Sad Mickey
By Wed, Sep 30, 2020
Hey Scoopers,
The market ended Tuesday slightly in the red as presidential debates started. Debates may be fueling a new round of speculations. — More on that in the “Overall Market” section.
Beyond the overall market, one social media stock seems to be recovering from an earlier dip due to higher analysts’ price targets. In contrast, a high-flyer stock dropped for no apparent reason. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, Mickey isn’t happy because no one took a chance to visit him during the pandemic. — 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: All three indices reversed their course and ended Tuesday in the red. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price has remained flat compared to Monday.
The Elephant in the (5G) Room
Now is a time when it pays to heed timeless financial wisdom.
John Templeton, one of the world’s greatest investors, once said, “To buy when others are despondently selling and to sell when others are avidly buying requires the greatest of fortitude and pays the greatest ultimate rewards.”
Presidential Debates May Fuel Volatility
After a volatile day, all three indices ended Tuesday in the red but not too deeply. The U.S. election is getting closer, and the debate season is about to start. The debates could only add to the speculations about who would be the next president, and how that would impact the market.
Higher Price Target by Analysts
So, what happened?
Shares of Facebook (Ticker: FB) were up by more than 2% on Tuesday. After surpassing $300 per share earlier in the year, the stock price has been sliding ever so slightly. The reversal in the direction seems to be related to investors buying the “dip.” Accordingly to financial analysts, the stock price should be around $291 per share. While by key valuation metrics such as PE ratio, the stock seemed to be overvalued by the analysts’ targets and may have encouraged investors to pick up some shares.
Collapse of 2020 (Phase II)
The coronavirus pandemic is only the beginning of a financial nightmare sweeping across America. Now this crisis has unleashed a chain of devastating economic events. Almost everything in your life is about to change. This is what’s coming next and how to escape the dangers while building wealth.
Go here for the urgent details…
No Reason For The Drop
So, what happened?
Shares of Zoom Video Communications (Ticker: ZM) were down by more than 4% on Tuesday. This high-flyer stock rarely sees red days. The stock price decline on Tuesday came after a partnership announcement with Lumen. Lumen used to be called CenturyLink, and it’s the company that powers “450,000 route miles of fiber, including over 35,000 route miles of subsea fiber connecting Europe, Asia, and Latin America.” The stock price dip shouldn’t have anything to do with this news since the partnership could only make Zoom faster and better. Nevertheless, the stock dropped a few percentages.
Mickey Isn’t Happy
So what happened?
The Walt Disney Company (Ticker: DIS) is about to lay off more than 28,000 employees (full-time and part-time). Earlier in the year, the company decided to reopen its theme parks. The question at the time was who would go to theme parks amid the Coronavirus pandemic. The answer is now apparent, and it seems that not too many people took the chance to visit Mickey during the pandemic.
Let us know if you have any feedback, question, or suggestions by emailing us at members@tradestocks.com.
Disclosure: Authors of this Scoop own shares of The Walt Disney (Ticker: DIS).
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
