and other countries spent the weekend discussing the best reaction to the quick collapse of Silicon Valley Bank amid fears of contagion that would hit other parts of the banking and financial system. Meanwhile, a key gauge of stock market volatility, the so-called Cboe Volatility Index, hit its highest level since October.īank regulators in the U.S., the U.K. In a sign that investors were looking for safe havens, the price of gold rose. Paris time, led by a drop in banking stocks amid worries of more bank failures. Meanwhile, the German DAX fell 3.3 percent, while in London, the FTSE 100 lost 2.4 percent. The Japanese Nikkei stock index closed down 1.1 percent, while the Hang Seng index in Hong Kong bucked the trend to gain 2.0 percent. The pan-European Stoxx 600 index though plunged 2.8 percent as of that time, 3 p.m. In the face of one of the biggest banking failures since the financial crisis of 2008, the broad-based S&P 500 stock index dropped 1.2 percent in early U.S. Meanwhile, Wells Fargo analyst Steven Cahall in a Monday report spoke of “little SVB fallout,” noting: “Of the 29 stocks we cover, only Roku issued (a regulatory filing) on Friday about deposits at Silicon Valley Bank.” “Even while current concerns around Roku’s cash will likely impact its share price, we believe Roku’s new products and features will drive enough user growth to insulate it over the near-term,” he argued. Roku said that it had $487 million at SVB, more than a fourth of its total cash holdings. “At this time, the company does not know to what extent the company will be able to recover its cash on deposit at SVB,” Roku had warned on Friday. A team of analysts at Evercore ISI in a Monday report summarized that Roku had “meaningful exposure” to the SVB crisis.īut Wedbush Securities analyst Michael Pachter reiterated his “outperform” rating and $80 stock price target on Roku on Monday. At least one analyst also reiterated his bullishness on Roku despite a Friday warning by the technology firm about the Silicon Valley Bank collapse. Several companies with connections to the entertainment business, such as Roku, Vimeo and Roblox, said in regulatory filings on Friday that they had accounts at the bank. That being said, none of them have said that the failure of SVB would have a dramatic impact on their ability to operate. Roku Secures First Live Sports Rights, Inks Deal for Formula E Racing Series
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |