🍨 Daily Scoop: Powered by Cryptos | Trade Stocks
Back to previous page
Daily Scoop

Powered by Cryptos

By Mon, May 17, 2021

Hey Scoopers,

The stock market rebounded for the second session in a row on Friday. — More on that in the “Overall Market” section.

Beyond the overall market, a Chinese EV maker has grown its market share in its home country. Meanwhile, an entertainment company failed to grow its subscribers. — More on that in the “What’s Up?” and “What’s Down?” sections.

By the way, crypto currencies boosted the world’s largest crypto exchange’s first earnings report ever. — 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: The stock market ended in the green zone on Friday. Scroll down to the “Overall Market” section to read more.
  • Cryptocurrency: Bitcoin‘s price stayed at $49K per coin.

Daily trading lessons right to your inbox

Get 12 free stock market lessons delivered to your email from Investor’s Business Daily, the leader in investing education for over 35 years. We’ll cover the basics of better investing and show you how to give yourself an edge in the market.

GET FREE LESSON outside the norm.
(By clicking you agree to receive email updates and special offers from Investor’s Business Daily)

Excessive Optimism

The stock market ended in the green zone on Friday.

The technology sector led the stock market to its second rally in a row as it recovers from steep losses earlier last week. According to market strategists, a correction before summer was necessary to eliminate the current bull market’s excessive optimism. Despite the Nasdaq index ending the week down by almost 1%, it outperformed the other indices in the week’s last session.

Dominating the Market

So, what happened?

Shares of NIO (Ticker: NIO) were up by more than 7% on Friday. After data showed the EV maker was the best-selling brand in China, investors’ sentiment turned bullish toward the company. According to China Automotive Tech and Research data, NIO is the fastest-growing EV maker in China. Furthermore, the company managed to grow its all-electric SUV market share to more than 23%. It seems that Chinese customers are staying loyal to local brands as the EV market expands.

How Are You Conquering Volatility?

Unfortunately, you’ll never fully take control of your financial future if you’re only using information from the past – lagging indicators and historical data.To bring your trading success to new heights, you will need a tool that uses past data to predict future stock movements. We want you to find the best trading opportunities faster.

Click here to register for our complimentary demonstration of this forecasting tool
(By clicking you agree to receive email updates and special offers from Vantage Point)

Missed Expectations

So what happened?

Shares of The Walt Disney Company (Ticker: DIS) were down by more than 2% on Friday. Although the stock witnessed a bull run in 2021, its second-quarter results brought back investors’ bearish sentiment. On Friday, investors were concerned about the company falling short of the expected subscriber growth. It expected to reach 109 million subscribers in the period. However, Disney+ ended Q2 with only 103.6 million subscribers. It seems that even for Disney, missing expectations can affect the stock’s performance.

Powered by Cryptos

So what happened?

Coinbase (Ticker: COIN) tripled its revenue in the last quarter.

After going public in April, Coinbase revealed its first earnings report as a publicly-traded company. On its first earnings report, Coinbase disclosed whopping numbers boosted by the crypto frenzy started in 2020. According to the earnings report, the cryptocurrency exchange more than four-folded its net profit compared to Q4 2020. Although the company is the exchange that charges the highest transaction fees, its revenue has tripled since the last report. Not different from its competitors, roughly all of Coinbase’s revenue comes from transaction fees. Coinbase’s CFO Alesia Haas believes it is a result of its philosophy of being the most reliable exchange, different from competitors that focus on offering the lowest fees. Even though Coinbase faced an unprecedented growth in demand during the 2021 first quarter, Alesia Haas stated the company did a fantastic job to make sure the exchange stayed up despite the higher traffic.

It seems that Coinbase is more than ready for a constant growing demand as the cryptos become more mainstream.

If you have any questions, or suggestions let us know by emailing us at members@tradestocks.com. We look forward to hearing from you.

About the Author

Felipe Nebesnyj is an Economics student who is passionate about the stock market and investing in the market. Originally from Brazil, he is working and studying in the U.S. and started learning about and researching the stock market at 16. Before joining Stock Card, Felipe worked on multiple stock market research projects that gave him the necessary knowledge and confidence to put into his stock market analyst career at Stock Card. Last but not least, he is an excellent violinist and enjoys video games.