Everything You Need to Know on Thursday: Short Sellers Bet Against Air Canada Amid Rising Costs and Softening Demand
Good morning mooers! Here are things you need to know about today's market:
● S&P/TSX 60 Index Standard Futures are trading at 1,337.30, up 0.33%
● Artificial Intelligence may hold the key to solving Canada's productivity crisis
● Short sellers bet against air Canada amid rising costs and softening demand
● Hut 8 down 2.5% in US after hours as provides operations update for June
Market Snapshot
Today, the Canadian dollar is trading at 73.46 cents US, a slight increase from Wednesday.
S&P/TSX 60 Index Standard Futures are trading at 1,337.30, up 0.33% from previous close.
Macro
Artificial Intelligence May Hold the Key to Solving Canada's Productivity Crisis
Canada's productivity challenges sparked a call to action from Bank of Canada's Carolyn Rogers and have ignited debate over potential solutions, including AI. With the country's per capita output in the spotlight, suggestions range from job retraining to regulatory reforms and enhancing competition. However, the promise of AI stands out, with TD Bank forecasting an 8% GDP boost from its adoption over a decade, and the Conference Board of Canada recognizing AI's role in increasing competitiveness among businesses. "We're at a generational crossroads with AI," says Alain Francq of the Conference Board, emphasizing the urgency to embrace AI technology.
Stocks to watch
Short Sellers Bet Against Air Canada Amid Rising Costs and Softening Demand
Short sellers are increasingly betting against $Air Canada (AC.CA)$, with short interest nearly tripling compared to last year, amid concerns of escalating operational costs and declining travel demand. The airline's share price has already dropped 4.7% this year and remains well below its pre-pandemic peak. Analysts point to challenges like higher labor costs, competitive pressures, and geopolitical tensions affecting travel appetites. Additionally, Air Canada is navigating contract negotiations with pilots without a new agreement, heightening the risk of labor disruptions during a critical travel season. With the entire North American airline sector facing valuation scrutiny, Air Canada's struggles reflect broader industry trends.
Hut 8 Down 2.5% In US After Hours As Provides Operations Update for June
$Hut 8 Corp (HUT.CA)$ shares fell 2.5% in after-hours trading in the US following its June operations update. Highlights include managing 17.8 EH/s, 762 MW, and securing a US$150 million investment from Coatue for AI infrastructure development, with revenue expected from this venture in the second half of 2024.
CEO Asher Genoot reported progress in expanding the company's energy capacity and site development, bolstered by Coatue's investment. Hut 8 is enhancing its Bitcoin mining and AI data centers, including infrastructure improvements at Salt Creek for better productivity and longevity. The company is also discussing miner fleet upgrades.
Advancements in Hut 8's AI sector include setting up a GPU cluster and preparing a data center suite, with over 500 NVIDIA H100 GPUs being tested. The AI vertical is anticipated to launch in the second half of the year, targeting an annual revenue rate of around $20 million.
Source: Financial Post, MT Newswires
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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