Stock Take 22/06/2021

1 company = 2 trillion

The software giant Microsoft is worth two trillion dollars on the stock exchange for the first time. The shares benefited on Tuesday from the general market recovery after the weak previous week and rose by a good 1.10 per cent to 265.51 US dollars by the close of trading.

Thus, Microsoft is the second US stock corporation after Apple to have a market capitalisation of two trillion dollars. In ranking the most valuable listed US corporations, Apple currently holds first place with a good 2.23 trillion dollars.

Online retailer Amazon and Google parent Alphabet are behind Microsoft. Facebook, the investment company Berkshire Hathaway and the electric car manufacturer Tesla follow in the other places.

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Since the beginning of the year, Microsoft shares have already risen by a good 19 per cent. Investors are currently betting that the company’s dominance in the business of rental software via the internet (cloud) and the field of enterprise software will even increase after the Corona crisis.

Today, an optimistic analyst comment also supported the share price. It is possible that Microsoft will present the new operating system “Windows 11” at an upcoming event on Thursday, wrote expert Karl Keirstead of the major Swiss bank UBS. For him, not only the software itself is of interest, but also the potential introduction of a subscription licensing model. The valuation of Microsoft shares seems justified at the current level.

GameStop raises more than a billion dollars

US video game retailer GameStop, which made headlines for an extraordinary share price rally, has raised more than a billion dollars in a stock sale. The company, which has been in crisis for a long time, thus continues to profit from the campaign of small investors organised on the internet, which caused the share price to rise at the beginning of the year.

GameStop sold five million share certificates for a total of almost 1.13 billion dollars in the past weeks. The money will be used for “growth initiatives” and to strengthen the balance sheet, the company announced on Tuesday.

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The share price was still less than 20 dollars at the beginning of January – and then rose within a few weeks to a peak of just under 350 dollars before a downward slide set in. In early US trading on Tuesday, the share price rose by over six per cent to around 213 dollars after the announcement.

GameStop had been in crisis with its shops for some time before the share price upswing opened up new opportunities for the company. Now the company wants to say goodbye to the dusty business model of a classic retail chain and become a modern technology provider for online gamers.

GameStop’s business has also been somewhat better recently. In the three months up to the beginning of May, sales rose by around a quarter year-on-year to 1.3 billion dollars. Although GameStop was still in the red, it reduced its loss from 165.7 to 66.8 million dollars within a year.

GameStop shares rose 9.59 per cent to 219.59 US dollars in Tuesday trading on the NYSE.

Bike24 share price offered on the lower end

Bike24, an online bicycle retailer, has finally cleared the final barrier on its road to an initial public offering. The offered shares were set at 15 euros per paper, the company, which specialises in bicycles, bicycle accessories and clothing, announced in Dresden on Tuesday evening. This was only the lower end of the previously stated price range, which had been €15 to €19.

Institutional investors bought a total of 21.5 million shares, according to the company. Of these, 14.8 million came mainly from the holdings of the current majority owner, a company affiliated with the European Riverside Fund. Of the total gross proceeds of 322 million euros, Bike24 will receive 100 million euros, less than a third. The company reportedly intends to put the money into further accelerating its international growth.

Six hundred sixty-two million euros is the initial market capitalisation.

On June 25, the Frankfurt Stock Exchange’s regulated market will open for business for the first time. 

Plug Power remains in the red

The hydrogen company Plug Power presented its figures for the first quarter of the 2021 financial year before the stock exchange. The presentation of the figures was delayed by several weeks due to the subsequent correction of several annual financial statements. 

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Plug Power reported a $0.12 loss per share. For the year-to-date quarter ended 31 March 2021. Analysts had expected a negative EPS of 0.082 US dollars after the US hydrogen company had still posted a loss of 0.12 US dollars per share in the previous year’s quarter.

Plug Power generated 71.86 million US dollars on the revenue side, just missing analysts’ forecasts of 72 million US dollars. In the prior year’s first quarter, the company had achieved a turnover of 41 million US dollars.

On the NASDAQ, Plug Power shares were trading 6.23 per cent higher at 31.71 US dollars.

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