The Omicron Variant has everyone in a frenzy
Plus: IBM is on the rise & DraftKings stock slumped
Hello there,
The emergence of the new COVID variant sent the market lower.
Why this matters: Drug companies are moving swiftly to examine the effectiveness of their vaccines against the new Omicron variant while countries are enacting travel restrictions as they gather information about the strain and its spread. The discovery of a new variant sent shock waves through global markets on Friday. (Barron's)
IBM is on the rise
IBM (IBM) is repairing its reputation with a new CEO who is making serious and lasting changes to the company’s structure.
Why this matters: With the new CEO, the company has restructured its business, doubled down on the cloud and AI, and next year, it is likely to start growing again, for the first time in a decade. CEO, Arvind Krishna plans to fix the languishing giant by sharpening its focus, reviving sales growth, and boosting margins. He said that he is “100% confident” that IBM can become a growth story again. (Barron's)
DraftKings stock slumped
Faced with a disappointing third-quarter earnings report, DraftKings (DKNG) has dropped 23% so far this year.
Why this matters: The company is recently facing a decline in profits but three directors bought $2.6 million worth of the company’s shares. These are the first open-market purchases of stock by insiders since DraftKings went public. The directors believe that DraftKings is focused on maintaining its frontline position in the U.S. gaming market and has tremendous long-term growth potential. (Barron's)
That’s it from us
See you tomorrow