Top 5 Market Movers to Watch on December 4, 2023: Alaska Air $1B Acquisition & More

Market Highlights for December 4, 2023

Alaska Air has struck a $1 billion deal to acquire Hawaiian Airlines, forming the fifth-largest U.S. domestic airline and expanding its reach significantly. Meanwhile, Spotify’s stock climbed following an announcement of a 17% reduction in its workforce. Here’s a detailed overview of what investors should keep an eye on today.

1. Alaska Air’s $1 Billion Acquisition Propels Hawaiian Airlines Shares Skyward

Alaska Air (ALK) agreed to purchase Hawaiian Airlines (HA) in a $1 billion deal that merges two significant Pacific carriers, elevating Alaska Air to the position of the fifth-largest domestic airline in the United States. This acquisition will provide Alaska Air with a strategic hub in Honolulu to expand flights to Asia and triple Hawaii’s domestic connectivity. Despite anticipated regulatory scrutiny over market concentration—where four carriers would control 80% of the domestic market—Hawaiian Airlines shares surged 175% pre-market, whereas Alaska Air shares dropped nearly 10%.

2. Spotify Shares Rise 2.5% After Announcing 17% Workforce Reduction

Spotify Technology SA (SPOT) shares increased by 2.5% before the market opened following the company’s announcement of a 17% workforce cut, marking its third major layoff this year as part of ongoing cost-saving measures. After enduring several quarters of losses, Spotify recently reported profitability and anticipates adding 100 million users in 2023. However, CEO Daniel Ek emphasized that operational expenses remain a challenge.

3. Uber’s Inclusion in the S&P 500 Boosts Shares Over 4%

Uber Technologies Inc. (UBER) shares gained more than 4% in pre-market trading after news broke of its addition to the S&P 500 Index, replacing Sealed Air Corp (SEE). Inclusion in this benchmark index typically prompts fund managers to acquire shares to mirror the index, driving stock prices higher. Uber’s market capitalization currently stands at approximately $118 billion, well above the $14.5 billion minimum market cap requirement, alongside four consecutive quarters of positive earnings.

4. Tesla’s November Sales in China Decline 18% Year-Over-Year

Tesla (TSLA) experienced an 18% drop in sales of its Model 3 and Model Y vehicles in China during November compared to the same month last year, though sales rose 14% from October. The China Passenger Car Association reported that competitor BYD enjoyed a 31% increase in sales for its Dynasty and Ocean electric and hybrid models over the previous year. Tesla’s shares remained relatively stable in pre-market trading.

5. Bitcoin Rally Pushes Coinbase and MicroStrategy Shares Up

Shares of Coinbase Global (COIN) jumped over 10% pre-market, while MicroStrategy (MSTR) stock rose 7%, fueled by Bitcoin’s surge above $42,000. MicroStrategy, a leading business software company, holds the largest public Bitcoin portfolio, constituting 88% of its $8.2 billion market cap. Coinbase remains the top cryptocurrency brokerage by trading volume, benefiting from the renewed Bitcoin strength.

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