Apple, Tesla, Alibaba, and Intel Shares Grow: Top News of the Week (06.12-10.12)
Today you'll get to know why the shares of large corporations such as Apple, Tesla, Alibaba, and Intel were growing this week; and whether this growth was substantial and lengthy.
Alibaba announced the reorganisation of its e-commerce business
On 6 December 2021, it was announced that the Chinese giant Alibaba would split its electronic commerce business into two subdivisions. The first one would deal with the international market, while the other would focus on the Chinese market.
The department to work with the Chinese market will include Tmall and Taobao. The overall manager will be Trudy Dai. The global department, headed by Jiang Fan, will manage AliExpress, Alibaba.com, and Lazada.
Maggie Wu will be leaving the post of CFO in April 2022 but will remain on the board of directors. Her CFO leadership position will be given to Toby Xu, deputy CFO.
How Alibaba shares reacted
These changes are meant to help the company recover while the economy is slowing down, industry rivalry is increasing, and national regulations are severe.
On 7 December 2021, the shares of Alibaba Group Holding Ltd (HK: 9988) on the Hong Kong exchange grew 12.24% to 126.5 HKD. On the NYSE too, the stock quotes (NYSE: BABA) went up, seeing 10.4% growth to $123.6.
Intel will bring Mobileye to the US stock exchange
On 6 December 2021, Intel announced on its website that it's planning on taking Mobileye public via an IPO in mid-2022. Mobileye is a subsidiary that designs technology for unmanned vehicles.
Intel forecasts that Mobileye will be able to attract $50 billion when it enters the market, as investors are showing more and more interest in the autonomous vehicle industry and the technology around it.
Intel bought the Mobileye startup from Israel for $15.3 billion in 2017. The company supplies up-to-end car safety systems to Volkswagen, General Motors, BMW, Nissan, and 30 more car manufacturers.
Following the news that Intel was planning an IPO for Mobileye, the shares of Intel Corporation (NASDAQ: INTC) have grown for two sessions in a row. On 6 December 2021, the stock quotes rose 3.53% to $50.99; and on 7 December, they grew 3.1% to $52.57.
Analysts claim that the money gathered by Mobileye will be allocated to the construction of two plants in the US. Increased production powers will create the right conditions for recovery and development in the market.
Investigation has begun against Tesla
On 6 December 2021, we heard that the US SEC started an investigation against Tesla. The regulator is trying to determine whether Tesla intentionally withheld information from its shareholders about fire risks issues with the solar panels produced by the subsidiary SolarCity.
The investigation was initiated following a complaint that was filed by Steven Henkes, a former quality manager. Henkes says Elon Musk's company failed to notify its shareholders and customers about the fire risks associated with its defective solar panel systems.
Henkes claims he insisted on informing regulators, shareholders, and customers but the management ignored him and later fired him.
The former quality manager stated that more than 60,000 individual clients and 500 state and private enterprises in the US sustained damages from defective electrical connectors that lead to fires.
How did Tesla shares react?
On 6 December 2021, Tesla's (NASDAQ: TSLA) share price dropped more than 6% to $950.5. However, trades closed with just a 0.59% decline to $1009.01.
On the next trading day, the shares of the car manufacturer grew 4.24% to $1051.75. Since the beginning of 2021, the shares have grown 51.5%, but have lost 4% since November.
Apple shares reached their all-time high
On 7 December 2021, the share price of Apple (NASDAQ: AAPL) hit an all-time high of $171.58 per share. By the end of the trading session, the share price had dropped to $171.18, yet the daily growth reached 3.54%.
On the next day, the stock quotes kept rising and hit $175.96, correcting to $175.08 by the end of the trading session.
What made Apple shares touch record high?
The forecast that was given by Katy Huberty, IT Hardware analyst at Morgan Stanley, had a huge impact on Apple's share price growth. Huberty increased the expected share price from $164 to $200, ahead of the corporation's AR/VR product launch, explaining that the spheres of virtual and augmented reality alongside autonomous cars are growing rapidly enough to become a large market.
According to Katy Huberty, mass-market adoption of AR/VR technology will occur as soon as Apple enters this market. She forecasted that by 2026, the tech giant would probably have made a profit of $29 billion on new products and services in these areas.
She was also positive about Apple's revenue from services, which saw 100% growth to $70 billion a year over the last 48 months.
Alibaba split its electronic commerce into two departments and changed its CFO, which resulted in its shares seeing growth in the US and China.
With Intel planning an IPO for Mobileye – its subsidiary that creates innovative technology for car safety – the stocks reacted positively, seeing growth.
SEC started an investigation against Tesla. The company might have withheld information from its shareholders about fire risk issues faced with its SolarCity sun panels.
Apple shares have reached an all-time high of $175.96 thanks to new forecasts by a Morgan Stanley IT Hardware analyst.