Lows

...and who's down

Monday, April 5, 2021 by Robinhood Snacks | Disclosures

Accio pad thai... Deliveroo is the UK's DoorDash, except most of its "drivers" ride bikes with your tikka masala on their backs. The Amazon-backed food deliverer was one of Europe's most-hyped IPOs of 2021 (key word: was). Shares plunged 26% during their first day on the London Stock Exchange. Deliveroo has been facing pressure over gig workers’ rights. Investors are worried it might have to reclassify its UK gig drivers as "workers" with benefits — like Uber recently did. That could keep Deliveroo from delivering profits anytime soon.

Joined the margin band... Banks had a bad week, thanks to an investment firm that couldn't meet its margin calls. Archegos Capital Management borrowed billions of $$$ to trade with. When the value of its holdings fell below margin requirements, the banks said "put up more money or sell your positions." Archegos said "can't/won't." That left the banks that lent it money exposed to billions in losses. Credit Suisse stock sank 17% for the week, Nomura dropped 19%, and Goldman Sachs and Morgan Stanley fell ~5%. Retail investors were affected, too. Now "family offices" like Archegos might get more oversight.