BUSINESS NEWS MAY 24TH, 2016
U.S. stocks, powered by the best pace of new homes sales since the recession, surged sharply higher Tuesday after kicking off the week with small losses as investors continue to struggle with the prospect of coming interest rate hikes and navigate a 2016 market that's been volatile but virtually unchanged.After an uneventful start to the week, when the Dow Jones industrial average fell 8 points, the blue chip stock gauge rose 213 points, or 1.2%. And despite suffering a full-fledged correction, or 10%-plus drop, earlier in the year, the Dow, thanks to a spring rally, entered Tuesday's trading session up 0.4% for the year.
SNAPCHAT POTENTIALLY WORTH MORE THAN $20B
Snapchat, the social media company where pictures exist for less than 10 seconds, could reach a net worth of over $20 billion. But only if investors decide to back it. According to a report filed VC Experts, Snapchat is looking for an additional $200 million in funding. Their search continues from a round of fundraising in March, where the company raised approximately $175 million from Fidelity, placing Snapchat’s net worth at $16 billion. Robert Peck, analyst at SunTrust, believes that Snapchat is following Facebook’s path to glory. Analysis of Facebook’s third and fourth year show that Snapchat is on track to exceed the social media giant’s revenue in those years.
COKE RUNS OUT OF SUGAR IN VENEZUELA
The soda company reported that it has stopped production in the South American country due to the lack of its key ingredient: sugar. Sugar stock is being quickly depleted in Venezuela, the latest indication of its increasingly dire economic crisis. The government cannot afford to pay for basic necessities and has forced its employees to work just two days a week in order to save power. As a result of price controls and production costs, farmers have stopped producing sugarcane, and have instead turned to products that have a higher return. A statement from Coca Cola said that they would be able to restore production soon, but no timeline was specified.
HARVESTING HEAT FROM SEWAGE
Lynn Mueller, founder of International Wastewater Systems, has a dirty job. He created a technology that harvested heat from sewage waste, shaving as much as 70% off of energy bills. The heat reclamation system, dubbed Sharc, is meant to be used in large apartment complexes, where sewage waste concentration is high. Mueller has installed 12 of his devices across the world, in Scotland, Vancouver, Australia and New Jersey. His company is worth $20 million, with another $80 million worth of projects in progress, according to Mueller. The entrepreneur went on to say that for every $1 worth of electricity, Sharc produces $4.50.