Trending tickers: Tesla, Microsoft, Wise, Dr. Martens
Tesla (TSLA)
Tesla stock dropped 5.6% on Monday and looks set to continue declining when the market opens in the US, following an announcement by the company that it will cut jobs. Job cuts will be partly focused on China in the sales department, according to a report by Reuters, which cited sources.
Overall, the company will look to cut 10% of its global headcount amid stiff competition in the electric vehicle (EV) market, the report said.
Read more: FTSE 100 LIVE: European stocks slump as China growth fails to cheer traders
A price war between Tesla and Chinese rival BYD has meant Tesla's foothold in its second biggest market, China, is slipping. BYD has clinched an edge by producing cheaper vehicles while benefitting from owning many of the crucial elements that make up EV supply chains, such as lithium mines in the region.
Last quarter, Tesla also reported its quarterly deliveries fell.
Microsoft (MSFT)
Software giant Microsoft said it will invest $1.5bn (£1.2bn) in UAE-based artificial intelligence (AI) firm G42 — a move which would give it a minority stake and a board seat.
The deal comes as powers in the US continue to block technological advances by foreign actors. Chinese companies have been added to an export blacklist after the company tried to acquire AI chips for its military. The US has also had concerns about China's ties to the Gulf states.
Read more: Emerging-market assets sink to 2024 low amid growth, rate risks
Both Microsoft and G42 said they had made assurances to the US and UAE governments over security measures.
Stock fell almost 2% in trade on Monday but looked set to pick up slightly in trade on Tuesday.
Wise (WISE.L)
Fintech company Wise saw its stock plunge on Tuesday following a full-year earnings report that missed analyst expectations.
Its fourth-quarter revenue came in at £277.2m, bringing its full-year figure to $1.1bn — 1% below consensus estimates.
Its Q4 income of £381.2m also fell short of expectations, according to Jeffries.
Stock was trading around 8% lower by mid-morning in London.
Dr. Martens (DOCS.L)
Dr. Martens' stock was down around 30% on Tuesday after news of turnover in its top ranks. The company's CEO Kenny Wilson will leave this year following the latest profit warning for the shoemaker, with Ije Nwokorie — currently chief brand officer — taking over.
Read more: Dr Martens shares plunge as tough outlook sets challenge for new CEO
The news comes as costs have ramped up at the business, which says it does not plan on increasing its prices. It said on Tuesday that it expects revenue to decline, with a potential fall in profit of almost 70%.
The latest downgrade follows four profit warnings in 2023.
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