Coinbase fell 7% before jumping 10% 🪙
The stablecoin that almost lost stability: Coinbase’s stablecoin, USDC (US Dollar Coin), was almost in trouble this week thanks to Silicon Valley Bank collapsing. Initially, investors panicked that Coinbase’s USDC funds had been lost, which could have resulted in the token failing to receive interest income. Shares dropped 7% as a result.
The Government to the rescue: After Silicon Bank Valley collapsed, the US Government agreed to bail out depositors. Coinbase shareholders could breathe a sigh of relief, as the stock began to recover from the dip.
Binance boost: Then, Binance said it would convert $1 billion of stablecoins to Bitcoin, Ethereum, and other tokens. When the world’s largest crypto exchange agrees to do this, investors tend to do the same. Of course, as a major crypto exchange themselves, Coinbase always benefits when crypto activity is high.
Uber hits the accelerator as stock drives up 5% 🚕
An Uber win: Uber has been battling with its drivers as to whether it must offer certain employee benefits, as currently, drivers are classed as independent contractors.
Driver’s benefits: In 2021, drivers took their appeal to court. But on Monday 13th March, the court overturned that ruling, meaning Uber doesn't have to fork out as much money.
What this means for Uber: Operating costs for Uber aren’t likely to spike as much as they could have, which makes for happy shareholders.
Seagen stock surges 13% after the Pfizer acquisition is successful 💊
Bigger than expected buyout: A couple of weeks back, shares in the cancer biotech company, Seagen, rose 12% as talks surfaced about Pfizer buying the company for $30bn. Well, the deal went through but for a total of $43bn, leaving shareholders pretty happy.
The battle against cancer: So, why has Pfizer spent the extra $13bn? In short, Pfizer’s chief executive Albert Bourla said it was serious about “the battle against cancer.” With Seagen being a leading developer in the space, it seems Pfizer wasn't prepared to back down from the deal.
Pressure on Pfizer: Pfizer has also been under pressure to do a big deal that could help kickstart its revenue. It recently forecasted a drop in annual revenue by one third, thanks to a steep fall in COVID-19 vaccine sales.
What have we learnt this week? 🤓
When a major bank collapses, it has serious repercussions: Things looked touch and go for Coinbase this week, but as history has proven, when Bitcoin is up, Coinbase often follows suit.
Drop in operating costs keep shareholders happy: Uber won’t have to fork out on additional costs for its workers. Whilst this is no doubt frustrating for the drivers, it has increased investor confidence as operating costs shouldn’t spike.
Takeovers excite investors: Often, the company who’s buying also pays a premium on the shares to win the appreciation of the current company's shareholders, which is exactly what happened with Seagen.
*Figures correct as of March 15th 2023.
Past performance does not guarantee future results. Capital at risk when investing.
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