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In this week's edition:
The $1 trillion staycation
The UN forecasts that international tourism receipts (ie spending by international tourists) could fall by up to $1.2trn this year, setting the global tourism industry back two decades and jeopardising some 120m tourism jobs.
Tesla and Apple split the difference
On Monday (31 Aug), both Tesla and Apple completed stock splits (greatly reducing the average price of their shares by increasing the number in circulation).
The reduced prices attracted yet more buyers with Tesla shares gaining some 12.5% and Apple shares moving ahead 3.4% on the day.
By Friday of last week, Tesla shares were up some 420% in 2020 and trading at around $2,240. By issuing existing shareholders an additional four shares for each share held on 21 August, Tesla’s 5-1 stock split reduced the price of its shares to around $443 on Monday before they rallied higher to end the day at just over $498 a share.
The tremendous interest in Tesla shares has seen the net worth of CEO and founder, Elon Musk, jump some $88bn this year, making him the world’s third-richest man.
Shares in Zoom Video Communications gained some 9% on Monday (31 Aug) – to be almost 400% up so far this year – after the company at the centre of a pandemic-induced global explosion in video conferencing raised its annual revenue forecast by more than 30%.
The company, which has become a household name around the world due to the lockdown, thrashed analysts’ quarterly estimates on Monday with second quarter revenues up 355% to $663.5m (against a forecast $500m). The company’s earnings per share of 92 cents was also twice what analysts had predicted while shareholder income jumped to $185.7m (63 cents per share) from just $5.5m (2 cents per share), a year ago.
Zoom is working to convert its ocean of free users – which carry a cost for the business – into paying customers. Its success so far enabled it to raise its annual revenue target for fiscal year 2021 to a range of $2.37bn to $2.39bn, from up to $1.8bn previously.
Meanwhile, Zoom’s infrastructure suffered some outages last week as schools in many parts of the US resumed with virtual classes.
Read about how China continues on the road to recovery, IBM struggles to reach the $1trn cloud and pandemic boosts consumer goods giants.
Read about how cycling has been one of the surprise winners of the coronavirus lockdown, BoE addresses hurdles to UK negative rates and more.