Tech vs. E.U.
By Mon, Aug 31, 2020
Hey Scoopers,
Another week and another green market came and gone. — More on that in the “Overall Market” section.
Beyond the overall market, one stock’s killer performance during the COVID-19 wasn’t surprising, while another COVID-19 pandemic winner stock fell for no apparent reason. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, tech stocks surpassed the entire European market. — 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 Friday in the green. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price back up above the $11,500 mark, meanwhile, a new cryptocurrency called YFI, designed to handle traditional financial transactions such as loans and insurance just surpassed Bitcoin in monthly gain with more than 3,500% jump in a month. The crazy world of cryptocurrencies!
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Never Stops To Amaze Us
The market’s upward trend never stops to amaze us. The 5-day return of the three primary indices ranged from 2.59% and 3.39% without any major change in the underlying economy.
It Wasn’t Surprising
So, what happened?
Shares of Workday (Ticker: WDAY) were up more than 12% on Friday. This cloud-based human capital management platform provider announced its latest quarterly earnings report on Friday. The company managed to grow its subscription revenue by more than 23%, and its operational losses declined quite drastically. Workday has expanded its services to support companies in their transition to remote work, and safe return to normal as the COVID-19 has disrupted how we all used to work. The stock price jump should not have surprised anyone. Nevertheless, the stock jumped and we are all surprised.
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A Top Work-From-Home Winner Stock
So, what happened?
Shares of Wayfair (Ticker: W) were down by more than 6% on Friday. The company The online furniture store has benefited tremendously from the transition of the world to work from home. People are spending more time in their homes, and that means new furniture shopping and remodeling projects are on the rise. Even after the decline on Friday, the stock is up more than 170% in the last year or so. There are no operational reasons for Friday’s decline aside from the usual hypothesis that investors are locking some of their gains. Regardless of the drop on Friday, Wayfair is among the top Work-From-Home winners.
Tech Stocks Rule The World
So what happened?
Tech stocks’ success is not surprising to any of us, investors. However, the magnitude of their success becomes apparent when comparing their valuations with the overall European stock exchanges. According to Bank of America, quoted on CNBC, the European stock exchanges were four times bigger than the tech sector in 2007. Since then, the value of technology companies has grown to surpass the entire European stock market. The tech stocks rule the world!
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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
