?? 8 March 2023 – Uber, WeWork, & Berkshire Hathaway
Good day, good people! ??
Another day, another series of highs and lows in the stock market. Are you ready to get into this Wednesday morning’s updates?
On Tuesday, stocks swung lower following Fed Chair Jerome Powell’s statements before Congress. The Dow shed 1.7%, the S&P 500 lost 1.5%, and NASDAQ contracted 1.2%.
Bank stocks led losses, while the two-year Treasury note climbed a percentage point higher than the 10-year yield for the first time since 1981. The two-year yield settled at 5.011%.
Powell appeared before the Senate Banking Committee and claimed that the resilience of the labor market, spending, and manufacturing gives room for faster interest rate hikes than previously expected.
Experts predict the federal funds rate to reach the 5.5% mark by year-end. After reports showed declining exports and imports from China in 2023, the WTI crude index slid to $77.58 a barrel.
Keep reading for more!
Uber sees shaky progress in auxiliary freight business – Uber Freight
From ride-sharing and grocery deliveries,?Uber (UBER)?is turning its focus to its freight business arm – Uber Freight. So far, the company has reeled in a $7 billion business by facilitating carriers to arrange shipments and track them from pickup to delivery. The freight sector managed only modest organic growth last year and broke even - based on adjusted earnings. If Uber can overcome industry headwinds, including declining spending and manufacturing gaps - the nearly $1 trillion industry that allows freight digitization is ready for the taking!
WeWork discusses $3 billion debt restructuring plan with shareholders; shares rise 5%
Workspace provider?WeWork (WE)?had its day in the sun with a pandemic-driven need for private and flexible offices. However, now that businesses are cutting costs with layoffs and slashed real estate expenses, it could mean trouble for WeWork. To make up for its debt and to keep going for a few years, the company is negotiating an infusion of cash with some of its biggest investors, including SoftBank Group (9984.T). With moves like restructuring and removing 300 global jobs, is there hope for WeWork?!
Berkshire Hathaway makes first purchase in the latest quarter with Occidental shares
After the end of the third quarter, Warren Buffett’s?Berkshire Hathaway (BRK.A)?made its first investment in?Occidental Petroleum (OXY). The firm purchased 6 million shares in the oil company at prices between $59 and $62 per share. All the shares put together cost Berkshire around $360 million. The purchases, completed on Friday, Monday, and Tuesday, brought Berkshire’s stake in Occidental to 200.2 million shares – worth $12.2 billion. As the demand for gas and oil eases, Berkshire’s sights are on the long-term rebound!