Advertisement

Crypto-related stocks slump after China crackdown, Carnival shares gain

Yahoo Finance’s Ines Ferre reports on the day's trending tickers.

Video transcript

AKIKO FUJITA: Bring in our very own Ines Ferré for a look at some of the biggest tickers that are moving today. And, Ines, we have to start with the news out of China, this additional crackdown, we should say, because we have seen the crackdown happening over in China in the crypto space. Beijing now banning all transactions for crypto. What are some of the big moves we're seeing even beyond just Bitcoin and Ethereum?

INES FERRE: Yeah, well, just to start out with Bitcoin, as you just mentioned, it's down about 6% right now, if you take a look at our Wi-Fi interactive board. But I want to point out some seasonal data that I was combing through showing that September has been the worst month for Bitcoin in the last eight years. I'll pull up a 10-year chart. So you can see that 10-year chart. November has been the best month, followed by October. But certainly, the moves that we are seeing today is because of that China news that you were just mentioning.

And just looking at some crypto-related stocks that are moving to the downside today, we're watching Coinbase. Now, Coinbase is sitting at its lowest level since August 3. It's about 30% below its trading levels back in April, when it went public. There's been, of course, a lot of scrutiny in the crypto industry among lawmakers, so that Coinbase has had to deal with some of that. But also, an [INAUDIBLE] analyst pointing out that since Coinbase has gone public, Bitcoin hasn't gone back up to its all-time highs that it reached back in May. And that may be what's also been weighing on the stock over the last several weeks and months.

And then finally, also checking out Robinhood. Robinhood is down about 2%. Earlier this week, Robinhood said that it was going to be testing a crypto wallet. And that's when you saw the price spike for Robinhood earlier this week. And if we just take a look at a five-day chart, you can see where Robinhood is going to end for the week. If we continue this way, it'll end up about 6%, Akiko.

AKIKO FUJITA: And, Ines, we've seen a lot of these headlines out of China just lump in a lot of these Chinese stocks. Alibaba today hitting a 52-week low on the back of some news in terms of the assets they have a stake in, potentially unloading some of those as they feel the heat from the government to try and reduce its scale as well as its influence.

INES FERRE: Yeah, that's what it appears to be, the heat from the government. Although, Alibaba won't say or hasn't said why it is unloading some of its assets. But certainly, unloading some stock that it has in a company that is a streaming company. It's called Mango Entertainment. It's actually a profitable platform, so that's why it's creating some concern as well that it is selling off its stake in that platform, down about 4% today. Over the last five days, the stock is down about 9%. You had that Evergrande news earlier this week that has also weighed on these China companies. And then if you just take a look at a three-month chart, down 33%, Akiko.

AKIKO FUJITA: And let's end on a positive note, Ines, after the kind of week we had. Carnival getting a big pop in this session. What's the story there?

INES FERRE: Yeah, Carnival is up more than 2%. Cruise lines, they are popular. OK, well, Carnival reported a wider adjusted loss for its fiscal third quarter, saying actually bookings in August declined because of the Delta variant. But there's a couple of reasons why the stock is up today. It's resuming operations with 61% capacity by November. So that's on track. Also, Carnival saying its full fleet will be back by the spring of 2022. That's on track.

The CEO of Carnival, Arnold Donald, saying that the Delta variant hasn't changed a return timeline. And here's the kicker, open bookings for further out cruises in 2023 has had an unprecedented early demand. So basically, cruise line enthusiasts who like to go on these cruises, all signals are pointing to the fact that they will go on the cruises when it's safer to do so, Akiko.

AKIKO FUJITA: OK, that is good news that we can end on on this Friday. And Ines Ferré, thanks so much for bringing us the very latest.