🍨 Daily Scoop: Amazon is eating the world

By Hoda Mehr Tue, Jul 16, 2019

What you need to know?

Monday and Tuesday are Amazon Prime Days. Yeah, we now have two whole days to spend more money on Amazon, and buy the stuff we need (or not) in one convenient click.

While online shoppers are happily spending money, the real winners are Amazon investors. Amazon’s stock price surpassed $2,000 per share, and almost reached a new all-time high level (52-week high is $2,050.50). It’s hard to believe that the stock was only about $1,300 less than a year ago.

Last Prime Day, Amazon (Ticker: AMZN) announced that more international users signed up for a Prime Account on July 16th, 2018 than on any other day in history. There is no reason to believe that this year is going to be any different.

What does it mean for investors?

While many investors shy away from investing in Amazon because they think there is no more money left to be made, days like Prime Days show just how much growth potential is still left. One can argue that, Amazon is eating the world.

• U.S. Markets: All three major indices in the U.S. stock market continued their upward trend from last week and closed Monday higher than where they started the day. Scroll to the Overall Market section to read more about what happened. 
• Cryptocurrency: Bitcoin price is now down and hovering around $10,000 per coin. Investors are attributing the decline in the price to the remark by President Trump and how he is not a fan of the coin. Crypto investing is sentiment-fueled. It’s no surprise to see such fluctuations.

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Will this party go on?

What happened on Monday?

Major stock market indices closed Monday higher than where they started. Looking at last week’s all-time high records, and Monday’s continuation of the trend, is it fair to assume that the stock market is going to continue upward?

According to Insights by FactSet, the S&P 500 stocks are expected to report an overall decline of -3% in Earnings per Share (EPS) during the Q2 earnings reports. However, even though EPS are expected to decline, but the results are expected to beat analysts’ expectations. Commonly, better-than-expected earnings results have resulted in higher prices. Will this dichotomy continue this quarter?

Now What?

The stock market is a game of expectations. Earnings can go down or up, but if they beat the analysts’ expectations, the stock prices will end up higher. That’s why it’s tough to predict the direction of the stock market in the short-term. It’s not about the actual results, rather about what the analysts would have wanted to see vs. the reality of the market.

Cannabis stocks and more specifically, CBD stocks, had a great day. The Food and Drug Administration’s acting CIO has announced on Twitter that the agency is expediting the development of a regulatory framework for CBD. The news has sent the stock prices in the industry high (ahem, no pun intended).

However, the unlikely winner of the news was not cannabis stocks. The real winner was Twitter (Ticker: TWTR). The use of the social media platform by government officials is now widespread. It is getting hard to imagine the world without Twitter anymore.

1/3 FDA is expediting its work to address the many questions about cannabidiol (CBD). This is an important national issue with public health impact, & an important topic for American hemp farmers and many other stakeholders. pic.twitter.com/XQbXb0KspU

— Dr. Amy Abernethy (@DrAbernethyFDA) July 12, 2019

About the Author

The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card