Top Stories

Beleaguered WANdisco’s CEO and CFO step down

In today’s top stories, WANdisco’s CEO and CFO have both stepped down after a fraud investigation. Elsewhere, Tesla has logged a 36% jump in deliveries in the first quarter of 2023, likely driven by price cuts in China, while Beijing has opened a probe into chipmaker Micron Technology over purported cybersecurity risks. TikTok parent ByteDance saw revenue climb 30% year-over-year in 2022, but now faces the thorny dilemma of whether to divest itself of its star asset. Lastly, MSCI has announced that it’s to tighten its ESG methodology, a move that could see hundreds of ETFs downgraded.

China price cuts lift Tesla deliveries 

EV maker Tesla [TSLA] reported that deliveries grew 36% in the first quarter of 2023 to 422,875 units, up from 310,000 a year ago, while also producing 440,808 vehicles in the January to March period. “Price cuts implemented paid dividends and China we believe was a core source of strength,” tweeted Wedbush analyst Dan Ives over the weekend. Deliveries at Chinese EV maker Li Auto [LI] grew 66% in the same period, to 20,823 units. 

China probes US chipmaker 

Beijing has ratcheted up its tech battle with Washington by opening a probe into chipmaker Micron Technology [MU]. The Cyberspace Administration of China issued a statement last Friday announcing it was reviewing the Idaho-based company to “safeguard key information infrastructure supply chain security” and “prevent cyberspace security risks due to problematic products”. Wang Lifu, an analyst at Shanghai-based semiconductor research firm ICwise, told the South China Morning Post that it’s “sending a warning signal” to chipmakers in Japan and South Korea.

TikTok makes up 12% of ByteDance’s revenue 

ByteDance, the parent of TikTok, saw revenue climb 30% year-over-year in 2022 to above $80bn, bettering a number of China’s major internet companies, and matching that of Tencent [0700.HK]. The Information claims TikTok accounted for 12% of the company’s revenue last year. The sales boom generated by the short-form video app leaves ByteDance in a quandary: spin it out and take a revenue hit, or risk it being banned in the US. 

Beleaguered WANdisco’s CEO and CFO step down

Both WANdisco’s [WAND.L] CEO and CFO have stepped down after a fraud investigation concluded that 2022 revenue had been overstated by $15m and sales bookings had been falsely inflated by $115m. The Sheffield-based software company has stated the pair’s departure isn’t connected to the findings of the investigation, but because its future and long-term growth and success is better placed under “new leadership”. WANdisco’s shares were suspended last month. In the US, ecommerce firm Boxed [BOXD] has filed for bankruptcy. 

ESG funds face increased scrutiny 

MSCI announced last week that it’s to tighten its environment, social and governance (ESG) methodology, a move that could see hundreds of ETFs downgraded. Increased scrutiny could lead to outflows from ESG products, as well as a slowdown in the release of new ones. “If stricter ratings drop a product to a much lower rating, it may not be appealing to institutional clients,” Andrea Murray, head of business development at Blackwater Search and Advisory, told the Financial Times. 

Disclaimer Past performance is not a reliable indicator of future results.

CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.

The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

Continue reading for FREE

Latest articles