Tech-Heavy Earnings Week
By Mon, Oct 26, 2020
Hey Scoopers,
The market indices got affected by the possible heightened tension between the U.S. and China. — More on that in the “Overall Market” section.
Beyond the overall market, investors bought the rumor about one African stock and sold the fear about an American tech stock. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, this week is a tech-heavy earnings report week. What’s on your radar? — 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 indices took the opposite direction and ended last week, either slightly in the red or the green. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price surged above the $13,000 mark in response to the news that PayPal (Ticker: PYPL) plans to add Bitcoin and few other cryptocurrencies to its services in 2021.
32X bigger than 5G?
5G and “AI” are all the rage…
But here’s what you likely don’t know:
The world’s best investors are lining up behind an explosive new technology that could trump them all. Warren Buffett calls it “ingenious.”
U.S.-China Tension
The Dow finished Friday in the red, and the other two indices inched slightly above zero in the green. Some of the negative sentiment was due to the heightened tension between the U.S. and China as the U.S. government aims to shut down TikTok and WeChat’s operations in the U.S.
Buying The Rumor
So, what happened?
Shares of Jumia Technologies (Ticker: JMIA) were up by more than 8% on Friday. Those shares were already up more than 100% since early October. Jumia, also known as the Amazon of Africa, was once the target of short-sellers, and now it seems short-sellers are changing their minds. There are also rumors that a new fresh round of global investments is heading Jumia’s way. Investors are rushing to buy the rumor.
Silicon Valley Visionary: “This Will Be the No. 1 Tech Stock of 2020.”
Jeff Brown is a tech investor known for his incredible success rate.
In fact, he’s invested in 111 different tech startups… and made money on 95.3% of them. Like Intabio, which developed a groundbreaking system to test biopharmaceuticals.
Jeff’s stake is up 900%. Or ShapeShift, which Jeff got into very early…
As of today, he estimates his investment is up 25,000%. He made 743% in three days on InfoSpace! And now, he’s just released the details on his number one tech stock for 2020.
Click here to watch this valuable presentation.
Tik Tok Problem
So, what happened?
Shares of Fastly (Ticker: FSLY) were down by more than 3% on Friday. That’s not all the hit the company has taken lately. The stock is down by more than 40% from its latest all-time high. And, it’s not the first time that the stock is taking a hit like that. Earlier in the summer, the same happened to Fastly. The price drops are due to Tik Tok. Every time there is news about the possibility of losing ByteDance (owner of Tik Tok) the stock gets hammered. The company is the most important customer of Fastly representing approximately 10% of its revenue. When Tik Tok spends less with Fastly investors get spooked. Despite all its success, it seems Fastly has a Tik Tok problem.
Earnings Reports Worth Your Attention
So what happened?
This week is quite a tech-heavy week of earnings reports. There are a few on our radar: #SNOW #TWLO #SHOP #AMZN #MSFT
What are you watching?
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
