Good Evening! On Thursday, U.S. equities were mixed, with a last-hour surge from the S&P 500 to finish the day in the green. On top of that, November was the best month for all three indices in 2023!
So let’s see the numbers! The Dow Jones surged all day, finishing the day up 1.47%, while the S&P 500 was mostly red for the day but in the last hour pulled ahead by 0.38%. Sadly, the Nasdaq got left behind, spending the majority of the day in the red and closing 0.23% under.
TALK ABOUT A SURGE!
AbbVie (ABBV), a pharmaceutical company, has committed to investing over $10 billion in the development of a cancer therapy developed by ImmunoGen (IMGN). The firm has announced its intention to provide a cash payment of $31.26 for every share of ImmunoGen, which is a 95% markup on the closing price of the stock, which was $16.06 on Wednesday.
But, why? AbbVie said that the purchase would expedite its entrance into the market for the treatment of solid tumors. During the analyst briefing on Thursday, company executives emphasized that Elahere constituted the most significant portion of the deal’s overall worth. The deal has been authorized by the boards of both AbbVie and ImmunoGen. However, the deal must get approval from ImmunoGen shareholders and regulatory bodies. The deal is anticipated to occur in mid-2024.
The big picture! Elahere, a drug that ImmunoGen developed to treat ovarian cancer, would now be available to AbbVie under the terms of the agreement. AbbVie anticipates that Elahere will have significant yearly sales and support long-term revenue growth. However, AbbVie anticipates that the agreement will hurt its profitability until 2027.
A NEW CHALLENGER APPEARS!
The AWS “re:Invent” developer conference by Amazon (AMZN) started with a multitude of announcements this week. The main theme was Amazon’s intense efforts to close the gap with Microsoft in the AI field.
If you haven’t heard of re:Invent… it is an annual event that Amazon organizes to showcase its crucially important Amazon Web Services (AWS) business. This year, the corporation began a significant emphasis on generative AI to counter the early market dominance of Microsoft (MSFT) and Google (GOOG, GOOGL).
So how is Amazon going to do this? Amazon introduced Q chatbot, an enhanced artificial intelligence chip, and a strengthened collaboration with chip manufacturer Nvidia (NVDA). Amazon is emphasizing that Q’s training was based on 17 years of AWS data, which sets it apart as a significant advantage for the platform but is currently only accessible in preview.
So what is Q chatbot? Q is specifically tailored for corporate clients and is intended to function as a versatile assistant, helping users with tasks such as composing emails, generating business concepts, condensing reports, and organizing workshops. One example they showed was the bot extracting data from a corporate blog and transforming it into a social media post, including hashtags.