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WeWork crashes after 760 million share reissue filing

WeWork stocks fall after it files a resale shelf registration and China cracks down on Alibaba in today’s headlines. The US sports betting market shows promise even in the off season, UK bosses warn of rising operating costs and four firms on the Dow Jones Transportation Average could see double-digit growth.

WeWork tumbles after resale shelf registration.

Shares in WeWork [WE] slumped 9.8% in midday trading on Monday after the company filed a resale shelf registration on 15 April. The company stated that it could issue as many as 117.4 million shares of common stock and shareholders may sell up to 642.8 million shares of class A common stock. According to Seeking Alpha, securityholders that may sell WeWork stock include BlackRock, New York Life Insurance and LightVC.

EasyJet gains altitude.

Though the Russia-Ukraine war and rising fuel prices are potential headwinds for the air travel industry, the easyJet [EZJ.L] share price has risen 31.1% since its 52-week low on 7 March. While concerns about the impact of inflation and geopolitical conflict remain, the company is still confident it can reach 2019 passenger numbers this summer as its load factor continues to rise month-over-month.

Four transportation winners.

While market conditions are not conducive to growth in the travel sector, the Dow Jones Transportation Average index includes four stocks that could see double-digit earnings growth over the next two years, MarketWatch reported. These are Alaska Air Group [ALK], Delta Air Lines [DAL], Southwest Airlines [LUV] and Kirby [KEX].

IPO market slowdown.

Fewer companies have launched IPOs since the Russia-Ukraine war broke out in February, with the global IPO pipeline already hampered by fears of rising inflation and muted performance for companies that listed in 2021.  Around 100 deals worth a combined $45bn, including bonds and loans and acquisitions, have been delayed or pulled since the end of February, though some well-known names are still going ahead with IPO plans.

UK bosses warn of surging operating costs.

According to a survey of UK CFOs conducted by Deloitte that was seen by Bloomberg, 98% believe inflation is likely to lead to a rise in operating costs in the coming year, with 46% expecting the increase to be ‘significant’. The survey also found that 78% believed inflation would still exceed the Bank of England’s 2.5% target in 2024.

China’s crackdown on Alibaba continues.

Ecommerce giant Alibaba’s [BABA] ambitions to become China’s answer to Amazon could be thwarted as the country continues its regulatory crackdown on private companies. Its cloud computing business Aliyun is the most recent branch to clash with authorities as the government continues its focus on data security, causing organisations in China to shift to state-backed cloud companies instead. 

Sports gambling market ripe for growth.

Data from New Jersey and Pennsylvania indicates strong growth in sports betting even during the NFL off-season, Seeking Alpha reported. The National Collegiate Athletic Association tournament generated $1.1bn in revenue from online and retail betting, representing a new state record. Pennsylvania also saw record revenue from college basketball, with 27.6% growth in wagers compared with a year earlier.

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