The Race Is On
By Wed, Sep 9, 2020
Hey Scoopers,
A vaccine trial was put on hold, and the stock market kept slipping as it has been doing so in the last few days. â More on that in the “Overall Market” section.
Beyond the overall market, there was excitement about a SPAC that enables autonomous mobility, and the S&P 500 index disappointed Tesla investors. â More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, the autonomous car race just got heated. The race is on! â 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 ended Tuesday in the red. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price slipped some more and almost finished the day at $10,000 per coin.
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.”
No Good News
The market took its downward direction from where it left off on Friday and slipped a few percentages. With Tuesday’s decline, all three indices lost everything that they have gained in the last month or so, and then some. One of the main reasons for the stock market to drop was the news that one of the frontrunners in the COVID-19 vaccine race has been put on hold for safety reasons. It’s painful to see red days, but the market needs down days to give investors a chance to sort through the good, the bad, and the ugly parts of their portfolios.
Enabling The Autonomous World
So, what happened?
Shares of Graf Industrial Corp (Ticker: GRAF) were up more than 15% on Tuesday. This special purpose company (SPAC) announced its merger with Velodyne Lidar, a lidar technology startup for autonomous cars. As is the case for almost all SPAC-style IPOs, there is a lot of excitement about GRAF partially due to the future of autonomous mobility. Velodyne Lidar already has more than 300 customers and has generated an estimated average revenue of $60 million per year since 2010. And, it expected approximately $1 billion in revenue by 2024. With manufacturing facilities in the U.S., Japan, and Thailand, the company is similar to some of the IPO-ready startups we have come to expect. The company also forecasts that it would be EBITDA and free cash flow positive by 2022. No wonder why there is so much excitement about this enabler of autonomous technology. This is a stock worth watching in your portfolio.
The One Chart Pattern You Need to Retire
Rob Booker calls Markay Latimer the greatest stock picker he has ever met, and in this presentation, youâll learn why. She used one chart pattern to build her initial account from $2k to over $2M in just over two years! She calls it the “retirement pattern,” and youâll see exactly why in this exclusive replay.
Click here to learn everything
Disappointed Investors
So, what happened?
Shares of Tesla (Ticker: TSLA) were down by more than 20% on Tuesday. Tesla’s excitement got deflated after the S&P 500 index committed skipped adding the company to the index. Combine that with an already extremely pumped up stock price, and there wasn’t much to prevent the free fall. If history is a guide, there will be other news that would pump the stock up. For now, the S&P 500 index committee managed to disappoint Tesla investors.
The Autonomous Car Race
So what happened?
There was a big update from the autonomous car race that made Nikola (Ticker: NKLA) stock to jump as much as 40%. The company announced a partnership with GM (Ticker: GM) who has agreed to manufacture Nikola’s trucks.
The news got even more exciting because it happened on the day that Tesla’s stock dropped more than 20%. The autonomous race is on, and things are getting heated.
Our email address is members@tradestocks.com. We look forward to your questions, ideas, and suggestions.
Disclosure: Authors of this Scoop own shares of Tesla (Ticker:Â TSLA).
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
