All politics is local, but not this time. Photo: Reuters
All politics is local, but not this time. Photo: Reuters
GameStop Corp. shares experienced another volatile session and trading halts Tuesday, continuing a battle between short sellers and traders that gather on an internet message board.
Goldman Sachs sounds the alarm on some very hot tech stocks.
The chip maker said it expects revenue of roughly $3.2 billion in the quarter and full-year sales growth of 37% over 2020. Analysts had predicted 20% growth for 2021.
AMD reported Q4 earnings after market close on January 26. As expected, the company's gross margin was flat YOY.
Gamestop kept surging late on an Elon Musk tweet. Microsoft jumped late on earnings, while AMD and Palantir fell on news. Leading stocks struggled Tuesday.
Top news and what to watch in the markets on Tuesday, January 26, 2021.
GameStop (GME) shares gained another 92% today to close at a record $147.98 a piece in another clash filled session between reddit WallStreetBets and short sellers. The company’s market cap is now over $10 billion.
(Bloomberg) -- New York’s apartment investors are suddenly waist-deep in distress.By December, they were behind on $395 million of debt backed by mortgage bonds, almost 150 times the level a year earlier, according to Trepp data on commercial mortgage-backed securities. Tenants in rent-stabilized units owe at least $1 billion in rent and wealthier ones are fleeing the city, leaving behind vacancies and pushing newly-built luxury towers into foreclosure.For years, as crime dwindled and rent climbed in New York, investors gobbled up apartment buildings. But with the city’s economy and culture crushed by Covid-19, mounting job losses have derailed the gentrification boom and put financial pressure on landlords.“The people who specialize in mortgage workouts are the busiest people in New York real estate,” said Barry Hersh, a clinical associate professor of real estate at New York University.The developers who are in the most trouble pushed hard into Harlem and the Brooklyn hipster hubs of Crown Heights, Flatbush and Bushwick, squeezing out working-class residents by building new expensive units. Now, they’re grappling with eviction bans and new tenant protections as rent falls across New York.Colony 1209, a steel-gray apartment building, opened six years ago in the heart of Bushwick, an industrial vision of urban chic, with a billiards room and 24-hour doorman. The website pitched one bedrooms for $2,500 to “like-minded settlers” in the mostly Black and Hispanic neighborhood, which it called Brooklyn’s “new frontier.”Now Colony, renamed Dekalb 1209, faces foreclosure after owner Spruce Capital Partners defaulted on a $46 million mortgage. The five-year interest-only loan matured in October and was not extended, triggering the default, according to monthly filings by the loan’s servicer, Wells Fargo & Co.The lender is filing to repossess the building -- as soon as New York’s foreclosure moratorium expires -- while simultaneously discussing workout alternatives with the borrower. Spruce could not be reached for comment.Right before Covid hit, investors were willing to pay top-dollar for luxury buildings like Colony. They wanted alternatives to rent-regulated buildings, which saw values crimped by a 2019 law that banned tactics landlords depended on to convert rent-stabilized units to market-rate.“That was the bright spot until the pandemic happened,” said Victor Sozio, executive vice president at Ariel Property Advisors, a commercial brokerage firm in New York City.Plans ‘Stymied’Emerald Equities, a fast-growing condo conversion specialist, filed for bankruptcy in December on buildings in Harlem. In its filing, the company said its “well-laid plans were stymied” by the tenant-friendly law. Residents organized a rent strike, then collections plunged even more after the pandemic, driving Emerald to hand ownership to LoanCore Capital, which loaned $203 million for the project.Doug Kellner, an attorney for Emerald tenants, blames the current market troubles on New York’s eviction ban because it came without any accompanying financial support.“Everybody realizes that rent is the green blood that keeps a building operational,” Kellner said.Across the boroughs, rents are on a downward spiral, as landlords try to fill empty apartments with ever-sweeter tenant concessions -- only to see the number of vacant listings surge further.In Manhattan, available units nearly tripled in December from a year earlier, and the median rent plunged 17% to $2,800, according to data from Miller Samuel Inc. and Douglas Elliman Real Estate. Rents are down 11% in Brooklyn and 18% in Northwest Queens, where starry-eyed developers built glassy apartment fortresses along the waterfront for young midtown professionals.In some ways, investors may be better insulated than after the 2008 financial crisis. Lenders generally required bigger down payments and underwrote loans based on current rents rather than expectations for the future, said Shimon Shkury, Ariel’s president. If the vaccine works and college students and office workers start to return, so will the market, Shkury said.“I don’t think there will be as much distress as you think,” he said.Deregulating RentsLenders have already put $1.4 billion of commercial-backed multifamily debt on watchlists because of issues such as rising vacancies or impending maturities. That’s 19% of all outstanding debt, compared with 22% at the nadir of the financial crisis.The trouble will filter from highly-leveraged investors who expanded quickly to lenders with the most aggressive underwriting, says NYU’s Hersh.“There will be banks that go under,” he said.At the same time, the market for multifamily buildings has gone soft. The total dollar volume of New York City multifamily sales was $4.5 billion in 2020, a 61% plunge from 2018, before the pandemic or the new rent laws, according to a report by Ariel.Still, firms such Limekiln Real Estate Investment Management, see opportunities. The company made $224 million in New York multifamily loans in the second half of 2020, up from $9.3 million before the pandemic. It’s easier to extract better terms in a “lender’s market,” said Scott Waynebern, Limekiln’s president.“It’s tricky to find where the bottom is,” he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Last week, EVgo became the latest charging infrastructure company to announce a SPAC deal to go public during a time that is seeing rapid adoption of electric vehicles and infrastructure. About EVgo: Climate Change Crisis Real Impact I Acquisition Corp (NYSE: CLII) is bringing EVgo public in a deal that values the company at $2.1 billion. EVgo has over 800 locations for its fast-charging stations in 34 states, including 67 major metropolitan markets. The company has supported over 220,000 customers. EVgo has the largest public DCFC (direct current fast charging) network. The company is a partner with General Motors Company (NYSE: GM), Tesla Inc (NASDAQ: TSLA), Nissan, Lyft Inc (NASDAQ: LYFT) and Uber Technologies Inc (NYSE: UBER). Charging stations are hosted at retail locations like Albertsons, Wawa and Kroger (NYSE: KR). DCFC is the key that sets EVgo apart from competitors. DCFC made up only 5% of the market in 2019 and is expected to grow share to 40% by 2040. EvGo has 818 DCFC sites and 1,412 charging units. Related Link: 7 Current And Former SPACs That Could Be 2020 Election Plays Competitors: EVgo is the only charging partner engaged by multiple OEMs to build out the network. A deal with General Motors will see the company add over 2,700 additional fast-charging locations. EVgo also has a deal with Nissan that gives $250 charging credits to customers. The company is also the first charging network with integrated Tesla connectors. Going forward, over 770 connectors are being added to chargers to help Tesla customers. In the electric vehicle charging market, EVgo competes with Blink Charging (NASDAQ: BLNK), Electrify America, which is owned by Volkswagen (OTC: VWAGY) and ChargePoint, which is merging with SPAC Switchback Energy Acquisition Corp (NYSE: SBE). EVBox Group, which is going public with SPAC TPG Pace Beneficial Finance Corp (NYSE: TPGY), could also soon be a competitor as it seeks to enter the U.S. market. ChargePoint and EVBox both have hundreds of thousands of charging stations. EVgo is the leader in DCFC trailing only Tesla by the number of locations with fast charging stations. Chargepoint had 731 locations as of June, Electrify America had 438 and Blink was part of a combined group that had 140 DCFC. One notable difference between the competitors is an area of concern for EVgo. Despite its lead in the number of DCFC locations, EVgo has less connections than rivals due to an average of 1.7 per location. EVgo’s total of 1,338 ranked behind Electrify America’s 1,807 and ChargePoint’s 1,614. The industry average was 3.8 connections per charging location. EVgo is working on expanding the number of connections per location in the future with future spots having four, six or eight charging connectors. EVgo also prides itself in a 98% uptime rating. Customer satisfaction scores reflect the uptime with EVgo scoring an 8.5 out of 10 for customer satisfaction compared to 8.0 for Electrify America, 7.6 for ChargePoint and 7.0 for Blink Charging. Benzinga’s Take: There could be room for several charging infrastructure stocks to gain on the continued rollout of the additional thousands of stations promised by President Joe Biden. ChargePoint looks like it could be a big winner with its large number of stations and lead in the total number of DCFC connectors. EVgo could be a winner as it works with partners like GM and Tesla to rollout additional DCFC locations and add Tesla connectors going forward. Share Performance: CLII shares have more than doubled since announcing the deal. Switchback shares are up nearly 300% in the last year. Blink Charging shares are up over 2,000% over the last year. See more from BenzingaClick here for options trades from BenzingaPalihapitiya Announces New PIPE Climate Investment: Who Could It Be?© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.