LOS ANGELES, CA - FEBRUARY 18: Samantha Lilian during ASOS |  Nordstrom Pop-Up at Nordstrom at the Grove on February 18, 2022 in Los Angeles, CA.  (Photo by Gonzalo Marroquin/Getty Images for Nordstrom and ASOS)

Investors question whether Asos’ fundraising is enough. Photo: Gonzalo Marroquin/Getty for Nordstrom and ASOS

Shares in Asos fell after an initial jump of 9% on Friday after the online fashion retailer announced plans to boost its balance sheet with new long-term financing of 275 million pounds ($339.9 million) along with a placement of 75 million pounds sterling, continuing to restructure the business.

Existing shareholders Aktieselskabet and Camelot Capital Partners participated in the capital increase, Asos revealed.

Chief executive Jose Antonio Ramos Calamonte is trying to convince investors that his plan will return the business to profitability.

However, AJ Bell chief investment officer Russ Mold said: “The key question for ASOS is whether raising £80m through a new share issue and debt refinancing is really going to cut it?

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“The online fast fashion retailer hopes this can provide a solid foundation for the company’s recovery.

“However, because the company is paying high interest on its newly agreed debt, much of the money received from shareholders will go almost immediately to service its loans.”

Like other online retailers, Asos has been hit hard by rising profitability.

Rio Tinto (RIO.L)

Rio Tinto jumped after Morgan Stanley ( MS ) upgraded its rating to Overweight from Equal Weight.

Advisory firm Jefferies is also bullish on the miner, saying Rio Tinto offers a “compelling” long-term opportunity.

“Weak demand in China is a short-term risk and valuation alone is not a catalyst for mining share prices.

“However, our analysis shows that shares of Rio, BHP ( BHP.L ) and Vale ( VALE ) are now trading at compelling levels,” it said.

Markets currently estimate the base price of iron ore at $81.37 per ton.

However, investors should be aware that Rio Tinto shares are down 18% over the past three months

Marvell (MRVL)

Shares of chip maker Marvell rose nearly 20% in after-bell trading after the semiconductor maker beat analysts’ expectations in the first quarter.

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The semiconductor firm reported adjusted earnings per share of 31 cents for the April quarter, compared with Wall Street analysts’ consensus estimate of 29 cents.

Revenue was $1.32 billion, beating analysts’ expectations of $1.3 billion.

“Artificial intelligence has been a key growth driver for Marvell, which we deliver with our leading networking products and new cloud-optimized silicon platform,” Marvell CEO Matt Murphy said in a release.

“Although we are still in the early stages of AI development, we forecast that our AI revenue will at least double in fiscal 2024 compared to the previous year and will continue to grow rapidly in the years ahead.”

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The company, which sells a range of chips and hardware for data centers, 5G infrastructure, networking and storage, also said revenue growth should accelerate in the second half of the fiscal year.

Costco (COST)

Shares fell 0.2% after the retailer posted a revenue loss of $53.65 billion for the fiscal third quarter, while analysts had forecast $54.57 billion.

Costco reported operating income of $4.79 billion for the quarter, up from $4.45 billion in the same period last year.

Net income attributable to Costco was $1.3 billion in 3Q13, down from $1.35 billion in the same quarter a year earlier.

As consumers prioritize their spending on essentials, including packaged foods and groceries, one-stop retailers like Costco are struggling with falling demand for high-margin products like home furnishings, jewelry products, toys and electronics.

“Costco’s value proposition and loyal customer base haven’t been enough to capitalize on economic fears, even with their well-priced lineup of name brands and Kirkland’s own-label products,” said Michael Ashley Shulman, chief investment officer at Running Point Capital. Advisors. .

Costco reported quarterly earnings of $2.93 per share, missing analysts’ expectations of $3.29.

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