Inflation data a relief but equity fell🪜

While a good gain was realised in the early trading session, geopolitical risk outweighed a better than expected inflation report. Bond yields retreat which is a good sign for Nasdaq. 

Now, is the earnings season that will be the highlight and Pika World will be monitoring closely on their result. 

🏀The Love for Stock Split 💣

A series of tech stocks is pilling on the game with a stock split. The latest in the game is Shopify, as it announced a 10-1 split of its common stock. This comes after Google and Tesla both announced plans for such a move. 

It is an ideal move by companies that aim to bring their stock prices more accessible to retail investors. Unique to Shopify’s situation is that it plans to issue a new set of class shares known as the Founder Share to allow the CEO with a variable number of votes. This will provide me collectively with about 40% of the voting power, including his Class B shares and other shares held by his family. 

Investors do like the idea, but it is a trend in a sea of volatility to be reckoned with. 

💻Slowing PC Market – Microsoft💰

With the reduction in growth in the PC market, investors might become worried about Microsoft as it generates considerable revenue from its Office 365 productivity software. 

Data from IDC shows that global PC shipment dropped by 5.1% every year in the March quarter. This is a moderation of demand since the pandemic era as more people return to the office for work. 

We are likely to see a slight deceleration of growth given the already saturated market in the commercial PC market. Nonetheless, investors should take comfort that Microsoft has been able to fend off competition from Alphabet’s Google G Suite, which is aimed to end Microsoft’s dominance and leadership in Office 365 sphere. 

Still, investors might wish to re-assess the next growth pole of the company.