In today’s Recap, Marcello shares with us recent events that have seen a reduction in global tensions, offering some relief from heightened concerns regarding a possible World War 3. However, challenges persist in the business world, with companies like Tesla and Apple facing difficulties. Meanwhile, the commodities market experiences interesting fluctuations, notably with coffee, tea and cacao prices on the rise.
Shares of U.S. based tech firm NVIDIA fell -10.00% on Friday at $762.00, it was the worst day for the chip-maker since March 2020, when the company’s value was one-twelfth of its current valuation. The stock plunge wasn’t tied to any news out of NVIDIA. It came as investors scaled back their holdings of many semiconductor stocks ahead of earnings later this month.
The U.S. streaming giant Netflix shares fell -9.09% on Friday at $555.04, after saying it will stop reporting subscriber growth in its quarterly earnings starting in 2025. Shares as a result suffered their worst day since July.
The UAE continues to reel from floods caused by the heaviest rainfall ever recorded in the desert state, with airlines, banks & city transport facing major disruptions & service outages. Roughly a year’s worth of rain pummeled the normally arid Gulf country in a span of just 12 hours. And in many homes & businesses across Dubai & other emirates, running water & power are no longer functioning. 100’s of cars were left abandoned on Dubai’s Sheikh Zayed Highway as drivers’ engines died while water rose around them. The city’s metro became an overnight shelter, as people working in & around some stations couldn’t get home.
In a significant move, Tesla has announced plans to reduce its global workforce by 10%, affecting approximately 14,000 employees out of the total 140,473 globally as of December 2023. This decision comes amidst a challenging landscape for the electric vehicle (EV) manufacturer, with declining sales and increasing competition leading to an intensifying price war within the EV market. Adding to the shake-up, two top executives are set to depart from the company, signaling internal changes. In response to market dynamics, CEO Elon Musk has unveiled plans for the development of the Model 2, a more affordable vehicle option slated to begin production in late 2025. These developments come against the backdrop of Tesla’s stock performance, which has seen a notable decline of 35.01% over the course of 2024.
Apple has ceded its position as the world’s leading phone maker to Samsung. The tech giant experienced a decline in phone shipments, with a notable 9.6% decrease compared to the previous year. In the first quarter, Apple sold approximately 50.1 million iPhones, marking a decrease of 5 million units compared to the same period last year when it shipped 55.4 million iPhones. As a result, Apple’s global market share saw a modest increase of 17.3%, while Samsung surged ahead with a market share of 20.8%.
China has embarked on the construction of an underwater data center with performance capabilities equivalent to that of six million PCs. This groundbreaking project is driven by the goal of conserving energy, with estimates suggesting it could save a staggering 122 million kilowatt-hours of electricity. Spanning an area nearly the size of ten soccer fields, the underwater data center represents a bold leap in technological innovation. Remarkably, just one of these underwater computers has the processing power equivalent to that of 60,000 regular computers, showcasing the immense potential of this cutting-edge initiative.
Most Asian Pacific stock markets fell, amid escalating tensions in the Middle East.
In China new home prices have fallen for a 9th straight month, falling -2.2% year on year in March.
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