Tag Archives: Commodity / Financial Market News

Booking stock gains despite continued erosion of online travel activity | Instant News

Booking Holdings Inc.’s operations continued to struggle with the COVID-19 pandemic at the end of 2020, but held up better than analysts expected. Booking BKNG, + 3.57%, known as Priceline before changing its corporate name to one of its other online travel brands, said fourth-quarter losses on Wednesday of $ 165 million, or 4 .02 dollars per share, down from earnings of $ 27.75 per share. in the same quarter a year ago. Sales fell to $ 1.24 billion from $ 3.34 billion during the 2019 holiday season. After adjusting for some tax impacts and other costs, Booking recorded a loss of 57 cents per share, down compared to adjusted earnings of $ 23.30 per share a year ago. Analysts on average expected adjusted losses of $ 4.28 per share on sales of $ 1.2 billion, according to FactSet. Shares gained around 2% after hours of trading following the release of results. The travel industry came under fire during the COVID-19 pandemic and the decline worsened in the last quarter of the year, with the coronavirus causing more lockdowns. Chief Executive Officer Glenn Fogel issued a note of hope in a statement during Wednesday’s announcement. “The travel environment continued to be difficult during the fourth quarter of 2020 and through January 2021 as the number of COVID-19 cases remained very high and travel restrictions were reimposed in many. regions of the world, ”Fogel said. “However, in recent weeks we have started to see improvements in booking trends which we will continue to monitor.” Although Booking did not provide a forecast for the first quarter in Wednesday’s announcement, analysts expected any recovery to start further into 2021. “Given the likelihood of lockdowns extending as far as in March (notably in the UK) we expect a reset is needed for 1H: 21 Street forecasts (with our estimates) as intra-quarterly travel is muffled, although this should be to some extent within the expectations, ”Stifel analysts wrote in an online travel revenue snapshot earlier this month. “We believe the situation looks more favorable over a 12 to 18 month period for Booking, given the strong leverage effect on leisure travel, exposure to alternative accommodation and the ability to generate revenue.” Investors have been betting heavily on a possible turnaround, as Booking shares jumped over 27% last month and are now up over 36% last year, while the S&P 500 SPX index, +1, 14%, increased by 20.3%. Some of these gains appear to be linked to the initial public offering and early trading by Airbnb Inc. ABNB, + 6.72%, which sells full-residence accommodation instead of hotels – Booking and another rival, Expedia Group Inc. EXPE, + 1.93%, offer similar options in their brand portfolios. “A public assessment of Expedia’s alternative accommodation portfolio in the form of Airbnb seems to suggest a significant pricing error one way or the other” and “a similar argument can be made for Booking on a sum basis parts relating to Airbnb, ”Wedbush analysts wrote earlier this month, while improving Expedia’s stock and raising their reservation price target. Airbnb, which is worth more than Booking despite being considerably smaller, is expected to publish its results for the first time as a public company on Thursday afternoon. Airbnb stock, which sold for $ 68 when it went public in December, closed at more than $ 200 on Wednesday. .

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Airbnb’s first profits since its IPO could be an indicator for the travel industry in 2021 | Instant News

Airbnb Inc.’s business was decimated by the coronavirus pandemic, but quickly rebounded to the point that it had one of the biggest initial public offerings of 2020. Now is the time to find out what is expected. for 2021. Airbnb ABNB, -5.19% will report financial results for the first time since going public on Thursday afternoon, ending a blistering year for the company and a difficult year for the travel industry. So far, it appears that the online accommodation booking platform has been better positioned to deal with the pandemic than other companies in the travel industry, as travelers have finally sought out getaways near their homes where they could. avoid other people. Airbnb “has shown it to be more resilient to this particular shock of traveling,” said Tom White, analyst at DA Davidson. Airbnb reported third-quarter profit of $ 219 million, in part thanks to aggressive cost-cutting measures it implemented, on revenue of $ 1.34 billion – its second largest quarter never recorded. But an increase in COVID-19 cases in the fourth quarter led to further travel restrictions, which weighed on other companies in the industry, such as Expedia EXPE, -0.73%, and could also be reflected in Airbnb results – Analysts expect less than $ 750 million in fourth quarter revenue. The prospects offered by Airbnb could be greater for Airbnb and the travel industry. Airbnb released a report at the end of January in which it cited the results of its own survey as saying, “A majority of Americans (54%) have already booked, are currently planning to travel, or are planning to travel in 2021.” It remains to be seen whether travelers will still be pitted against Airbnb’s main competition: hotels. “Unless there is a structural change in traveler behavior, the change in preference is likely to be gradual, especially when hotels are back on a level playing field,” KeyBanc Capital Markets’ Justin Patterson wrote in a recent note. What to expect Profits: Analysts polled by FactSet are forecasting an average loss of $ 8.41 per share, largely thanks to the equity compensation costs of Airbnb’s IPO. Estimize, which brings together estimates from analysts, hedge fund managers, executives and more, expects a loss of $ 6.09 per share on average. Revenue: Analysts are expecting an average of $ 739.4 million in revenue, according to FactSet. The estimate is $ 775.9 million. Stock movement: Airbnb shares gained 35% during their period in public markets, while the S&P 500 SPX index, -0.49%, rose 6.5% during this period. a quarter-over-quarter slowdown in the fourth quarter in Europe and “lingering weakness” in the first quarter. But they said they believed Airbnb would withstand a downturn better than other online travel companies “given its focus on alternative accommodation inventory.” Growth: Airbnb continued to outperform hotels and OTAs in December year over year, KeyBanc analysts wrote in a note, which also said Airbnb and its smaller rival Vrbo had experienced positive growth year-over-year spending in January. The CFRA said in a note that it expects a strong rebound in bookings in 2021, including monthly bookings exceeding previous peak levels by the end of the summer. Regulatory risks: Airbnb faces bans and restrictions on stays or listings in different regions of the world. In his home country, he may also be affected by efforts to amend or reject section 230 of the Communications Decency Act, which, among other things, protects him and other companies based in line, of any responsibility for the words and actions of their users. Sucharita Kodali, an analyst at Forrester, said that if Section 230 “was canceled, it would dramatically change all markets.” Without Section 230, she said Airbnb would have “a lot more than it needs to master,” as it could potentially face lawsuits for rental clauses, property damage and violence. Of 29 analysts polled by FactSet, 10 have a buy rating on Airbnb stock, while 16 have a hold, two say sell and one considers the stock’s overweighting. The average price target was $ 164.65 on Monday, when the stock closed at $ 195.34. .

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Musk’s Tesla said it has invested $1.5 billion in Bitcoin, bringing the cryptocurrency to a record high of nearly $44,000 | Instant News

Elon Musk’s Tesla Inc. stated that it had acquired $1.5 billion in Bitcoin in January and that it could accept payments in the world’s number one digital asset in the future.

+ 2.20%

The purchase was revealed on Monday in the Securities and Exchange Commission (Securities and Exchange Commission) regulatory documents, which helped push up the price of Bitcoin
+ 12.92%

To around $44,203, it was up more than 13% in CoinDesk’s early trading.

Tesla stated in its 10-K application to the U.S. market regulator: “In January 2021, we updated our investment policy to provide us with greater flexibility to further diversify and maximize our Cash return, which is not needed to maintain sufficient operational liquidity.”

The document continues: “Furthermore, we hope that in the near future, in accordance with applicable laws and on a limited basis, we will begin to accept Bitcoin as a payment method for our products. After payment is received, we may or may not Liquidation.”

This move is because Musk has recently won greater support for digital assets on his social platform.

Late January Musk Mark Using the cryptocurrency in his Twitter biography, then adding the hashtag #bitcoin to his Twitter resume, and then he wrote on Twitter: “In retrospect, it was inevitable.” At the beginning of this month Musk posted “doge” on Twitter with no further comments, Refers to the digital asset meme asset Dogecoin.

Tesla became one of the larger companies that invested in Bitcoin and allowed payments through digital assets created in 2009.

Wedbush analyst Dan Ives wrote in Monday’s study: “Although many people on Wall Street are discussing the prospects of Tesla’s move, this morning’s news made Musk and Tesla The strategy of jumping into the abyss of Bitcoin and cryptocurrency is formalized.” Attention.

However, other mainstream companies have begun to make headlines, focusing on their interest in Bitcoin and making virtual assets part of their balance sheets.

As early as 2020, the software company MicroStrategy
+ 15.29%

Said that it invested in Bitcoin in September 2020, thus achieving a leap of faith. According to the announcement on August 11, the token received 21,454 bitcoins, worth 250 million U.S. dollars at the time, and became the entity’s reserve assets. Coin Telegraph Report.

Microstrategy’s move raises the question of whether other companies might consider investing some of their reserve assets in Bitcoin.

Ives wrote: “Ultimately, investors and other industry observers will pay close attention to this to understand whether other companies have followed Tesla’s leadership approach to cryptocurrency, or on the other hand, it is still Are the few names that make Bitcoin strategically leap forward?”.

Bitcoin’s record rise is mainly due to the interest of institutional investors and businesses.PayPal Holdings Limited
+ 3.07%

After a narrower deployment, its cryptocurrency platform was opened to all US customers last November.

Investment experts said that as the Dow Jones Industrial Average has risen, the rise in the price of Bitcoin is also drawing attention to the asset.
+ 0.63%

And the S&P 500 Index
+ 0.49%

Let market participants worry about the overvaluation of stocks when interest rates are around 0%.

So far, the price of Bitcoin has soared by 50% in 2021.At the same time, the S&P 500 has risen 3.5% so far, the Dow Jones Industrial Average has risen 1.8% so far, and the high-tech Nasdaq Composite Index
+ 0.49%

It is up 7.5% so far this year.Gold price

It has fallen 3.5% so far this year.

Several prominent Wall Street investors including Stanley Druckenmiller and Paul Tudor Jones have accepted Bitcoin. Bill Miller, the famous investor of the founder of Miller Value Partners Letter to customers An article published on the company’s website earlier this month reiterated his optimistic view of Bitcoin.


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The future of startup cryptocurrency Ripple hangs on the SEC’s case | Instant News

Brad Garlinghouse, Ripple’s chief executive, last year publicly contemplated at the World Economic Forum in Davos, Switzerland, the initial public offering for the San Francisco startup.

The company recently raised about $ 200 million in a venture funding round led by Tetragon Financial Group, with a valuation of $ 10 billion. The value of its flagship product, a cryptocurrency called XRP, has fallen over the previous year. But Ripple is poised to rebuild the infrastructure for cross-border trade, said Garlinghouse, promising that its future is bright.

A year later, the IPO was canceled. Instead, Ripple’s future hinges on the judge’s decision in a civil suit filed in December by the Securities and Exchange Commission.

Regardless of the outcome, this case is expected to set a major precedent for how US regulators create rules and laws covering cryptocurrencies. It also highlights a broader truth about most digital currencies: Beyond the two largest, bitcoin and ether, most of the hundreds of others have struggled to find utilitarian value beyond speculation.

At the heart of the SEC’s suit is the debate about XRP, a bitcoin-like digital asset created by the founder of Ripple that will grow to become the world’s third-largest cryptocurrency. It is designed to be part of a network that will help banks cut costs in cross-border transfers. The related software, however, never gained traction, the SEC accused, leaving XRP with no apparent purpose, other than to funnel sales to Ripple.


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Palladium eyes new records in 2021 and travel set to climb | Instant News

Palladium recorded a fifth straight year of gains in 2020 and the rally shows no signs of slowing down. Greater restrictions on air pollution and a likely resumption of travel following the passage of the coronavirus pandemic are expected to boost demand for the metal used in auto parts. Stricter issuance rules are expected to push palladium prices up, especially given new standards in China, the second-largest consumer of metal behind the United States, says Steven Dunn, head of exchange-traded funds at Aberdeen Standard Investments. To comply with these standards, all new cars in China must be fitted with “good quality catalytic converters,” which means around 30% more palladium per vehicle, he says. “As countries continue to tighten emissions standards, palladium should be a beneficiary.” “As countries continue to tighten emissions standards, palladium should be a beneficiary.” – Steven Dunn, Aberdeen Standard Investments Palladium is primarily used in the catalytic converters of gasoline vehicles, which transform the most harmful pollutants in car exhaust gases into more environmentally friendly compounds like carbon dioxide and water, Dunn said. Palladium prices therefore have a strong correlation with the auto industry, which is expected to rebound in 2021, he says. Car and Driver magazine estimated that new vehicle sales in the United States were down 14.9% to 15.5% to about 14.5 million in 2020, bringing sales to the lowest level since 2012. However , the automotive enthusiast publication noted that a sales recovery had started. in summer and continued until December, amid an increase in Covid-19 cases across the country. Palladium PAH21, -2.20% PA00, -2.20% prices ended 2020 with a gain of around 29%. It hit a record settlement of $ 2,711.70 an ounce on February 27, 2020, but suffered a 48% drop from that level to mark its lowest settlement of the year on March 18, at 1,419.80 $. On Wednesday, the metal stood at $ 2,448.10, less than 10% below the record. Palladium prices have been increasing aggressively for several years, supported by an “acute imbalance between supply and demand, alongside the tightening of automobile emission standards”, ahead of the pandemic’s effects on demand in 2020, says Chris Blasi, President and President of Neptune Global. He expects prices this year to trade between $ 2,250 and $ 3,000, which would be a new record, with prices likely averaging around $ 2,710. Biden’s incoming administration is expected to be “environmentally focused and join the Paris Climate Agreement,” he said. “Such a position should further increase the demand for essential elements to achieve pollution control goals.” At the same time, palladium supplies have been in deficit for a decade, and that is unlikely to change anytime soon, he says. Meanwhile, the global distribution of the Covid-19 vaccine may impact palladium prices because “if more people start to resume a certain level of travel, the mode of transport most likely to be used will be the car. Says Ed Egilinsky, Managing Director and Head of Alternatives at Direxion. A “reopening of the global economy will be a key driver of this take shape and potentially lead to a significant spike in auto sales.” Other lockdowns or additional strains of the virus, on the other hand, could lead to supply constraints in the palladium market, he says. This could be the result of mining disruptions, but these constraints could also be offset by a decrease in automotive demand. Egilinsky says it’s possible to see palladium prices reach new highs in 2021, especially if there is a global recovery, a pickup in automotive demand, and more regulated global emission standards, but that ” may need to coincide with some level of supply disruption for this to happen. the story unfolds. “.

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