After the AEX (-0.5%) suffered a significant drop yesterday, the main index seemed to recover partly today by being almost one percent in the plus. But things turned out differently. When the American price screens started up again and immediately turned red, the prices started to fall here too.
Technology is the main culprit. At the time of writing, the Nasdaq is trading at a painful -3%. By the way, it’s the big boys who pull the index down: Amazon (-4,6%), Meta (-3.6%), but above all Tesla (-9.4%). “An expensive joke that Twitter from Elon Musk,” writes market commentator Arend Jan Kamp on Twitter. “A percent is about $10 billion at Tesla, so do the math.”
While we’re on the subject of the United States, I would like to highlight two American macros right away. Starting with consumer confidence in the States† This decreased slightly from 107.6 to 107.3. Now the demand for durable goods. In line with expectations, this demand increased by 0.8% in March. Without means of transport, including cars, the increase is even 1.1%. In the previous month, the number of durable goods orders fell by 1.7%.
Stock market exit for Twitter seems near
The bullet is through the church, because the board of Twitter (-2.9%) agrees to Elon Musk’s offer. However, his bid of $54.20 is still 5% above the current price. According to analyst Niels Koerts, there are three reasons for this, one of which I will give away: A higher bid is out of the question.
Musk was clear when he made his offer and declined to pay more. Industry colleague Meta is probably not even allowed to make an offer from the authorities, because then we might get Standard Oil-like practices. You know, the company that seemed to grow bigger and more powerful than the United States at the beginning of the last century and was therefore forced to split up. For the other two reasons I refer you to being Koerts analysis of Twitter.
The end of Twitter’s stock market is near https://t.co/ExhKazURln #IEX
– IEX.nl (@IEXnl) April 26, 2022
Musk wants to be able to say more on Twitter and to make the algorithm more transparent. Now opinions are divided on this. Where Sander Schimmelpenninck shows with some sarcasm that he is not a fan of the acquisition, former Twitter CEO Jack Dorsey has said that Musk is the only solution for the company. Fortunately, we have a comment section where you can give your opinion about this acquisition.
Furthermore, I also really like cryptos, Tesla’s stunning cars, and I think it’s very good to just allow the far right fake news. That has never gone bad in the past, has it?
— Sander Schimmelpenninck (@SanderSchimmelp) April 25, 2022
Fast food sector under the microscope
Shares in the fast food sector are not cheap, but given the return on invested capital and profit margins, they do generate a lot of value for the shareholder. New power Patrick Beijersbergen takes a look at McDonald’s, Burger King and the smaller Wendy’s to find out what the best investment is in this sector. Reading material for the long-term investor.
Put your money where your mouth is, #Investing in ?? Street $MCD $QSR of $WEN: https://t.co/z3w3Ke6CF7
— Patrick Beijersbergen (@PJBeijersbergen) April 26, 2022
The IEX Investor Day is back!
The IEX Investors’ Day will be organized again on 1 July. A major event where, among others, Ahold Delhaize CEO Frans Muller and Prince Constantijn van Oranje will speak. Willem Middelkoop and the CEOs of, among others, Ebusco and CM.com are also present. In short: a packed day. The best part is that you can be there from €14.95. Tickets can be ordered here.
Annuities
Interest rates are falling, as you can see. The Dutch ten-year yield falls by four basis points to 1.08%.
broad market
- The AEX (-0.5%) performed comparable to the French CAC 40 (-0.4%), but less badly than the German DAX (-1.3%).
- The CBOE VIX Index (Volatility) rises to 30.3 points.
- Wall Street is in the red: S&P 500 (-1.8%), Dow 30 (-1.4%) and the Nasdaq (-3%).
- The euro is down 0.6% and is now trading at 1.066 against the US dollar.
- Gold (+0.4%) and silver (-0.1%) disagree.
- Oil: WTI (+1.8%) and Brent (+1.7%) are both rising.
- Bitcoin (-1.7%) is falling.
The Damrak:
- Randstad (-2.1%) again clearly outperformed in the first quarter of 2022 and saw that volume developments in April indicate that the positive trend will continue in the second quarter. The numbers were initially well received by investors, but the price turned against the stock during the day.
- Adyen (-2.8%) announced today that it will take care of the payment processes for Amazon Japan.
- Friday before market is coming Iron (-3.5%) with numbers. Analysts polled by ABM Financial News say they are confident in the chipper’s outlook. Besi expects revenue growth of 15% quarter on quarter in Q1.
- ING has the price target ahead on Tuesday Philips (-1.2%) reduced from €30 to €25 while maintaining the holding advice. Jefferies lowered his price target from $32 to $26 with a hold rating as well.
- “Sort (-0.5%) has had a first quarter for which we can take our hats off,” writes analyst Niels Koerts in his analysis of Ordina. However, things are not going well for the ICT service provider for the time being, it will have to continue to do its utmost to recruit and retain staff.
- Pharming (-0.8%), a favorite among forum members, has received approval from the UK regulator MHRA on a submitted pediatric trial plan for leniolisib for the treatment of the immune disorder APDS in patients aged 1 to 18 years.
Advice
- ASML: Buy advice with a price target of €710 – Societe Generale
- AkzoNobel: to €111 from €104 and buy – Goldman Sachs
- Philips: to €26 from €32 and keep – Jefferies
- Philips: to €25 from €30 and keep – ING
Agenda Wednesday 27 April 2022
07:00 Credit Suisse – First quarter figures (Zwi)
07:00 Deutsche Bank – First quarter figures (Ger)
07:00 Worldline – First quarter figures (Fra)
08:00 Consumer Confidence – May (Ger)
09:00 ING – Ex-dividend
09:00 Wereldhave – Ex-dividend
13:00 Boeing – First Quarter Figures (US)
13:00 Garmin – First Quarter Figures (US)
13:00 GlaxoSmithKline – Q1 Figures (UK)
13:00 Kraft Heinz – First Quarter Figures (US)
13:00 Mastercard – First Quarter Figures (US)
13:00 Mortgage Applications – Weekly (US)
15:00 Case Shiller Home Prices – February (US)
16:00 Upcoming Home Sales – March (US)
16:30 Oil Stocks – Weekly (US)
18:00 Economic growth – March (Russian)
18:00 Unibail-Rodamco-Westfield – First Quarter Figures
22:00 Core Laboratories – First Quarter Figures
22:00 Meta Platforms (Facebook) – First Quarter Figures (US)
22:00 Qualcomm – US First Quarter Figures
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Coen Grutters is editor of IEX. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments. click here for an overview of the investments of the IEX editors.
