2023-08-28 23:32:00
Unprofitable Vietnamese electric car maker VinFast Auto is now more valuable than Goldman Sachs Group Inc. and Boeing.
VinFast closed at $82.35 on the U.S. stock market on the 28th, up regarding 20%. The stock is up 688% since it opened on March 15. The current market capitalization is regarding $ 190 billion (regarding 27.82 trillion yen). Goldman has $111 billion and Boeing has $137 billion.
VinFast is more than half the companies in the Dow Jones Industrial Average and regarding 10 times more valuable than the Walgreens Boots Alliance.
VinFast’s surge in stocks at a time when the broader U.S. stock market has cooled suggests that animal spirits hasn’t been completely stifled. The company has attracted the attention of individual investors who target EV manufacturers, and its low free float is also amplifying market movements. Options trading on the company’s shares also opened on Monday, giving traders the opportunity to use leverage to bet on the rise.
“The rise shows there is still a lot of froth in the market,” said Matthew Mailley, chief market strategist at Miller Tabak. He added that the S&P 500 had fallen “only” 4% from its summer highs, which didn’t scare investors too much. “It would take a serious correction of regarding 10% to bring real fear back to the market,” he said.
news-rsf-original-reference paywall">Original title:VinFast Surge Toward $200 Billion Leaves Half of Dow in Dust (1)(excerpt)
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