In today’s top stories, the semiconductor race leads to an IPO boom for Chinese manufacturers, while Micron Technology plans to reduce its headcount by 10%. Actively managed ETFs beat their passive equivalents this year, according to Morningstar. Longtime value investor Bill Miller remains bullish on Bitcoin, and short-sellers took home $15bn on Tesla bets this year.
Semiconductor race leads to IPO boom
The international microchip race has led to a surge in IPOs for Chinese chip makers. Mainland microchip IPOs raised the equivalent of $12bn in 2022 through 15 December, close to three times the equivalent in 2021. The US has beefed up rules against Chinese chipmakers this year, hampering China’s computing competitiveness by blocking American equipment and labour exports.
Micron Technology to reduce headcount 10%
On the day it announced a 47% decline in sales and a major earnings miss, Micron Technology [MU] also signalled a 10% reduction in headcount during 2023 and the suspension of bonuses. According to CEO Sanjay Mehrotra, the Idaho-based chipmaker has seen its business hit by a surplus of memory supply, which has impacted sales and reduced its pricing power.
Actively-managed ETFs scoop Morningstar award
The top two winners of Morningstar’s best ETFs launched in 2022 were both actively-managed, beating passive competitors. Both the Dimensional US Small Cap Value ETF [DFSV] and the Capital Group Growth ETF [CGGR] are ETF versions of mutual funds and gained 2.3% and fell 13.3%, respectively, since launching earlier this year. The report named the ProShares Bitcoin Strategy ETF [BITO] the worst ETF launched this year.
Alameda executives plead guilty
Caroline Ellison and Gary Wang, formerly CEO and CTO, respectively, of Alameda Research, have pleaded guilty to criminal charges related to the firm’s role in the collapse of crypto exchange FTX. Elsewhere, Grayscale Investments has unveiled a back-up plan if it cannot convert its $10.7bn Grayscale Bitcoin Trust [GBTC] into an ETF. Longtime value investor Bill Miller remains bullish on Bitcoin.
$15bn gains for Tesla short-sellers
Tesla [TSLA] bears are finally being vindicated, with short-sellers realising collective gains of $15bn this year. Tesla fell 60.9% in the year to 22 December, with CEO Elon Musk’s troubled acquisition of Twitter feared to have taken attention from the luxury EV maker. Tesla’s bull run from early 2020 to late 2021 took its share price from $30 to over $400.
Disclaimer Past performance is not a reliable indicator of future results.
CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.
*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.