Yahoo Finance’s Ines Ferre provides a market overview with Apple shares rising due to strong demand for iPhones, Alibaba up after the shakeup of management, and Lucid shares declining.
ALEXIS CHRISTOFOROUS: Let's check in with Ines Ferre now, who has our big three tickers to kick off the week on Wall Street. Ines, what do you have for us?
INES FERRE: Well, Alexis, let's start with Apple because Apple is up more than 2 and 1/2%. And I want to mention this is because of an initiation from a key bank, initiating Apple with an outperform rating, saying that Apple is seeing strong initial demand for its iPhone 13. Now this is a little bit of a different narrative from a report out last week over concerns of Apple's demand for iPhones. And you can see that drop on Thursday when the stock dropped about 4%. So this analyst note citing a survey of carriers, saying that this indicates a strong iPhone 13 launch, that survey, and also the data showing that many stores sold out of the 13 Pro and Max models.
Also the analysts noting that Broadcom, Qualcomm, and Skyworks Solutions would benefit most from that iPhone demand. And this kind of squares off with the chart that we're looking at the semis today as well, which shows Broadcom in the green, Skyworks Solutions also in the green, where you're seeing a bit of a mixed picture when it comes to the overall semi. But certainly, today seeing a nice bump for Apple. In fact, out of the big cap names here, Apple and Facebook are the ones that are leading the gains. Karina, Alexis.
KARINA MITCHELL: Yeah, Ines, Alibaba, a real shakeup there. But the stock is rising now?
INES FERRE: Yeah, that's right. So Alibaba right now is seeing gains of about 9%, breaking a six-day losing streak, really. This is after the company said that it's replacing its CFO. Now this is a very notable management change. This is after, of course, investigators have cracked down regulators in China, cracking down on big tech firms, and Alibaba having to pay an antitrust fine. Toby Xu will be replacing Maggie Wu as CFO starting on April 1st. Now, Wu had been with the company for about 15 years and was part of the IPO process for Alibaba. Her replacement has been with Alibaba for about three years now. He comes from PricewaterhouseCoopers.
Now analysts are saying that they had expected a shakeup. But this came a little earlier than expected. Certainly, the stock seeing a nice bump off of that shakeup. And also, you're looking at a nice bump with overall the Chinese firms after Didi last week had announced that it was going to delist out of the US stock market. So Didi today up 7% after being down last Friday, along with the other Chinese names.
ALEXIS CHRISTOFOROUS: Now one stock not participating in this rally today is Lucid, Ines. I know that they were slapped with a subpoena over their SPAC deal. What can you tell us about that?
INES FERRE: Yeah, that's right. And this is according to a Reuters report, which says that the SEC is looking for documents regarding Lucid SPAC deal with Churchill Capital and certain projections and statements. Now, Lucid is saying that it is fully cooperating with the SEC review, but this is really sort of a blow to this EV maker. It's seen as a formidable competitor to Tesla. It delivered its first vehicles at an event in California at the end of October.
The air sedan has a range that goes farther than Tesla's Model S. And this kind of highlights also the greater scrutiny that Gary Gensler's group over at the SEC is giving towards the SPAC deals. Nikola, Lordstown, Canoe, these are other companies within the same space that are also being scrutinized by the SEC as well.
KARINA MITCHELL: All right, Ines Ferre, thank you so much for that. And we will see you a little bit later on.