(KRON) – On today’s Winners and Losers, KRON4 financial expert Rob Black talks about the recent stock dive, the death knell of Peloton, and Andy Warhol’s Marylin Monroe selling for almost $200 million.
Loser: Markets struggle to bounce back
Stocks dipped as the major averages struggled to recover from three days of heavy selling that brought the S&P 500 to its lowest level in more than a year. The technology sector attempted a comeback after suffering some of the biggest losses in recent weeks.
Investors have moved out of growth areas and into safe havens like consumer staples and utilities amid recessionary fears.
Transports dragged markets lower as Dow Transports dipped about 1%. The moves further signaled concerns of a recession as the industry is typically used to measure the strength of the economy.
The national average for gasoline hit a record $4.37 per gallon. In California, the state average is $5.84. A handful of counties in the state have topped $6.
Tesla is slashing Shanghai production as a parts shotrage hits.
Nintendo announced a surprise 10-for-1 stock split. Nintendo has a strong pipeline of upcoming games including “Nintendo Switch Sports.”
Loser: Peloton Plunges After Cutting Outlook
Peloton is plunging after the company’s earnings and guidance missed expectations. The company also announced it was borrowing $750 million in five-year debt.
Peloton has about 2.98 million connected fitness subscribers. Given its level of cash, inventory, and cash burn, existential threats on Peloton are rising.
Warren Buffet once said that that turnarounds seldom turn and are hard work.
The stock skyrocketed in 2020 as gyms shuttered their doors and consumers invested in Peloton’s signature home workout equipment, but with the end of the COVID-19 lockdowns, shares are down over 60% this year after moving from 151 to 12 dollars a share.
Winner: Andy Warhol’s Marilyn Monroe Sells for $195 Million
Pop artist Andy Warhol’s portrait of Marilyn Monroe called “Shot Sage Blue Marilyn” is now the most expensive piece of artwork by an American artist ever sold. It was sold at auction for a record-breaking $195 million including fees Monday.
Warhol used a promotional photo and gave the actress a pink face, blue eyeshadow and red lips against a sage background.
Andy Warhol is a pop culture icon more than three decade after his death in 1987. Netflix recently produced a docuseries based on Warhol’s memoirs.
Later this year, the Supreme Court will decide if a print Warhol created based on a photographer’s image of the singer Prince violated copyright law.
$450 million: That’s how much Leonardo da Vinci’s “Salvator Mundi” sold for in 2017.