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The 1 trillion dollar infrastructure deal helped the S&P and DOW to reach record highs again.
The market indices ended the day mixed.
Stocks tied to economic growth got an optimistic boost today as the Senate passed a 1 trillion dollar infrastructure bill. Over half of it will be spent on transportation, utilities, and broadband connection in the U.S. That's most likely why investors remained positive and kept the S&P and DOW Jones in the green, setting new records for both.
Tomorrow, new Consumer Price Index numbers will be out. They typically impact the market sentiment, so let's keep an eye on them.
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Anheuser-Busch (BUD) releases its first beer for dogs. Is this company worth buying the stock?
Today's winning stock is courtesy of my dog Kratos. The other day, I passed by the fridge in the kitchen, and I heard him asking me to crack open a cold one for him! Well, something like that. Honestly, he just looked thirsty, and I took my best guess. Luckily, folks at Anheuser-Busch (BUD) were listening to him.
What am I talking about? I'm talking about a new kind of beer for dogs by the good people at Anheuser-Busch. The company just launched its Busch Dog Brew, as they call it. The drink is a mix of bone broth, corn, and celery that dogs can have with their food. This is the first of its kind by the makers of Budweiser, America's favorite beer. I love how innovative this product is; it shows Anheuser-Busch is open to explore and fund new ideas. The company even has a Research Pilot Brewery for this very reason, where the team originally developed the idea.
Anheuser-Busch (BUD) produces five of the top 10 beer brands globally by sales and has 18 brands with retail sales of over $1 billion. The company is focused on growth and adapts to new trends, like its expansion into seltzer versions of many of its popular brands. Looking at the company's Stock Card, sales were hit heavily during the pandemic when restaurants and events were shut down. Now, in 2021, revenue is expected to grow by 13%. It's profitable and generates free cash flow. However, it hasn't been able to overperform the market in the past, and while it pays nearly 2% in dividends, the company's debt situation is problematic.
Its ability to innovate makes it a stock to monitor and potentially pick for a dividend-focus portfolio, especially because the stock is also undervalued at this point. The stock might not be getting a nod of approval from us, but the move is winning the hearts of dogs. Woof!
By the way, I heard about this story on the Robinhood Snack podcast on one of what I consider to be their best podcast episodes yet! Thanks, Jack and Nick, Robinhood Snack's podcast hosts.
Coinbase (COIN) stock is down nearly 4% today after its earnings report.
Stock Card has plenty of tools that you can use for research. One of my personal favorites that I use often is the earnings calendar under the Tool's section. Today, I noticed Coinbase (COIN) was down by nearly 4% after seeing it on the calendar. As we all know, Coinbase is one of the world's largest and most well-established cryptocurrency exchanges. The stock is down despite Bitcoin and crypto regaining momentum in the last few days. This is surprising to me, so let's explore why:
In the shareholder letter for today’s earnings, the company pointed to the crypto market’s volatility for its eye-raising numbers. On a good note, Monthly Transacting Users (MTUs) for individual investors (retail investors) grew 44% from Q1 2021, and net profit was up about 4900% from last year. The influx of transactions and cash flow was seemingly tied to the hype generated by crypto’s boom in April.
On the negative side, the company forecasted a decline in trading volume for the next quarter. This likely turned investor sentiment against the stock. It’s also important to note that a week ago, the chairman of the SEC approached Congress to ask for more power in regulating crypto. He was mainly concerned about platforms and products that may drop between “regulatory cracks.” He wants to create a safer market with more oversight that can protect investors in this volatile and risky frontier of finance. He needs to ask for permission because crypto isn't a security in the eyes of the regulators yet. So, the head of the Securities and Exchanges Commission (SEC) needs permission to regulate cryptocurrency exchanges. This will undoubtedly affect any crypto-adjacent business, including Coinbase, but whether it will be positive or otherwise remains to be seen.
You can, of course, look up and follow Coinbases's stock on Stock Card to get notified when important information changes about the company. Coinbase's core market on the company’s Stock Card, cryptocurrency, is expected to see plenty of growth in the coming quarters. Also, if you would like to get a good idea of other stocks in this space, search “cryptocurrency” in the search bar and get the list of stocks in the Digital Currency collection.
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Stocks to Buy In August by Bow Tie Nation Portfolio
Folks, Stock Card partner Joseph Hogue from Let's Talk Money channel has a new video and stock recommendations to buy in August. This month's portfolio review is quite cool because he has invited his community to come up with ideas. I quite enjoyed the video and got at least one good idea to add to my portfolio.
Watch Joseph's video and make sure to follow his Bow Tie Nation portfolio to get notified when he adds companies to the list.
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