U.S. stocks closed down, Baidu, JD.com, Weibo, and Pinduoduo fell by more than 5%, Didi and Zhihu fell by more than 10% – yqqlm

Beijing time on May 7th, the US Department of Labor said that 428,000 new jobs were added in April, exceeding the expected median of 391,000. The market was worried that this means that the Federal Reserve will continue to raise interest rates, and US stocks closed down. As of the close, the Dow fell 98.6 points, or 0.3%, to close at 32,899.37 points; the S&P 500 fell 23.53 points, or 0.57%, to close at 4,123.34 points; the Nasdaq fell 173.03 points, or 1.4%, to close at 12,144.66 point.

The major technology stocks in the Chinese concept stocks continued to decline, and the new energy vehicle sector fell across the board. Among them, JD.com fell by more than 6%, Baidu fell by nearly 6%, Weilai fell by 2.93%, Xiaopeng Motors fell by 3.94%, and Ideal Auto fell by 3.46%. NIO will become the first car company listed in the three places.

Most of the major U.S. tech giants fell:

▲ Major US technology giants

Major Chinese tech stocks all fell:

▲ China’s major technology stocks

China concept stock price

Other Chinese concept stocks that rose include:

▲ Other Chinese concept stocks that have risen

Companies that fell include:

▲ Other Chinese stocks that fell

Li Auto lost 321 million yuan in the most recent fiscal year. The consensus of the 24 analysts who include Li Auto in their coverage is that the company is “closer” to breakeven. They predict that 2022 will be the last year of Li Auto’s loss, and 2023 will make a profit of 1.5 billion yuan. Therefore, Li Auto will be able to break even after 1 year. Calculations show that the average annual growth rate only needs to reach 45%, and the ideal car can achieve this goal.

▲ In 2023, Li Auto will make a profit of 1.5 billion yuan

It’s worth pointing out that Li Auto manages its capital very carefully, with debt equivalent to only 15% of equity capital, which means that it mainly finances business operations through equity capital. A low debt ratio reduces the risk of investing in the ideal car.

▲ Worry-free Qiancheng announced the completion of the merger with Garnet Faith Limited

Worry-free Future disclosed today after the US stock market that the company has completed the merger with Garnet Faith Limited in accordance with the agreement signed on June 21, 2021 and the revised agreement signed on March 1, 2022. According to the merger plan, Merger Sub will be merged into Worry-free, and Worry-free will continue to exist. After the completion of the merger, the ADSs will no longer be listed for trading on the Nasdaq Stock Exchange.

▲ Worry-free ADS will no longer be traded on Nasdaq

Worry-free Future also disclosed that it has applied to stop trading of American depositary shares on the Nasdaq Stock Exchange, and applied to the Nasdaq Stock Exchange to file a Form 25 notification with the U.S. Securities and Exchange Commission (SEC). The cancellation of the ADSs will be effective 90 days after the Form 25 is filed, or at a time to be finalized by the SEC.

US/Foreign tech stocks

Other foreign tech stocks that rose included:

▲ Other foreign tech stocks that rose

Companies that fell include:

▲ Other foreign tech stocks fell

▲ Musk’s acquisition of Twitter deal has been sued or changed

The Orlando Police Retirement Fund filed a lawsuit Friday in Delaware Chancery Court aimed at blocking Elon Musk’s acquisition of Twitter by 2025. The indictment said Musk’s agreement with other major Twitter shareholders, including Morgan Stanley and Twitter founder Jack Dorsey, meant Musk’s stake in Twitter was “de facto” More than 15%, Musk cannot buy Twitter fast under Delaware law.

▲ The indictment claims that Musk “de facto” holds more than 15% of Twitter stock

Twitter and board members including Dorsey and CEO Parag Agrawal were also named as defendants. The plaintiffs also asked the court to rule that the Twitter directors breached their fiduciary duties by requiring the defendants to pay legal costs. But the indictment doesn’t spell out how Musk’s acquisition of Twitter could hurt shareholders if it goes through as planned.

▲ Tesla and Brazil’s Vale signed a nickel supply agreement

Vale said on Friday that it had entered into an agreement with Tesla to supply nickel from Canada, but did not disclose the financial terms or duration of the agreement. Vale said that under the agreement, it will supply low-carbon grade 1 nickel to Tesla, which is consistent with its strategy of working with the electric vehicle industry. Vale said 30% to 40% of its primary nickel would be supplied to the electric vehicle industry. The first-quarter financial report shows that Vale’s primary nickel sales were 20,000 tons, of which the electric vehicle industry accounted for 1,300 tons.

▲ Vale will supply nickel to Tesla from Canada

According to Vale, the carbon dioxide content of nickel produced at Canada’s Long Harbour plant is about one-third the nickel average of the International Nickel Institute and suitable for use in the electric vehicle industry.