Three numbers to start your day:
Compared With 2019, Air Travel Drops 40% for Wednesday Before Thanksgiving
Despite the drop, it’s actually the busiest U.S. airports have been since the pandemic first hit in March, according to Deutsche Bank data. That raises concerns that the holidays could become “super-spreader events,” the bank’s economist says.
A continued surge in Covid-19 cases could lead to more strict lockdowns and limits on travel and gatherings. More shutdowns would cut down on economic activity, though probably not as severely as the initial stages of the pandemic early this year.
Investors didn’t seem too worried about the holiday shopping season, at least. Stocks closed at new highs on Friday.
Zoom Video Communications’ Quarterly Sales Grew 300% From Same Quarter in 2019
The videoconferencing company is set to report earnings today after the close of trading. It’s expected to post profits of 76 cents per share, more than 25 times higher than its earnings from the same period last year.
Zoom is one of the biggest winners from the pandemic, as people work remotely, and video call their family and friends to avoid spreading Covid-19.
So its sales and profits have skyrocketed over the past nine months. Its stock has, too—Zoom shares are up 585% so far this year.
Tesla’s Stock-Market Valuation Hits $544 Billion
It briefly had a larger equity-market capitalization than Warren Buffett’s company, Berkshire Hathaway, during the abbreviated trading day Friday.
The electric car maker’s stock has soared 600% this year—and it now has a larger market cap than Ford and General Motors combined. When it had exceeded Berkshire Hathaway, it had the sixth-highest stock market valuation in the U.S., behind tech giants such as Amazon, Apple and Microsoft.
Tesla posted a profit in the second quarter, which has made it eligible for inclusion in the S&P 500—it will be added to the large-cap index on Dec. 21. Traders have cheered the news, and the stock has gained more than 40% since the announcement.
But the optimism might not last. Stocks often rally until their addition to the index, and then decline after they are actually added.
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Write to Alexandra Scaggs at [email protected]