Market Recap – December 22nd
Nikola reported their first electric vehicle delivery to a customer, marking a milestone many didn’t believe they would achieve. In the past few months, the SEC’s probe regarding the stock found that the company misled investors, leading to the departure of CEO Trevor Milton, so this was a positive step forward for the EV business.
Crocs announced their acquisition of shoemaker Hey Dude for $2.5 billion in cash and stock, with the deal going into effect in the first quarter of 2022. Hey Dude, was founded in Italy and they forecast sales of $750 million in the fiscal year of 2022, and according to Crocs CEO Andrew Rees, this addition will add diversification to the company. However, investors weren’t too sure about this as they were unfamiliar to the brand, causing a drop in the company’s stock price.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.