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CMGR - Clubhouse Media Inc News Story

$6 -0.5  -7.8%

Last Trade - 11/05/21

Consumer Cyclicals
Mid Cap
Market Cap £433.3m
Enterprise Value £434.8m
Revenue £716k
Position in Universe 3331st / 6852

LIVE MARKETS-When Musk says something, something moves

Tue 2nd February, 2021 12:44pm
* European shares rise for second day * Travel and leisure and auto stocks, best sectoral performers * Profit warning hammers Fresenius Medical Care Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at WHEN MUSK SAYS SOMETHING, SOMETHING MOVES (1243 GMT) Elon Musk's tweets have the power to move companies on the stock market, even the wrong ones. Take Clubhouse. On Sunday Musk tweeted he would go live on the namesake social media audio app and on the following Monday shares in Clubhouse Media Group CMGR.PK skyrocketed as a result. But there's a problem here: the privately owned Clubhouse app has nothing to do with Clubhouse Media, formerly known as Tongji which happened to change its name just two weeks ago. Clubhouse is reminiscent of what happened to Signal Advance SIGL.PK . Shares in the U.S. healthcare company soared to $70 from 70 cents in under a week after Signal was mistaken for an unlisted texting app also called Signal that Tesla founder Elon Musk had tweeted about, saying "use Signal." But Musk has also moved shares in the right companies. Telsa is one, of course, but also GameStop GME.N and CD Projekt CDR.WA more recently. Below Clubhouse's one year chart. (Danilo Masoni) ***** FLYING PIGS (1221 GMT) There's a tad of surprise, verging to disbelief, on the triumphant stock market debut of Moonpig. The online greeting card retailer added around 300 millions pounds to its market cap within minutes of its London bourse debut, thanks to its share price surging 24% to 435 pence. But Neil Wilson at noted that Moonpig, now worth about 1.5 billion pounds, had a lot going for it. "Huge market share, strong growth prospects and good margins – what is not to like?" he rhetorically asked before answering that question himself. "Maybe the valuation". Michael Hewson at CMC Markets noted that indeed at the price it managed to pull off, Moonpig's next set of financial results better be good and much better than the 173.1 million pounds achieved last year. "It stands to reason that the revenues for this year should come in much higher, however whether that’s enough to justify a valuation of £500m (for the shares sold off today) remains to be seen", he wrote. There's quite a lot of scepticism out there over the market's enthusiasm to warm welcome to fund new comers, be it through stocks or bonds, so some kind of sarcasm is to be expected. "Apparently pigs do fly, well Moonpig did at least", was AJ Bell investment director Russ Mould's take, noting the IPO closely followed the very successful listing of Dr Martens on Friday. The iconic shoe maker jumped over 20% for its first day on the London, but the performance is arguably more impressive in that Dr. Martens, with a stock market updated price tag of about 5 billion pounds, is close to 3 Moonpigs. There's more to come too: in London, Deliveroo and Darktrace are expected to complete deals this year, while in Europe, Germany's Auto1 is on track for a listing. Some reading : Soaring valuations, low borrowing costs fuel January fundraising bonanza*:nL8N2K464J Big step forward for Dr. Martens as shares jump in $5 bln London debut*:nL8N2K41V7 (Julien Ponthus and Abhinav Ramnarayan) ***** A SUSTAINABLE BUBBLE? (1128 GMT) Issuance of sustainable debt and equity is on the rise*:nL8N2JQ2ZY. Last month saw $78.4 billion in sustainable debt raised, Refinitiv data shows, versus $24 billion a year ago. Similarly, equity-raising by companies deemed compliant with Environmental, Social and Governance (ESG) principles totalled $2.9 billion compared to $94 million last January. And issuers are becoming more diverse -- Egypt and Guatemala were among those selling green and social bonds respectively last year. But investor interest is also growing fast, raising the question of whether there are enough ESG assets to go around. David Older, head of equities at Carmignac noted in a recent call "a supply-demand imbalance" in the green space. Investor exuberance has driven up shares in some renewables, electric vehicles and fuel cells as much as 1400%*:nL8N2JQ2ZY. True, that's not entirely down to ESG fever, stockpickers jumping on the green bandwagon are among the drivers. Liquidity in some 'green' segments can be an issue for bigger investors, Older said. "A lot of exuberance is just on the back of press releases on things achieved in the laboratory but with no products to speak about. So we invest only in the dominant players, names with manufacturing operations," he said on the call. Meanwhile, ESG funds continue to attract large inflows -- already in 2021, they have absorbed $24 billion, BofA says. That adds to the $255 billion received last year, when 141 new ESG funds were founded. The bank also says 65% of ESG indices have outperformed traditional benchmarks so far this year, The ESG impulse will strengthen this year, Goldman Sachs predicts. Funds that signed up to the Principles for Responsible Investment (a United Nations-supported investor network pushing a sustainable agenda) will need to incorporate ESG into at least 50% of their assets -- currently totalling $100 trillion. (Sujata Rao) ***** MILDER THAN EXPECTED BANK STRESS TESTS? (1058 GMT) Stress tests for European banks are back and their results will be a major input in banks dividend decision. “Methodology and assumptions seem more pessimistic versus previous tests, but possibly milder versus expectations,” Citi analysts say in a research note. The MDA buffer, namely the portion of a bank's earnings that may be distributed whenever buffer requirements are not fully satisfied, will be important for future dividends. Citi found highest MDA buffer and RoTE (Return on Tangible Equity) for Nordea NDASE.ST , Mediobanca MDBI.MI , KBC Groep KBC.BR , and BAWAG BAWAG.VI . Generally speaking, Nordic and Benelux banks generally have higher capital buffers versus minimum requirements, they add. The European Banking Authority (EBA) said the combination of pandemic theoretical shocks for the top 50 banks was among its toughest yet.*:nL8N2K45U7 (Stefano Rebaudo) ***** STOXX REGAINS GROUND, AUTO AND TECH BOOST, FRESENIUS SHOCKER (0849 GMT) European shares are off to a positive start this morning with the STOXX 600 .STOXX rising for a second day, after closing January with its worst weekly performance since October. It seems investors are looking past the volatility spike caused by the retail trading fever that gripped Wall Street last week. Numbers from Amazon and Alphabet due later today are also supporting the mood. The rebound is evenly spread, although autos .SXAP stand out with a gain of more than 2% amid hopes of a sharp earnings recovery for the sector later this year. Tech .SX8P and travel and leisure .SXTP shares are also in demand, underscoring the risk-on mood. In terms of single companies, a profit warning from Fresenius Medical Care FMEG.DE was a shocker though that sent its shares falling 13% to the bottom of the STOXX. The world's No. 1 kidney dialysis firm said the significant acceleration in patient deaths seen in November and December was expected to continue as the pandemic takes a heavy toll. (Danilo Masoni) ***** CAPTAIN TECHNOLOGY: THE WINTER SOLDIER (0759 GMT) Gamestock, what Gamestock? After notching the biggest weekly drop in three months last week, tech shares resumed their upward move. Indeed, Wall Street's Monday rally had a familiar whiff about it, led as it was by familiar mega-cap names. It's too early to say the short-squeeze mania is subsiding but the tech gains helped spark rallies globally, with indexes in tech-focused Taiwan and Hong Kong up by a percent each. Retail euphoria seems to be ebbing with Gamestock shares down in Germany while silver pulling back from 8-year highs hit on Monday, weighing on small silver miners shares in Australia. Wall's Street volatility gauge, the VIX, has pulled off near three-month highs, Treasuries are inching lower and equity futures point to firmer sessions across Europe and in New York. Consumer discretionary stocks were gainers too in Asia as lacklustre PMI readings in China and Japan sparked hopes of more targeted stimulus. Then the Reserve Bank of Australia surprised markets pleasantly by extending its bond purchase plan and postponing the timing of its first rate increase until 2024. Rest assured, stimulus will be around for a very long time indeed. Chunky equity gains were all the more impressive considering the U.S. dollar's rise to seven-week highs. The greenback benefited too from a bit of a short-squeeze, as speculators unwound some of the biggest short bets against the dollar in five years. The dollar remains buoyant as U.S. President Joe Biden prepares to negotiate with Republican senators on the size of a new COVID support bill. On the corporate earnings front, BP shocked with an annual $5.7 billion loss, its first in a decade. But spending on appliances by stay-home workers boosted Q4 profits at Electrolux. The wait is now on for the last of the FAANGs --Amazon and Alphabet -- which report after the closing bell in New York. And to see if results from ExxonMobil and ConocoPhillips are as gloomy as BP. Key developments that should provide more direction to markets on Tuesday: UK house prices fell in Jan for first time in 7 months Fed speakers: New York Fed's John Williams and Cleveland Fed's Loretta Mester Germany auctions 2-yr notes, UK 10 yr gilt European earnings: Virgin Money sets aside another 726 million pounds to guard against potential loan losses E-card retailer Moonpig prices IPO at 350 pence per share, setting market cap around 1.2 billion pounds US corporate events: Pfizer, UPS, Alibaba, Harley Davidson, ExxonMobil, ConocoPhillips, Alphabet (Saikat Chatterjee) ***** EUROPEAN SHARES SET TO RISE (0644 GMT) European stock futures are pointing north this morning after gain in Asia overnight where shares were propped up by increased optimism about and global economic recovery. While silver XAG= overnight retreated and GameStop GME.N , the videogame retailer at the centre of the "Reddit rally," slid more than 30%, investors appeared to be upbeat amid the ongoing fiscal stimulus debate in the United States. Shares in Asia .MIAPJ0000PUS rose 1.5% and the good mood looks set to spill over to Europe where futures indicate a 0.4% gain for the DAX FDXc1 and a 0.6% rise for the FTSE FFIc1 . S&P 500 e-mini futures were up 0.4%. Earnings will be a focus too. A shocker arrived from Fresenius Medical Care FMEG.DE . Its shares are down 6% pre-market after the world's No.1 kidney dialysis firm warned that adjusted net profit would likely drop by a quarter this year as the pandemic takes a heavy toll. (Danilo Masoni) ***** <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ EURUSD and CESI open cet1 clubhouse ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
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