The Global Chip Shortage that stole Christmas

Plus: Spotify is acquiring an audiobook company & The tides are turning against Moderna

Hello there, 

Gaming companies will likely feel the brunt of global chip shortages well into 2022. 

Why this matters: Tech companies have suffered from global chip shortages for over a year, but news of gaming hardware shortages have shown that things may not be getting better anytime soon. People who have made plans to gift PS5s to their loved ones this Christmas will not be excited to hear that Sony (SONY) may not be able to produce enough gaming consoles this year. Microsoft (MSFT)’s Xbox and Nintendo are also revising production plans due to the global shortages.  (The Verge)

Spotify is acquiring an audiobook company

Spotify (SPOT) has announced its plans to acquire audiobook services and distribution company,  Findaway. 

Why this matters: The company operates multiple businesses, including distributing audiobooks to various platforms and offering audiobook creation services under its business, Findaway Voices. Findaway pairs authors with narrators, which could become a new and valuable source of revenue for Spotify. With this acquisition, Spotify will officially become a commercial bookseller and a publisher of audiobooks. (The Verge)

The tides are turning against Moderna

Moderna (MRNA)’s stock has fallen nearly 50% recently and the company is struggling with the possible heart inflammation side effect associated with its vaccine.  

Why this matters: Things are not looking up for the once-hot COVID-19 developer. Bad news has come in quick succession for the company over their dispute with the federal government and regulators’ concerns over the rare risk of heart inflammation in people who take its vaccine. To add fuel to the already burning flames, Moderna reported poor third-quarter earnings while its competitor, Pfizer (PFE) exceeded earnings expectations. (Barron's) 

That’s it from us 

See you next week.