Top News in Finance for June 26, 2023

KEY POINTS

Dive into this week’s key financial happenings with our succinct, easy-to-understand summaries of the most crucial economic events. Designed to keep you up-to-date, our roundup empowers you to navigate the week ahead and seize unfolding opportunities

• Lucid (LCID) gains traction after a collaboration agreement with Aston Martin, giving Lucid a stake in the luxury automaker and access to high-performance tech.
• IBM inches closer to Apptio’s acquisition, a potential strategy to boost its automation capabilities, marking growth in the cloud and AI sectors.
• Goldman Sachs downgrades Tesla (TSLA) to neutral, expecting tough conditions for new vehicle sales, pushing Tesla’s shares down.
• Alphabet (GOOGL) faces downgrade by UBS, citing stronger opportunities with Amazon and Meta and potential medium-term revenue risks due to AI investment.
• Goldman Sachs (GS) initiates third round of layoffs affecting 125 managing directors globally, reflecting a slowdown in M&A and IPO activities.

Lucid (LCID) and Aston Martin Forge Alliance

Lucid, a prominent player in the electric vehicle market, witnessed a surge in its share value following the announcement of a strategic partnership worth $232 million with luxury vehicle manufacturer, Aston Martin. This deal not only furnishes Lucid with a 3.7% equity stake in the British company but also allows Aston Martin to leverage Lucid’s advanced EV battery and powertrain tech.

IBM Eyes Acquisition of Apptio

IBM, an established tech giant, is reportedly on the brink of acquiring Apptio, a business software maker valued at around $5 billion. This move is perceived as an effort to expand IBM’s automation capabilities and drive growth in their cloud and AI services, thereby catalyzing its transformation process.

Tesla (TSLA) Faces Downgrade from Goldman Sachs

Tesla shares dipped as Goldman Sachs shifted their rating to neutral from buy, suggesting that the stock’s current value accurately mirrors the anticipated challenging landscape for new vehicle sales in the near future. This downgrade echoes similar sentiments expressed by Barclays, Morgan Stanley, and DZ Bank.

UBS Downgrades Alphabet (GOOGL)

UBS has repositioned its rating for Alphabet, Google’s parent company, to neutral from buy. This downgrade comes amidst suggestions of better investment prospects with Amazon and Meta. UBS also highlighted potential medium-term revenue risks as Alphabet ramps up its investment in artificial intelligence.

Goldman Sachs (GS) Initiates Cost-Cutting Layoffs

Goldman Sachs has embarked on a cost-cutting strategy that includes laying off 125 managing directors across its international divisions. This development comes in the wake of a decline in the bank’s mergers and acquisitions and initial public offerings activities.