Top stock stories from Wednesday: Microsoft hits milestone valuation, Amazon details green strategy, Shake Shack expands in China

on Jun 23, 2021
  • Microsoft Corp becomes the world's second company to hit $2 trillion market valuation.
  • Amazon commits to buying 1.5GW of production capacity from 14 solar and wind plants
  • Shake Shack Inc expressed plans of opening ten new locations across China by 2031.

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U.S. FDA struggles with Biogen’s Alzheimer drug’s approval

The U.S. Food and Drug Administration (FDA) met with disagreements within the agency regarding approval of Biogen’s Alzheimer’s drug, Aduhelm, documents published on Tuesday revealed.

Following expedited approval of the drug on 7th June, some members of FDA’s independent advisory panel fiercely criticised the decision, with three of them announcing public resignations. Shares of Biogen were more than 0.5% up in premarket trading on Wednesday.

Self-driving company Embark to go public via a SPAC deal

Embark Trucks Inc says it will go public via a $5.2 billion SPAC deal. The self-driving truck company is backed by private equity firm Tiger Global Management. Its deal with the blank-check company, Northern Genesis Acquisition Corp. II, secured $614 million in cash proceeds.

JPMorgan will serve as a financial advisor for Embark. Embark also confirmed that Elaine Chao, former Secretary of Transportation and Secretary of Labour, will join its board.

Shake Shack expands in China

Shake Shack Inc expressed plans of opening ten new locations across China by 2031. The American fast-casual restaurant chain that currently operates 16 locations in China will open new locations in Chongqing, Sichuan, Yunnan, Shaanxi, Hubei, Henan, Anhui, and Guizhou.

In the next decade, Shake Shack wants to expand its footprint further in China to 79 locations in partnership with Maxim’s Caterer’s Ltd. Shake Shack shares jumped about 1.5% in after-hours trading on Tuesday.

MicroStrategy gains in unison with Bitcoin

MicroStrategy Incorporated was up about 4.4% in premarket trading on Wednesday as the price of Bitcoin recovered from Tuesday’s low of below $29,000 to over $34,000 at the moment. The business analytics company is one of the largest corporate BTC investors with a multi-billion-dollar stake in Bitcoin.

MicroStrategy benefitted from the recent pullback in the world’s largest cryptocurrency and bought another 13,005 BTCs earlier this week at an average per Bitcoin price of $37,617.

Microsoft hits $2 trillion market value

Microsoft Corporation became the second company on Tuesday to have hit the milestone of $2 trillion in market valuation. Apple Inc was the first one to have surpassed the $2 trillion mark in 2020. It is currently valued at $2.2 trillion.

It was CEO Nadella’s strategic moves that helped Microsoft capitalise on trends that originated during the COVID-19 pandemic. Microsoft shares, however, remained almost flat in premarket trading on Wednesday.

Amazon commits to buying 1.5GW production capacity from 14 solar & wind plants Inc. committed to buying 1.5 gigawatts of production capacity on Wednesday from fourteen new solar and wind plants across the globe. Amazon wants to purchase sufficient renewable energy to cover all activities of the company by 2025.

Amazon shares were almost flat in premarket trading on Wednesday. The stock is trading close to its record high of $3,531 per share in the first week of September 2020.