Top movers | CCG fell 50% followed by 500% gain; DIS fell on $60B spending; NIO oversold?
1. $Cheche Group Inc(CCG)$ -56.84%: stay cautious towards China-based meme stock
CCG shares surged to over $200.00 on Monday, gaining nearly 2000% before closing up more than 500%. This surge followed the completion of a business combination with Prime Impact Acquisition, and the company began trading on Nasdaq under the symbol CCG.
CCG is a China-based insurance technology company specializing in AI-driven insurance pricing and underwriting services, particularly for new energy vehicles (EVs).
On Tuesday, the stock fell over 50%.
It looks like another crazy China-based meme stocks. Investors should remain cautious.
2. $Walt Disney(DIS)$ will spend $60 billion over the next decade to expand theme parks
Disney's stock fell more than 3% following its announcement to double spending on theme parks, resorts, and cruise lines to $60 billion over the next decade.
Despite a strong performance in Disney's theme parks in 2022, shares have fallen nearly 25% in the past year.
This investment comes as Disney's streaming business continues to incur losses. Disney's parks segment has been a reliable profit generator and helped offset losses in the Disney+ streaming division. The stock's decline is seen by some as a short-term reaction to a decision that will provide long-term value.
3. $NIO Inc.(NIO)$ plummets on $1 billion bond issuance - more dilution
NIO's Hong Kong shares fell 13%, and Singapore shares dropped 11% following the announcement that the Chinese EV maker would raise $1 billion through convertible bond issuance. American Depositary Shares (ADSs) closed 17% lower.
NIO will issue $500 million in convertible senior notes due 2029 and $500 million due 2030 with higher coupon rates than previous issuances. This move raised concerns of potential share dilution, and NIO stated the initial conversion rate represents a 30% premium to the last ADS closing price. The funds will be used for general purposes and to strengthen the balance sheet.
To learn more about impacts of $NIO Inc.(NIO)$’s bond, you can read NIO drops over 17%! Is it oversold or not?
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500% gain? falls 60B spending? wow
Buy