⏳GE: Transformation in Process⏳

General Electric’s transformation plan is now in the process of changing the landscape of its business. It will be split into 3 businesses: healthcare, energy and power and aviation. Investors appear to be happy with the news.

The company will retain around 19.9% stake as the power unit spin is expected to be in 2024. Pika World believes the transformation plan will aid the company in becoming leaner and more focused on individual core capabilities.

🎥AMC: Return of the Titans 📸

The company reported a pleasant set of earnings as quarter net loss narrowed, with revenue surging by 539% to hit $763.2 million ahead of the sales estimate of $708.2 million. There was also an announcement to partner with Walt Disney to show some films as part of the Disney’s+ release in 2019.

The company finance is still stable, with $1.8 billion in liquidity, and does not anticipate any need to draw on the lines of credit for the next 12 months. However, challenges are still present despite improving financial results.

As more key films will be released throughout the remaining 2021 and 2022, there is a sense of recovery in sight. Pika World continues to hold a stake in AMC.

📲PayPal: Lost in Direction?🕹

The stock had a big swing as it reported mixed results. While its third-quarter revenue rose by 13% compared to last year, revenue missed estimates of $6.23 billion as it registered only $6.18 billion.

The poor outlook was the biggest concern for the fourth quarter as it was way lower than Wall Street’s estimate. We have seen the stock more than double in 2020 as the surge in e-commerce made it a beneficiary during the height of the pandemic. However, shares have fallen substantially for the past 3 months as investors appear to be a little uneasy about its rich valuation.

A rosy piece of news was the partnership of Venmo with Amazon, where shoppers at the e-commerce giant online store could checkout using Venmo. This is part of the move to prepare the company as it may not receive contributions from its long-term partner eBay.

Pika World remains exposed to the stock but is cautious of any deteriorating fundamentals.

📮What’s on the Menu Today?

At 8.30 pm, We will have the Core CPI data, which we expect to rise by 0.4% compared to 0.2% in the prior period. The data is critical as market participants are still concerned about the inflation outlook, which might alter the pace of tapering and the odds of an interest rate hike in 2022.

Initial Jobless Claims is expected to moderate to 265K from 269K in the previous period at the same time.

At 10.30 pm, we will have the Crude Oil Inventories, which we expect a drawdown to 1.9M from 3.291M in the prior period.

It is 10 Nov, Wednesday, at 7.50 am in Singapore and 7.50 pm in New York. The week has been volatile as more earnings are released, and more economic data will shed light on the health of the general economy.

Pika World wishes everyone a safe and cooling day ahead!