Research Market strategy
By Swissquote Analysts
Published on 25.09.2023
Morning news

Amazon to Run Ads in Prime Video Shows and Movies

Topic of the day

Amazon (-0.2%) revealed it plans to start running advertisements in shows and movies on its Prime Video platform, the latest streaming service to turn to advertising amid mounting losses in the sector. Prime Video is one of the last major streamers to introduce an ad-supported option. Netflix and Disney rolled out those options in the past year as an alternative to their pricier ad-free plans. Apple TV+ doesn’t have a subscription plan with ads. Prime Video is included with Amazon Prime membership, which costs $14.99 a month or $139 a year. As a stand-alone streaming service, Prime Video currently costs $8.99 a month. Amazon reported in July it had more than 200 million Prime members around the world. For an ad-free experience, Amazon Prime members in the U.S. will now need to opt to pay an extra $2.99 a month. By having ads in the current product, Amazon is instantly able to give advertisers scale. The company has confirmed it spent roughly $7 billion last year on Amazon originals, live sports programming and licensed third-party video content included with Prime.

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Swiss stocks

Swiss stocks stayed weak right through the trading session on Friday as worries about the outlook for interest rates and slowing economic growth weighed on the market. The SMI dropped by 0.6 per cent to 11,015 points. Among the 20 SMI stocks, there were 15 price losers and 4 price winners; the Lonza share closed unchanged. 17.22 million shares were traded (previously: 20.13 million). Holcim, Sonova and Sika declined 1.83%, 159% and 1.33%, respectively. Kuehne & Nagel, ABB, Nestle, Swiss Re, Novartis, UBS Group, Zurich Insurance Group and Swisscom lost 0.7 to 1.1%. Richemont climbed 1.61%. Givaudan gained about 0.65%, while Alcon and Partners Group posted modest gains. On Thursday, the Swiss National Bank's Governing Board, chaired by Thomas Jordan, decided to hold the policy rate at 1.75%, while markets expected a final quarter-point hike.

International markets


European stocks continued to fall on Friday, with sentiment hit by the prospect of prolonged high interest rates to fight inflation. The Stoxx Europe 600 index lost 0.3% to 453.3 points. In Paris, the CAC 40 and the SBF 120 each shed 0.4%. The DAX 40 in Frankfurt was down 0.1%, while the FTSE 100 in London gained 0.1%. Over the week as a whole, the Stoxx Europe 600 fell by 1.9%. Digital assistance services provider Solutions 30 slumped 16.8% to €2.2 after reporting a net loss of €14.4 million for the first half of the year, compared with €12.3 million a year earlier. Engineering and technology consultancy group Alten shed 1.9% to 126.2 euros following the publication of half-year results below expectations, according to Invest Securities. Ubisoft advanced by 4.5% to 29.44 euros after the UK competition authority issued a positive ruling on Friday regarding Microsoft's revised plan to acquire Activision, which includes the transfer to the French group of streaming rights for Activision's games outside the European Economic Area. Eramet (+2%) confirmed on Thursday having sold its Norwegian subsidiary Eramet Titanium and Iron (ETI) to the British chemicals group Ineos for 245 million dollars.

United States

U.S. stock indexes edged lower Friday to end an ugly week after the Federal Reserve signalled it may not be done hiking rates. The S&P 500 fell 0.2% Friday and closed down 2.9% for the week, its worst performance since March and third straight weekly loss. The Nasdaq Composite dropped 0.1% Friday, and logged its third consecutive week of losses, with tech shares bearing the brunt of the recent selloff. The Dow Jones Industrial Average was 0.3% lower Friday. Shares of financial technology companies took a hit this week, largely thanks to higher yields that are pushing up their borrowing costs and squeezing margins. Buy-now-pay-later company Affirm saw its shares drop 17% for the week, while competitor Block fell 15% to a three year low. PayPal shares dropped 10% on the week. Elsewhere Friday, Ford Motor shares rose 1.9% after the United Auto Workers union spared the automaker from more walkouts based on progress in contract talks. Ford was among the S&P 500’s best performers. Seagen shares rallied 3.5% after the biotech company posted positive results from a Phase 3 study of a cancer-drug combination including its Padcev treatment. Meanwhile, shares of Activision Blizzard rose 1.7% after its acquisition by Microsoft cleared a regulatory hurdle in the U.K.


Stocks in Asia mostly fell at the start of the week. Hong Kong is the worst performer, with the HSI falling by 1.3 per cent, while Shanghai holds up better with a drop of only 0.4 per cent. Property shares are under heavy pressure in Hong Kong, above all the property giant China Evergrande, already wobbling for months, whose share price has plummeted by around a quarter. The catalyst being news that China Evergrande has to scrap a $35 billion debt restructuring plan that was supposed to secure the company's survival due to worse-than-expected property sales. China Country Garden drops almost 7 per cent. Longfor declines 4.8 per cent and China Vanke 2.6 per cent in the wake of Evergrande. The Tokyo stock exchange proves to be a positive exception. The Nikkei-225 gains 0.9 per cent to 32,677 points. In Seoul, according to traders, the harvest thanksgiving holidays starting on Thursday are already casting their shadow and causing rather listless trading. The share price of cinema operator CJ CGV plunged by more than 20 per cent, weighed down by a profit-diluting capital increase.


U.S. government debt yields finished near their highest levels since 2006-2011 on Friday, while posting their third straight weekly advances, as traders incorporated the Federal Reserve’s higher-for-longer theme in interest rates. The 10-year Treasury note yield eased by 5 basis points to 4.446%, while the 2-year Treasury note yield fell by 4 basis points to 5.105%. After rising this week, these rates are still at levels not seen since 2007 and 2006.


Rating Montana Aerospace: Research Partners starts with Hold - Target 15.30 CHF

Target price UBS: Berenberg raises to 29 (22) CHF - Buy

Target price Ypsomed: Research Partners raises to 330 (270) CHF - Buy

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