The week of investor relations: gigantic loss of Amazon, financial difficulties of Meta and boom of the American markets

– It was a bad few weeks for tech companies with Twitter and Meta layoffs, then Amazon lost $1 billion in market value, reported Subway through Bloomberg. For perspective, it’s almost like losing what Google’s parent Alphabet is worth, which is now around $1.13 billion. The loss makes Amazon the first public company to lose $1 billion, according to Bloomberg. Amazon stock has lost about 48% of its value this year alone, compared to July, when the company’s market capitalization nearly hit $1.9 billion. But it’s not the only tech giant losing money: America’s top five tech companies have already lost nearly $4 billion in market value so far this year, thanks to rising l inflation and a slowing economy.

– After 18 years of exceptional growth, a new reality emerged on Meta earlier this week as Chief Executive Mark Zuckerberg announced a drastic downsizing of his company, noted the FinancialTimes (paywall) in a report. The large job cuts, which represent around 13% of its workforce, or 11,000 employees, speak to the competitive threats Meta – which owns Facebook, Instagram and WhatsApp – faces from its deep-pocketed Chinese rival, TikTok. . They were also the first sign that Zuckerberg was forced to tone down, at least in part, his expensive gamble on building a metaverse filled with digital avatars amid intense scrutiny from investors over his spending. . “The bubble has burst,” said a former Meta staffer.

– U.S. stocks soared after new data showed inflation eased in October, with Dow Jones industrialists adding 1,200 points, reported The Wall Street Journal (pay wall).

Investors were looking for evidence that the Federal Reserve’s interest rate hikes are easing price pressures and they liked the latest data: All three U.S. indices had their best days since 2020. Tech stocks rose been at the center of market turmoil lately, and were among the biggest beneficiaries of Thursday’s rally. Cryptocurrencies and associated assets remained volatile following turbulence on crypto exchange FTX.

– Meanwhile, Forbes (paywall) noted that the influx of investment assets into ESG funds is enabling investors and activists to demand action from companies around the world. ESG funds are seeing record inflows, with Broadridge research estimating that retail and institutional ESG assets under management could grow from around $8,000,000 today to around $30,000,000 by the end of the decade. By 2025, approximately 33% of all global assets under management are expected to have ESG mandates.

– Lawyers began preparing clients for a potential scrutiny from Republicans on ESG issues after the midterm elections, the FT reported. America’s biggest companies were bracing for a flurry of congressional hearings after the midterm elections, as Republicans pledged to continue investigations into companies’ environmental and social stances. Control of both houses of Congress could swing to the Republicans as polls showed the Democrats falling behind in several potentially crucial races.

– In crypto news, retail investors have started snapping up crypto-related stocks that have been battered during the cryptocurrency price crash centered on the liquidity crunch surrounding FTX, reported Markets Insider, according to a study conducted by the research and analysis company Vanda. “Retail is buying the dip again,” Vanda said of crypto-related company stocks and ETFs in a note released Wednesday. The company’s VandaTrack tool monitors the retail activity of more than 9,000 stocks and ETFs traded in the United States.

– In related news, Yahoo! Finance said the FTX crisis serves as a warning to retail investors. The potential collapse of one of the world’s largest cryptocurrency exchanges this week has seen several high-profile investors get burned over their stakes in the company, providing another warning to small mom-and-pop investors about the dangers of following major funds and celebrities to make money work in volatile sectors.

Cryptoexchange FTX shocked the market earlier this week after it announced that rival Binance had signed a non-binding letter of intent to acquire the company as it struggled with a liquidity crunch.

– Financial regulators have scrutinized top private equity firms’ use of WhatsApp and other work messaging apps, signaling that the United States is stepping up efforts to police Wall Street’s electronic communications, a reported Bloomberg (pay wall). Apollo Global Management, Carlyle Group and KKR said in regulatory filings this week that they had received letters from the SEC about their use of corporate email.

Financial companies must follow rules for monitoring commercial communications to prevent inappropriate behavior. Investment advisers and fund managers are required to maintain records related to the provision of investment advice.

– In China, Hong Kong shares jumped more than 7% as Chinese state media reported Covid-19 travel measures would be eased, reported CNBC. Asia-Pacific stocks also rose after the release of US inflation data in October raised investor hopes that inflation had peaked. Bloomberg noted in a report that foreigners – who had largely been absent from this month’s rebound – piled into onshore stocks on Friday, buying a net 14.7 billion yen ($2.1 billion) through trade links with Hong Kong. It was the biggest one-day purchase in about two months.

– Abu Dhabi Global Market (ADGM) has announced the release of a consultation paper on a proposed comprehensive regulatory framework for sustainable finance, according to a report by Finextra. It covers rules on sustainability-focused investment funds, managed portfolios and bonds and a framework on environmental disclosures by ADGM companies. The measures outlined in the document aim to enable accelerated growth of a sustainable financial ecosystem in the jurisdiction and support the UAE’s transition to net zero greenhouse gas emissions.

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