In today’s top stories, Disney leads a decline in streaming stocks, a third bid for Origin Energy is made and analysts see disruptive changes in the tech sector after the US midterm elections. Meanwhile, stock pickers see investment opportunities in the FTSE 100 and Elon Musk outlines plans for Twitter.
Streaming stocks suffer
With Disney [DIS] experiencing its steepest one-day loss since September 2001 and its peers — Warner Bros Discovery [WBD], Lions Gate Entertainment [LGF.A] and AMC Entertainment [AMC] — all trading below $10, streaming stocks are set to see their deepest annual loss since 1990, Bloomberg noted. While consumers are increasingly cancelling their pay-TV subscriptions, losses are still mounting at streaming firms. “It appears that the negative economic force of cord-cutting (plus a weakening ad market) has finally begun to manifest,” MoffettNathanson’s Michael Nathanson said.
Midterms could lead to disruptive tech changes
As speculation mounts over whether the Republicans or Democrats will take the House and/or Senate, analysts are considering how markets will be impacted. A CNBC article noted that if the Republicans take Congress, it could lead to changes for US tech policies — the sector has led declines in 2022 with Amazon [AMZN] becoming the first to lose $1trn in value. Both parties have pledged to take a strong stance on China. However, chip makers in Taiwan and South Korea could benefit from a Republican sweep.
Stock pickers eye up London
Despite the economic hardship facing the UK economy, investors see opportunities in the consumer staple-heavy FTSE 100. GAM Global Investment director David Dowsett says that investors should consider high-income producing assets amid a market concerned with liquidity, according to CNBC. His colleague Adrian Gosden highlights the following high-dividend-paying stocks to watch: BT [BT.A], Barclays [BARCL], GSK [GSK], Lloyds [LLOY], Imperial Brands [IMB] and BP [BP]. He added that “UK equity income has a very proven track record”.
Origin’s transition to renewables
One of the Australia’s largest energy companies, Origin Energy [ORG], could be set to be taken over by Brookfield Asset Management and EIG Global Energy Partners in a A$18.4bn deal. The offer marks the consortium’s third bid after being rebuffed in August and September, and is subject to regulatory approval. If the deal goes through, the business is likely to be split, with Brookfield planning to invest A$20bn to help Origin’s transition to renewable energy by 2030.
Elon Musk’s Twitter payment plans
The new CEO of the social media company hosted a Twitter Spaces broadcast on Wednesday, where he outlined plans to enable financial transactions on Twitter [TWTR], including helping creators to monetise their platforms. He called it a “no brainer move”, according to CNBC, and also discussed offering a money market account “to get [an] extremely high yield on your balance”, which could lead to debit cards and cheques being introduced. He said users who pay $8 to subscribe and verify their accounts would be able to benefit from such changes.
Biotech funding challenges
The genomics and biotech industries have faced challenges this year as interest rates continue to increase and profits remain to be seen. Michele Gesualdi of Infinity Investment Partners says it’s the “worst correction” he’s seen in his whole career. While CRISPR Therapeutics [CRSP], Twist Bioscience [TWST] and Exact Sciences [EXAS] have all seen their shares lose a considerable amount of value, some hedge funds are warming to their low valuations.
Brian Feroldi’s three principles for long-term investing
This week, investment educator, author and YouTuber Brian Feroldi joins a Twitter Spaces broadcast hosted by Opto to discuss what makes compound interest the eighth wonder of the world and why enduring the pain of bear markets is a fundamental skill for successful investors. He also shared insights on how to approach a market downturn with a long-term perspective in mind.
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