Tesla, Coinbase, NIO, AMC, and Robinhood: Weekly New Digest (28 March – 1 April)
This digest speaks about a possible Coinbase agreement, the first electric car supply by NIO, Tesla's plans for a new stock split, new development guidelines at AMC Entertainment, and Robinhood's strategic decision.
Coinbase stock surges on rumours about an agreement
On Monday 28 March, the market heard that Coinbase Global, the American company that owns a large crypto exchange platform, is negotiating the purchase of Brazilian holding 2TM.
According to Bloomberg, the parties have been discussing the acquisition since last year, with the agreement likely to be signed by the end of this month. 2TM owns Brazil's largest crypto exchange, Mercado Bitcoin, and such financial companies as Bitrust, Meubank, Portal do Bitcoin, and Blockchain Academy.
Last year, Mercado Bitcoin had a total of 3.2 million clients, which made its trade volume reach $7.1 billion. In summer and autumn, the holding attracted $250 million in investments and is now evaluated at $2.1 billion.
On 28 March, the news about buying 2TM sent the shares of Coinbase Global Inc. (NASDAQ: COIN) up 7.87% to $201.41. The next trading session ended up with a 1.55% growth. However, the quotes reversed thereafter, and lost 7.2% over two days, falling to $189.86.
The first batch of NIO electric cars is ready
At the beginning of the week, CNBC made it known that Chinese electric car-maker NIO, which entered the Stock Exchange of Hong Kong, delivered the first batch of ET7 model electric cars to clients.
While NIO is currently focusing more on the Chinese market, the company has plans to expand into 25 countries including Sweden, Denmark, Germany, and the Netherlands by 2025.
After the news about the first supply of electric cars, the shares of NIO Inc. (NYSE: NIO) rose 9.9% to $21.88 over two trading sessions on the NYSE, while they surged 12.8% to 175.8 HKD (HK: 9866) on the Stock Exchange of Hong Kong.
Tesla plans new stock split
On Monday, according to a filing to the US SEC, it became clear that Tesla wants to carry out a stock split so it can pay a stock dividend to shareholders. The decision has already been approved by the board of directors and remains to be voted for by the shareholders.
There is no clue yet as to when the split is to happen and at what ratio. Most probably, not before the meeting of the shareholders of the car-maker, which is scheduled for this autumn.
On 28 March, the news about the split sent Tesla Inc. (NASDAQ: TSLA) stock price up 8.03% to $1091.84. At the end of the week, the price corrected twice to 0.51% on 30 March and 1.5% on 31 March. When this article was being prepared, one Tesla share cost $1077.6.
AMC Entertainment plans to capture new segments
At the beginning of the week, the CEO of the large cinema chain AMC Entertainment Holdings, Adam Aron, said in his interview with Reuters that in the nearest future, the corporation is going to transcend the borders of its segment through new transformational agreements.
He gave the March purchase of 22% of the gold mining company Hycroft Mining as an example. Note that over the last month, the shares of this company skyrocketed 642% from $0.31 to $2.3.
On 28 March, after Aron's announcement was published, the quotes of AMC Entertainment Holdings Inc. (NYSE: AMC) surged 44.91% to $29.33.
Robinhood extends trading hours
On Tuesday 29 March, Robinhood Markets, a company owning an online trading platform of the same name, announced that it was extending the trading hours of its service.
Robinhood Markets made one more step towards 24-hour trading, which the company claims to be the future of investing: it extended the chart on the platform by four hours.
Subsequently, on 29 March, the shares of Robinhood Markets Inc. (NASDAQ: HOOD) rose 24.2% to $15.91. However, over the next two trading days, the stock quotes dropped 15.1% to $13.51.
Rumours about the possible acquisition of 2TM sent the shares of Coinbase Global up almost 8%.
After the first batch of NIO electric cars was delivered to customers, the shares of the company on the NYSE grew by 10% and on the Stock Exchange of Hong Kong by 13%.
Tesla plans one more stock split, the news of which made its shares rise 8%.
The CEO of AMC Entertainment Holdings stated that the company would be reaching for new horizons. The shares reacted to this statement by sky-rocketing 45%.
Robinhood announced an extension of the trading hours on its platform, which sent the shares of the online broker up 24% on the same day.