Apple’s Announcement Lingers
By Wed, Feb 19, 2020
Hey Scoopers,
Apple’s announcement worried investors about the real impact of coronavirus and the three indices ended up not agreeing on the direction of the market — more on that in the “Overall Market” section.
Beyond the overall market, one company’s stock price dropped 20% and we are still wondering why it didn’t drop even more. While that was happening we got pleasantly surprised by approximately 20% gain by a company we have rarely discussed on The Daily Scoop — more on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, hedge funds and big-time investors can’t agree about one company that has the potential to help more than 40 million people around the world — more on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
Market Recap
- U.S. markets: Stock market indices didn’t agree on the direction on Tuesday. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price is back above the $10,000 mark with some people quadrupling their price forecast for the world’s largest cryptocurrency.
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Apple’s Announcement Lingers.
As we discussed on Tuesday, the announcement by Apple (Ticker: APPL) has got investors worried about the real impact of coronavirus on the economic performance of many different businesses. Chips stocks followed Apple’s announcement as investors are getting increasingly worried about the disruption in their production due to their operations in coronavirus-impacted regions. Apple’s announcement is just the first of a series of similar announcements expected by companies with operations in China.
What A Pleasant Surprise…?
So, what happened?
Shares of Vonage (Ticker: VG) were up more than 19% on Tuesday. We had to think deeply and look into our memories to remember what Vonage does. The company provides cloud-based telephone and communication solutions to businesses. And, boy oh boy, it surprised us with excellent quarterly performance. The company provides communication solutions behind favorite stocks such as Teladoc (Ticker: TDOC) and Peloton (Ticker: PTON). This one is going straight to the watchlist.
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Why It Didn’t Drop Even More?
So, what happened?
Shares of Groupon (Ticker: GRPN) were down more than 19% On Tuesday. Can you believe this company is still around? It was once the talk of the town, however, after it failed to prove to retailers that heavily-discounted offers can create repeat customers, it lost its mojo. In the recent quarterly earnings report, the company yet again missed its target, and the CEO talked about profound changes needed to bring the company back on track. Mind you that the company still makes free $4 million in free cash flow. But, it fails to show that it can grow its business to a bigger company than what it is now. We are wondering how come it took so long for the CEO to come to such a conclusion. If we were investors in Groupon (which we are not) we would have expected even further decline.
We Love It…We Hate It…
So what happened?
Reports are out that Ray Dalio, Parnassus Investments and HealthCore Management sold their Biogen shares. While Warren Buffet, Steve Cohen, Ken Griffin, and Brandon Haley are among the firms that snatched up Biogen’s shares. Even hedge funds can’t figure out what to do with this cash-generating drug-maker that may or may not dominate the Alzheimer’s market.
Some love it, and some hate it. However, we are certain more than 40 million people that suffer from this disease are hoping for Biogen to finally find a cure for Alzheimer’s disease.
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
