In today’s top stories, iPhone maker Foxconn unveiled new EV models set to take on Tesla, Netflix reveals that it added 2.41 million subscribers in Q3 and researchers speculate that Starlink will IPO in 2025. Meanwhile, healthcare stocks are rebounding, and a Hong Kong hedge fund sees outsized growth.
Foxconn’s bold EV ambition
Apple [AAPL] iPhone supplier Foxconn [2354.TW] wants to take a bite out of Tesla [TSLA]. At its annual Tech Day on Tuesday, the Taiwanese company unveiled its latest three EV models and announced that it hopes to be building 5% of all EVs, including Tesla cars, by 2025. Last year, it inked a deal to manufacture at least 250,000 Fisker [FSR] PEAR vehicles starting in 2023.
Starlink could IPO within three years
Elon Musk’s satellite internet business Starlink could launch into IPO orbit by 2025, according to analysis. Starlink is currently helping Ukraine to stay connected during the war and is losing $20m a month, its CEO said in a tweet. But looking to the future, “as revenue becomes more predictable”, says Ben Wood, chief of research at CSS Insight, going public will help “to raise capital to expand its constellation of satellites”.
Netflix gets subscriber boost
The much-anticipated return of Stranger Things helped Netflix [NFLX] to add 2.41 million subscribers in the three months to the end of September, easily surpassing Wall Street’s expectation of 1.09 million. "After a challenging first half, we believe we're on a path to reaccelerate growth," the streaming service stated in its shareholder letter. Its share price jumped 13% on Wednesday.
Healthcare stocks revived
The market may be unwell, but healthcare stocks are breathing life into portfolios. The S&P 500 Healthcare index has been one of the bright spots amid the gloom this year as investors flocked to defensive sectors in the first half of the year. Some healthcare stocks are having a new lease on life, according to Barron’s. These include Merck [MRK], Biogen [BIIB] and Eli Lilly [LLY], which have benefited from positive trial data.
Fund’s multi-strategy approach pays off
While many hedge funds have suffered from major outflows as a result of market volatility, Hong Kong-based Polymer Capital Management has bucked the trend by boosting its assets by $1.7bn, or 65%, so far this year to $4.3bn. Bloomberg reported that the key to its success has been a multi-strategy approach to maximise its chance of delivering stable returns. Long/short equity funds have been some of the biggest losers this year.
Bioventix to beat market expectations
Biotech firm Bioventix’s [BVXP.L] full-year results are “likely to be significantly ahead of market expectations" when it reports on Monday 24 October. The company, which is involved in developing antibodies for treatment of heart disease and cancer among other conditions, was hampered by the pandemic impacting “activity within diagnostic pathways in hospitals and clinics around the world”. A recovery is reflected in its share price being down just 0.7% year-to-date.
Grass gets greener for medical cannabis
President Joe Biden’s plans to overhaul cannabis policy, including a promise to pardon people convicted of marijuana possession, should be a major tailwind for the medical cannabis industry, according to Nawan Butt, manager of HanETF’s Medical Cannabis and Wellness ETF [CBDP.L]. Potential beneficiaries include the fund’s top three holdings: Amyris [AMRS], Jazz Pharmaceuticals [JAZZ] and Innovative Industrial Properties [IIPR].
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