Active stock of the Week: CapitaLand Investment, Netflix and WeWork stock

This week, we shine a spotlight on three dynamic companies making headlines in the stock market, the active stock of the week: CapitaLand Investment, Netflix, and WeWork stock.

CapitaLand Investment Limited (SGX: 9CI)

CapitaLand Investment Limited (CLI) is actively expanding its funds under management (FUM).

The blue-chip company has announced the acquisition of a 40% stake in SC Capital Partners (SCCP) for S$280 million, with plans to acquire the remaining 60% in phases over the next five years. As part of this agreement, CLI will also invest at least S$524 million in strategic capital into SCCP’s fund strategies to enhance its platform.

SCCP is a real estate investment manager (REIM) operating in the Asia-Pacific region, with a presence in eight locations and a total FUM of S$11 billion. With a 20-year track record and a team of 56 employees, SCCP manages a diverse portfolio that includes a publicly listed Japanese REIT, Japan Hotel REIT (TYO: 8985), along with eight private funds. Notably, 76% of its assets are concentrated in Japan, primarily in the lodging sector.

The integration of SCCP’s FUM will elevate CLI’s total FUM to S$113 billion, significantly enhancing its exposure to the Japanese market and contributing to geographic diversification. Following the acquisition, CLI’s FUM in Japan will more than triple from S$2.9 billion to approximately S$11 billion.

Additionally, CLI’s listed funds’ FUM will increase from S$63 billion to S$69 billion, marking its inaugural entry into the lucrative Japanese REIT sector. This acquisition is expected to create synergies for CLI, fostering joint value creation through enhanced product development, deal sourcing, and access to new capital sources.

Netflix (NASDAQ: NFLX)

Netflix has made headlines as the platform responsible for the most-streamed global sporting event to date. The highly publicized Jake Paul vs. Mike Tyson fight achieved an astounding record of 65 million live concurrent streams, with over half of that viewership—38 million—coming from the U.S. alone.

According to TVision, during the midnight to 1 a.m. viewing window, more than half (56%) of U.S. television viewing was dedicated to this fight. Additionally, the Katie Taylor vs. Amanda Serrano match set a new record as the most-watched professional women’s sports event in U.S. history, attracting an estimated 74 million live viewers worldwide. This event topped Netflix’s viewership charts for the week, accumulating 46.6 million views by Sunday night, and it was the most-watched title in 78 countries, including Australia, Brazil, Germany, India, and Italy.

The fight generated over 1.4 billion impressions across Netflix's global social media platforms, highlighting the significant role of social media in amplifying such events.

WeWork Inc.

As of the last closing price of $0.12, Wework stock was trading -89.37% below their 200 day moving average. WeWork is currently facing new challenges as the co-working company has agreed to relinquish space in two prime Singapore locations. The first is a co-working area occupying the 17th to 20th floors of Manulife Tower, while the second comprises three floors in an office building at 83 Clemenceau Avenue. Despite a spokesperson stating that Singapore remains a "priority market," the decision to exit these locations reflects ongoing adjustments within the company.

The WeWork stock price today is 0.0600. WeWork continues to lease space in 12 other buildings across Singapore, but it is still grappling with the repercussions of its previous financial struggles, having exited bankruptcy in May. The co-working sector is under pressure, with prime office vacancies reaching a two-year high in the third quarter of 2024, according to data from Jones Lang LaSalle. Furthermore, some tenants, like Tencent, are consolidating their office spaces, choosing to vacate WeWork locations in favor of new, more centralized offices.

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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.