Last week has witnessed Mark Zuckerberg's wealth plummeting as much as $31 billion after shares of Meta Platforms (NASDAQ:FB) plunged 26%, dropping $252 billion of its market value - marking it the biggest ever one-day wipeout for any U.S. Company.
Let's see what's ahead in this week's markets:
1. Earnings read-through
The impact of inflation on different companies is widely revealed during earnings season and whether easing ahead can be expected, whether supply-chain related or otherwise.
Another notable matter to keep an eye on is Meta Platform's muted guidance and earnings report signaling that pandemic-related tailwinds might be gone for tech companies.
Companies scheduled to report this week include Pfizer (NYSE:PFE), Peloton (NASDAQ:PTON), Disney (NYSE:DIS), Twitter (NYSE:TWTR), and Uber (NYSE:UBER).
2. Australian borders
After nearly two years of strict international border controls in an attempt to stem the spread of Covid-19, Australia will allow double-vaccinated visa holders to enter the country from February 21.
The gradual unwinding of restrictions on tourists and foreign workers kicked off in November, with this announcement being the final step.
Since the onset of the pandemic in March 2020, Australia's borders have been almost entirely closed, with only citizens being allowed back in the country.
3. Bitcoin revving up again
As investors show signs of renewed risk appetite following a volatile week across financial markets, Bitcoin gained the most in four months.
The largest cryptocurrency by market value recently jumped 10% to $40,730, the most since October 1. It questions what the incremental driver of price performance in the sector will be and whether the decline was just an output of risk appetite.
4. Tesla in Japan
While EVs account for only 1% of overall car sales in Japan, well behind China and parts of Europe, the country seems to shift to electric vehicle owners.
Previously, Japan's automakers have preferred to promote hybrid models like Toyota's pioneered Prius to be more economically sound but now seem to pivot amid rising international pressure.
The Japanese government is pledging to be carbon neutral by 2050 and almost halve emissions by 2030 from its 2013 levels.
5. Stock of the week: Capri
Capri (NYSE:CPRI), the company that owns fashion brands like Jimmy Choo, Versace, and Michael Kors, gained shares of 14% last week, with the outperformance expected to continue in the coming months.
Last week, Capri revealed strong operating momentum when management beat quarterly expectations with earnings of $2.22 a share in the December quarter.
As all Capri's brands saw higher demand, revenue increased 24% from a year ago to $1.61 billion while Wall Street is bullish about the company's prospects.
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