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5 Top Stories

ARK’s Tesla Volte-Face; Record Tencent Buyback; Biotech Surges 99%

Every day, we handpick the 5 Top Stories stock market investors need to know. In 5 minutes, you’ll learn the stocks, CEOs, and money managers moving markets.

ARK’s Volte-Face on Tesla

The Tesla [TSLA] share price has dropped recently, closing down 4% on Wednesday. Nevertheless, Cathie Wood’s ARK Invest has started buying up Tesla shares — some 216,000 on 20 December and 3 January, according to Bloomberg — after spending much of last year selling them off. Elsewhere, short sellers are increasingly targeting BYD [BYDDF], which recently overtook Tesla as the world’s biggest EV maker.

Record Tencent Buyback

China’s most valuable company, Tencent [TCEHY], bought back HK$10bn of its shares in December, following the shock announcement of new regulations by China’s gaming regulator. Going into January, it has stepped up repurchases, spending HK$3bn so far this week, Bloomberg reported. The new rules include limits on in-game spending; fears that they presage a return to a more draconian regime prompted a major selloff of tech stocks.

Biotech Stock Surges 99% on NVO Deal

Blockbuster obesity drugmaker Novo Nordisk [NVO] has agreed to pay up to $1.1bn in research deals with two biotech firms backed by Flagship Pioneering, namely Omega Therapeutics [OMGA] and Cellarity; the Omega share price surged 99% on the news. The funds will be used to develop new technologies to fight obesity-related diseases. Novo is moving to expand it experimental pipeline and secure its predominance in the booming field of obesity treatments.

Disney: Ready for Battle?

As it readies itself for a showdown with activist investor Nelson Peltz, Walt Disney [DIS] has secured the support of another activist investor, ValueAct Capital, which built a stake in the entertainment giant last year. On Wednesday Disney said it had entered into an “information-sharing” agreement with ValueAct, while ValueAct said it would support Disney’s nominees for election at this year’s annual meeting. Meanwhile, Reuters reported that India’s Reliance Industries [RELIANCE:NS] and Disney are moving forward with their merger.

US Steps Up Domestic Chip Production

On Thursday the US Commerce Department said it will award $162m in government grants to Microchip Technology [MCHP], to help it increase domestic production. The funds will allow the chipmaker to triple production of mature-node semiconductor chips and microcontroller units, according to Reuters. The award “is a meaningful step in our efforts to bolster the supply chain for legacy semiconductors that are in everything,” Commerce Secretary Gina Raimondo said in a statement.

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