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KEY POINTS
OVERALL MARKET
The uncertainty around COVID and the Fed's decision led to a volatile week.
The market indices closed in the green today, after sliding almost all week.
In summary, this week COVID numbers continued to rise, yet Federal Reserve members are contemplating tapering back favorable money policies. Jobless numbers have fallen, based on the report yesterday, yet there is a lot of uncertainty going forward. I don’t blame the market for being so volatile lately. It's the uncertainty that gets the investors unpredictable. GET THE DAILY MARKET RECAP
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Facebook (FB) unveils a new VR workplace, while Topps loses its MLB partnership and SPAC merger.
Guys, before we dive into the analysis of the stocks suggested by your fellow Stock Cardians, I wanted to talk about two important news related to VR and NFT megatrends.
Facebook (FB) launched an experimental new virtual reality workspace where employees can meet, chat, and plan while immersed in a virtual office. This is really taking working from home to a new level! The work-from-home trend is merging with VR and creates new possibilities that we couldn't have imagined before. That's why on the left-hand side of Facebook's Stock Card, you can see the stock belongs to a work-from-home collection, as well as a few VR ones. Despite many people assuming that FB is hitting a growth ceiling, the company is still pursuing new and exciting possibilities. Another noteworthy news is coming from the theme of NFTs (non-fungible token). The NFT-based sports trading card company, Topps, lost its 70-year-long partnership with Major League Baseball. As a result, it had no choice but to end the planned SPAC merger with blank check company Mudrick Acquisitions (MUDS). Topps just recently hopped on the digital collectibles trend, otherwise known as NFTs. This shows how volatile the NFT market is and how hard it is to figure out the ultimate main platform for trading NFTs. COMMUNITY PICKS
Community-recommended stocks: FuboTV (FUBO) and Washington Trust Bancorp (WASH)
Folks, it’s been a slower day in the market. I thought this was a great opportunity to get around to some stocks suggested by our community. Stock Cardians have been suggesting plenty of great stocks to our team to research. So today we are diving into FuboTV (FUBO) and Washington Trust Bancorp (WASH).
FuboTV (FUBO) is a streaming service that bundles together packs of live TV channels, generally around sports. The stock has been on a wild ride if you look at the chart these past couple of weeks. Let’s take a quick look:
It looks like FuboTV is sticking to its vision of the future of TV networks to be niche bundles. Many consumers aren’t looking to pay for a large stack of channels they aren’t interested in, but the targeted deals that FuboTV advertises are a smart alternative. This will be a stock to keep an eye on as we leave traditional cable television behind. Secondly, we have Washington Trust Bancorp (WASH). WASH is a financial institution that provides value to its customers through two services: banking and wealth management. It has plenty of subsidiaries, particularly in the commercial banking side of the company, which generates most of its revenue. No major news moved the stock this week, but it seems shares have been climbing ever since it posted a so-so earnings report back in late July. The stock dropped sharply as investors reacted poorly to the lower returns this quarter. Financial institutions weren’t spared from the volatility of the pandemic, yet WASH is still looking alright on paper. For banks, you would want to take a look at their Return on Asset (ROA), and WASH's ROA is in a reasonable range. Growth may be a little stagnant, but its Stock Card is a nice 3-greener. Generally, as interest rates go up, and assuming the Fed would do that at some point in the next few quarters, banks would have higher revenue from the interest they charge their customers, which in turn would help the bank's performance get better. That's one reason to pick up bank stocks to benefit from these potential profits. I'm not a bank stock investor, but I can see why it appeals to some investors, especially those who look for a 4%+ dividend yield that this bank pays its investors. FEATURED PARTNER PORTFOLIO
Watch Leo Rodriguez research three clean energy stocks using Stock Card!
Before we end today’s episode, I wanted to mention this great partner of ours once again. As you know, at Stock Card, we love linking up with a diverse group of investors who do diligent research with various strategies. Our latest partner, Leo Rodriguez, who runs the Finance Turned Easy channel, is a quality content creator.
A couple of days ago, Leo published a video breaking down three hidden gem stocks in the clean energy space, one of those megatrends shaping the future. Leo also highlights some valuable features of the Stock Card in the video as well. Check it out to see it in action! Don't forget that Leo has a portfolio of his own on Stock Card. Search for "penny stocks" in the search bar on the Stock Picks page and visit his High Growth Penny Stocks of the Future portfolio. Follow it to be notified when he adds a new stock! WANT TO RECEIVE THIS DAILY STOCK MARKET REPORT IN YOUR MAILBOX?
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KEY POINTS
OVERALL MARKET
The market ended the day mixed as investors stalled over a positive jobless claims report and bleak economic forecasts.
Two contrary news forced the market indices into a mixed day.
On the one hand, we have the new jobless claims report hitting the lowest since the pandemic. As unemployment numbers sink lower, confidence in the strength of the economy increases. The drop to 348,000 helped boost investors' sentiment. On the other hand, Goldman Sachs’s lowered its GDP estimate for this year. Blaming the rise in COVID cases and the uncertainty that it brings, the firm lowered its forecast from a growth of 9% to 5.5%. This certainly added to investors' pessimism. GET THE DAILY MARKET RECAP
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Macy’s (M) proves it is hitting reopening hard with a great earnings report.
Macy’s (M) is one company that is leading reopening efforts in the retail industry. I found the stock sitting pretty high up the winner’s list on Stock Card today. It looks like the company released its earnings report for this past quarter, and the results were received quite well by its investors.
The earnings report had a few highlights:
Taking a quick look at Macy's Stock Card, the fundamentals are kind of hit-or-miss. There are some glaring debt problems and uneven revenue in the last three years. It's also an undervalued stock. At 0.3 times price to sales ratio, it seems investors expect the company's sales to be at ⅓ of its current revenue, which explains the drastic price jump today after revenue was up even compared to 2019. I like to invest in companies that shape the future, and Macy's doesn't excite me. But, I can see why some investors want to hold the stock to benefit from the reopening, while I don't think Macy's can repeat such growth rates next year or anytime soon. WHAT'S DOWN?
Ontrak (OTRK) stock drops 44% in a day after losing a big contract. Should you buy the dip?
Folks, what caught my eye today was the drastic Ontrak's (OTRK) price drop. It was third on the loser list on Stock Card with a whopping 44% drop! I own the stock, and I was surprised to see the decline. Let's see what happened and what we should do if we are shareholders.
Ontrak helps patients deal with behavioral health issues. For example, it uses its program to help patients with substance abuse challenges to stick to their treatment better and have less hospitalization, which means lower costs for the patient and the insurance provider. Today, according to an SEC filing by the company, one of its clients asked to terminate a 3-year contract at the end of the year, 2 years into the contract. This was undoubtedly a significant customer for Ontrak. From the calculations I’ve done, it seems like the remaining contract value is about $30 million, which represents about 30% of the $108M annual revenue Ontrack generated last year. Can the company survive this challenge?
It seems Ontrack should be okay, this is a short-term challenge that can be rectified. The concern I have is the reason for the contract cancellation. The management attributed this to a change of strategy by the unnamed client. But that's left to be proven. If the cancellation is a sign of operational or product challenges, then Ontrack is in trouble. What's happening with Ontrak reminds me of Stamps.com’s (STMP) stock price, where there were two large crashes in price after it terminated its contract with USPS in 2019. The company had cash reserves and an effective strategy to diversify its partnership away from USPS and other postal carriers. Investors who bought the dip at around $30 per share were rewarded when it wasacquired in July and reached an all-time high of nearly $330 per share, a 10X return! I wonder if this could be a similar situation. I'd wait to see the actual reasons behind the contract termination and may jump in with a few more shares, in addition to what I own now. Stay tuned. FEATURED PARTNER PORTFOLIO
Watch Leo Rodriguez research three clean energy stocks using Stock Card!
Folks, I have one last thing for you before you go. As you know, at Stock Card, we love partnering with a diverse group of investors who do diligent research with various strategies. Our latest partner, Leo Rodriguez, who runs the Finance Turned Easy channel, is a quality content creator.
Yesterday Leo published a video breaking down three hidden gem stocks in the clean energy space, one of those megatrends shaping the future. Leo also highlights some valuable features of the Stock Card in the video as well. Check it out to see it in action! Don't forget that Leo has a portfolio of his own on Stock Card. Search for "penny stocks" in the search bar on the Stock Picks page and visit his High Growth Penny Stocks of the Future portfolio. Follow it to be notified when he adds a new stock! WANT TO RECEIVE THIS DAILY STOCK MARKET RECAP IN YOUR MAILBOX?
Sign up for a free account on Stock Card's website to get the daily market recap reports in your inbox:
KEY POINTS
OVERALL MARKET
The Federal Reserve is considering tapering back its economic support soon, and the market dropped in response.
The market indices ended the day in the red once again.
We discussed the remarks by some Fed officials about the tapering of some favorable monetary policies. We received more concrete evidence for it today. The market's slide today is mostly due to the Federal Reserve’s July meeting transcripts that were released today. It shows that some members of the Fed were looking to reduce its asset-buying practice sooner rather than later, possibly as soon as this year. These members used the price stability and employment numbers as examples for why the government could ease off on supporting the economy. In response, stocks took a noticeable dive today. GET THE DAILY MARKET RECAP
Did you know you can get your Daily Market recap report on YouTube, listen to it on our Podcast, or get it in your inbox?
Watch it, Listen to it, Or, read it. Sign up for a free Stock Card account to get the report in your mailbox every day. WHAT'S UP?
Both Lowe’s (LOW) and Home Depot (HD) posted earnings this week, but share prices have gone opposite directions.
Today, I was browsing the list of winners on Stock Card and Lowe’s Companies (LOW) caught my eye. Lowe’s is the second-largest home improvement retailer in the world, so I wondered what could have moved the stock 10% in a session. Before today, the stock was at its lowest point in nine months. It seems that it was sliding quickly based on Home Depot’s (HD) subpar earnings report from two days ago. Investors looked at the HD's disappointing same-store sales growth and assumed Lowe’s would share the same picture.
Fortunately, Lowe’s had decent earnings and a good financial outlook today, which was enough to please the pessimistic investors. Home Depot’s CEO had blamed inflation such as lumber prices for its impacted sales, and while that certainly affected Lowe’s as well, its management is taking a more optimistic approach. Home Depot didn’t give a financial outlook due to rising COVID cases, yet Lowe’s raised its forecast for the rest of the year despite acknowledging that there was uncertainty. Lowe’s Stock Card is a nice 3-greener. Home Depot has similar ratings, but its stock price is a little more expensive, and it has posted a worse return on investment over the past year, or three, compared to Lowe’s. If you are trying to pick between these two home improvement giants, Lowe’s is looking like your better bet. I don't own either of the two. ETF SPOTLIGHT
A new development in gene-editing technology gave investors the conviction to double down on gene-editing stocks.
As part of my market research today, I noticed the number of gene-editing stocks that ARK Invest picked up yesterday on its trades tracker on the ARK website. It got me curious as to why Cathie Wood and her team decided to scoop up so many genome shares this particular week.
Some of you who follow my portfolios on Stock Card know that I’m a big fan of the future of gene editing. It’s a megatrend that will be shaping much of our future! A while back, I split $10,000 between 10 gene-editing stocks and I’m planning to hold them and go long. Back to ARK, according to ARK Invest's latest newsletter, there’s been a great breakthrough from the researchers at Harvard and Howard Hughes. They call the new technology “prime editing,” and it’s going to help us treat a wider range of conditions, and do it more effectively. The main advantage to prime editing is how much neater the process is when editing a strand of DNA. Prime editing allows researchers to “copy” new information onto DNA without risking damage. This is another step towards gene-editing that can benefit our entire society. That perfectly explains why Cathie and her team got a stronger conviction about the future of gene editing stocks. While I picked 10 gene-editing stocks to ride the wave, it's also possible to buy gene-editing-focused ETFs and simplify your process. Here’s two I like:
Let me know in the comments if you’re joining me as a shareholder of the megatrend that is gene-editing! FEATURED PARTNER PORTFOLIO
Stock Card partner Brian Feroldi breaks down Shopify (SHOP) in his newest video.
Folks, you know that here at Stock Card, we like to partner with successful investors who can share their research, stock picks, and analysis with you. Brian Feroldi & Brian Stoffel run a YouTube channel where they break down and analyze stocks we all want to own.
Yesterday, they released a video where they dug into Shopify (SHOP) stock. I would highly recommend that you check out their video! Also, both Brians are intelligent investors who share their portfolios on Stock Card on the Stock Picks page. Brian Feroldi runs two: a Quality Checklist Portfolio and an interesting Anti-Portfolio, which consists of the stocks he reviews but doesn’t think quite stack up. Brian Stoffel also has two portfolios: Fragile Portfolio and Anti-fragile Portfolio. Make sure to follow them both on Stock Card to be notified when they add a stock to their portfolios. WANT TO RECEIVE THIS DAILY STOCK MARKET REPORT IN YOUR MAILBOX?
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KEY POINTS
New regulations in China and declining retail sales dampened the market today.
Recent IPO stock Monday.com (MNDY) and GreenVision Acquisition (GRNV) jumped today. Get exposure to new IPOs in the U.S. and internationally with these ETFs! OVERALL MARKET
New regulations in China and declining retail sales dampened the market today.
The market indices ended the day in the red across all three indices.
While there weren’t any huge stories moving the market, there were some small developments that held back the indices. Chinese stocks listed on U.S. exchanges were hurt once again by new regulations coming from the Chinese government. The new rules are meant to keep companies more honest and prevent corporations from gaining too much power over their competition. Stocks such as Tencent's (TCEHY), which we discussed on this show a few times, were impacted by these new regulations. Also, retail sales have been in decline based on July numbers from the U.S. Census Bureau. This is perhaps part of the return to normal in society, as people spend less time buying things and more on services and experiences. It is weighing slightly on retail stocks and the market as a whole. GET THE DAILY MARKET RECAP
Did you know you can get your Daily Market recap report on YouTube, listen to it on our Podcast, or get it in your inbox?
Watch it, Listen to it, Or, read it. Sign up for a free Stock Card account to get the report in your mailbox every day. WHAT'S UP?
Recent IPO stock Monday.com (MNDY) and Greenview Acquisition (GRNV) jumped today.
I noticed Monday.com (MNDY) on today’s list of most-viewed stocks on Stock Card. Having worked with many different teams on various projects before, the collaboration software company is very familiar to me! The company posted some great earnings, including a 94% growth in revenue. It sounds like the company is capitalizing on the work-from-home trend that has got so many teams communicating and collaborating online. One statistic, in particular, caught my eye: The number of paid enterprise customers with more than $50,000 in annual recurring revenue was up 226%. This means Monday.com is acquiring larger clients, which accelerates and sustains growth. You may have seen some of Monday.com's advertisements on YouTube. Their platform is as sleek as their ads. This is a stock worth adding to your watchlist.
Monday.com happens to be a recent IPO, having only gone public in June. Speaking of which, I found another new IPO on the winner’s list today on Stock Card. GreeVision Acquisition (GRNV) has made it to the top of the list. This is a SPAC that will acquire and merge with Helbiz, Inc. The deal was announced in February but the company will now be listed under the ticker #HLBZ. Helbiz is a micro-mobility company, it generates revenue through e-scooters, e-bikes, e-mopeds, and its associated app. Generally, I have a negative view of e-scooter stocks. There are too many e-scooter companies, they’re hard to differentiate from each other, and it doesn't help to see scooters left alone on the sidewalk across large cities such as LA and San Francisco. Unless I see very impressive operational numbers from this new SPAC merger, I'm sitting on the sideline. ETF SPOTLIGHT
Get exposure to new IPOs in the U.S. and internationally with these ETFs!
As you know, you can get the list of companies by their IPO date on Stock Card. All it takes is typing IPO in the search bar to get the 2021 IPO list. There are 1477 companies here, It’s great to filter through for your research.
When I searched “IPO” to pull up the 2021 IPO collection, I also noticed that there were multiple IPO ETF funds. Take a look at Renaissance IPO ETF (IPO), which holds recent IPOs as 80% of its assets. Based on its ETF Card, it has high performance risk but has outperformed the market. It makes sense to see the high-risk, high-reward nature of this fund. Another similar IPO is the Renaissance International IPO ETF (IPOS). This fund gives you exposure to the most significant non-U.S. listed newly public companies. Considering the record-high number of IPOs this year, the combination of these two ETFs can give you good exposure to global IPOs, and save you the hassle of picking which IPOs to buy. For me, for example, seeing stocks such as Oak Street Health Inc (OSH), Change Healthcare Inc (CHNG), BridgeBio Pharma Inc (BBIO) on the top 25 holdings of IPO ETF shows the benefit of investing in this fund. These are stocks I have never looked at. What about you? Do you see any benefits in investing in the IPO and IPOS ETFs? Let's talk in the comments on our YouTube channel and Facebook. FEATURED PARTNER PORTFOLIOS
Stock Card partner Brian Feroldi breaks down Shopify (SHOP) in his newest video.
Okay guys, one last thing before we end today’s daily recap. You know that here at Stock Card, we like to partner with smart and talented investors who can share their expertise, and help us all succeed. Brian Feroldi & Brian Stoffel run a Youtube channel where they break down and analyze stocks that have potential to be a great investment.
Today, Brian released a video where he and Stoffel picked apart Shopify (SHOP) stock, which has been a favorite of mine for a minute now. I would highly recommend that you check out their video! Both Brians are intelligent investors who share their portfolios on Stock Card on the Stock Picks page. Brian Feroldi runs two: a Quality Checklist Portfolio and an interesting Anti-Portfolio, which consists of the stocks he reviews but doesn’t think quite stack up. Brian Stoffel also has two portfolios: Fragile Portfolio andAnti-fragile Portfolio. Make sure to follow them both on Stock Card to be notified when they add a stock to their portfolios. WANT TO RECEIVE THIS DAILY STOCK MARKET RECAP IN YOUR MAILBOX?
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KEY POINTS
OVERALL MARKET
The market began the week with mixed numbers, as some Fed officials called for a tapering of bond buybacks.
The market indices ended the day mixed.
The S&P 500 and DOW Jones hit new records by the close today, while the NASDAQ slipped slightly into the red. There hasn’t been much happening today that moved the market, and it shows in the indices. One piece of noteworthy news was on The Wall Street Journal about some Federal Reserve officials beginning to call for a tapering of bond buy-backs next month at the Fed's upcoming meeting. Bond purchases are meant to support the economy by encouraging lending and spending, and tapering those buy-backs is part of returning to a more normal economy. However, opinions remain split on whether this step should be taken so soon or not. We still have to wait for the Fed's meeting to hear about their official stand on the matter. Let's keep an eye on them. GET THE DAILY RECAP
Did you know you can get your Daily Market recap report on YouTube, listen to it on our Podcast, or get it in your inbox?
Watch it, Listen to it, Or, read it. Sign up for a free Stock Card account to get the report in your mailbox every day. ETF SPOTLIGHT
The Electric Vehicle megatrend is shaping the future, and two EV ETFs may be a way to invest in it - IDRV and BATT.
Electric Vehicles, or “EVs,” are one of the megatrends shaping society. It's no accident that EV stocks created so much buzz in the market last year. For one, the EV battery and vehicle costs are declining rapidly, encouraging automakers to pledge to fully or partially transition to EV. Also in favor of electric transportation is climate change-friendly policies by governments around the world. These are creating the infrastructure required to make the transition from combustion engines to EVs. For example, the Biden administration's infrastructure bill focuses on developing EV charger networks across the U.S.
That's why the EV megatrend is one of the trends every investor should consider in his or her portfolio, especially if you are investing for the next decade or so. But, it's very difficult to decide which EV stock is going to win the market. Is it pure-play car makers like Tesla (TSLA) or old-timer companies such as Volkswagen (VW)? When it comes to megatrends that are in early innings, and it's hard to figure out which company would be the winner, one strategy is to invest in a well-managed ETF. Ideally, one that is putting a diversified basket of such stocks together and charges a reasonable fee. I took a look at a few EV-oriented ETFs today. Here are two of them I found worth your attention: The iShares Self-Driving EV and Tech ETF (IDRV) is a fund that tracks notable transportation companies that develop autopilot systems, and of course, electric vehicles. I came across this ETF on Nio’s (NIO) Stock Card. NIO is one of the top 25 holdings of this fund. Under the Valuation section, we can see that this fund is considered cheap to buy right now and has a great forecast for growth in the future. Scrolling down even further, it looks like the ETF gives you a wide range of exposures regarding countries, sectors, and market cap. This can be better than investing in something like the S&P 500. Another prominent ETF is the Amplify Lithium & Battery Tech ETF (BATT). This particular fund is focused on lithium battery technology that powers the EV industry. In the same sense that gas mileage is a major selling point for vehicles, the same goes for electric car batteries. Investing in the future of lithium batteries gives you plenty of exposure to the EV boom, and this ETF is a great opportunity for that. Once again, you can see that BATT is reasonably priced but has reasonable risk as well. Make sure to pay attention to the details here! If you expand the risk section, you’ll see that the “turnover” rate for stocks here is 131%, meaning that the fund managers are doing more trading than holding. Just something to be aware of before you park any money there! If you have a favorite EV ETF, let me know in the comments. I'm still looking to find the best one to invest in and benefit from this megatrend. WHAT'S DOWN?
EV leaders' stock price drop shows how Tesla and NIO plan to compete with global automakers that are entering the EV sector rapidly.
Speaking of the lithium battery ETF, one of its top 25 holdings happens to be Nio Inc. (NIO). Nio is one of the most prominent EV companies in China. Today, Nio shares were down nearly 6% after one of its SUVs was reported to have crashed while driving on autopilot, killing the driver. On Nio’s Stock Card, you’ll see that it has great sales growth and a strong balance sheet. Despite this, setbacks like today are inevitable as the driving systems are refined. It’s hard for investors and regulators to brush off serious issues like these. Today was not the hottest day for the stock, nor other EV companies, which may mean a chance to pick up shares if you can tolerate volatility like today.
Tesla (TSLA) also fell in tandem with Nio today, dropping more than 4%. This is due to a similar situation in the U.S. The National Highway Transportation Safety Administration, or NHTSA, filing an investigation into Tesla’s autopilot feature. The filing cites at least 17 injuries and a death concerning the Autopilot system developed by the company. The NHTSA also referred to 11 instances where a Tesla driving on Autopilot hit emergency responders or their vehicles. An exciting takeaway on both NIO and TSLA is that the EV megatrend and the autonomous or autopilot developments are merging, as leading EV makers try to differentiate themselves from old-time car makers who are entering the EV market in droves. You can find Tesla as a top 25 holding of the iShares Self-Driving EV and Tech ETF (IDRV) that I mentioned earlier. The case to invest in NIO and Tesla is shifting from EV makers to autonomous car makers, which is a noteworthy change if you are holding these stocks. It's good that they are making a move, but it also means many more years of volatility as these companies sort through the challenges related to autopilot technology. WANT TO RECEIVE THIS DAILY STOCK MARKET RECAP IN YOUR MAILBOX?
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