TikTok Frenzy
By Fri, Aug 28, 2020
Hey Scoopers,
The market swings up and down due to a combination of COVID-19 testing news and Chairman Powell’s remarks. — More on that in the “Overall Market” section.
Beyond the overall market, we came across a new and interesting stock in the video streaming war, while one company’s success in the COVID-19 testing became another’s misery. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, TikTok has unraveled quite a frenzy. — 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: Despite high volatility, stock market indices ended the day not too far from where they started. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price hovered under the $11,500 mark for one more day, while Billionaires Winklevoss brothers painted a picture for a $500,000 price tag for Bitcoin.
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A Volatile Market
The market was quite volatile. On the one hand, the news related to the availability of a fast COVID-19 test excited investors. On the other hand, perhaps, the remarks by Chairman Powell about a new Fed strategy to allow for higher inflation based on average inflation rate confused investors.
A New Play In The Streaming War
So, what happened?
Shares of Chicken Soup for the Soul Entertainment (Ticker: CSSE) were up more than 4.5% on Thursday. We just added this company to our watchlist. It’s a small $170 million video streaming and content development company. You may know of one of its products called Crackle. Perhaps, the last time you were trying to find the next best content to watch on your smart TV, you have seen the name. We have done that, too. However, to our surprise, the company has just announced a 10 times growth in its adjusted EBITDA, with growing revenue and viewing hours. One year ago, the company created a joint-venture with Sony to create a high-margin, low-cost ad-supported streaming platform and has been able to develop a few hit original programming such as Going From Broke show. Additionally, the company offers the content producers an opportunity to distribute their content through a transaction-based on-demand video programming (TVOD) model, which is a less crowded segment of the streaming market. Of course, the company has to compete with other ad-based platforms such as Roku (Ticker: ROKU). However, this is a small and new player in the market that may be worth watching in the streaming war space.
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One Company’s Win Is Another’s Misery
So, what happened?
Shares of Quidel Corp (Ticker: QDEL) were down by more than 22% on Thursday. The company was a frontrunner in the development of rapid diagnostic testing solutions. The drop is most likely associated with Abbot’s approval of a $5 testing kit (Ticker: ABT). As usual, one company’s win turned into another’s misery.
A TikTok Frenzy
So what happened?
The CEO of TikTok resigned in the middle of multiple acquisition conversations with Microsoft (Ticker: MSFT), Oracle (Ticker: ORCL), and even Walmart (Ticker: WMT). The now-former CEO who left Disney’s streaming division to lead TikTok wasn’t happy with becoming a division of a tech company such as Microsoft. That could mean an acquisition deal is quite possible that the CEO has decided to leave the company.
Between an array of large tech companies involved in the acquisition and the U.S. government’s privacy and security concerns, TikTok has created quite a frenzy.
Our email address is members@tradestocks.com. Let us know if you have any questions, feedback, or ideas.
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
