Market Roundup: January 10 to January 14 2022

Catch up with the stocks making the biggest moves this week.
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3 min read
Candlestick Chart

Virgin Galactic Holdings Inc. ($SPCE)

The future commercial spaceflight company’s shares fell over the course of the week, as they announced they plan to raise over $500 million in debt. In a statement, Virgin Galactic said: “The company intends to use the net proceeds from the offering to fund working capital, general and administrative matters and capital expenditures to accelerate the development of its spacecraft fleet…”. $425 million will be raised through the sale of convertible senior notes and $75 million granted to buyers. Further, optimism over the company has been declining recently after numerous delays have pushed the commencement of its commercial spaceflight program to late 2022, at the earliest. Shares of Virgin Galactic fell 15.29% ($1.83) in the past week and currently trades at $10.14.

Darktrace (£DARK)

This company, headquartered in Cambridge, England, specialises in cybersecurity and cyber defence. Its shares have seen a sharp decline of 55% since early September but are up 34% since its IPO in April. However, this week saw its shares go green again as investors regain confidence. The reason for the sudden dip is that the company is still unprofitable – meaning optimism has fallen short. Analysts from The Motley Fool still believe the stock has potential and is significantly undervalued. Darktrace shares went up 12.6% (£0.50) and now trades at £4.45.

Novavax ($NVAX)

Novavax, the bioengineering company that develops vaccines for numerous infectious diseases, including COVID-19, saw its shares dip into the red as the US Supreme Court blocked President Biden’s vaccine mandate for companies that employ 100 people or more. Novavax, along with other US vaccine manufacturers such as Moderna, instantly took a hit once the court had made its decision. The Court said that the federal government does not have the authority to make vaccinations mandatory in this manner, but private employers and educational institutions can still impose vaccine requirements if they wish. Shares of Novavax fell 17.91% ($24.17) in the past week and currently trades at $110.82.

Rivian Automotive ($RIVN)

The major competitor to Tesla ($TSLA), which had an enormous IPO valuation last year, had its shares go down after reporting disappointing vehicle production figures for 2021 and also confirming that an executive had left the company. Rivian announced that they had manufactured 1,015 vehicles (185 short of the target) and 920 of those vehicles were delivered. It was also confirmed that Chief Operating Officer Rod Copes had left the company, for reasons of retirement. The EV startup also said they faced supply-chain difficulties as well as EV batteries meaning they anticipated their production shortage. Rivian Automotive’s shares fell 8% from its intra-week high and currently trades at $79.95.

Peloton Interactive Inc. ($PTON)

Peleton’s shares have seen yet another bad week as it will fall out of the NASDAQ 100 index on January 24. Over the course of 2021, Peloton has seen its share value shrink a staggering 75% as restrictions eased, meaning the surge of orders Peloton saw in 2020 has vanished as many go back to gyms and offices for work. Peloton also reported poor earnings last year as well as an unexpected decision to sell shares worth $1 billion, despite telling investors that the company had no new plans to raise any capital. Shares of Peloton fell 8.84% ($3.04) in the week and now trades at $31.33.

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