Published - September 26, 2022 @ 3:03 PM (EET)
Heading into this week's markets, JPMorgan analysts drop COIN price target for December, while Amazon plans a second Prime Day for the first time in one year. Elsewhere, General Motors Co said on Friday it will invest $760 million at its Toledo, Ohio factory to build drive units for electric trucks.
Here's everything you need to know to start your week:
1. JPMorgan analysts drops COIN price target
JPMorgan's North American equity team is lowering its price target for shares of Coinbase Global (NASDAQ:COIN) from $78 to $60 for December. Analysts said Coinbase is expected to see low trading volume by U.S. retail crypto investors and that activity will pick up at the beginning of the first quarter of next year.
The publicly listed crypto exchange draws the majority of its revenue from U.S. crypto trading levels, meaning its third and fourth quarter earnings hinge on crypto trading interest.
According to crypto volume indexer, Nomics, current volumes for Coinbase have fallen 15% over the past month to $48 billion.
Shares of Coinbase Global (COIN) sold down from their $72 high Wednesday to $62 Friday, while the stock has fallen 75% year to date and 11% over the past five days.
2. Amazon Plans Second Prime Day
For the first time, Amazon.com Inc. (NASDAQ:AMZN) will hold a second Prime Day sale this year on Oct. 11 and Oct. 12 to boost sales among cost-conscious consumers who are expected to start their holiday shopping even earlier this year.
Many consumers, meanwhile, are planning to cut back because higher food and fuel costs have left them with less to spend.
This year US online sales will rise just 9.4% to $1 trillion, the first time growth has slipped into the single digits, according to Insider Intelligence. Spending on Amazon will hit $400 billion, up 9% and slower than the overall industry, the research firm says.
Earlier in July, Amazon held a two-day Prime Day promotion that boosted online spending in the US by 8.5% to $11.9 billion, according to Adobe Inc. Amazon said it sold more than 300 million items over the two days, more than any previous Prime Day.
3. GM to invest $760 million in EV-part production
General Motors Co (NYSE:GM) said on Friday it will invest $760 million at its Toledo, Ohio factory to build drive units for electric trucks, the automaker's first U.S. powertrain facility repurposed for EV-related production.
Congress in August approved more than $15.5 billion in incentives and grants for automakers to convert plants producing parts for gasoline-pore vehicles to electric models.
GM executive vice president Gerald Johnson said GM is looking for ways to increase electric vehicle capacity beyond its current goal of being able to build 1 million EVs in North America by 2025.
But hitting that target "would be outstanding. To do better would be astronomical," Johnson said.
GM said last year it would increase its EV and autonomous vehicle investments from 2020 through 2025 to $35 billion, a 75% increase as it vows to stop selling gas-powered vehicles by 2035.
