🍨 Daily Scoop: Here we go again

By Hoda Mehr Tue, Jul 9, 2019

What you need to know?

Pictures of Deutsche Bank employees leaving their office buildings are circulating the internet and bringing bad memories of the past.

After several years of trying to compete with the likes of Goldman Sachs, the German bank is wrapping up its equities sales and trading business in the U.S. The management plans to refocus the company on its core German market and clients, while continuing to run its now-smaller investment banking and corporate banking services in the U.S.

What does it mean for investors?

Too big to fail concept is not always true. Sometimes even large banks such as Deutsche Bank with operations entangled in politics, corporate banking, and investment banking may not be able to compete. Watch for potential value traps when investing in giant corporations under the premise that they are too big to fail.

• U.S. Markets: All three major indices in the U.S. stock market closed the day lower than where they started. Scroll to the Overall Market section to read more about what happened.
• Cryptocurrency: Bitcoin price surpassed $12,000 per coin, after an extraordinary $500 per coin surge in less than 10 minutes on Monday. Beyond technical movements, there are no apparent fundamental reasons to justify the surge. No surprise!

These 5 Stocks are Your Best Way to Play the Red-Hot CBD Market 

The global hemp-CBD market is projected to grow from its current size of $600 million to more than $22 billion by 2022.

This explosive growth has helped trigger high potential upside for a handful of companies who have emerged as leaders in the CBD space.

This Free Report reveals five stocks that investors should consider now as the best way to play the soaring global CBD market.

Click Here to Download the Free Report

Inching downward, like it is supposed to do. 

What happened on Monday?

Major stock market indices closed Monday lower than where they started. The decline in the stock prices was created by the fall in the Basic Materials, Industrials, Health Care and Technology sectors.

Now What?

Sometimes, there is no major news that drives the market down. Rather, it is a mix of several pieces of news that does the job. Monday was such a day. Looks like the stock market is just experiencing the usual pull and push forces as investors play around with their holdings.

It’s about time. 

Did you think there is no more room for Amazon.com (Ticker: AMZN),Overstock.com (Ticker: OSTK),or other e-Commerce retailers to grow? Think again. Until just two years ago, the government was not allowed to buy its supplies from an online store. Things are about to change now.

The General Services Administration is in the early stages of running a proof of concept project to open the doors for the government agencies to start buying online. Considering that the government is one of the biggest consumers in the U.S. economy, this may mean significant revenue opportunity for e-Commerce platforms such as Amazon (Ticker: AMZN) and Overstock.com (Ticker: OSTK) that were both up on Monday.

On Wednesday, when the news broke, shares of the company was down. However, by the end of the short trading day, the stock recovered and finished the day more than 2% higher than where it started. Looks like the stock market investors are in agreement with the move.

Although the jump in the price of Overstock.com’s shares is mainly fueled by the anticipated success of its recently launched crypto wallet, the potential of gaining a giant new customer was also quite helpful.

Apple is burning the market. 

Shares of Apple (Ticker: AAPL) were down more than 2% on Monday, and the stock market followed the company’s direction to the red zone. Apple plays such a big part of the major indices and ETFs that a few percentages change in the company’s stock price impacts the overall market.

The stock price decline came after a business downgrade by financial analysts, citing the deteriorating product cycle as the main reason for the downgrade.

Give me more money. 

So, what happened? 

Give me more money. That’s exactly what WeWork, the shared working space company, is asking private investors to do before it goes public. Reportedly, WeWork is worried about what happened to Lyft (Ticker: LYFT)and Uber (Ticker: UBER) after they went public and plans to shore up its cash stash by taking more debt! Ha?

None of these three iconic startups are profitable, and neither they have a clear path to profitability. That’s why WeWork has decided to raise between $3 to $4 Billion to show public market investors that it has enough cash to fund its operations for several years.

With the rise of these mega unprofitable companies, the definition of a successful company is being lost! We bet you, Benjamin Graham is rolling in his grave when he sees these companies’ valuations.

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