In today’s top stories, Shopify shares slump after a stock split and China stocks are on the rise, with Chinese firm Tianqi planning to IPO in Hong Kong. Meanwhile, Samsung became the first chip maker to launch a 3nm chip and Goldman sees a $900bn EV opportunity.
Shopify slides after stock split
Canadian ecommerce giant Shopify [SHOP] fell 5.6% in intraday trading after the company approved a 10-for-1 stock split, marking an 80% decline from its 52-week high at the end of last year. While some analysts expected the stock split to be received well by investors, particularly after similar announcements helped to lift Amazon [AMZN] and Tesla [TSLA], Morningstar’s Dan Romanoff said the split “doesn’t make sense” and doesn’t affect the company’s valuation.
China stocks recover
Stocks in the country are rallying as it emerges from lockdown. The easing of domestic travel restrictions helped stocks such as Huatian Hotel Group [000428.SZ], China Eastern Airlines [670:HK] and Guangzhou Baiyun International Airport [600004.SS] jump on Thursday. Factory activity has also risen for the first time in four months, helped by a recovery in production and easing of supply chain issues. The country’s purchasing manager’s index is expected to rise to its highest level this year.
Tianqi seeks $1.7bn listing
Chinese firm Tianqi, one of the largest producers of battery-grade lithium chemicals in the world, is reportedly planning to raise $1.7bn in what would be Hong Kong’s largest IPO this year. The company plans to sell 164.1 million shares for HK$69–82 each and is set to debut on 13 July, sources told Reuters. Tianqi shares are already listed in mainland China, and the high end of its IPO price is around 43% lower than its Wednesday closing price.
Samsung launches first 3nm chip
Samsung [5930.KS] beat Taiwan Semiconductor Manufacturing Co [TSM] to be the first semiconductor maker to launch a 3nm chip, the most advanced model of its kind in the world. While TSMC remains the dominant player in the chip foundry market, this development could help Samsung gain an edge over its rival. The news failed to lift its share price, however: the stock closed 0.3% lower on Thursday.
Goldman names $900bn EV opportunity stock picks
Europe could be set for an electric vehicle revolution, according to a research note published by Goldman Sachs. The bank said the region’s EV market could be worth $900bn by 2035 and forecast that demand for EV batteries will increase at a CAGR of 20% through to the end of the decade, though supply issues are likely to remain. Goldman’s top picks in the space include German battery maker Varta [VAR1.DE], Samsung SDI [SSDIY] and South Korea’s LG Energy [373220.KS].
Healthcare stocks slump
After rallying during the pandemic, healthcare stocks such as Moderna [MRNA], Teladoc [TDOC] and Quest Diagnostics [DGX] have fallen this year amid the wider market slowdown. However, with global healthcare spending currently at around $8.3bn per year, there is potential for recovery and the sector may still be ripe for growth in the longer term.
Rio Tinto’s new mine
The Rio Tinto [RIO.L] share price has struggled in 2022, despite strong earnings and the announcement of its first greenfield site in more than a decade. The miner claims its Gudai-Darri mine in Western Australia is its most technologically advanced yet. The iron ore mine boasts autonomous trucks, drills and trains, as well as a robotic ore sampling laboratory. Despite this positive news, the stock is highly dependent on iron ore prices, which have sunk to a six-month low due to weaker demand from China.