Markets punished value investors who thought that Adobe Systems (ADBE) offered a discount. Yesterday, the software supplier of creative image and video announced that it would pay a 70% premium for Semrush.
Semrush (SEMR) shareholders will get $12 a share, compared to a previous close of $6.76. The firm is a search engine optimization, artificial intelligence, and marketing solutions provider. Adobe shareholders initially applauded the deal. But by the end of the day, the stock closed down by 1.96% to $318.11.
In China, XPeng’s (XPEV) robot reveal, just before its earnings report, wowed investors. The stock jumped from $21 to over $28 recently. After posting $2.86 billion in revenue, this missed analyst expectations. Non-GAAP EPS of a $0.02 loss spooked investors.
Xiaomi (XIACF) also sold off after posting results on November 18. Net profits increased by 80.9% Y/Y, but this triggered a stock decline. Investors should avoid both XPEV and XIACF stocks.
Plug Power (PLUG) recently hosted a symposium to highlight hydrogen energy.
Unfortunately, it took advantage of stock market enthusiasm to raise funds. On November 18, it announced a $375 million convertible senior notes offering due in 2033. PLUG stock fell by 11% on Wednesday. Investors should avoid PLUG stock. Short-sellers hold a 23.5% short interest against Plug Power.
