Top 5 Stocks To Watchout and Trade Today – January 19, 2022

Top 5 Stocks To Watchout and Trade Today – January 19, 2022

1.MICROSOFT:- Microsoft Corp is buying “Call of Duty” maker Activision Blizzard for $68.7 billion in the biggest gaming industry deal in history as global technology giants stake their claims to a virtual future.

The deal announced by Microsoft on Tuesday, its biggest-ever and set to be the largest all-cash acquisition on record, will bolster its firepower in the booming video gaming market where it takes on leaders Tencent and Sony.

It also represents the American multinational’s bet on the “metaverse,” virtual online worlds where people can work, play and socialize, as many of its biggest competitors are already doing.

“Gaming is the most dynamic and exciting category in entertainment across all platforms today and will play a key role in the development of metaverse platforms,” Microsoft Chief Executive Satya Nadella said.

2.SONY: Shares in Japan’s Sony  Group fell 9% on Wednesday after gaming rival Microsoft said it will buy developer Activision Blizzard in a record $68.7 billion deal for the industry.

While Sony’s PlayStation is widely seen as having a lead in the generational battle with Microsoft’s Xbox, the purchase of the “Call of Duty” maker comes as Microsoft is aggressively expanding its Game Pass subscription service.

Sony has strengthened its network of in-house games studios in recent years and delivered a string of exclusive hits including in its “Spider-man” franchise, with Microsoft left playing catch-up.

“Sony will have a monumental challenge on its hand to stand its own in this war of attrition,” wrote Amir Anvarzadeh, a market strategist at Asymmetric Advisors who recommends shorting the stock, in a note to clients.

3.FORD:-Ford Motor Co said on Tuesday its fourth-quarter results would include an $8.2 billion gain on its investment in Rivian Automotive Inc, following the electric-vehicle maker’s blockbuster market debut in November.

Rivian had soared as much as 53% to cross $100 billion in the biggest initial public offering of 2021, but the company’s shares have dropped over 27% since then.

The stock closed 8.5% lower on Tuesday after hitting its weakest since the IPO amid a broader tech selloff on Wall Street.

Ford, an early investor in Rivian, currently owns about 12% of the California-based company and has itself been racing toward electrification in a shift away from traditional gasoline-powered cars as demand for green transport surges.

It has pledged to invest more than $30 billion on EVs by 2030.

In 2019, the 118-year-old Detroit automaker invested $500 million in Rivian, with plans to use the EV maker’s platform to build a new Ford-branded electric vehicle, but the companies dropped those plans in 2021.

Ford, which is reporting its fourth-quarter results on Feb. 3, also said on Tuesday that it would reclassify its $900 million first-quarter 2021 non-cash gain on the Rivian investment as a special item.

The reclassification will change the automaker’s full-year adjusted earnings before interest and taxes (EBIT) guidance that was previously forecast between $10.5 billion and $11.5 billion including the gain.

4.WELLS FARGO: -Wells Fargo  & Co named Derek Flowers as its new chief risk officer, leading all aspects of the lender’s risk management systems, the bank said in a statement on Tuesday.

Flowers replaces Mandy Norton, who served as the bank’s chief risk officer since 2018 and is planning to retire in June.

Flowers is a 24-year veteran bank employee who most recently was head of strategic execution and operation at Wells, a job focused on the banks’ risk, control and regulatory priorities.

He takes the job as the bank continues to work on what Chief Executive Charlie Scharf recently called a “multi-year effort to satisfy” regulatory requirements.

The fourth-largest U.S. bank has been in regulators’ penalty box since 2016 when a sales-practices scandal came to light, and it has paid billions in fines and restitution.

5.LYNAS :-Australia’s Lynas Rare Earths Ltd posted record second-quarter revenue on Wednesday, as demand for metals used in electric vehicles (EVs) grew amid a global push for reducing carbon emissions.

The prices of neodymium and praseodymium (NdPr), widely used to make magnets that power EV motors, have nearly tripled over the past 14 months, as companies and governments step up efforts to meet climate targets.

Rare earth materials are a group of 17 minerals that are also used in wind turbine generators, smartphones and military equipment.

“Demand for Lynas products remained very strong during the quarter and favourable market conditions continued, with customers indicating their expectation of accelerated demand in the next quarter,” Lynas CEO Amanda Lacaze said.

However, shipping delays and disruptions hurt production of NdPr, with output falling to 1,359 tonnes in the three months to Dec. 31 from 1,367 tonnes a year earlier, the world’s largest producer of rare earths outside China said.

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