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Key Points
Overall Market
The Stock Market Finished The Week with Mixed Results As Inflation Fears and Speculation Over the Possible Fed's Responses Continued
The stock market indices finished the week with mixed results. It turned out to be a good start to the day. However, by the time the market closed, both the Nasdaq index and the S&P 500 index fell into the red zone. Meanwhile, the Dow hovered above zero, but only barely.
The economic indicator we can discuss today is the existing home sales drop for the third straight month, according to the National Home Builders Association. Home prices have hit an all-time high. It seems higher demand by first-time buyers combined with lower mortgage rates and shortages in lumber and other commodities is expected to continue for a while and make the home prices continue to rise as they have done so in the last few months. What's up?
Virgin Galactic (SPCE) Stock Jumped More Than 7% After The Company Resumed Its Previously Delayed Test Flights Plan
Shares of Virgin Galactic (SPCE) were up more than 7% today after another green day yesterday. The company announced it would resume its test flight which has been delayed a few times in the last couple of months.
The stock price is quite far from its all-time high of $62.80 shares. But, if it manages to continue with test flights and ultimately launch its commercial flights, the stock price could rally quite drastically. I own a few shares, and I'm glad I held them despite the recent drops. Let me know in the comments if you end up selling your shares. What's New?
Introducing The New Telemedicine List of Stocks
We just released a new list of stocks on Stock Card. This new collection gives you a list of 61 companies that are shaping the future of Telemedicine.
After the COVID-19 pandemic hit, it was clear that medical services would have to transform the way they do business. To overcome the challenges, health care companies started to shift their business processes to allow servicing their patients. In a way, the tragedy of the COVID-19 pandemic gave birth to and accelerated the adoption of a new industry, the Telemedicine industry. Now that they have invested in the infrastructure required for telemedicine, it is a lot more efficient to continue with virtual visits when an in-person visit isn't essential. Take CVS (CVS) as an example. The company offers a whole spectrum of telehealth services to patients and physicians. If you choose to stay in the comfort of your home, you can schedule appointments with licensed doctors. Virtual visits are available at an affordable price for those who decide to stay in. Its services also include telephone-only consultations with providers, evaluation, diagnosis, treatment, and data communication between all parties. According to Fortune Business Insights, the Telemedicine industry is expected to grow by 25% per year and shape a $400 billion market. There is one more reason to invest in telemedicine stocks now: The market has a negative sentiment toward such companies in light of the reopening. However, many market participants miss seeing the financial incentives for health care providers to encourage virtual services now that they have invested in the infrastructure and know how efficient their daily processes could be. One study has estimated "diverting patients from emergency departments with telemedicine can save more than $1,500 per visit" for the hospital. Health care is a for-profit industry in the U.S. and many other countries, and no one can argue with saving money, especially in healthcare. To get the list of telemedicine stocks, type in telemedicine in the search bar the next time you log in to your Stock Card account. Want to receive this daily stock market recap report in your mailbox?
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Key Points
Overall Market
The Stock Market Didn't Manage to Get Out of The Red Zone Yet Again Despite A Steady Upward Throughout The Day
Stock market indices ended Thursday in the green. The new weekly jobless claims report came lower than expected, boosting investors' confidence in the economic recovery.
One interesting development that is worth discussing today is Chairman Powell's remark about cryptocurrencies. The Chairman released a video discussing the Fed is going to conduct another comprehensive review of digital currencies in the summer. This is one of the most critical indicators to argue that digital currencies' adoption has reached a meaningful level enough that they are worth the Fed's time and effort. The Chairman specifically discussed stable coins that their value is tied to the value of a dollar. He also addressed the risk of allowing private companies to run payment systems not regulated by the Fed. Here's a snippet of the most important section of the Fed's Chairman talking about digital currencies issued by central banks, also known as CBDCs. I would interpret this as a sign that digital currencies are well on their way to transform the future of money and should be a part of future-focused portfolios. Who IPO's?
Alternative Milk Market Leader Oatly (OTLY) Went Public With $13 Billion in Market Capitalization
Today, I looked at the list of 2021 IPOs by clicking on the 2021 IPO bubble on my main Stock Card dashboard. You have the same list as I do if you log in to your account.
It seems more than 800 companies have IPOed since the start of the year. That's partially thanks to the rise of SPAC IPOs that allow companies to go public with less hassle. The one company that is noteworthy to talk about is Oatly (OTLY). Everyone's favorite oat milk company went public today. And, when I say everyone's favorite oat milk company, I mean it. Oprah Winfrey, Jay-Z, even former Starbuck CEO Howard Schultz are big fans and investors in the IPO. Who can blame them? Froth that oat milk to perfect temperature and pour over your espresso, and it's divine if you ask me. Nice! But, I digress. Looking around the company's Stock Card, Oatly is unprofitable. However, revenue jumped more than 106.50% in the last fiscal year. The alternative milk industry is expected to be a $40 billion industry by 2026, with more than a 10% growth rate per year. The stock has the market's momentum going for it. But also, several other companies, mostly private, are racing to grab a market share. It's going to be a competitive market. Oatly's brand could help it lead the market, but it's not a slam dunk, as some investors believe. The company made $421 million in 2020 and has got $13 billion in market capitalization. That's a price to sales ratio of about 30. Compare that with Beyond Meat (BYND) as just a benchmark, and that company has a price-to-sales ratio of 15. Yeah, it's expensive alright! I'm not ready to jump in before learning more about the company, but it's undoubtedly a good stock to add to your watchlist. Want to receive this daily stock market recap report in your mailbox?
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Key Points
Overall Market
The Stock Market Didn't Manage to Get Out of The Red Zone for Another Day Despite a Steady Upward Direction Throughout The Day
All three indices finished Wednesday in the red. They also started the day deeply in the red and despite a steadily upward movement throughout the day, none of them managed to pass the zero line into the green zone.
The way I see it, there are three contrary points of view circulation around:
The third deflation possibility is a quite interesting and contrary point of view. It is undoubtedly the one I tend to agree with, the more I gather information about the reasons behind the current inflationary forces, including the panic-buying of businesses and the catch up they are playing with the demand. If the third point of view is correct, we have a unique opportunity to buy the dip in several tech stocks, among many others that are shaping the future. Time will tell who is right. What's Up
Shares of Salesforce.com (CRM) Are Up More Than 2% After an Upgrade by Morgan Stanley
I explored the "watchlist ideas" page on Stock Card and noticed shares of Salesforce.com (CRM) were up by more than 2%. The company is now a rare "4-greener." A 4-greener stock on the Stock Card platform is a company with a robust market opportunity, solid operations, and history of outperforming the market that happens to be undervalued.
Salesforce got an upgrade by Morgan Stanley today, and I won't be surprised to see the stock's upward movement continue. Cash-rich, profitable, and growing companies do not stay undervalued for quite long. I own some shares and plan to hold for quite a while. What's DOwn
Should You Buy The Dip in Workhorse (WKHS) Considering The Legal Attempts to Revive The USPS Contract?
For the loser stock of the day, there wasn't any particular company that grabbed my attention. I looked into the requests that are sent through by Stock Card users. Quite a few people were asking about Workhorse (WKHS), so let's do some digging together.
A quick history about Workhorse is that the company was on its path to get United States Postal Service as a customer of its electric delivery trucks. The contract didn't go through, and the stock nose-dived after that. The question we need to answer is whether there is life for Workhorse without USPS. At the first look, the company has growing sales, earnings have turned negative in the last 12 months, and despite not generating any free cash flow, it has a solid balance sheet with no cash concerns. This tells me the company can fund itself for a while before the next major customer shows up. Moreover, Workhorse is still among the top 25 holdings of ARK Invest autonomous ETF for its delivery trucks and Ark's space ETF for its drone product. However, ARK has sold some shares recently. In the end, had I owned a few shares, I would have held them. It seems the company is going after the USPS contract with some legal power. However, for me to buy, I would want to see the evidence that the company can find other customers beyond USPS to grow. Alternatively, if you have done your research and know Workhorse has a unique technological advantage over other EV truck manufacturers; that might be another reason to jump in. I just don't have such information to justify jumping in now. There is also a small likelihood that the legal attempts to revive the USPS contract pay off and the stock rallies. If you are betting on that, make sure you know that you are betting on an outcome the company has limited power over. It's a risky bet. It may or may not pay off. Want to receive this daily stock market recap report in your mailbox?
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Key Points
Overall market
The Stock Market Indices Finished Tuesday in The Red Despite Rallying in The Early Hours of The Trading Day
The stock market indices finished the day in the red, despite rallying at the beginning of the trading hours.
The market's movements remind me of a yo-yo. It just bounces up and down without any ultimate direction. Investors are not sure what to do with inflation fears, but the Fed has kept its favorable policies, and no one can decide where to go from here. Yo-yo up … Yo-yo down ... What's Up
Shares of Lordstown (RIDE) Are Up Nearly 20%, Thanks to An Upcoming Show and Tell Event
From the winners' list of the day, I noticed electric truck maker Lordstown (RIDE) was up more than 19%. We have seen EVs taking a beating recently, so I got curious that the stock was up that much.
It seems the stock is up over theannouncement of a weeklong show and tell event. One of the challenges Lordstown faced in the past was that the product still wasn't out. The company plans to showcase how it is ready to get the world's first all-electric commercial pick-up truck out in September. It seems all it takes to move a stock these days is a marketing and PR event to show off. I'm interested to see what the management has to say about this event on May 24th when the company releases its latest earnings report. By the way, if you are interested in getting a list of EV stocks, typing in Electric Vehicles (EV) in the search bar on Stock Card platform and get the list of more than 100 stocks that you could uses as a starting point for your EV stock research. This theme-based research functionality is unique to Stock Card platform. What's Down
Shares of Axon Enterprise (AXON) Dropped More Than 6% Despite The Company's Robust Market Opportunity
Remember we spoke about ShotSpotter (SSTI) a few days ago and compared it with Axon Enterprise (AXON). Both companies provide technology solutions to police and security personnel, with the difference that ShotSpotter is just starting and Axon has owned the market for a long time.
Today, ShotSpotter jumped more than 9%, while Axon lost more than 7%. With this price drop, Axon's stock is getting more attractive. Both stocks are worthy of a spot on your watchlist due to the growing demand for a technology-enabled police force. According to Axon's latest investor presentation, Police Technology is a $27 billion addressable market. The vision that Axon paints for the future is quite compelling. By 2023:
Axon will reimagine public safety, and that's a vision I would like to be a part of. Want to receive this daily stock market recap report in your mailbox?
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KEY POINTS
Overall market
The stock market indices started the week in the red over inflation and global shortage worries.
All three indices finished Monday in the red. Despite a rally towards the end of the day, none of the indices managed to finish the day in the green.
There isn't any new economic indicator to discuss. Just the same inflation fears we have been discussing for a while continue to spread as the world's economy grapples with widespread shortages across commodities and supplies. Several businesses are double and triple ordering the things they need, which further boosts the prices. I can see two implications:
What's up?
Raven Industries (RAVN) is poised to hit a new record high.
On to the winner stock of the day, shares of Raven Industries (RAVN) were up more than 9%. With this jump, the stock is back to its 52-week high and has recovered all the losses it had experienced in the last few weeks. I invested in Raven because of the work it's doing in shaping the future of agriculture machinery and autonomous robots that would enable farms worldwide to run more efficiently. My strategy is relatively long-term here.
However, it doesn't hurt to see that its short-term performance is quite impressive too. The company reported its latest quarterly earnings. Revenue was up 30%, and earnings per share were up by 136%. Watch this company for your long-term portfolio, especially if it goes through another dip due to general market conditions. What's Down?
Is it time to sell your Tesla (TSLA) shares?
Shares of Tesla (TSLA) continued to slide down. On the one hand, Bitcoin investors hate Elon Musk and Tesla for abandoning their plan to accept Bitcoin as a form of currency to pay for Tesla cars and consecutively crashing Bitcoin's price.
On the other hand, the news broke that Dr. Michael Burry, the man who predicted and profited from the 2008 mortgage-backed securities crisis, has shorted Tesla's stock by holding Put options that would profit if the company's shares drop. Dr. Burry is famed for his courageous and fact-based analyses, and his decision to short stock has the power to cast doubt in investors' minds. What should we do if we own Tesla shares? I own a few shares like many of you. The decision whether to sell Tesla now depends on your original reasons to invest in Tesla. My reason for investing in the company is that I appreciate its mission. I believe Tesla's brand and Elon Musk's ability to maintain momentum and raise capital are valid enough to justify my small investment. Dr. Barry's reasons to short Tesla are valid too. He argues all of Tesla's profit comes from selling regulatory credits to other companies who want to offset their carbon footprint and not selling cars. He is quite right, but also, that's precisely why I invest in Tesla. The company has managed to find creative ways to stay afloat. I think the risk is justified, primarily because of the small amount of money I have in this stock. If you are owning some Tesla shares, go back to your original reasons for investing. Are they still valid? Want to receive this daily stock market recap report in your mailbox?
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