Social eCommerce
By Tue, Jan 19, 2021
Hey Scoopers,
Lower retail sales figures in the U.S. dragged the stock market into the red zone on the last trading day of the week before the MLK long weekend. — More on that in the “Overall Market” section.
Beyond the overall market, one retailer stock maintained steady growth despite the rise of eCommerce, and one solar stock fell off the cliff courtesy of almighty Tesla. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, social eCommerce is on the rise. — 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 finished last week in the red. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price yo-yo’d back to $35,000 and up again to $36,000 during the long weekend.
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Less Shopping
The stock market indices finished the week in the red once more. There was a rapid fall in the early hours of the trading day, and even though all three indices dug their way out of the dip, it wasn’t enough to get them out of the red zone. The market dip is a reaction to the drop in retail sales in December, reported today by the U.S. Census Bureau. Consecutive to the retail sales drop, the 10-year Treasury yield fell below 1.1% as worries about inflation faded.
Steady
So, what happened?
Shares of Home Depot (Ticker: HD) were up more than 2% on Friday. There wasn’t any specific news to justify the 2% gain. It’s a profitable, cash-generating company with a solid dividend that can be invested at a fair price. Compared to its industry, it has a reasonable price to earnings ratio. It is one of the only retailers that have managed to stay stronger despite the world’s transition to eCommerce. This is the kind of stock you can add to your portfolio, enjoy the dividend, and not worry too much about it.
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Almighty Tesla
So what happened?
Shares of SolarEdge (Ticker: SEDG) fell more than 15% on Friday. There was a spike in solar stock prices on Thursday when President-elect Biden announced his stimulus plan, which included a push for solar energy. But, SEDG took a beating after a relatively quiet launch of a solar converter by the almighty Tesla (Ticker: TSLA).
The Rise of Social Commerce
So what happened?
This week a new IPO named Poshmark (Ticker: POSH) went public. If you are like us until the company went public, you had no idea that such a company even existed. It gives you a “shopping feed” where you can see what others have bought. Before you and I can invest in the stock, the price surged from $42 IPO price to $97.50 opening price. Since then, it has lost 18% of its value.
Typically when there are several new IPOs in the same space, it is the sign that the industry is getting ready to shift and evolve. Many of these new unknown names stay unknown and go bankrupt, but there are the next Amazon and Shopify somewhere in this list. It’s a list of stocks worth watching as these new IPOs like POSH announced their quarterly earnings reports, and we get to know them better. Something to watch in 2021 and beyond.
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
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
