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Airbnb jumps 8% as it joins the S&P 500 🏡
There’s no place like… the S&P 500: On Tuesday, Airbnb became the 450th largest public company in the U.S. This means on September 18 it’ll officially join the S&P 500, but investors haven’t been wasting any time buying up shares.
Home sweet home: Airbnb has just opened itself up to receive a monumental amount of investment. How? Because the S&P 500 is one of the world’s most tracked indexes, with 120 million people in the U.S. alone owning shares in a fund or ETF that tracks the index. It’s certainly a place Airbnb will be wanting to call home.
In elite company: Joining companies such as Apple, Meta, and Alphabet comes with huge status. Similar to these companies, Airbnb is having a stellar year so far, as shares are up 69% since January. Will they continue to climb?
*Ratings are provided by analysts at Zacks, a leading investment research firm
UFC owner Endeavor dips 10% due to Saudi's latest buy 🥋
Saudi strikes again: It’s no secret Saudi Arabia is investing huge amounts into sport. The country has already made significant moves across football, golf, boxing and F1. But the latest sport to add to the list? Mixed martial arts (MMA).
Endeavor owns the UFC: The Ultimate Fighting Championship (UFC) will now be facing serious competition from the Professional Fighters League, as Saudi Arabia’s Public Investment Fund has just bought a $100m stake.
Rolling with the punches: Saudi has attracted some of football’s biggest stars and investors may have cause for concern that the UFC will suffer the same fate and lose some of its household names. But, the UFC is set to merge with WWE. Is this part of a wider plan to diversify its business model? More than likely.
*Ratings are provided by analysts at Zacks, a leading investment research firm
Tilray up 32% as cannabis moves closer to ‘low risk’ status 🍃
Did you know… In the U.S., marijuana has the same risk classification as heroin, ecstasy and LSD, despite being legal in many states? Well, it could all be about to change and investors in Tilray have been loving the news.
Lower risk, higher share price: The Department of Health and Human Services (HHS) recommended moving marijuana to a ‘lower risk’ status. The lower the risk, the more hemp, CBD and cannabis based products Tilray can produce.
A growing market: The cannabis market is currently worth $50 billion, but could be set to reach $444 billion by 2030; almost 9 times what it’s worth today. Could more news of a lower risk status make for a higher number come 2030? Investors will be hoping so.
*Ratings are provided by analysts at Zacks, a leading investment research firm
What have we learned this week? 🤓
The S&P 500 is very influential: With so many retail investors owning shares in funds that track the S&P 500, it automatically means any new companies who join the index will receive significant investment.
Saudi Arabia loves sport: Wondering why? Saudi officials say that sports investments are part of ‘Vision 2030’, a government plan to diversify the country’s economy beyond oil.
The cannabis market is vulnerable to legislation: The cannabis and CBD industry is susceptible to laws. Often, when laws are relaxed (like in this case) stocks will surge. But when the reverse happens, stocks tend to plummet.
Stocks we're watching 👀
Apple: On September 12, Apple will unveil the new iPhone 15 in its latest product event. Read about how Apple’s product releases affect its stock price.
Manchester United: The Red Devil’s have had more last minute antics with its takeover bid than their 1999 Champions League final. The latest twist is that shares are down 18% as it’s been reported the Glazers are considering taking United off the market.
Costco: The retail giant is reporting earnings on September 26, meaning investors will be keeping an eye on the stock in the coming weeks.
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*Figures and ratings correct as of September 6th 2023.
Past performance does not guarantee future results. Capital at risk when investing. This content is for educational purposes only. Shares does not provide investment advice. If you are unsure about anything, please seek advice from an authorised financial advisor.
