Weekend Update 1/23/2022
Weekend Update recaps market highlights and major news from Ursa’s portfolio. Not on Ursa yet? Download Ursa from the App Store!
Nasdaq in correction; S&P_500 not too far behind
😳 Fearful markets. Widespread market fears of new macro environment with aggressive #RisingYields. While last two year’s mantra was “buy the dip”, 2022 looking more like “sell the rally”. S&P 500 fell almost -6% last week with every day ending down despite fleeting intraday gains. High-growth and tech heavy NASDAQ already in correction down -14% since mid-Nov peak.
🎮 Major Metaverse M&A. Major merger news with Microsoft (MSFT) announcing acquisition of Activision (ATVI) for $69B likely to propel MSFT into gaming #Metaverse player. However, we wonder if FTC antitrust concerns stall or blocks deal between leading console Xbox maker MSFT vertically integrating largest US gaming publisher ATVI.
🎬 Streaming slowdown. While adding 8.3M subscribers in Q4, Netflix guided Q1 net adds to only 2.9M or just over 1% Q/Q growth. Significantly below expectations, shares plummeted -22% on Friday. Despite being more likely due to Netflix’s own market share ceiling than industry issues, rivals in #StreamingWars also dropped Friday on the negative read thru.
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As of the publish date, Ursa portfolios may own MSFT, ATVI and NFLX. The stocks mentioned in this article may cease to be owned by Ursa portfolios at any point. Any mention of these securities is for purely informational purposes only and NOT investment advice.
The statements, opinions and analyses presented here are provided as general information. This article is the opinion of the author. Anything within this article should NOT be considered an investment recommendation or advice. See Ursa’s full disclosures here.