FTX on the Brink of Collapse

November 10, 2022

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FTX on the Brink of Collapse

There were across-the-board losses for cryptocurrencies on Wednesday as a popular crypto exchange reached the brink of collapse.

Details: Crypto exchange Binance is walking away from a deal to buy its troubled rival FTX after conducting due diligence, according to The Wall Street Journal. Binance originally agreed to acquire the company after FTX faced a liquidity crunch on Tuesday.

Big Drop: Prices for most cryptos plummeted on Wednesday. Bitcoin dropped 10%, Ethereum dropped 10%, XRP dropped 8%, Polygon dropped 7%, and the FTX token dropped 49%. Most of these digital coins also saw a price drop on Tuesday.

Big Picture: The weakness in the crypto market played a role in the stock market decline on Wednesday. There’s also concern that FTX, which now faces a shortfall of up to $8 billion, could have a ripple effect on other crypto exchanges.

Final Thoughts: The demise of FTX should serve as a warning that crypto investors should only invest what they are willing to lose. FTX customers may not be able to redeem their investments.

Notables

Notable Earnings Today: Nio (NYSE: NIO), Matterport (Nasdaq: MTTR), Yeti Holdings (NYSE: YETI), Doximity (NYSE: DOCS), AstraZeneca (Nasdaq: AZN), urban-gro (Nasdaq: UGRO), Six Flags (NYSE: SIX), Figs (NYSE: FIGS), Aurora Cannabis (Nasdaq: ACB), Ralph Lauren (NYSE: RL), AvePoint (Nasdaq: AVPT), WeWork (NYSE: WE), Brilliant Earth Group (Nasdaq: BRLT), The Lion Electric Company (NYSE: LEV), Phunware (Nasdaq: PHUN), Poshmark (Nasdaq: POSH), Brookfield Asset Management (NYSE: BAM), Sientra (Nasdaq: SIEN), ArcelorMittal (NYSE: MT), Beazer Homes (NYSE: BZH), Becton Dickinson (NYSE: BDX), Compass (NYSE: COMP), Dillard’s (NYSE: DDS), Flower Foods (NYSE: FLO), Honest Company (Nasdaq: HNST), IAA (NYSE: IAA), Ryan Speciality Group (NYSE: RYAN), Sally Beauty (NYSE: SBH), Stratasys (Nasdaq: SSYS), Switch (Nasdaq: SWHC), Tapestry (NYSE: TPR), Toast (NYSE: TOST), Utz Brands (NYSE: UTZ), Warby Parker (NYSE: WRBY), Weibo (Nasdaq: WB), WestRock (NYSE: WRK).

Notable IPOs Today: Plutonian Acquisition Corp. Unit (Nasdaq: PLTNU), Global Star Acquisition, Inc. Class A Common Stock (Nasdaq: GLST), Strive 1000 Value ETF (Nasdaq: STXV), Strive 2000 ETF (STXK), Strive 1000 Growth ETF (Nasdaq: STXG), Strive 1000 Dividend Growth ETF (Nasdaq: STXD), Snail, Inc. Class A Common Stock (Nasdaq: SNAL), Acrivon Therapeutics, Inc. Common Stock (Nasdaq: ACRV), ASP Isotopes Inc. Common Stock (Nasdaq: ASPI).

Notable Equity Crowdfunding Campaigns Ending Today: Uprising Food (StartEngine), UVISION (Netcapital), PDX Biotech (StartEngine).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), CPI / Core CPI (8:30 a.m. ET), Federal Budget Balance (2:00 p.m. ET).

Rivian Promotes Preorder Growth

Photo by Wes Hicks / Unsplash

Solid financial results for Rivian Automotive (Nasdaq: RIVN) helped the stock increase 8.12% in after-hours trading on Wednesday.

Financials: Rivian reported a loss of $1.88 per share, which was better than expected. But revenue only hit $536 million, which was slightly lower than expected.

Backlog: The company announced that its R1 preorder backlog reached 114,000 in the U.S. and Canada, which was better than expected.

Final Thoughts: Shares of Rivian are down 72% this year. This preorder announcement could help turn the stock around.

Beyond Meat Faces Lower Demand

Shares of Beyond Meat (Nasdaq: BYND) ticked down 0.17% in after-hours trading on Wednesday after the company posted disappointing financial earnings results.

Final Thoughts: Specifically, the company said it faced weaker-than-expected demand. With the stock down 81% this year, it is obvious that plant-based meat is not a good investing opportunity right now.

Trends to Watch

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