Daily General Discussion and spitballin thread - August 03, 2021 Investing |
- Daily General Discussion and spitballin thread - August 03, 2021
- Daily Advice Thread - All basic help or advice questions must be posted here. August 03, 2021
- Tencent Dives After Chinese Media Call Online Games ‘Spiritual Opium’
- Square acquires Afterpay for $29B
- Bank of America files shelf to offer up to $123 billion in debt and equity securities over time
- Spreadsheet: Roth vs. traditional 401ks and IRAs
- China regulator to probe auto chip distributors over price-gouging suspicions
- Are the airlines severely undervalued?
- Why do some people maintain a small ("nominal") position in a stock instead of fully divesting themselves?
- Is Chase's self investing account any good?
- Investing in VR, $QCOM or $FB
- Chinese AAA-rated SOE made up $13.3B in cash holdings, was fined $464K, and 6 execs a combined $355K.
- Is it worth it to do ESPP despite the confusing tax matters?
- Chase not letting me open a RoboAdvisor Account on an F1 Visa
- FB Stock A Buy? Here's Why Facebook Got A $500 Price Target
Daily General Discussion and spitballin thread - August 03, 2021 Posted: 03 Aug 2021 02:01 AM PDT Have a general question? Want to offer some commentary on markets? Maybe you would just like to throw out a neat fact that doesn't warrant a self post? Feel free to post here! This thread is for:
Keep in mind that this subreddit, and this thread, is not an appropriate venue for questions that should be directed towards your broker's customer support or google. If you would like to ask a question about your personal situation or if you are asking for advice please keep these posts in the daily advice thread as that thread is more well suited for those questions. Any posts that should be comments in this thread will likely be removed. [link] [comments] |
Daily Advice Thread - All basic help or advice questions must be posted here. August 03, 2021 Posted: 03 Aug 2021 02:00 AM PDT If your question is "I have $10,000, what do I do?" or other "advice for my personal situation" questions, you should include relevant information, such as the following:
Please consider consulting our FAQ first - https://www.reddit.com/r/investing/wiki/faq And our side bar also has useful resources. Be aware that these answers are just opinions of Redditors and should be used as a starting point for your research. You should strongly consider seeing a registered financial rep before making any financial decisions! [link] [comments] |
Tencent Dives After Chinese Media Call Online Games ‘Spiritual Opium’ Posted: 02 Aug 2021 07:40 PM PDT As of typing this, Tencent is down 10%, Netease is down 14% and Bilibili is down 13% in Hong Kong Tencent Holdings Ltd. dived as much as 10% Tuesday after an offshoot of China's official news agency decried the "spiritual opium" and "electronic drugs" of games, stoking fears Beijing will next set its sights on online entertainment. The social media giant joined rivals NetEase Inc. and XD Inc. in an abrupt selloff in early Hong Kong trading after an outlet run by the Xinhua News Agency published a blistering critique of the gaming industry. The Economic Information Daily cited a student as saying some schoolmates played Tencent's Honor of Kings -- one of its most popular titles -- eight hours a day and called for stricter controls over time spent on games. It spooked investors already on edge after Beijing came down hard on online industries from e-commerce to ride-hailing, triggering a global selloff of Chinese shares that at one point surpassed $1 trillion. Nervous investors continue to reevaluate their holdings as they ponder the longer-term ramifications of a crackdown on firms from Jack Ma's Ant Group Co. and Alibaba Group Holding Ltd. to Tencent-backed Meituan and Didi Global Inc. "No industry or sport should prosper by eradicating an entire generation," the Xinhua article said, citing an academic at a state-backed institution. Confession: I've made fun of Cathie Wood in the past for exiting her China positions but I guess that was the wisest thing she has done all year. The extreme volatility and having your positions be at the mercy of the CCP's whims does not seem to be worth it. The regulatory crackdown is going from one sector to another with no end in sight. [link] [comments] |
Square acquires Afterpay for $29B Posted: 02 Aug 2021 11:54 AM PDT Square to buy Afterpay for US$29 billion to tap younger users Square Inc., the digital-payments platform led by Twitter Inc. founder Jack Dorsey, agreed to buy Australian buy-now, pay-later company Afterpay Ltd. for US$29 billion in its largest-ever acquisition. The all-stock offer values Afterpay shares at AUS$126.21 each, 31 per cent higher than Friday's closing price of AUS$96.66, the companies said in a statement. Still, that's less than Afterpay's February high of AUS$158.47. The stock jumped as much as 29 per cent to AUS$125 in Sydney trading Monday. Square said the buy-now, pay-later concept represents a chance to capitalize on a shift away from traditional credit, especially among younger consumers. The plan is for Square to integrate Afterpay into both its consumer Cash App, and its Seller product for small businesses, Chief Financial Officer Amrita Ahuja said in an interview. "It's very different from the traditional consumer-financing business model," Ahuja said, describing "buy now, pay later" as an "alternative" to traditional credit. "Since our founding days we have seen it as a key priority for our customers, whether merchants or consumers, to get fast access to funds," she added, but declined to say whether Square would offer other traditional finance options, like a credit card. Square shares were up about 3% in the first minutes of trading Monday in New York. Afterpay lets consumers purchase items on credit and pay later with a series of installments. It's particularly popular with younger consumers -- who may not have a credit card -- to buy clothes, beauty products and homewares. There are no fees or interest on the loan as long as people pay on time, according to Afterpay's website. The deal should also help boost Cash App's total user base by adding Afterpay's 16 million users to Cash App's existing user base of 70 million annual users, Ahuja said. Larger competitors have pushed into the market recently, adding to the challenges for Afterpay and its peers. Apple Inc. is teaming up with Goldman Sachs Group Inc. on a buy now, pay later service that would be tied with Apple Pay, Bloomberg News reported in July. Afterpay shares fell 10 per cent the day following the report. Afterpay shareholders may reject the proposed Square offer, Bloomberg Intelligence analysts Matt Ingram and Regan Burrows wrote. They pointed out the offer is below the stock's peak earlier this year and its growth is much faster than the U.S. company. Under the proposed agreement, Afterpay co-founders and co-CEOs Anthony Eisen and Nick Molnar would join Square and help lead Afterpay's merchant and consumer businesses as part of Square's Seller and Cash App division. The acquisition would be easily the biggest deal for an Australian company, eclipsing the US$16.6 billion a group of pension funds last month bid for Sydney Airport, only to have the offer rejected as too low. Square recently launched its banking operations, including checking and savings accounts for small businesses, and offers loans. The addition of Afterpay also gives the digital payments company a chance to expand into consumer lending, which it doesn't currently offer. 'Shared Purpose' "Square and Afterpay have a shared purpose," Dorsey said in the statement. "We built our business to make the financial system more fair, accessible, and inclusive, and Afterpay has built a trusted brand aligned with those principles." Square also reported second-quarter gross profit of US$1.14 billion, up 91 per cent year-over-year. Gross payment volume, or the total amount of payments processed on Square's platform, increased 88 per cent to US$42.8 billion, the company said in a statement. Analysts, on average, projected US$36.8 billion, according to data compiled by Bloomberg. Square had been scheduled to release earnings Thursday. Total revenue, including Bitcoin, was US$4.68 billion. Bitcoin revenue alone was US$2.72 billion, below the US$3.4 billion estimate by analysts. Square said Bitcoin revenue declined because of "relative stability in the price of Bitcoin, which affected trading activity compared to prior quarters." Afterpay was founded in 2015 and now has more than 1,300 employees globally, according to Molnar. The board of Melbourne-based Afterpay unanimously recommended shareholders accept the deal, which the company said is expected to close in the first quarter of 2022. https://www.bnnbloomberg.ca/square-to-buy-afterpay-for-us-29-billion-to-tap-younger-users-1.1635504 [link] [comments] |
Bank of America files shelf to offer up to $123 billion in debt and equity securities over time Posted: 02 Aug 2021 09:38 PM PDT Source: Marketwatch
Is this normal? $123 billion seems like a lot of money, especially for a fairly conservative bank like Bank of America. Some factoids for context:
But none of these things seem to explain the need for $123 billion. Anyone have any ideas? [link] [comments] |
Spreadsheet: Roth vs. traditional 401ks and IRAs Posted: 02 Aug 2021 06:55 AM PDT I made a spreadsheet to calculate returns from investing in Roth and traditional versions of 401ks and IRAs. I did this because it's a recurring topic of confusion on the part of newbies (which is totally understandable) but also of debate among well-meaning people. One piece of traditional wisdom has been that it's largely a wash, relying on commutative arithmetic with tax rates and an often-uncommunicated assumption that those rates won't change during the lifetime of the saver/retiree. Another is that one should use traditional accounts to improve tax efficiency anyway, and that the rest of it is a wash. As I hope the spreadsheet helps to make clear, these are (at least often) untrue, and the devil's in the details. I used the spreadsheet to test out some of my own ideas, which generally skew in favor of Roth accounts:
I expected to find that Roth was generally better at low and high ends of the earnings spectrum, but was surprised to find it generally better in the middle too. I'm open to suggestions for improving the tool, and would enjoy discussion of the results. Using the spreadsheet The spreadsheet's intended to give a rough picture of how the account types perform, including when matched in different combinations. Some features:
Quirks and known issues
ETA: It's become obvious that Social Security should become part of the accounting, at least, and ideally state income taxes. Those are not yet added. [link] [comments] |
China regulator to probe auto chip distributors over price-gouging suspicions Posted: 02 Aug 2021 11:20 PM PDT SHANGHAI, Aug 3 (Reuters) - China's regulatory agency is launching an investigation into chip distributors in the auto industry, citing suspicions of price gouging, it said on Tuesday. The action by the State Administration For Market Regulation (SAMR) is the latest in a regulatory crackdown following a range of companies and industries targeted over the past year as the Chinese government clamps down on industry. "In response to prominent problems such as speculation and high prices in the automotive chip market, the State Administration of Market Supervision has recently filed an investigation on car chip distributors," the agency said. The firms were suspected of driving up prices, based on price monitoring and reporting clues, it added in its statement, and vowed to investigate and punish illegal acts such as hoarding, price-gouging and collusion. A global shortage of chips that began last December has disrupted supply chains and the hardware sector worldwide. Though initially concentrated in the automotive sector, it has since spread to affect a wide range of gadgets. Panic about supply uncertainty has occasionally led chip buyers and distributors to purchase more chips than they need, creating a vicious cycle that further drives up prices. In June, the chief executive of chipmaker Intel said he expected the shortage to hit bottom by year-end, with the market retuning to normalcy only by 2023. In April China's regulator imposed a record fine of $2.75 billion on e-commerce giant Alibaba for engaging in anti-competitive practices. Ok, this is getting a bit out of hand. A constant barrage of bearish news coming out of China after some stabilizing that happened at the end of last week. Not sure what the endgame here is for China or the CCP. On one hand, it makes no sense for them to lose the confidence of foreign investors with moves like this. Are they pushing the boundaries of patience of investors? Or is this a deliberate attempt to crackdown on each sector one by one? Stocks likely to be affected by this: AMD, INTC, QCOM, NVDA and consequently TSLA, NIO, LI, XPEV, BYD. If you know some others that are a part of the cars in China, please post them in the comments [link] [comments] |
Are the airlines severely undervalued? Posted: 02 Aug 2021 10:09 PM PDT So I know there is a shortage of staff which is causing chaos with flights. This includes Delta, Spirit and others. Delta says they're hiring 5,000 more staff. And I'm on the edge of pulling the trigger on UAL... My question though, is now a good idea to get in to an airline or two, or could this continue to go down? Delta Variant peak looks to be some time in August. Then the holidays will be here before we know it. I know I'll end up taking a position, just not sure if now is the time or not. [link] [comments] |
Posted: 02 Aug 2021 10:59 AM PDT I have seen some folks with many different positions have a number of what they call "nominal" positions in particular stocks. Why do they do this instead of fully divesting from that stock/position? It doesn't seem to be due to the typical reason people have small positions in something: the idea that the stock is a high-risk security and has the potential to return multiple times the initial investment. One example of this is DFV (roaring kitty) in his Gamestop live streams on YouTube. When he browses through his position list, there a number of very small positions that he calls nominal positions. I tried searching Google for an answer but was met with a litany of basic economics results regarding inflation (real vs. nominal stuff). [link] [comments] |
Is Chase's self investing account any good? Posted: 02 Aug 2021 12:03 PM PDT I am currently a chase customer and will be receiving a substantial 6 figure windfall in the near future. I already have a 457 deferred compensation plan with my employer that I contribute to. I would like to use the vast majority of these funds to invest in broad market index funds. At first I was considering Robinhood, fidelity, etc or any other investment based apps, but I also learned Chase offers the option for customers to invest using them as a brokerage. I plan on having over 75K in combined accounts to qualify for the sapphire account. If I already have all my other checking and savings accounts with Chase, is there any reason not to use Chase for investing purposes? [link] [comments] |
Posted: 02 Aug 2021 11:51 AM PDT I'd like to invest in VR and I'd like some input. I think VR is going to be quite successful in the future. It has a lot of room to grow and many possibilities. People always try it and like it, and FB is working on getting rid of any barriers that prevent people from buying it. For example, owning a PC, having to pay over 500, etc. FB recently announced that they would be releasing a new all-in-one headset soon, and I think it will sell quickly and lead to VR becoming quite popular. Qualcomm was involved in making the chips in the oculus headset, and will likely be the ones supplying them for the upcoming one. I'm split between which one to invest in. Sadly, even with a very successful VR launch, VR is a very minor aspect for them, and will probably not affect stock price much. I looked at companies like htc, but I think the oculus will keep heavily outperforming competitors. Any thoughts? I almost invested in qcom at 143$ and it jumped up by about 8$ just a few days later. Sad. [link] [comments] |
Posted: 02 Aug 2021 10:01 PM PDT
[link] [comments] |
Is it worth it to do ESPP despite the confusing tax matters? Posted: 02 Aug 2021 07:08 AM PDT My company offers ESPP with a 15% discount. However, after reading the article linked below it seems complicated to deal with the tax issues that stem from selling the stock. My plan would be to do the ESPP, sell the stock the day I receive it, then use that cash to buy into an index fund. The 15% discount sounds nice but wondering if its worthwhile since the 15% discount is taxed (making it much less than 15%) and then I'm taxed again when I sell it and have to deal with complex reporting when I file my taxes. Seems like a headache for a few bucks. https://thefinancebuff.com/adjust-cost-basis-for-espp-sale-in-turbotax.html [link] [comments] |
Chase not letting me open a RoboAdvisor Account on an F1 Visa Posted: 02 Aug 2021 11:36 AM PDT I am currently working and am on an OPT / F1 visa. I am basically following the concept of the three fund portfolio for a moderate return: https://www.bogleheads.org/wiki/Three-fund_portfolio I was really hoping a robo advisor could take care of this (mixing its own Big / Mid-cap/ REIT / Bonds / International etc.), and Chase's one seemed decent enough. Unfortunately, I was told that my visa status prevents me from having this account be opened. Here is my question. I am able to see the percentages on the robo advisor platform before signing up for it. Could I not buy the funds myself then? Am i paying the 0.35% for the rebalancing? Does it rebalance within the fund itself, or does it just move money around say the bond fund and the BBUS (Chases's VOO equivalent i guess) [link] [comments] |
FB Stock A Buy? Here's Why Facebook Got A $500 Price Target Posted: 02 Aug 2021 07:18 AM PDT FB stock slumped 3.6% last week, despite sailing past Q2 earnings and sales estimates after Wednesday's close. Facebook's (FB) guidance for a modest revenue deceleration in the second half of the year dampened enthusiasm after the social media giant's run to record highs. Still, FB stock got numerous price-target hikes, including one to 500, about 40% above Friday's close. So is this a good time to by FB stock? https://www.investors.com/research/fb-stock-buy-now-facebook-stock/?src=A00220 [link] [comments] |
You are subscribed to email updates from Lose money with friends!. To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
Google, 1600 Amphitheatre Parkway, Mountain View, CA 94043, United States |
No comments:
Post a Comment