Rivian, Moderna, Charter Communications, and Bigtechs: Weekly Digest (12-16 December 2022)
This week, our attention was drawn to Automotive, Moderna, Merck, Charter Communications, Apple, Amazon, and Microsoft. Find out how the stocks of these companies reacted to the latest events.
Rivian gave up its agreement with Mercedes-Benz
On Monday 12 December, we heard that American electric car maker Rivian Automotive Inc. gave up its plans, which were announced in September, for a contract with Mercedes-Benz, by which the companies were to form a joint company for the production of affordable commercial electric vans.
At Rivian Automotive Inc. they stated that currently, work on 114,000 pre-orders for R1T pickups and R1S 4x4s alongside the production of 100,000 vans for Amazon is the company’s priority.
On the same day, the quotes of Rivian Automotive Inc. (NASDAQ:RIVN) slumped 6.16% to $25.61. Over the next trading sessions, the quotes lost 6.4% more, reaching $23.97.
Moderna stocks gained 20%
On Tuesday 13 December, biotech company Moderna Inc. and pharma company Merck & Company Inc. announced positive results of phase 2 clinical tests of a drug for curing III/IV stage melanoma after surgery.
Research demonstrated that the use of the experimental personalised mRNA-4157/V940 vaccine alongside the Keytruda immunotherapy decreased the probability of skin cancer relapse or death risk by 44%, compared to the statistics of solely using Keytruda.
On the same day, the share price of Moderna Inc. (NASDAQ:MRNA) climbed 9.63% to $197.54. The next trading session closed with an increase of 5.78% to $208.95. The shares of Merck & Company Inc (NYSE:MRK) were more restrained: on Tuesday, they grew by just 1.78% to $110.91.
The new strategy of Charter Communications compromised its stocks
On Tuesday, at the Investor Day event, the director general of Charter Communications Inc Chris Winfrey presented the business strategy of this American telecom company.
Expenses related to this strategy in 2023 are expected to reach $10.7 billion. The amount of $6.5-6.8 billion will be allocated to the modernisation of the network for improving data transmission speed. Thereafter, $4 billion will be spent on the expansion of the network.
Chris Winfrey stated that the company would be expanding coverage for the next coming years, bringing the network to rural areas. Note that the company had previously been concentrating on cities and suburban areas.
Many investors feared the new strategy and related expenses, which on Wednesday made the shares of Charter Communications Inc. (NASDAQ:CHTR) plunge 16.38% to $328.34, and drop another 4.54% to $313.43 on Thursday.
Apple, Amazon, and Microsoft quotes went down
On Wednesday 14 December, the US Federal Reserve System lifted the interest rate by 50 base points more to 4.5% – the high of the last 15 years.
On Thursday 15 December, the Ministry of Trade published the November 2022 statistics, which demonstrated that retail sales in the country dropped by 0.6%, while online sales volume lost 0.9%. Nevertheless, both results exceeded the expectations of analysts.
On Wednesday and Thursday, the stocks of such companies as Apple Inc. (NASDAQ: AAPL), Amazon.com Inc. (NASDAQ: AMZN), and Microsoft Corporation (NASDAQ: MSFT), whose business depends on consumer demand, plunged 6.2%, 4.4%, and 3.1%, respectively.
Rivian Automotive gave up its agreement with Mercedes-Benz – From Monday until the moment when this article was prepared, its quotes lost 12%.
Moderna reported positive testing results of a vaccine against melanoma – its shares surged 20% as a result.
The announcement of the new strategy of development and the sum of the planned expenses for the next year compromised the share price of Charter Communications: over two days, the stock lost 20%.
Quotes of Apple, Amazon, and Microsoft headed down following the Fed’s increase of the interest rate and the Ministry of Trade’s report of declining dynamics in retail and online sales dynamics in the US in November.