Another exciting week has passed on the stock market and a new one is about to begin. Both the Dow Jones and the Dax were able to record an upswing last week.
As we do every week, we let our community decide which stocks they think are relevant or not. Some will look familiar, while others may be a hidden gem.
P.S. and as always, please remember that investing comes with risk, especially at times like now when we are seeing increased volatility and an abundance of liquidity in the markets.
Big plans after IPO
Swedish oat drink manufacturer Oatly had an exciting stock market debut at the end of May. The IPO allowed the company to raise about $1.4 billion. Oatly intends to use the money to further expand production capacities in Europe, Asia and America. In doing so, the company also intends to stick to its philosophy of sustainability and build a new generation of sustainable production facilities. 🌿
Last year, there was a major wave of criticism for Oatly on social media. This was justified by the investment company Blackstone's involvement. Some fans doubt the sustainability intentions of Oatly, as perhaps for them the sustainable Oatly and the capitalistic Blackstone do not go together.
Danish electricity supplier publishes plans
Orsted, the Danish electricity supplier, plans to soon become the world's largest green power supplier. In the process, Orsted is already considered the world leader in offshore wind power.
In the coming years until 2027, Orsted now wants to invest around 47 billion euros. In 2017, the group had already divested itself of its oil and gas businesses and focused on renewable energies. ⚡
The new project has also spurred other competitors such as RWE.
Takeover by Etsy
Even though the Corona crisis is slowly but surely ending, e-commerce continues to thrive. Etsy, as an online retailer, is a beneficiary of these developments.
Recently, a billion-dollar acquisition by Etsy has now been announced. Etsy is acquiring the e-commerce app Depop for $1.62 billion. The Depop platform primarily sells clothing and fashion items. 👚
Etsy plans to close the deal by the third quarter of 2021. This will give a boost to the currently weakening stock.
4. British Petrol
Steep oil prices flatter energy giants
While oil prices continue to rise, the Brent oil price has finally surpassed the USD $70 mark again. 🛢️ This, of course, also pleases the shareholders of energy giant British Petrol. What is most interesting is that oil prices are expected to rise even more sharply as the global economic recovery continues and gains momentum. This is because inventories continue to fall steadily.
Analysts currently expect annual revenues of §180 billion to §249 billion. From this, it is estimated that EBITDA would be between $12.0 billion and $31.6 billion. A big step forward after the deep red of the previous year. With expected earnings of $0.46 per share, the dividend would then be raised to $0.21. Overall, a good outlook for investors.
Competitive battle between Paypal and competitors
The U.S. company Paypal recently announced that in the future its customers will have to pay for purchases only after 30 days, among other changes. Other changes will also be introduced in the coming weeks and months in the app, and at individual merchants directly. The fintech is thus aggressively attacking Swedish competitor Klarna.
Beyond that, however, Paypal is getting pressure from Ebay. Ebay continues to urge its sellers to stop using Paypal and to use its own payment system Adyen instead. With no less than two active competitors trying to take market share away from Paypal, the U.S. company has to prepare itself for the future.💳