• Breaking News

    Friday, December 4, 2020

    Home Unlabelled Stock Market - Wall Street Week Ahead for the trading week beginning December 7th, 2020

    Stock Market - Wall Street Week Ahead for the trading week beginning December 7th, 2020

    December 04, 2020

    Stock Market - Wall Street Week Ahead for the trading week beginning December 7th, 2020

    Wall Street Week Ahead for the trading week beginning December 7th, 2020

    Posted: 04 Dec 2020 02:52 PM PST

    Good Friday evening to all of you here on r/StockMarket. I hope everyone on this sub made out pretty nicely in the market this past week, and is ready for the new trading week ahead.

    Here is everything you need to know to get you ready for the trading week beginning December 7th, 2020.

    Any progress on stimulus could give the market a boost in the week ahead - (Source)

    Stimulus to help the economy and vaccines to stop the virus are expected to the be the main focus in markets in the week ahead.

    Efforts to move along a fiscal package in Congress picked up momentum in the past week with Congressional leaders sounding conciliatory, and a bi-partisan group of senators pushing their own $900 billion proposal.

    "It probably boils down to how much [Senate Majority Leader] Mitch McConnell is willing to deal, and I don't know what the answer is to that," said Mike Schumacher, head of rate strategy at Wells Fargo. "If it's going to happen, next week is the week. The government runs out of money on Friday. Congress has to come up with a funding scheme."

    Strategists have said the two events could be tied, but Congress could also push through a spending resolution without including stimulus. Some programs will expire at the end of the month, if Congress does not provide funding, including unemployment benefits for millions of Americans.

    The on again, off again stimulus talks have led to skepticism in the market, and sets it up for a move higher if there is anything officially announced. "I wouldn't think it's fully baked in. I would say the stimulus is a positive catalyst, unless it's less than $900 billion," said Art Hogan, chief market strategist at National Securities.

    While stocks surged in the past week, bond yields also moved higher. Yields move opposite price, and bond yields have been rising on stimulus expectations. More spending means more debt, and that sends rates higher.

    The 10-year was at 0.97% Friday, and appeared ready to move back to the 1% level for the first time since March.

    "Is it the case here, stimulus is already factored in, and will people take their money and run?" said Schumacher.

    The S&P 500 gained 1.7% in the past week, ending Friday at 3,699, a record high. The Dow also ended up 1% at a record 30,218, and Nasdaq gained 2.1% to a record 12,464.

    Getting jabbed

    Vaccine news has been a catalyst for the market's surge since early November, when Pfizer first revealed the high efficacy of its vaccine. Since then Moderna and Astra-Zeneca both revealed results of their own vaccines.

    A Food and Drug Administration advisory committee meets Thursday on emergency use authorization for the Pfizer and BioNTech vaccine.

    "They're starting to roll it out in the U.K, and that's something that's going to be watched here to see how it unfolds," said Quincy Krosby, chief market strategist Prudential Financial. "That's the next issue for the market. The deliveries, the distributions. Are people being jabbed? These are all questions the market is concerned about about because they're looking forward to it unrolling smoothly in the U.S."

    About 3 million people will be vaccinated in the initial rollout. Moderna's vaccine is expected to be approved the following week, and by year-end both vaccines are expected to reach 20 million people in the U.S.

    "The vaccine news has started to see a bit of diminishing return in terms of its wow factor," said Hogan. "There's going to be some volatility around the logistics."

    Krosby said the virus remains in the forefront for the market because of the continuing spread and its economic impact as activities are shut down. California Thursday announced new restrictions with stay at home advisories in some regions.

    "The big question is how long does the Covid surge last?" Krosby said.

    The virus shutdowns appear to be behind a slowdown in the labor market, and economists say it could slow activity into the first quarter. November job growth of 245,000 was about 200,000 less than expected. That makes Thursday's weekly jobless claims more important for markets.

    There is also CPI and PPI inflation data Thursday and Friday.

    "There is this push pull in the market regarding inflationary pressures," said Krosby. "It's not expected, which is why if it does print higher, it could ignite the conversation regarding inflation."

    This past week saw the following moves in the S&P:

    (CLICK HERE FOR THE FULL S&P TREE MAP FOR THE PAST WEEK!)

    Major Indices for this past week:

    (CLICK HERE FOR THE MAJOR INDICES FOR THE PAST WEEK!)

    Major Futures Markets as of Friday's close:

    (CLICK HERE FOR THE MAJOR FUTURES INDICES AS OF FRIDAY!)

    Economic Calendar for the Week Ahead:

    (CLICK HERE FOR THE FULL ECONOMIC CALENDAR FOR THE WEEK AHEAD!)

    Percentage Changes for the Major Indices, WTD, MTD, QTD, YTD as of Friday's close:

    (CLICK HERE FOR THE CHART!)

    S&P Sectors for the Past Week:

    (CLICK HERE FOR THE CHART!)

    Major Indices Pullback/Correction Levels as of Friday's close:

    (CLICK HERE FOR THE CHART!

    Major Indices Rally Levels as of Friday's close:

    (CLICK HERE FOR THE CHART!)

    Most Anticipated Earnings Releases for this week:

    ([CLICK HERE FOR THE CHART!]())

    (T.B.A. THIS WEEKEND.)

    Here are the upcoming IPO's for this week:

    (CLICK HERE FOR THE CHART!)

    Friday's Stock Analyst Upgrades & Downgrades:

    (CLICK HERE FOR THE CHART LINK #1!)
    (CLICK HERE FOR THE CHART LINK #2!)
    (CLICK HERE FOR THE CHART LINK #3!)

    Stocks and Bonds Both in Rally Mode

    When it comes to equity market performance in a given month, it doesn't get much better than November. While the S&P 500's total return of 10.95% in the month was only the second-best monthly performance of the year, it was still enough to rank as the third-best month for the S&P 500 in the last thirty years and just the ninth month since 1980 that it was up 10%+.

    The chart below shows the S&P 500's annualized total return over the last one, two, five, ten, and twenty years and compares the current returns to the historical average. For the last year, the S&P 500's total return has been 17.5% which is nearly six full percentage points higher than the historical average. For the last two years, the annualized return has been nearly as strong at 16.8%, and it is actually even stronger relative to the historical average of 10.5%. Moving further out the time horizon, the S&P 500's annualized returns drift lower, and while the five and ten-year annualized returns are greater than average, the S&P 500's annualized gain of 7.3% in the last 20 years is more than 3.5 percentage points below the historical average of 10.9%.

    (CLICK HERE FOR THE CHART!)

    The last couple of years haven't just been strong for equities. Over the last year, long-term US Treasuries, as measured by the Merrill Lynch 10+ Year US Treasury Index, have rallied 15.7%, which is more than six full percentage points greater than the historical average of 9.5%. Over the last two years, returns have been even stronger with an annualized gain of nearly 20%, or more than double the historical average of 9.1%! While the last two years have been strong for US Treasuries, the last five, ten, and twenty years have all seen returns of between one and two percentage points below their historical average.

    (CLICK HERE FOR THE CHART!)

    Lately, when you see rallies in the equity market, it tends to be accompanied by a decline in treasuries as yields rise. In November, though, that wasn't the case. Even with the S&P 500 up 10.95%, long-term US Treasuries rallied just over 1%. So how uncommon is it for stocks to rally like they did in November while bonds also rally. Actually, it is not very uncommon at all. The table below shows the nine months since 1980 where the S&P 500's total return in a given month was 10% or more, and of those months, long-term treasuies also rallied in every month but one (October 2011).

    (CLICK HERE FOR THE CHART!)

    Manufacturer Recovery Continues

    This morning, the Institute for Supply Management (ISM) released a less positive outlook for the US manufacturing sector. The headline number for ISM's Manufacturing index fell from 59.3 last month down to 57.5. A drop was expected, but the actual results were worse than the drop to 58.0 that had been forecasted. That reading indicates that the manufacturing sector continued to grow in November but at a slower rate than October.

    (CLICK HERE FOR THE CHART!)

    Similar to the various Federal Reserve bank surveys from around the country, breadth in the November report was more negative than in recent months. Of the ten indices excluding the headline number, only three were higher in November: Backlog Orders, Supplier Deliveries, and Export Orders. Additionally, two indices—Customer Inventories and Employment—showed contractionary readings.

    (CLICK HERE FOR THE CHART!)

    One theme of the report was that orders remain very healthy. New Orders fell from 67.9 to 65.1, but that is a sixth consecutive month of expansionary readings. Although the index was lower this month, meaning new order growth decelerated, it remains in the top decile of historical readings. As new orders have continued to grow, so too have backlogs. The index for Backlog Orders has continued to press higher, rising to 56.9 from 55.7. That is in the 88th percentile of all months and is now at the highest level since August of 2018. Demand continues to improve with new orders coming in at a historically strong pace, even though it is slower than last month, and order backlogs have once again risen as a result.

    (CLICK HERE FOR THE CHART!)

    As new order growth decelerated, so too did production. The index fell from 63.0 in October to 60.8 last month. That is still consistent with growth (readings above 50) in production but at the slowest rate since June. One factor that potentially had an impact on the slowdown in production is issues with suppliers. The index for Supplier Deliveries rose for the fourth month in a row in November and reached the highest level since May. Higher readings in the Supplier Deliveries index indicates longer lead times and vice versa. In other words, products from suppliers have been taking longer to reach manufacturers, in turn, impacting productivity.

    (CLICK HERE FOR THE CHART!)

    Although suppliers appear to have some constraints and production has slowed slightly, business inventories rose for the second month in a row even as more and more firms report that customer inventories are too low. The index for Customer Inventories now sits in the bottom 2% of historical readings after dropping another 0.4 points in November. At 36.3, the index is at the lowest level since June of 2010. That low reading can be considered positive for future production.

    (CLICK HERE FOR THE CHART!)

    Big Gains In November Steal From Santa

    What a month November was! Here are some of the highlights:

    • Best month for Dow since January 1987 (11.9%) and best November since 1928
    • Best month ever for the STOXX 600 (16.7%)
    • Best month ever for the Russell 2000 (18.3%)
    • Best month for the S&P 500 (10.8%) and Nasdaq (11.8%) since April 2020
    • Best month for Dow Transports since October 2011 (12.1%)
    • Best month from PHLX Semiconductor Index since March 2003 (18.4%)
    • Best month for Industrials (16.0%) and Financials (16.8%) since April 2009
    • Second best month ever for energy (28.0%)

    A way better than expected earnings season, a likely split Congress, and major breakthroughs on the vaccine front all helped stocks soar last month," explained LPL Financial Chief Market Strategist Ryan Detrick. "Add ongoing support from the Federal Reserve as the cherry on top and we are looking at a truly historic month on many levels."

    Here's all the Dow monthly returns since 1900. Last month was the best return since January 1987. Now before you go out and sell because you see 1987, remember the S&P 500 added another 20% the seven months after the huge gains in early 1987.

    (CLICK HERE FOR THE CHART!)

    It was the best November for the S&P 500 since November 1928.

    (CLICK HERE FOR THE CHART!)

    Small caps soared on the likelihood of taxes staying lower due to a divided Congress and vaccine progress, with the Russell 2000 adding more than 18% for the best month ever, topping the previous record from February 2000.

    (CLICK HERE FOR THE CHART!)

    What happens after a big month? Well, history says a 10% monthly gain is quite bullish. In fact, we had a 10% plus rally back in April 2020 and shared this same chart at that time. Sure enough, returns have been strong this time around as well. "The bottom line is the huge gains in November could actually be the start of something much stronger," according to Ryan Detrick. "Also, this was the second month of 2020 with a 10% gain. The only other year to do that? 1982, which kicked off a historic bull market."

    (CLICK HERE FOR THE CHART!)

    Turning to December, this month is widely known to be quite bullish, as Santa comes to town, people feel good, and stocks tend to do well. As shown in the LPL Chart of the Day, since 1950, December has been the second best month of the year, with only November better. December had been the best month of the year until the historic 9.2% drop in 2018. As a result, December hasn't been quite as strong over the past 10 and 20 years.

    (CLICK HERE FOR THE CHART!)

    Breaking it down even more, a big rally in November can potentially steal some of December's thunder. As after a 5% or 10% rally in November, the returns in December are more muted. The flipside to this though is if the S&P 500 is up more than 10% for the year (like 2020), then stocks have benefited from some performance chasing and have tended to do better.

    (CLICK HERE FOR THE CHART!)

    What does it all mean? After the historic move in November we wouldn't be surprised to see below average returns in December. We do believe this is a new bull market and lasting economic cycle of growth, but overall sentiment is getting quite stretched and this increases the potential for some near-term weakness. Please read COVID-19 May Threaten The Economic Recovey for more of our near-term thoughts.

    STOCK MARKET VIDEO: Stock Market Analysis Video for Week Ending December 4th, 2020

    (CLICK HERE FOR THE YOUTUBE VIDEO!)

    STOCK MARKET VIDEO: ShadowTrader Video Weekly 12.6.20

    ([CLICK HERE FOR THE YOUTUBE VIDEO!]())

    (VIDEO NOT YET POSTED!)

    Here are the most notable companies (tickers) reporting earnings in this upcoming trading week ahead-

    • (T.B.A. THIS WEEKEND.)
    ([CLICK HERE FOR NEXT WEEK'S MOST NOTABLE EARNINGS RELEASES!]())

    (T.B.A. THIS WEEKEND.)

    (CLICK HERE FOR NEXT WEEK'S HIGHEST VOLATILITY EARNINGS RELEASES!)

    Below are some of the notable companies coming out with earnings releases this upcoming trading week ahead which includes the date/time of release & consensus estimates courtesy of Earnings Whispers:

    Monday 12.7.20 Before Market Open:

    (CLICK HERE FOR MONDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

    Monday 12.7.20 After Market Close:

    (CLICK HERE FOR MONDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES LINK!)

    Tuesday 12.8.20 Before Market Open:

    (CLICK HERE FOR TUESDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

    Tuesday 12.8.20 After Market Close:

    (CLICK HERE FOR TUESDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!)

    Wednesday 12.9.20 Before Market Open:

    (CLICK HERE FOR WEDNESDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

    Wednesday 12.9.20 After Market Close:

    (CLICK HERE FOR WEDNESDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!)

    Thursday 12.10.20 Before Market Open:

    (CLICK HERE FOR THURSDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

    Thursday 12.10.20 After Market Close:

    (CLICK HERE FOR THURSDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!)

    Friday 12.11.20 Before Market Open:

    (CLICK HERE FOR FRIDAY'S PRE-MARKET EARNINGS TIME & ESTIMATES!)

    Friday 12.11.20 After Market Close:

    ([CLICK HERE FOR FRIDAY'S AFTER-MARKET EARNINGS TIME & ESTIMATES!]())

    (NONE.)

    (T.B.A. THIS WEEKEND.)

    (T.B.A. THIS WEEKEND.) (T.B.A. THIS WEEKEND.)

    (CLICK HERE FOR THE CHART!)

    DISCUSS!

    What are you all watching for in this upcoming trading week?

    I hope you all have a wonderful weekend and a great trading week ahead r/StockMarket.

    submitted by /u/bigbear0083
    [link] [comments]

    Here is a Market Recap for today Friday, December 4, 2020. Please enjoy!

    Posted: 04 Dec 2020 01:38 PM PST

    PsychoMarket Recap - Friday, December 4, 2020

    Stocks hit record levels again today despite disappointing data on job creation in November. The DOW and S&P 500 each hit a record-high intraday, led by energy and financial stocks. The Dow Jones (DIA) finished the day 0.8% up, the S&P 500 (SPY) finished 0.84%, and the Nasdaq (QQQ) finished 0.41% up.

    Yesterday, the Wall Street Journal reported that Pfizer (PFE) is experiencing supply chain issues that could result in only half of the estimated vaccines entering distribution. Pfizer, along with partner BioNTech (BNTX) announced plans to ship 50 million vaccines by year-end, half of the 100 million doses previously expected. The company says it still anticipates delivering over 1 billion doses by the end of 2021.

    Today, the Labor Department released their November jobs report, which showed the slowest pace of job growth since April's record spike in unemployment. Non-farm payrolls grew by just 245,000, much lower than the 460,000 expected. The deceleration in recovery is likely due to the record spike in infections this month and the reimposition of certain restrictions across the United States. However, it is important to note that recent job data has surprised to the upside. The weekly unemployment reported released yesterday showed the first drop in new unemployment claims in three weeks.

    As market participants and economist upgrade their estimates for 2021, many believe that cyclical and rotation stocks, like energy, financial, and reopening stocks, that were hardest hit by the pandemic will extend gains into next year. Brent Schutte, chief investment strategist at Northwestern Mutual said, "As you move into 2021, there will be broader economic growth, it will be more inclusive, you will see continued fiscal stimulus – I do believe we will get a package. You'll see the Fed continue. You have pent-up demand. Think about the rotation that we've been talking about … it's underway right now and it will continue into 2021. Think value, think small-cap, think emerging markets."

    Unfortunately, the United States once again set single-day records for new infections and deaths yesterday. According to Johns Hopkins University, there were more 211,762 new cases and 2,858 deaths reported yesterday, overtaking the previous record of 205,000 new infections and 2,760 deaths set yesterday. California Governor Gavin Newsom announced he would impose extremely strict stay-at-home orders when intensive care units reach less than 15% availability, which he expects to happen soon. The stay-at-home restrictions will begin with 48 hours' notice and remain in place for at least three weeks once they are ordered. Gov. Newsom said, "If we don't act now, our hospital system will be overwhelmed. If we don't act now, we will continue to see the death rate climb,"

    Highlights

    • The House of Representatives passed a bill today that would decriminalize marijuana at the federal level and set up a process to expunge past convictions. The chamber approved the measure in a 228-164 vote. Only five Republicans and one independent backed it. Six Democrats voted against the bill. It marks the first time the House has voted to remove cannabis from the Federal Controlled Substances Act but the act is expected to be shut down in the Senate.
    • The UN voted to remove cannabis from the Schedule 4 list, where it is listed alongside dangerous and highly addictive drugs like heroin.
    • According to the Wall Street Journal, Airbnb is schedules to IPO on December 10. This will be interesting, we will be sure to keep you guys updates!
    • Ulta Beauty (ULTA) with multiple target raises. Stock currently around $286.
      • Robert W. Baird from $220 to $300 OUTPERFORM
      • Piper Sandler from $300 to $345 OVERWEIGHT
      • Deutsche Bank from $284 to $310 BUY
    • Micron Technology (MU) target raised by Argus from $65 to $85 at BUY. Stock currently around $73.
    • Lowe's (LOW) target raised by Morgan Stanley (MS) from $190 to $210 at OVERWEIGHT. Stock currently around $151.
    • Home Depot (HD) target raised by Morgan Stanley (MS) from $300 to $320. Stock currently around $267.
    • Global Life (GL) target raised by Credit Suisse from $109 to $122 at OUTPERFORM.
    • DOMO with two target increases. Stock currently around $44.
      • Needham & Co. at $63 BUY
      • JMP Securities at $60 OUTPERFORM.
    • DocuSign (DOCU) with multiple bullish target increases. Average price target is around $300 and BUY rating. Stock currently around $250 after running yesterday
    • Crowdstrike (CRWD) with target raise by BTIG Research from $164 to $190 at BUY. Stock currently in $160s.
    • Broadcom (AVGO) target raised by Deutsche Dank (DB) from $400 to $450 at BUY. Stock currently around $405.
    • AdaptHealth (AHCO) target raised by Deutsche Bannk (DB) from $36 to $47. Stock currently around $35

    "Yesterday is history, tomorrow is a mystery, but today is a gift. That is why it's called the present." - Bill Keane

    submitted by /u/psychotrader00
    [link] [comments]

    Palantir bulls should take latest sell-off 'as a gift,' trader says

    Posted: 04 Dec 2020 06:04 AM PST

    https://www.cnbc.com/2020/12/03/palantir-bulls-should-take-latest-sell-off-as-a-gift-trader-says.html

    "It's a growthy tech company that has a lot of momentum behind it and that pushed the stock higher," he said. "If you like the stock, well, then this sell-off today is a gift. If you don't like the stock, you want to wait for a bigger sell-off."

    "It's a leader in the data analysis space as well as AI," she said. "And yes, they have government contracts and they've had those contracts for a while, but they're completely ignoring the fact that this company is expanding into the private space and there are so many applications for this software that they haven't even done yet."

    Investors should buy this pltr dip. The stock will be going back to $30. Investors should ignore this short term volatility and hold for long term.

    submitted by /u/coolcomfort123
    [link] [comments]

    Watchlist: 12/4 Vaccine Delayed, Markets Up

    Posted: 04 Dec 2020 04:04 AM PST

    Market Notes:

    PFE announced they were having problems in their supply chain and cut it's 2020 vaccine production outlook.

    Markets reacted with an end of day sell-off. But futures are back up this morning.

    There are more vaccines and this small stag is not going to extend the pandemic any further. Most people won't receive a vaccine until the middle of next year anyway.

    The markets are always forward looking. A return to normal is still being priced in.

    I'm still bullish. SPACs are lighting back up. Long list today...

    Watchlist:

    *Low Float ^SPAC

    *^SMMC has resistance at $14.50

    *^TRNE has support at $14.50

    *^CGRO is on watch

    *HGSH is on watch

    *^SRAC has support at $14.40

    *FPAY has resistance at $2.50

    *AQB has support at $6.50

    *CLRB has support at $2

    CASA has support at $6

    ^IPV has support at $11.50

    ^STPK is on watch

    RADA has resistance at $9

    NNDM has support at $7.40-50

    CDMO has support at $11

    ADTN has support at $14

    CRNT key level at $3

    ARLO has support at $6.50, resistance at $7.50

    GSM has support at $1.80

    EVRI has resistance at $13.50

    MIK has support at $12

    WETF has support at $4.50

    EAF has support at $9

    GOL has support at $10.25

    BCRX has support at $6

    QEP has support at $2

    submitted by /u/tradingforkeeps
    [link] [comments]

    When to let go of your stocks

    Posted: 04 Dec 2020 06:11 PM PST

    I'm familiar with getting to 40% ROI then selling half of your position but what's are some of your guys rules/guidelines for shaving down your positions and collecting ? Thx

    submitted by /u/jacobseye_
    [link] [comments]

    Summary of Roblox from Benchmark

    Posted: 04 Dec 2020 11:02 AM PST

    If you like this then subscribe to their update emails. None of this is my research so all credit to them.

    🔦 THE INTRO 🔦

    Roblox started in 2004 but was first released in 2006. It is an online game platform and game creation system. In simple terms, it allows users to program and play games created by other users.

    🌐 THE MARKET 🌐

    It is no secret; the gaming market is growing fast for several years and isn't losing its momentum:

    According to Global Data, the gaming market was worth $ 130B in 2018 and is set to rise to $ 300B by 2025 for a CAGR of 13%

    Mainly driven by mobile gaming and the advent of the 5G, cloud services and the rise in mobile e-sports

    According to Brand Essence Research, the global digital gaming market was worth $ 135B in 2018 and is set to reach $ 391B by 2025 for a CAGR of 16%

    Driven by the increasing penetration of portable gaming devices, live streams and e-sports

    🔥 THE BUSINESS 🔥

    Roblox enables any user to become a developer and create its own games, avatars and even tools for developers. But what does that mean?

    What are Roblox developers?

    Creators are the ones creating avatars and items players can use in games

    Developers are the ones assembling games for other users to play with

    Developers can also create tools and models for other developers to use when creating their game

    Does that mean that Roblox is running on auto-pilot?

    It literally built the "picks and shovels" and let its users create games, avatars and items other users can buy

    It even lets its users create tools and models for other developers

    Can really anyone become a developer?

    Roblox now counts 31.1m Daily Active Users and it counts 7m developers

    They got so many developers because it is not hard to turn yourself into a game developer
    "With Roblox, it's super easy for anyone to jump in at a moment's notice and start making something that's fun to play without any prior game creation experience or knowledge. It's that easy!" - David Jagneux for PCMag

    Why would anyone become a Roblox game developer?

    Gamers can purchase experiences and items for their avatar with Roblox's in-game currency: "Robux"

    1,050 developers earned $ 10.000 or more and around 250 developers earned $ 100k or more in Robux

    Developers and creators can then spend these Robux in other games or even cash out

    Ok, great! But where is the money?

    👇 THE MONEY 👇

    Right now, we have a big market and a company that has an attractive business model: build a platform and let users build their own game, promote them and sell avatars, experiences, tools.

    But what is their business model?

    Players buy Robux coins at an exchange rate of 1 Robux for $ 0.01

    Players spend these Robux on experiences and items (such as avatars)

    These Robux are distributed to the developers and creators

    Developers get from 30 to 70% of the Robux spent on their items, avatars, experiences

    Developers can then spend these Robux on other games. Or they can cash these out at $ 0.0035 per Robux

    Financial minds will have spotted the interesting deals Roblox created for itself:

    Users pay upfront for their Robux but spend these over time - A boon for Roblox's cash flows

    Roblox fixes the exchange rate and can reduce the appeal to cash out if it wants to

    💎 THE SUCCESS STORY 💎

    This strategy is working! Over 50% of kids in the U.S. play Roblox. What's more?

    DAUs grew 82% from 17.1m users in first 9 months of 2019 to 31.1m users in first 9 months of 2020

    Hours engaged grew 122% from 10B hours in first 9 months of 2019 to 22.2B hours in first 9 months of 2020

    Bookings grew 171% from $ 458m in first 9 months of 2019 to $ 1.2B in first 9 months of 2020

    Big numbers! But who are their users?

    67% of their users are under 17 years old with 25% of total being under 9

    72% play on mobile, 25% on desktop and 3% on console

    33% come from North America, 29% from Europe and 15% from APAC

    💸 FINANCIAL CHECK 💸

    Note: Data concerns the first 9 months of 2020.

    Revenue grew to $ 589m in 2020 from $ 349m in 2019 for 68% YoY Growth

    Cost of revenue (servers and infrastructure) grew to $ 154m in 2020 from $ 82m in 2019 for 88% YoY Growth

    Developers exchange fees grew to $ 209m in 2020 from $ 72m in 2019 for 190% YoY Growth

    R&D expenses grew to $ 138m in 2020 from $ 74m in 2019 for 86% YoY Growth

    SG&A expenses grew to $ 107m in 2020 from $ 60m in 2019 for 78% Growth

    Sales grew strongly year over year but there are some things we have to note:

    Gross margins (taking into account cost of revenues) decreased from 76% to 73% in 2020

    When adding "Developer exchange fees" (fees earned by developers), these margins decrease from 56% in 2019 to 38% in 2020

    👀 CLOSER LOOK AT FINANCIALS 👀

    However, we have to look at their "Bookings" in order to fully understand how Roblox reports its sales

    Bookings grew 171% from $ 458m in the first 9 months of 2019 to $ 1.2B in the first 9 months of 2020

    These bookings englobe all the dollars spent by its users during a period

    But Roblox can't recognize all of this cash as "Revenue" for 1 reporting period (3 months) as these will be spent by its users over time (on average 23 months)

    This is perfect! Roblox gets all the cash today and users spend it later

    Contributing very positively to their cash flows as FCF reached $ 296m in first 9 months of 2020 up from $ 6m a year earlier

    Furthermore, average bookings per DAU increased significantly from $ 27 to $ 40 in 2020

    🏦 GOING PUBLIC 🏦

    Sounds like an interesting opportunity! What is the price?

    Roblox privately raised $ 150m in February 2020 from Horowitz at a $ 4B valuation

    Some reports point to an $ 8B valuation

    But some other are speaking about $ 37B

    ⚡️ THE BOTTOM LINE ⚡️

    The Good

    Roblox provides the infrastructure and then lets its users build games, generate sales and promote their games

    Roblox is selling Robux coins, set the exchange rate and has to distribute these only later, creating a very advantageous cash flow situation

    The gaming market isn't done growing and Roblox fits perfectly into the "mobile-first" market that is now growing fast

    The Bad

    This may prove to be a fad and interest might dim over time as happened to many blockbuster games

    Roblox's market is made up of underage gamers - these don't have much spending power

    Young users might "outgrow" the game and switch to other games as they grow older

    The gaming market is moving fast. Businesses that have managed to thrive over time have managed to evolve with their offering to current demand

    submitted by /u/throwaway8619425
    [link] [comments]

    AMC & PFIZER NEWS | DOCUSIGN EARNINGS | LMND & DISNEY STOCK | STOCK MARKET NEWS [12-04]

    Posted: 04 Dec 2020 05:27 AM PST

    DocuSign crushes earnings and AMC may go bankrupt. Lemonade spiked yesterday over 20% while Pfizer confirmed delivery numbers, let's talk about this and everything new in the stock market

    Hey everyone! So, let's start with the recap of yesterday as we saw the DOW leading the way up almost 0,3% with the NASDAQ COMPOSITE close behind up 0,23% and finishing at a new record high while the broader market SP500 finished barely down for the day. All 3 of them were trading a lot higher intraday before the most recent Pfizer news popped up as they are only expected to ship half of the doses that were initially planned, but people spooked at this to much in my opinion. This thing was already known, when they published the candidate data in November, they also announced this number, but people runed away way to fast before going more into the data. Pfizer did not cut supply, they just explained why this happened in this latest headline. It is way better for companies to under-promise and over-deliver than the other way around.

    The VIX also saw a spike around the Pfizer news and finished higher for the day while 59% of companies were advancing with almost 150 new highs and just 3 new lows on below average volume of 11,5 billion shares compared to 11,7 billion shares in the last 20 trading days. CHART

    The best gaining sectors yesterday were Energy and Real Estate while Utilities finished more than 1% down for the day with small and mid-cap growth companies leading the way while the large-caps where lagging the market as you can see in this HEAT MAP as all the FAANG stocks were down with Microsoft also joining them. While TESLA continued to be red hot and Alibaba has finally regained some momentum.

    Here is the most important ECONOMIC DATA that will be released today as we will get nonfarm payrolls and unemployment rates in the early morning alongside the trade deficit, with Factory orders numbers coming in a bit latter.

    The FUTURES are largely higher today not only in the US but also Europe is gaining momentum after Germany manufacturing orders rose for the sixth straight month in October and Asia as the global retail sector saw an increase of 30% in transactions with the whole Black Friday to Cyber Monday period doing very well this year.

    While yesterday we got numbers on the NOVEMBER ISM as it continued to a sixth straight month of expansion with employment being the biggest gainer in the index with even greater numbers coming in from the PMI COMPOSITE with the fastest growth since 2015 as employment rose at the fastest pace in the history of the survey.

    Also, the Jobless claims came in whey lower than expected at 712k more than 60k below estimated with continuing claims dropping for the first time in the last 9 months to under 6 million

    Meanwhile we also got some sales number for October in the SEMI sector yesterday, as sales had big increases Y/Y and M/M with all regions ramping up sales on a monthly basis. This is great news for companies like Nvidia, QCOM, AVGO and many more.

    Moving on to the auto sector the US light vehicle sales forecast has seen an improved outlook for next year, up around 10% from 2020 at around 15.6 million with US EV SALES increasing over 70% next year, this could be a huge boost to Tesla and other EV ramping up players like GM and FORD.

    This is great news for Tesla after a big bear on the company just trimmed his short position on TESLA

    Lemonade had a big jump yesterday after the Motley Fool published a long pitch for this company. I also own this stock and I believe it can become a very big player in the insurance business in the future. At the moment the company still only has a small market cap but I plan to own this for the long-term(5+years) as I expect great things from them. But don't just rush today in the stock because it spiked 20%, wait for it to cool off, maybe dollar cost average on it.

    While I am very interested to see what Disney announces next week as they may give new information on how the streaming business is doing and what the plans for the company are looking forward as 30% of the revenues of the company came from parks in the last years. I don't think that parks are ever going to be such a big part of the company as streaming and content production will lead the way. But I still like this company very much as it is one of my biggest portfolio holdings and I can see this stock rising to 170$ in the near future.

    A couple of companies released earnings yesterday as DocuSign beat the top and bottom line with billings coming in at $440M way over the consensus of $386M due to many more customers using the electronic signature to close contracts. While they also offered guidance for next quarter of around $404M to $408M also better than consensus at $387M as the stock is up 5% pre-market.

    While Marvell missed on expectations as the company cited supply issues constraints that are limiting the capability to satisfy demand.

    Bad news also came in for AMC with Warner's decision to send all they're 2021 movies directly to streaming on the same day as the theatrical release. This combined with the fact that AMC is filling to sell around 200M shares, makes me think that this company is going to have the same route as Hertz. The cinema business wasn't doing so great since 2017, and this might be the final blow for the industry.

    And one final thought, it might be a good opportunity to get long on Dave & Busters, Chewy, Adobe and Lululemon for next week, as I think they are all poised for good quarterly results. So, I will give all of them a small allocation today as I think there might be some good upside here in a few days, as there is a lot of money still on the sidelines with the most recent AAII asset survey showing that investors have more than 18% in cash on hands that can be pumped in the stock market.

    Thank you everyone for reading! Hope you enjoyed the content! Be sure to leave a comment down below with your opinion on the stock market!

    Have a great day and see you next time!

    submitted by /u/0toHeroInvesting
    [link] [comments]

    Bond market emerging?

    Posted: 04 Dec 2020 08:50 PM PST

    what does everyone think about the bond market? With all the uncertainty in this day in age wont people start turning to a more secure way to save and invest their money? is this the time to start buying into bonds? And throwing in some calls on the more affordable bonds where people are going to be buying in the next few months to get in low? just some thoughts.

    ​

    my calls:

    HYG FEB 19 2021 20 CALL (20) @ 0.032 = currently down 53%

    BND MAR 19 2021 101 CALL (2) @.087= Currently up 819.54%

    submitted by /u/Semper_Fi_werewolf
    [link] [comments]

    Red Violet Q3 Earnings Review ($RDVT)

    Posted: 04 Dec 2020 07:45 PM PST

    Good morning

    Today we are going to be covering my smallest position, in the small cap Red Violet, who are seeking to take advantage of big data.

    Red Violet: Q3 Earnings Review

    Red Violet had a fairly average Q3 in terms of growth. Both top and bottom line improved, on quarterly and YTD basis when compared with the previous year, but the company are still visually suffering from the impact of the corona crisis. The company do have significant exposure to the real estate market in that one of their core products, Forewarn, is largely used by the industry as a method of screening potential home viewers, and to protect their real estate agents.

    Whilst growth in billable customers from their Forewarn and IDI offerings did occur, the growth was a little uninspiring. To add to that, the management earnings call was very brief. A quick overview from the CEO and CFO, and then two analyst questions and it was a wrap. This appears to be 'normal' for Red Violet. Looking back across the past few years of earnings calls, there have been similar length earnings calls, some longer and one with zero analyst questions. I suspect this is due to the lack of analysts covering the stock.

    Anyway, lets get stuck into the earnings report for Q3.

    Key Highlights

    The following information will be as of FY20 Q3, unless stated otherwise. Any percentage comparisons will be on a YoY basis, unless otherwise stated.

    • Revenues: $9.26 million +12.2%

    • Adjusted Gross Profit: $6.56 million +60.7%

    • Operating Loss: $918,000 ($1.03 million loss in FY19 Q3)

    • Net Loss: $925,000 ($992,000 loss in FY19 Q3)

    • IDI Customers: 5,758 +20.4%

    • Forewarn Customers: 44,927 +88.3%

    • Earnings per share: ($0.08)

    Just as a reminder to readers, Red Violet operates two brands in IDI and Forewarn.

    IDCore: Through the use of proprietary technology and large data repositories, Red Violet's analytics and solutions hardness the power of data fusion, uncovering the relevance of disparate data points and converting them into insightful and useful views of people, businesses, assets and their interrelationships. The allows clients who use the data to better understand and execute all aspects of their business, such as risk, debt recovery, fraud and abuse, legislative compliance, and identifying and acquiring consumers.

    Forewarn: This solution provides instant knowledge, prior to a face-to-face engagement with a consumer to help professionals better understand and address risk. Forewarn is an app-based solution and is currently tailored towards the real estate industry.

    For further insight into the operations of the company, as well as the markets they operate in, you can check that overview newsletter I linked back in the introduction.

    In terms of any new additions to the company, in relation to any new products or services, Derek Dubner , CEO stated that:

    "We have a robust road map of new technologies, enhancements, functionality and products and solutions that will drive our business near and long term. And given the substantial inroads we are making with new customers, combined with the recovery of existing customers and pent-up demand, we are well-positioned for the remainder of the year and throughout 2021.

    Data is the lifeblood of this digital transformation, but not just volume of data as too much data creates noise and inefficiency. Too much data creates fragmentation and the inability to glean actionable insight. Our mission is to continue developing and commercializing customer-centric solutions that solve for the data fragmentation problem, no matter the customer or the use case.

    Our goal is to ensure the applicability of our solutions across as many industries and transactions as possible to increase organization's output and efficiency. We are very early in this mission and are well-positioned for the future."

    So nothing announced as of yet, but I am sure there are other uses for the data that Red Violet purchase, it will simply take time for them to locate one that is most suitable for their business model.

    Clearly the company witnessed some cost cutting impacts from the perspective of their consumers during the initial outbreak of the crisis. Q2 revenues were fairly weak, but this was expected to be temporary. Revenues recovered somewhat in Q3, totaling $9.26 million, which is up 31.3% sequentially from the $7.05 million in the previous quarter.

    Derek Dubner, CEO, made note of the impact from Q2 and how they targeted certain customers during the panic in the quarter. He stated that: "Another facet of our strategy was to use the crisis as an opportunity to increase our market share. We posited early on that in order to cope with the economic downturn, businesses would seek to cut costs immediately and identify greater efficiencies to implement into their workflow to offset the negative financial impacts to their business. We focused on these prospects who, as a result of the downturn, exhibited a greater propensity to entertain switching providers."

    IDI customers were up 20.4% year over year, totaling 5,758 in Q3, adding 383 new customers from Q2.

    Forewarn customers were up 88.3% year over year, totaling 44,927 in Q3, adding 4,070 new customers from Q2.

    There is not a wealth of updates or highlights to be seen here for Red Violet. Some nice growth across each of their platforms, and some rejuvenation of their revenues on a sequential time frame. I think the most insight will be learned from the study of their financials, so lets get stuck into that.

    Performance

    Revenues increased 31.3% sequentially fromQ2, showing the improvement. On a year over year basis, the $9.26 million revenues for Q3 increased 12.2% from the $8.25 million in FY19 Q3. Those revenues are of course split across platform and services revenues. Platform revenues grew 27% to $9 million for the quarter, reflecting 97% of total revenues. With the exception of the collections vertical within Red Violet's services revenue, the company saw a nice recovery in transaction volume across the board, including some pent-up demand as businesses adapted and became more efficient operating in the COVID environment.

    In terms of the services revenue, the recovery of their collections vertical has been slow, resulting from temporary government-imposed moratoria, forbearance programs and government stimulus. As such, services revenues decline 74% in the quarter and stood at $0.3 million. Management state that due to strong tailwinds, expected to develop throughout 2021 as the moratoria are lifted, that the services component of revenues will recover in early 2021.

    The $9.3 million revenues for the third quarter, consisted of revenue from new customers of $0.7 million, base revenue from existing customers of $5.8 million and gross revenue from existing customers of $2.7 million. So, there is an element of recurring revenues here. Note that rounding gets us to $9.3 million, if you were wondering why it only adds up to $9.2 million.

    Revenues for the year thus far stand at $25.62 million, up 20.6% from the $21.23 million reported in 2019. The company continues to grow revenues despite the ugly Q2 that they experienced. Granted, 20.6% is not exceptional for a small growing firm like Red Violet, but I feel it is suitable given the circumstances of this year.

    Adjusted gross profit for the quarter was $6.56 million, up 60.7% on the year, which is an adjusted gross margin of ~71%. When we take a look at the actual gross profit, not adjusting for depreciation, we get a gross margin of ~59%, which is an improvement from the 54% reported last quarter.

    Cost of revenue decreased $0.4 million or 13% to $2.7 million for the three months ended September 30, 2020 from $3.1 million for the three months ended September 30, 2019. Red Violet's cost of revenue primarily includes data acquisition costs. Data acquisition costs consist primarily of the costs to acquire data either on a transactional basis or through flat-fee data licensing agreements, including unlimited usage agreements. The decrease in cost of revenue was primarily attributable to the decrease in transactional based data acquisition costs associated with the reduction in their idiVERIFIED services revenue. Management state that they continue to enhance the breadth and depth of their data through the addition and expansion of relationships with key data suppliers, including their largest data supplier, which accounted for approximately 48% of their total data acquisition costs for Q3 compared to approximately 40% from the previous year.

    Other cost of revenue items include expenses related to third-party infrastructure fees. As the construct of Red Violet's data costs is primarily a flat-fee, unlimited usage model, the cost of revenue as a percentage of revenue decreased to 29% for Q3 2020 from 38% for Q3 2019. They expect that cost of revenue as a percentage of revenue will continue to decrease over the coming years as their revenue increases and they can leverage that fixed cost model.

    Sales and marketing expenses increased $0.3 million or 15% to $2.2 million for the third quarter from $1.9 million from the previous year. Sales and marketing expenses consist of salaries and benefits, advertising and marketing, travel expenses, and share-based compensation expense, incurred by the sales team, and provision for bad debts. The increase during Q3 was primarily attributable to a $0.3 million increase in salaries and benefits, as the company continues to invest in the expansion of their sales organization, and sales commissions from increased revenue.

    General and administrative expenses increased $0.6 million or 19% to $4.1 million for Q3 from $3.5 million from the previous year. The increase during Q3 was primarily attributable to a $0.4 million increase in share-based compensation expense.

    Depreciation and amortization expenses increased $0.3 million or 49% to $1.1 million for Q3 from $0.8 million from the previous year. The increase in depreciation and amortization for the quarter resulted from the amortization of software developed for internal use that became ready for its intended use after Q3.

    Overall loss from operations for Q3 stood at $918,000, a slight improvement from the $1.03 million reported last year. For the year, operating losses are $$4.96 million, another improvement from the $6.34 million loss in 2019.

    Net losses stood at $925,000 for the quarter, an improvement from the $992,000 reported last year. Net losses for the year thus far also improved, standing at $4.93 million in 2020 versus $6.22 million in 2019.

    Overall, some improvement, but the extent of that leverage of fixed costs is yet to be fully realized yet. Next year, 2021, will be interesting for sure, provided there is an ease of lockdown measures.

    Liquidity

    Losses are fairly small, and liquidity looks fairly good. Red Violet currently have a total of $7.89 million in total obligations due, with around $4.75 million of that being due within the next year.

    Cash stands at $12.44 million, which is more than enough to cover any current obligations, as well as their entire outstanding obligations. In total, Red Violet have around $15.98 million in short term liquidity at their disposal. Considering they burn ~$10 million in operational costs each quarter, and have $15 million in liquidity plus around $9 million in sales each quarter, this looks manageable for the time being.

    In relation to cash burn, MacLachlan stated that things are looking a little more promising in that they are no longer burning cash in Q3, an are instead earning cash. See the below for more flavor on that.

    Daniel MacLachlan, CFO, stated that:

    "Internally, we track our operational cash burn versus burn on a monthly basis by calculating adjusted EBITDA and subtracting the cash we use for the development of internal use software and other capital expenses, both found on our statement of cash flows. Based on this earn-burn analysis, we earned $0.8 million in cash for the third quarter 2020 compared to burning $0.4 million for the third quarter of 2019."

    Red Violet currently have $2.15 million in loans outstanding, as part of their COVID Cares Act borrowing, with $1.05 million due within one year, and then the remaining $1.09 million due before 2022.

    It is possible this loan may be forgiven however, in that they may not have to repay it. The Loan may be forgiven partially or fully if the Loan proceeds are used for covered payroll, rent and utility costs incurred during the 24-week period that commenced on the date of funding (the "Covered Period"), and if at least 60% of the proceeds are used for covered payroll costs. Any forgiveness of the Loan will be subject to approval by the SBA and the Lender. The Company will be required to apply for such forgiveness within 10 months after the Covered Period. Because the Loan exceeds $2 million Red Violet anticipates the U.S. Department of Treasury will audit the loan.

    Although Red Violet used the proceeds of the Loan for such covered purposes and intends to apply for forgiveness by the end of December 2020, it can provide no assurance that the Company will obtain forgiveness of the Loan in whole or in part.

    There are also some operating lease liabilities scheduled to mature over the next few years, but nothing that appears to severely impact liquidity in the near-term. With $178,000 due over the remainder of 2020, $724,000 in 2021 and $743,000 in 2022. You can find the remaining maturities in the below table.

    There is also the matter of capital commitments the company has in place, with $1.74 million due in 2020, and $5.6 million due in 2021. These commitments are fairly steep in relation to the current cash flows are the business, so it will be interesting to see if they can beef up revenue in 2021 to support these commitments.

    So there are a few things to keep an eye on from my end, but in the near term, liquidity looks good for now. Happy with that.

    Cash Flows

    Cash flows from operations stood at $4.75 million for the 9 months of 2020 thus far, up from $435,000 last year. Cash flow of $4.75 million was primarily the result of the net loss of $4.9 million, adjusted for certain non-cash items like share-based compensation expense, depreciation and amortization, write-off of long-lived assets, provision for bad debts, and noncash lease expenses, totaling $10.3 million, and the cash used as a result of changes in assets and liabilities of $0.6 million, primarily the result of the decrease in accrued expenses and other current liabilities and operating lease liabilities.

    Share-based comp of $6.4 million is pretty steep, but not unheard of in small companies. The company state that they use SBC to incentivise the best talent, as well as retain them, in the company. I can live with it for now.

    Free cash flows stand at $4.6 million for the year thus far.

    Outflows from investing activities stand at $4.4 million for the year thus far, largely due to capitalized costs from intangible assets.

    Inflows from financing for the year stand at $324,000 after the $2.15 million inflow from their loan via the CARES act, and offset by the $1.82 million in taxes related to vested stock units.

    A Few Notes from the Call

    Here i wanted to share a few interesting quotes from management during the conference call. During the question and answer session.

    I have cherry picked some of the responses i found most interesting and useful for you.

    One thing that is worth noting, is that the earnings call for Red Violet are super short. I do suspect that is likely due to the lack of analysts covering the company, therefore the number of questions were lower. There were literally two questions in the entire earnings call. The two questions below, are the entire question segment.

    QUESTION: "Yes. So it looks like you had some really strong growth in revenue from existing customers as well as decent growth from existing customer base revenue. However, the revenue from new customers was down over prior year. Can you explain why that is? And if there is any concern there?"

    DANIEL MACLACHLAN, CFO: "Thank you for the question. This is Dan. Yes, so as I discussed in my commentary earlier, our gross revenue from existing customers was very strong, both sequentially and over prior year. This is a healthy sign for the business as it tells us customers who have been with us longer than 6 months continue to grow their volumes. It tells us that our customers continue to rely on our solutions, both in their everyday workflow and as a means to help drive their business as they get back to business.

    As for the new customer revenue, we are very pleased with how the numbers are trending. What we're really seeing in this metric for the third quarter is really a result of the second quarter COVID trough where we saw fewer billable customers added, resulting in less revenue generated from new customers in the third quarter. Looking at the onboarding of over 380 billable customers in the third quarter, which is at a higher onboarding rate than our 2019 average, it really tells a story and provide a very healthy leading indicator of future revenue. So we continue to see customers who adopt our solutions grow in scale and volume over time, combining that with our low attrition rates and where -- we are very confident in the overall makeup of our revenue. And so we're confident today in how and where that revenue is growing and how it is trending."

    QUESTION: "Good quarter. It's just kind of more of a technical one in terms of your internalized software and depreciation. And kind of where are you -- that grew significantly in terms of what you're capitalizing. Kind of where is the run rate to expect? And maybe give us a little update on what the trend of that will be."

    DANIEL MACLACHLAN, CFO: "Yes, sure. So the last few years, we've been running about $6 million a year in capitalization of internally developed software. We've added additional resources and product development. But over time, some of that development goes towards kind of the maintaining, if you will, the system and so you don't really capitalize that.

    So from a trending indicator standpoint, you'll probably see, over the next year or 2, very similar capitalization of about $6 million. But as a result of kind of overall revenue and overall time, it's actually decreasing. But on a dollar-for-dollar basis, it will trend around $6 million yearly over the next probably 1 or 2 years."

    FOLLOW UP QUESTION: "Yes. So you'll start to get some -- you -- with a 40% increase, you're kind of at where the number will be. So incrementally from here, you'll be able to leverage that number?"

    DANIEL MACLACHLAN, CFO: "Correct. And that is the unique fixed cost structure, if you will, of the model that provides us so much leverage."

    Forward Guidance

    The company issued no guidance for next quarter or FY21.

    Summary

    So Red Violet for me represents a 2.63% weight in the portfolio, making it the smallest position overall, as well as being the smallest market cap in the portfolio at ~$270 million as of November 20th.

    The thesis still remains in tact, but with the nature of the company being fairly infantile, it might take a while before much moves. I have utmost patience in this one, provided none of my sell triggers are activated.

    Fundamentals remain suitable, liquidity is good, and their products are still growing. The lack of discussion in the earnings calls are disappointing , but that is part of the parcel of investing in smaller cap names.

    During 2021, it would be nice to see what a full year of smoother operations look like, with some recovery in that services segment. The fixed cost model should allow for some attractive leverage in terms of gross margin if they can inflate their revenues over the next year or so. Overall, I would hope for a far stronger 2021.

    Overall, a fairly average quarter for me, 5 out of 10.

    One to watch, for sure.

    Until next time and HAGW!

    IT

    submitted by /u/IT_Investments
    [link] [comments]

    Poor Man's Covered Calls

    Posted: 04 Dec 2020 06:39 AM PST

    What are some stocks that are relatively cheap where I could apply this strategy. I've been applying it on stocks like pfe,bac,dbx,f. I would like to use it on apple or jnj but dont have the account size for it.

    submitted by /u/lat0rrsant
    [link] [comments]

    Stock Market Beginner Help

    Posted: 04 Dec 2020 03:50 PM PST

    Hi! I'm a college freshman, working(was, not any more since last month due to COVID) a part time job. I have some money left in my account that I want to invest in stocks. I have no real experience trading stocks(outside of GTA). I was wondering if someone could help me out with how I need to start, where do I invest e.t.c.

    Thank you!

    submitted by /u/WOKinTOK-sleptafter
    [link] [comments]

    Question re: Selling Vanguard ETFs on Vanguard

    Posted: 04 Dec 2020 06:00 PM PST

    So I don't believe I have previously sold any of the ETFs I have with Vanguard that are held in my Roth brokerage account.

    I want to spread some money amongst other ETFs, maybe a little more risk with possible bigger upside.

    I put in a sell last night for a specific dollar amount for three ETFs (VFIAX, VDIGX, VFIFX). I assumed it would sell at the open but for some reason all the sells are just showing as processing in my vanguard account.

    None of the sales would drop the amount I have in any of the ETFs below the minimum amount to open the ETF through VG.

    Anyone know what the delay could be? Of course I can call on Monday and ask VG direct but thought maybe someone may have an answer that made sense.

    submitted by /u/Puckcentral
    [link] [comments]

    Why is it fair for banks to set price targets?

    Posted: 04 Dec 2020 10:27 AM PST

    I'm curious as to why this is the case because if banks make public statements and set price targets of stocks for their shareholders, other institutions and retail to see, their valuations or credit teams are representing the investors. I am not sure if there is a legal duty, but their influence on the market is gigantic when they make public statements like this. As such, if they do set price targets, they can easily manipulate the market as we've seen recently on these meme stocks such as NIO and PLTR.

    Who knows? These banks could have sold a bunch of calls on retail that we bought up and their net losses were so red that they decided to make a hail mary play to lower the price target. There is a huge conflict of interest between their analysts and market sentiments.

    Furthermore, they set price targets like $PLTR to $17, $SNOW to $350 and $NIO to $55 and they pre-maturely buy/sell before it reaches those targets. Why is it fair that they can make these price targets to manipulate the market when they themselves don't even stick to it?

    submitted by /u/water_boat
    [link] [comments]

    Fuckingoverpostblocking

    Posted: 04 Dec 2020 05:59 PM PST

    Jesus. I just tried to post a meaningful post and it wasn't allowed. Reddit is becoming ridiculous. That being said.... How many are holding $CBDD right now? I think it'll go up... But dang today was A JACKED UP DAY at the end. I'm thinking it'll be .05 at open on Monday.

    Either way... There were some suicides and divorces over this stock this weekend. Just, damn.

    submitted by /u/bailko_td
    [link] [comments]

    Luminar is a threat to Tesla..

    Posted: 04 Dec 2020 05:53 PM PST

    a robotaxi network can actually be built quicker with Luminar's technology, and Lidar has many advantages to Tesla's camera-focused technology... I think it can reach mass-market, level-5 autonomy faster

    Check it:

    https://www.youtube.com/watch?v=fV5fr9orFRU&feature=youtu.be

    submitted by /u/ianos0170
    [link] [comments]

    Is it a bad idea to build a portfolio focused on covid vaccines companies?

    Posted: 04 Dec 2020 10:40 AM PST

    Sorry for this noob post. I have only been trading for about 3 months and have been having fun learning about how the stock market works. I have recently had some good gains with a few of the covid vaccines stocks. Today I realized that my $350 account is split up between PFE, MRNA, BNTX and ARCT... Is it a bad idea to build a portfolio focused on Covid vaccines stocks or not? If so, why?

    submitted by /u/WishIHadATesla
    [link] [comments]

    $NET or $CRWD

    Posted: 04 Dec 2020 09:45 AM PST

    Happy Friday everyone! I have $2K to put into a Cybersecurity stock and in my research, Cloudflare and Crowdstrike look great. I understand they operate in different areas of the industry, but I'm only looking to buy one. Any thoughts? Thanks in advance.

    submitted by /u/GlobetrotterMax
    [link] [comments]

    SPCE looks intriguing

    Posted: 04 Dec 2020 02:44 AM PST

    I recently bought into RYCEY. During the course of my DD, I caught on that they are building the engines for the new galactic commercial fleet for virgin galactic, which is going to take its first manned customer travel in Q1 of 2021.

    I also noticed that SPCE has contracts with NASA to transport their personnel to the ISS. Beyond that, it's goal is to become an extremely fast form of travel globally, in effect outstripping our current airlines.

    I'm looking for downsides on investing here, but not seeing them. At $28/share and a 99% buy rating on RH, this stock is looking ready to take off, pun intended. Anyone have any thoughts?

    submitted by /u/JHopp89
    [link] [comments]

    Luminar Technologies Debuts On Nasdaq After Merger With Spac Gores Metropoulos

    Posted: 04 Dec 2020 01:14 PM PST

    Luminar Technologies Inc. made its Wall Street debut Thursday with a market cap of more than $8 billion after merging with "blank check" company Gores Metropoulos Inc.

    https://focusinvesting.biz/luminar-technologies-debuts-on-nasdaq-after-merger-with-spac-gores-metropoulos/

    submitted by /u/DaVibes
    [link] [comments]

    What's on your Short Sale Watch List?

    Posted: 04 Dec 2020 12:48 PM PST

    I'm starting a watch list of good potential short sales that have plenty of room to run if they break on the downside. The requirement is that they should be sitting on a good runup at least double pre-covid levels without too much support along the way.

    Please share your ideas!

    ZM

    NIO

    submitted by /u/GrosJambon1
    [link] [comments]

    Hyln

    Posted: 04 Dec 2020 11:05 AM PST

    Hey guys... I've been holding HYLN since $31. Been holding, hoping for upside. I'm currently down 40%. Do you think I should cut my losses and reinvest elsewhere?

    submitted by /u/helltotheo
    [link] [comments]

    What is Quantumscape wts 27?

    Posted: 04 Dec 2020 10:44 AM PST

    I bought the spac that turned into Quantumscape. I have the Quantumscape shares in my account but also have have something called: "Quantumscape wts 27".

    Any idea what that is?

    submitted by /u/JiraSuxx2
    [link] [comments]
    Read more
    at

    No comments:

    Post a Comment