Hot period for the tech sector with the S&P 500 and the Nasdaq at +5.6% and 4.5% respectively. Let’s focus on the hottest names such as Nvidia, GameStop, and movie company AMC, but also worth keeping an eye on is Warren Buffett‘s family holding company, Berkshire Hathaway.
Nvidia
After an upward rally that started on 14 October when the stock price was at $112.27, the company is seeing a setback.
The stock loses 1.51% to $168.76 confirming the previous week in the red.
The latest quarterly report did not bring good news for the technology company, which reported unrealized earnings per share of -17.57%.
Despite the latest week, the stock in November appreciated 25.4% as reported by S&P Global Market Intelligence.
The S&P 500 returned 5.6% and the Nasdaq Composite 4.5% over the same period as the processor company’s exploit.
AMC Entertainment Holdings Inc
December started off with a bang for the company that focuses on movies and related businesses; the chain’s shares rose 13% in one bullish run on 1 December.
The session was often interrupted due to high volatility, which led the stock often to surpass 20% gains to touch +24% ($8.17 per share).
According to Bloomberg analysts, behind the exploit were call options that were bought at three times the rate of the average 20 days earlier.
AMC’s expiring calls last Friday were averaging prices around $8.00 to $9.00 each and were the most traded contracts on the day on the 1st of the month.
A number close to 550,000 calls were sold and repurchased, a ratio three times higher than the average for the past 20 days, which was 163,000.
If the losses of the shorts are too great to be sustained, about 100 million shares will have to be bought back.
GameStop
The last 30 days have also been very positive for GameStop, which jumped nearly 7%.
The most recent stock market session also proved to be vibrant and delivered +3.46% to the stock, which touched $27.52 a share.
The gaming company’s stock is consolidating its appeal in the market thanks to an extensive spending review on the one hand and the diversion of some resources to improving the corporate balance sheet.
Shareholders are also adopting a policy of systematically registering their shares so as to contract the availability of shares for short sellers to the maximum extent possible.
Berkshire Hathaway Inc.
Buffett‘s holding company touches $475,969 a share, which is essentially stable, although this changes if we shift our gaze to the businessman’s new interest.
Berkshire Hathaway Inc has in fact set its eyes on the Taiwanese semiconductor company TSMC buying it for a countervalue of $4.1 billion.
The holding company’s interest in technology companies is rare, and the unexpected move sent TSMC’s stock soaring nearly 8% on the Taiwan Stock Exchange.
Shares of TMSC, which is the world’s largest microchip maker and boasts supplies for almost all of Nvidia and Apple’s devices, are coming off a downturn.
The market value has even reached the lows seen in the past two years on the local stock exchange precisely because of the global economic downturn but this new interest is stirring up excitement.
Tom Russo, of Gardner, Russo & Quinn, told Reuters news agency:
“I suspect Berkshire believes the world cannot do without products manufactured by TSMC. Only a small number of companies are able to raise the capital needed to produce semiconductors, which are increasingly important to life of people.”
Source: https://en.cryptonomist.ch/2022/12/05/analysis-of-nvidia-gamestop-amc-and-berkshire-hathaway-stocks/