Stock Market Analysis: Kerrisdale Capital’s Short Selling Sparked Micro-Strategy Plummet; Xiaomi, RH, FTX, Commodities, Amazon’s AI Investment in 2024

In recent news, the stock of Micro-Strategy plummeted after a report from Kerrisdale Capital hedge fund revealed that they were short-selling the company’s shares while also buying Bitcoin. The report suggested that the stock price was inflated and not justified due to the company’s heavy reliance on Bitcoin holdings. On a positive note, shares of Xiaomi saw a 12% increase after launching their first electric car at an attractive price point, with plans for mass sales in April and discounts for early adopters.

In Europe, stock markets closed with small gains, marking the end of the first quarter of 2024 with an overall increase of about 6.8%. However, there are concerns regarding the founder of FTX crypto exchange, Sam Bankman-Fried, who was sentenced to 25 years in prison for fraud and conspiracy. Luxury furniture chain RH saw a surge in stock prices after updating their forecast, predicting increased demand in 2024 despite missing analyst expectations in the previous quarter.

The commodity market is experiencing significant price increases, particularly in cocoa, which has more than doubled in three months. This may impact companies like Hershey and Mondelez International by potentially leading to increased costs for consumers. Bank of America predicts a 15% decline in the Euro Stoxx 600 index later this year due to shifting market dynamics and global growth risks.

Amazon announced a $2.75 billion investment in AI company Entropic while gold prices continued to rise and hold steady above $2,220 per ounce. The US economy saw only slight growth of 3.4% in the last quarter of 2023 compared to previous quarters. Despite these developments, it is clear that