The Week in Business: The Meme Stock Bubble Bursts

    Business Inquiry

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    Happy Super Bowl Sunday. Here are the top business stories to learn further for the week. – Charlotte Cowles

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    Credit …Giacomo Bagnara

    Twenty-seven years after Amazon was founded, Jeff Bezos is handing over his job as chief executive to one of the protagis, Andy Jessie, who heads the company’s lucrative cloud computing division. Mr. Bezos will become executive chairman of Amazon and participate in high-level decisions, but it is still the end of an era for the country’s largest e-commerce retailer. He is going on a very high note: Amazon’s latest quarterly sales topped $ 100 billion for the first time, and the company’s value ($ 1.7 trillion) has made Mr. Bezos one of the richest people in the world. But there are challenges even further as businessmen are facing increasing scrutiny from legalists and opposition regulators as to whether it has illegally tightened its grip.

    Well, here’s something unsurpassed: Shares of GameStop – a company that attracted an online stock-buying frenzy that threw markets into turmoil – again plummeted back to Earth, a small fraction of the value. They were held a few days before while defending. The same army of retail investors, sparking GameStop’s boom-and-bust cycle, also snatched up shares of underdogs like AMC Entertainment and Blackberry, whose prices had also fallen last week. The rapid devaluation of the so-called stock, named for its flash-in-pan popularity on social media, has left investors wondering whom they are to blame for the loss. Although the market stabilized, it had its biggest rally in months.

    Will the GameStop saga change how stock trading is regulated? probably. The newly confirmed Treasury Secretary, Janet Yellen, met with top regulators on Thursday to discuss the growing trend of retail investment, ie making stock trades easy (and free) on apps like Robinhood and e-Trade. The upside of those platforms is that they regularly make more accessible (read: not Wall Street) people. But if the past few weeks have taught us something, the craze of these individual stock traders can also lead to volatility that disturbs investors of all stripes.

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    Credit …Giacomo Bagnara

    The Biden administration and congressional Democrats are charging with their sweeping $ 1.9 trillion coronovirus relief bill, and will exclude the final details this week. To avoid potential blocks, Senate Democrats passed a budget framework that would allow the aid package to pass with a simple majority and no Republican support. President Biden said he still hoped to reach some compromise with Republicans, who monitored the bill’s scope and price tag. But he is not prepared to waste his time on cornerstone provisions such as destroying his votes, or aiding schools, or $ 1,400 direct payments to qualifying Americans. And looking at the disappointing report on January jobs, they say that is not the moment to lose.

    Voting technology firm Smartmatic has filed a $ 2.7 billion defamation lawsuit against Fox News, its three anchors and attorneys Rudolf Giuliani and Sydney Powell. The company is accused of damaging its business and reputation by imposing false theories about its services as part of its infamous claims of widespread fraud in the 2020 election. In its complaint, Smartmatic contends that Mr. Giuliani and Ms. Powell, who held former President Donald J. Trump represented, “created a story about Smartmatic” and that “Fox got involved in a conspiracy to discredit and dismember Smartmatic and its election technology and software.”

    Super Bowl commercials cost the same as last year – $ 5.6 million for a 30-second spot. This is the first time the rate has not increased in over a decade, and it took longer than usual for CBS to sell all slots. After all, this is an awkward time for marketing, and advertisers face a dilemma: allies for the epidemic, and remind viewers of a nightmare they were hoping to escape for a few precious hours? Or ignore it, and risk coming off as tone deaf? The ads will be dominated by epidemic-popular businesses such as distribution service app DoorDash, takeout Mexican chain Chipotle, and recently invested investment platform Robinhood.

    Speaking of epidemic-friendly businesses, Uber has reached a deal to buy Drezli, a liquor delivery service. CNN’s longtime president Jeff Zucker said he would step down from his position by the end of the year. And consulting firm McKinsey paid the drugmaker Purdue nearly $ 600 million to help it sell high volumes of deadly and addictive opioid drugs.

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