Motley Fool Money Surging Unemployment, Skyrocketing Stocks
May 8, 2020
Unemployment hits a staggering 15%, the highest since the Great Depression, but the stock market surprises with resilience. Ride-sharing companies face challenges while e-commerce giants like MercadoLibre and Twilio soar to new heights. Disney grapples with profit declines but maintains stable stock performance. The gaming sector thrives, exemplified by Activision and Electronic Arts. Analysts discuss notable stocks like Costco and share insights on investment strategies amid a rapidly changing economic landscape.
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Unemployment Surges
- The April jobs report revealed a 14.7% unemployment rate, the highest since the Great Depression.
- Temporary layoffs surged, impacting industries like leisure and hospitality.
Ridesharing Rebounds
- Uber and Lyft saw stock increases despite significant question marks about their profitability.
- Both companies experienced a rebound in bookings after an initial drop-off.
MercadoLibre's Success
- MercadoLibre reported a 30% stock increase after a strong first-quarter report.
- Active users, transactions, and net revenues showed substantial growth, outperforming expectations.