Business
These 4 Companies Are Responsible For A $30 Billion Market Shift This Week
The stock prices and earnings for four giant companies have experienced considerable share price falls and rises this week.
The total market cap from the market shift whether in incline or decline is projected to be around the US $30 billion mark this week.
The market cap, or market capitalization, is defined as the market value that is fixed at a point in time of the outstanding shares in a publicly traded company.
They are equal to the price of shares at the point of time multiplied the number of shares that are outstanding.
Moving on to the companies that have had to face possible downturn or climb in their share prices are:
- Netflix
- Microsoft
- Qualcomm
- AT&T
Netflix shares fell somewhat precipitously by 14% on Tuesday, July 19, 2016.
This was a knock on effect from the news that was announced regarding the company’s subscriber growth recorded as slower than expected.
As can be seen from the chart below, the Netflix shares have always been prey to a relatively unpredictable bouncing profile.
This is because tech and communications are constantly subject to newcomers that have lower overheads coming into the market with lower subscription offers or even better packages.
Plus, subscribers may have been scared away by announcements that Netflix is set to raise subscription prices yet again.
But this streaming behemoth is not the only large corporation to experience problems, and traders are predicting big moves from other companies this week.
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Microsoft is still to release their report on company earnings.
Market traders are holding their breath and shares have been reported down around 1% as the anticipation takes a cautious turn.
The market opinions that are out there currently is that the potential 4.5% shift could register higher or lower.
A quick view at the chart below, displays the price fall that was experienced on July 19, 2016, at the closing bell.
Microsoft is another company where a cautious approach by traders is affecting the share price on the markets, and a price drop goes in tandem with that attitude.
Yet another tech big shot on the list of possible down turn/up turn of the market cap is Qualcomm.
Again, traders are predicting that some significant action will be seen when the company’s reports are announced on Wednesday afternoon.
Even though Qualcomm has a fixed and ever expanding market for its tech and chip-making expertise, it is still subject to a wait and see attitude as the traders remain slightly hesitant before the news is posted.
On looking at the chart below, it can be seen that the share prices of the tech company are steady in the long term but subject to fluctuations when viewed shortly.
Market traders will have to keep short-sell options away for now.
Predictions by analysts say that the outcome could be in around 4% either up or down.
In this year, the shares of Qualcomm have gone up 10%.
With the announcements to be made very soon, it is to be seen if the confidence shown in the tech giant this year will be justified.
Finally moving on to the latest news from communications giant AT&T.
The shares of this company for the year are expected to outperform trader's predictions.
The Corporation is supposed to post much bigger than average profits after earnings.
A 2% sharp hike is predicted in share prices.
These percentage rises will be on top of the reported company’s shares increasing to 20% to this date.
The chart below that shows the reflected stock prices for AT&T for the year and up to the current date July 2016:
According to calculations from options traders to date, how equities are going to move is measured by a company’s stocks performance at the money put and call – this is also known as the straddle.
The amount of which will outline the market makers’ expected predictions of movement in stocks.
If the market movement for the following companies play out as implied above, this would amount to a US$30 billion change in the market capitalization on the S&P 500.
- Microsoft
- Qualcomm
- AT&T