Marketbites: M&A Rebound
Portfolio Manager Commentary:
The Dow Jones Average jumped Monday, clawing back some of the steep losses from last week, as traders looked ahead to a highly anticipated Federal Reserve meeting and new inflation data coming today.
A lift in Boeing shares pushed the Dow higher following reports that the airline is close to a deal with Air India. Elsewhere, energy stocks rose as oil prices steadied, following several weeks of declines.
A slew of deal-making activity also boosted sentiment. Coupa Software and Horizon Therapeutics were among biggest movers on Monday after the companies announced they’ve agreed to be bought by Thoma Bravo and Amgen, respectively. Shares of Coupa gained 26%, while Horizon added 15%.
Chart of the Day:
Since the start of the year, the biggest tech companies have lost their seemingly inexorable growth resulting in a combined market cap loss of $3.5 trillion. As tech companies have matured, there just isn’t as much room for rapid growth — and investors are not seeing the same wildly profitable prospects on the horizon. So while revenue is still growing for most of the major companies, it’s not growing as fast as it used to. It has also meant that these companies have had to cut down on some of their more innovative projects. Amazon is gutting Alexa. Apple has tapped the brakes on its self-driving car project. Meta is scaling back its experimental products division and Portal to make way for the metaverse.
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