MEPs with the EU’s Transparency register, as according to these representatives of the people there is a suspicion that big tech from the States financed an external pressure group to try to influence the decisions of EU parliamentarians on the Digital markets act and the Digital services act without accounting for their interference in these groups.
The MEPs’ accusation is of circumventing transparency legislation, but it appears to be just a cusp to thoroughly investigate the workings of big tech in the European political fabric and their influence on it.
Rules on transparency in lobbying activities have reportedly been violated, and they are asking the EU’s Transparency register to possibly revoke the three companies’ access to EU lobbying institutions.
The joint action of the three companies mentioned above was allegedly coordinated by the Connected commerce council, which presented itself as a representative of small and medium-sized enterprises while in reality serving the interests of US multinationals.
According to the MEPs, the European Parliament was completely unaware of this council’s messages during the final stages of the vote on the two marketplace directives and the strings were being pulled by Google, Amazon and Meta themselves.
Following these allegations, Amazon says it is estranged from the Connected commerce council on European policy issues, while it has admitted to working with its US counterpart by opening another thread across the Atlantic.
Google has rejected the accusations to the sender by replying that it is uninvolved in the whole affair and that it never operates in this manner anywhere in the world, Meta, on the other hand, has chosen to remain silent, at least for now.
Apple, the other big tech on the New York Stock Exchange, yesterday closed at $142.41 per share, showing strength by +2.91%.
While on the product side, the latest convention for the presentation of the newest smartphone disappointed expectations (criticism is for a product that is basically the same as its predecessor and does not introduce significant innovations) macro data is understood to play the leading role in Apple’s house.
Stock volatility was a 7% between lows and highs in the same session for a figure touching 160 billion market capitalization confirming some analysts’ expectations about the persistence of significant volatility on the stock.
APPL’s correlation with the Standard & Poor 500 in recent weeks has been twice as high as the US index has accustomed us to having with Bitcoin.
Ferrari (RACE): the stock
Last but not least is the interesting result obtained by RACE (+2.19%) reaching $191.40 a share on the heels of the worldwide launch of the prancing horse manufacturer’s new SUV worldwide, the long-awaited Purosangue.
Needless to say, the units already produced have all already sold out and are heading for America and the United Arab Emirates primarily at a time when the brand is suffering somewhat from the conduct of the formula one racing team, not so much as a matter of results but because of the image the team gives with the questionable strategies taken.
76,285 ordinary shares at an average price per unit of 188.2715 euros, worth 14,362,291.44 euros is the purchase made by the company on the Milan Stock Exchange and the New York Stock Exchange (NYSE) from 10 to 14 October this year.
On 30 June this year, the company had announced the 150-million-euro share buyback program, part of the first tranche of the multi-year share buyback program, which totals about 2 billion euros.
As reported by Capital Markets Day 2022, the purchases are to be made by 2026 in line with the information provided.
In total, RACE purchased 486,617 ordinary shares worth 93,891,543.15 euros on the Milan Stock Exchange and 101,968 ordinary shares worth 19,368,214.33 US dollars on the New York Stock Exchange (NYSE).
Ferrari had 11,653,695 treasury shares equal to 4.53% of the total issued share capital including ordinary and special shares and net of shares granted under the Company’s share incentive plan.
In addition, two more new car models are scheduled to be released by 2024, including one that is electric only, which will mark a break with the past while confirming the brand’s standards of taste and quality.
In Milan, Ferrari also registered +2% giving relief to holders after more than a year of bear market.