Amazon Hardware Reveal Includes A Security Drone - Weekly Market Update: Friday, Sept. 25th
Updated: Oct 2, 2020
On Friday, Amazon unveiled a group of new products that picked up mixed reviews from consumers. Some of the most recent products they announced (listed from least-creepy to most-creepy) are:
➢ A brand new Echo Dot
➢ A new Echo Show with Alexa Built-In
➢ A Ring security drone that flies around your house (known as the “Always Home Cam”)
While the technology behind a home security drone is undoubtedly impressive, many consumers might not be comfortable with a tiny robot (who is connected to the Cloud) scanning, mapping, and recording every square foot of their house
As technology continues to improve, consumers have to choose whether they want to sacrifice convenience for privacy and it seems like that line keeps getting pushed further back.
Let’s take a look at some of the biggest business updates from this week.
This year’s rollercoaster stock: Nikola
Nikola, the 6-year-old electric truck startup has certainly been making headlines this year.
➢ Nikola IPO’d this year with lots of hype surrounding their electric trucks and the excitement around the industry (Tesla stock has also been surging).
➢ Just last week, GM announced that it was paying $2 billion for an 11% stake in the company and was going to produce their trucks for them. This caused even more investor excitement.
NOTE: Nikola has still never actually sold a vehicle.
➢ This week, the stock plummeted 40% after allegations of fraud came out surrounding the company. The investigation is still ongoing but the CEO has already resigned (which isn’t a good sign that they’re innocent).
Nikola has been accused of hyping up their e-trucks to be more powerful and efficient than they really are. One example was a promo-video that showed a Nikola truck cruising along a road when it reality it was just rolling down a hill.
Governor Newsom (California) says no sales of new gasoline cars after 2035
This order, signed by Gov. Newsom this week, will ban the sales of any new gasoline-powered cars after 2035. However, existing gasoline-powered cars would still be allowed on the road. This order will also allow for gasoline-powered cars to be sold on the used market after 2035.
This is part of California’s effort to be a zero-emmission state and set an example for other states. California has lead the nation in emissions rules since the 1970s.
While this order might seem a little drastic, it’s important to remember that 2035 is still 15 years in the future. This should give car companies plenty of time to prepare their strategies, develop new technology, or plan to move sales out of the state of California.
Johnson & Johnson enters phase 3 for COVID-19 caccine
There was good news on the public health front as J&J became the 4th company to begin phase 3 testing for a coronavirus vaccine. Phase 3 includes giving a single dose to about 60,000 adults at 215 testing sites in the U.S. and internationally.
The other companies that are in phase 3 testing are:
A few other updates:
➢ The Trump Admin is challenging an order that blocked them from blocking the Chinese-owned messaging app WeChat from being downloaded.
➢ Nike continues to blow away the competition.
➢ Walmart plans to hire 20,000 new workers to meet the holiday rush.
➢ Unemployment back on the rise as stimulus fades.
➢ Airlines are thinking of creative ways to sell tickets, including selling flights to nowhere. This may sound like a joke but one of them sold out in 10 minutes.
That’s it for this week -- Join us next week for another market update.
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All the views expressed are those of Chris Simpson and not those of Sierra Ridge Wealth Management or NEXT Financial Group Inc.
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