Which stock soared 18% on the day the big NASDAQ companies fell

Concerns about the spread of the Omicron strain have led most markets around the world to sharp declines, however there are still some that have managed to end last week with gains. Which companies managed to break the trend and which did not? And also: Did the Chinese pressure work and the technology giants on their way out of Wall Street? Stories of prominent stocks on world stock exchanges

The last trading week in the world markets was characterized by a general trend of sharp declines. Concerns about the spread of the corona’s omicron strain are evident in most markets and on Wall Street in particular, which was also influenced by the Fed chairman’s hints that the US bond purchase program was cut earlier than expected – a precondition for any move to raise interest rates in the country.

On Friday, the Nasdaq was down 1.92%, after losing close to 3% during the trading day, the S&P 500 and Dow Jones were also down 0.84% ​​and 0.2% respectively. In the weekly summary, the Dow Jones was down by 0.9%, S&P 500 at 1.2% and Nasdaq at 2.6%.

However, alongside the declines of some of the largest companies in the economy (for example: meta 8.89%, Tesla 7.77%, Anvidia 5.27%, Amazon 4.45%, PayPal 2.78% and Alphabet 1.44%), there are those who have risen despite everything. One of them is Marvel Technologies Inc., which jumped 18% last Friday and ended the week with an overall increase of 14%. What actually led it to the opposite trend from most of the major ones while other stocks stood out last week in world markets?

Marvel (written with two Ls and not one like the well-known entertainment company from the superhero movies acquired by Disney), is a leading manufacturer of chips, storage solutions and communications.

The company’s share (MRVL) soared last week on the NASDAQ and especially on Friday, completing an increase of 89.37% in the last 12 months, after the company published positive financial reports for the third quarter along with positive forecasts for the fourth quarter of the year, which rose significantly On analysts’ forecasts.

In addition, the acquisition of Inphi Corp and Innovium is expected to strengthen the product portfolio offered by the company, which expects to show 30% growth next year alongside a $ 150 million increase in revenue.

And meanwhile in Europe: Wizz Air and Volvo are soaring
Wizz Air, one of Europe’s leading low-cost airlines, jumped 12% in trading last week on the London Stock Exchange. This, after the company reported the continuation of the growth trend in the number of passengers with two million passengers in November – an annual increase of 375%.

At the same time, the company’s stock is trading at a price 23% lower than its annual high in March, so this is a relatively small recovery after sharp declines in the last two months.

At the same time, Volvo, one of Europe’s leading carmakers, rose 7.49% last week on the Stockholm Stock Exchange in Sweden, completing a 32.53% rise in VOLCAR-B over the past month.
This is against the background of an increase in sales compared to the corresponding period last year, with the delivery of 634,257 vehicles in the first 11 months of the year and despite a decrease in sales in November as a result of challenges in the supply chain.

Those who descended
Still, it was as mentioned a week that was mostly characterized by sharp price declines around the world. Among the companies that took the hardest hit was Etsy, which operates an e-commerce site focusing on handicrafts and collectibles. The company’s stock (ETSY) fell 21% in trading on the Nasdaq last week, thus moving 22% away from the all-time high recorded just recently.

There is no appreciable reason for the sharp declines other than the general concerns that accompanied the markets last week and so they are the ones that have apparently brought down the Etsy stock as well, similar to the stocks of many other technology companies. In addition, according to the company, more than 90% of the sellers on the platform rely on raw materials within the country’s borders and are therefore not expected to be affected by the difficulties in the supply chain.

Another company that fell significantly last week and this time it seems that these are not just concerns about the corona, is DocuSign. The company’s stock, which provides electronic signature solutions, recorded a 46% drop last week on NASDAQ – 42% of them last Friday.

The background for the sharp declines is probably the financial reports published by the company for the third quarter of the year, which were lower than forecast, despite a 28% growth in the company’s charges.

The Chinese on the way out of Wall Street?
At the same time, the Chinese technology giants continue to be hit by the heavy pressure exerted on them by the regime. Chinese transportation app Didi fell 23% this week on Wall Street, after announcing a plan to delist the stock from the U.S. stock market amid demands from Chinese regulators that violate U.S. regulations. The company is planning a listing in Hong Kong in March and estimates suggest that concerns in the Chinese government, among other things, about information leaks from those Chinese companies to US authorities have led to a strong directive or “hint” to those companies to stop trading on the US stock exchange.

Another Chinese company hit this week by similar circumstances is New (Nio), a manufacturer and marketer of electric vehicles, which fell 21% last week on Wall Street and thus completed a 54% drop from the record set in February this year. The sharp declines are mainly associated with Didi’s announcement and fears that New will join it and exit the US stock market.

It should be noted that in the event of the delisting of Chinese companies in the US, American shareholders are expected to receive a stock traded in Hong Kong, but the manner of receiving the stock, trading in it and of course the different trading currency were enough to send the stock to a particularly negative week. Relatively weak in the third quarter due to the reduction in the selling price along with a significant increase in the cost of transportation and raw materials, which led to a contraction in the profit margin.

Note: Investing in the capital market can be risky and lead to severe economic losses. This article should not be construed as a recommendation or non-recommendation regarding any of the shares in question. The data is correct for the closing of the trade last weekend and may change. Banks and investment advisers have no personal interest in the subject and the coverage is not a substitute for advice that takes into account the data and needs of each trader.

By Editor

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