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Tencent Pops on Launch Announcement
The Tencent [0700:HK] share price has logged its biggest rally since last December, following the announcement of a 21 May launch for the Dungeon & Fighter Mobile game in China. Developed by South Korea’s Nexon [3659:T], the marquee title has been in progress for several years. “We expect gaming revenue to turn around in Q2 2024,” Jefferies analyst Thomas Chong wrote in a note seen by Bloomberg; he predicts that the game could generate $828m annually.
EV Price War Gets Nastier
“Tesla prices must change frequently in order to match production with demand,” CEO Elon Musk wrote on X this weekend, as Tesla [TSLA] announced it is to slash prices across its range, in markets including Germany and China. Now, Li Auto [LI] has announced 6–7% price cuts across its line-up, and offered cash rebates to owners of 2024 models. Tesla reports Q1 earnings on Tuesday.
What Does This Week Hold for Chip Stocks?
According to Bloomberg, the number of put options on the chipmaker’s [TSM] US-listed shares hit their highest level since January on Friday. The stock had lost 13% over the six sessions prior to Monday, wiping out more than $100bn in market value. Nvidia [NVDA] and Super Micro Computer [SMCI] also fell sharply on Friday. Investors will be closely following all three stocks’ progress this week, amid concerns that the artificial intelligence market is shrinking.
New Obesity Drugs Set to Flood Market
A new report by Global Data details that some 13 new weightloss treatments could be released in the US over the next five years. The report also details how sales of the drug have skyrocketed recently: Novo Nordisk’s [NVO] Wegovy and Eli Lilly’s [LLY] Zepbound together raised $9.7bn in global sales in 2023; Novo Nordisk is set to launch six products in the next five years.
Salesforce and Informatica: So Over
The Wall Street Journal reported earlier this month that San Franciso-based cloud software firm Salesforce [CRM] was set to make what would have been one of its biggest-ever moves: the acquisition of software developer Informatica [INFA]. That deal, which might have been worth some $10bn, is now off the table, after the two firms failed to agree on terms. Informatica shares opened Monday 5.5% lower following the news.
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