• Breaking News

    Wednesday, November 3, 2021

    Home Unlabelled Daily General Discussion and spitballin thread - November 03, 2021 Investing

    Daily General Discussion and spitballin thread - November 03, 2021 Investing

    November 03, 2021

    Daily General Discussion and spitballin thread - November 03, 2021 Investing

    Daily General Discussion and spitballin thread - November 03, 2021

    Posted: 03 Nov 2021 02:02 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:

    • General questions
    • Your personal commentary on markets
    • Opinion gathering on a given stock
    • Non advice beginner questions

    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.

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

    Daily Advice Thread - All basic help or advice questions must be posted here. November 03, 2021

    Posted: 03 Nov 2021 02:01 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:

    • How old are you? What country do you live in?
    • Are you employed/making income? How much?
    • What are your objectives with this money? (Buy a house? Retirement savings?)
    • What is your time horizon? Do you need this money next month? Next 20yrs?
    • What is your risk tolerance? (Do you mind risking it at blackjack or do you need to know its 100% safe?)
    • What are you current holdings? (Do you already have exposure to specific funds and sectors? Any other assets?)
    • Any big debts (include interest rate) or expenses?
    • And any other relevant financial information will be useful to give you a proper answer.

    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!

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

    Zillow says it’s closing homebuying business, cutting 25% of workforce; earnings miss estimates

    Posted: 02 Nov 2021 09:12 PM PDT

    https://www.cnbc.com/2021/11/02/zillow-shares-plunge-after-announcing-it-will-close-home-buying-business.html

    Zillow, the digital real estate company, said on Tuesday that it's exiting Offers, its business that buys and flips homes, and eliminating 25% of its workforce.

    The announcement was attached to Zillow's third-quarter earnings report. The company's revenue and earnings missed analysts' estimates.

    "We've determined the unpredictability in forecasting home prices far exceeds what we anticipated," Zillow CEO Rich Barton said in the release. "Continuing to scale Zillow Offers would result in too much earnings and balance-sheet volatility."

    The stock dropped about 7.5% in extended trading following a 10% plunge during regular market hours. The shares are now down about 10% for the year as of Tuesday's close.

    Here are the key numbers from earnings:

    Earnings per share: loss of 95 cents adjusted vs. profit of 16 cents per share expected in a Refinitiv survey of analysts Revenue: $1.74 billion vs. $2.01 billion expected by Refinitiv Revenue in Zillow's Offers business, which competes with Opendoor, climbed to $1.17 billion in the quarter. That's way up from $186 million a year earlier, which was in the middle of the pandemic and in a dry period for transactions. However, the homes segment, which is mostly Offers, lost $422 million in the quarter, producing an overall net loss at the company.

    Shares of Opendoor rose 7% in extended trading. The stock plunged alongside Zillow earlier in the day, dropping 15% at the close.

    Zillow launched Offers in December 2019, starting with Southern California markets. The iBuying, or instant buying, product allowed homeowners to sell their home to Zillow for cash, eliminating a lengthy bidding, sales and closing process. They also didn't have to worry about costly repairs before putting their house on the market.

    "After closing on a home, Zillow will take care of necessary repairs, working with local contractors to complete projects like a fresh coat of paint, servicing HVAC units and other work a typical homeowner would do to get their home ready for sale," Zillow said in a press release at the time.

    But the home-flipping market proved to be a drag for a company that had built its brand on listing homes across the country and helping buyers and sellers connect through a marketplace. Prior to shuttering the business, the company said on Monday that it would stop buying houses through the end of the year, citing tight labor and supply markets.

    "We're operating within a labor- and supply-constrained economy inside a competitive real estate market, especially in the construction, renovation and closing spaces," said Jeremy Wacksman, Zillow's operating chief, in a statement this week. "We have not been exempt from these market and capacity issues and we now have an operational backlog for renovations and closings."

    Barton told CNBC's "Closing Bell" after the report that Zillow's ultimate failure was its inability to predict housing prices accurately. At the start of the Covid-19 pandemic, the market dried up. It then bounced back dramatically, and prices in many markets have climbed to record levels.

    For the home-flipping business to be profitable, a company has to be able to sell a home for more than the purchase price and have enough margin remaining to cover all the other costs, such as maintenance and sales and marketing expenses. Barton said the company realized that it's not in a position to accurately predict where home prices will be in six months "within a narrow margin of error."

    Additionally, Barton said the Offers product reaches only a small sliver of the company's overall audience, which is effectively the entire market of homebuyers and sellers across the country.

    Zillow's internet, media and technology business grew revenue 16% in the quarter to $480 million, with gross profit of just over $130 million.

    "We just determined that being an iBuyer was too risky, too volatile and ultimately addressed too few customers," Barton said. He added that, in closing the business, "the logic is clear, the emotion is difficult" because of the layoffs.

    Bloomberg reported on Monday that Zillow was looking to sell 7,000 homes for $2.8 billion to institutional investors, as it looked to unload its portfolio of properties. Some of those sales would be for below the purchase price, Bloomberg said.

    Barton didn't confirm or deny the numbers in the Bloomberg report. He told CNBC that the company has always sold to those types of buyers since entering the market, and he acknowledged that Zillow does have properties that it needs to sell. The company bought 3,805 houses in the second quarter and sold 2,086 in that period.

    "We're not in any kind of fire sale," he said. "We'll wind down the inventory in an orderly way."

    Seems like the strategy of buying 80 cents for the dollar just to capture market shares has finally backfired.

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

    Musk says Tesla has not signed a contract with Hertz yet, halts stock rally

    Posted: 02 Nov 2021 06:13 AM PDT

    Tesla Inc (TSLA.O) top boss Elon Musk said the electric carmaker had not signed a contract with Hertz, more than a week after the car rental firm announced a massive deal with the electric car company.

    Tesla's shares fell 5% to $1,146 in premarket trading, after a steep jump following the news of the biggest-ever order - 100,000 electric cars for Hertz - on Oct. 25, which helped Tesla breach $1 trillion in market capitalization. read more

    Musk tweeted late Monday, "If any of this is based on Hertz, I'd like to emphasize that no contract has been signed yet."

    "Hertz deal has zero effect on our economics."

    Tesla and Hertz did not immediately respond to a request for comment.

    Interim Hertz Chief Executive Officer Mark Fields had told Reuters last week the order will primarily include Model 3 vehicles. Considering Tesla's cheapest Model 3 sedan starts at about $44,000, the order could be worth about $4.4 billion, if the entire order were for the mass-market sedan.

    "Tesla has far more demand than production, therefore we will only sell cars to Hertz for the same margin as to consumers," Musk said.

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

    Amazon-Backed Rivian to Go Public Next Week

    Posted: 02 Nov 2021 12:06 PM PDT

    https://www.bloomberg.com/news/videos/2021-11-02/rivian-ready-to-go-public-valued-at-53-billion-video

    Offering up 135 million shares at $57 to $62 each under the ticker RIVN. The company is seeking a $60 billion valuation. Rivian's market cap is already roughly equal to Honda Motor Corp LOL.

    The Rivian IPO is scheduled to price on Tuesday, nov 9 and trade the next day. A stock to keep an eye on, for sure. Many tout this as a unicorn.

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

    Can we invest in renewable energy to help to reduce the power and destruction caused by the oil industry?

    Posted: 02 Nov 2021 11:24 PM PDT

    Hello! I want to open with that my main goals are more focused on helping our dying ecosystem over making a large profit. But then I realized, what if these two ideas could be intertwined? I know that in a lot of countries, oil runs the show time and time again, and they have been since the 19th century. However, now we are at a turning point. Fossil fuels in their current amounts are destroying the environment and most countries have invested too much into oil to try and back off of it now. The problem is that we need to push towards more renewable forms of energy. But governments aren't ready to do that. And even for the renewable forms that do exist, they lack the investor money to really start beginning these big processes. So what if... WE invested in them? What if WE chose a couple of specific stocks in maybe aquaculture, wind, solar, etc...and WE became that changing tide that leads to the positive change we see in this world. Am I talking out of my ass or this something that we can do? Please let me know. I don't want our world to die, and we have numbers that stock brokers don't. Let's be the change that we want to see in this world 🌎🌍

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

    Question : explanation of Mark to Market in relation to LNG contracts

    Posted: 03 Nov 2021 03:23 AM PDT

    BP just reported their third Q results.

    They reported a multi billion loss but they added a caveat that makes it sound like that it might not be as bad as it is presented.

    Reported loss for the quarter was $2.5 billion, compared with a $3.1 billion profit for the second quarter 2021. This was driven by significant adverse fair value accounting effects* of $6.1 billion pre-tax, primarily due to the exceptional increase in forward gas prices towards the end of the quarter. Under IFRS, reported earnings include the mark-to-market value of the hedges used to risk-manage LNG contracts, but not of the LNG contracts themselves. This mismatch at the end of the third quarter is expected to unwind if prices decline and as the cargoes are delivered. The underlying result is adjusted to remove this mismatch.

    ​

    Would someone explain how it might work. Are they hoping the spot price will be less than the contract price in the future, so they won;t need their hedge prices.

    ​

    thanks

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

    After $BBBY partnership with Kroger, I feel like I am missing out on investment opportunities. How do you get the best idea of what companies to invest in?

    Posted: 02 Nov 2021 03:35 PM PDT

    https://www.wsj.com/articles/kroger-and-bed-bath-beyond-inc-to-collaborate-on-a-national-e-commerce-experience-and-in-store-pilot-to-expand-kroger-s-home-and-baby-offering-01635884476?tesla=y

    I use WSJ, twitter, reddit and CNBC app/tv channel, but I always feel like these stocks I never would think twice about or even have heard of jump 50% after hours and my picks ($SBUX) hit the tubes. How do I learn what to invest in?

    submitted by /u/Notaballer25
    [link] [comments]

    BOEING (BA) as an potential investment?

    Posted: 02 Nov 2021 01:18 PM PDT

    I've been wondering if BOEING has any potential future, I've looked at there Q3 2020 report and Q3 2021 report and saw an increase in debt but didn't look at much else, are there other features I should be looking at?

    I only have $35 in Boeing and my assumption is that by Q4 earnings they'll have signficantly less debt and more revenue and cash flow due to internation borders opening during november and mass selling and mass production of Boeing planes starting again. Any errors in my thinking?

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

    How to track insider trading in Europe (similar to US SEC Form 4)?

    Posted: 02 Nov 2021 03:02 PM PDT

    Hi! I was wondering how one could track insider trading in European markets, just like Open Insider does. I know that how EU and common law countries deal w insider trading often differs so there might not be an actual alternative, but while doing some research on Iberdrola S.A. I couldn't really find any records of activity. Are there any regulations I'm not aware of that are applicable in EU but not US?

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

    The best 3 ETF Portfolio in a Taxable Account?

    Posted: 02 Nov 2021 07:24 AM PDT

    I have my tax advantaged accounts and then my taxable brokerage account. I'm just interested in how to setup my taxable account the best for the long term. I have decided on these general ETF's to use.

    15% S&P 500 ETF (VOO vs IVV)

    60% Total US Stock Market ETF (ITOT VS VTI)

    25% Total International ETF (IXUS vs VXUS)

    I've decided to leave out bonds for now in my taxable account. Bonds tend to be pretty tax inefficient and I don't love muni bonds(which are more efficient). At some point I'll likely add a little or skew my tax advantaged bonds a little higher. Realistically I'll do just a little of both in the future.

    For now though, I like to be more US based with some international around 75/25. While total US stock market includes the S&P 500, I do like to add some tilt to S&P 500 which is why I have 15% of S&P 500 ETF. I'm open to shifting these ratios a little, so let me know your reasoning if you think so.

    This leads me to picking the best ETF for my situation, and I'm mainly down to vanguards version vs iShares version (open to other suggestions too). The commission on all of these are free. The expense ratio for all of them are .03%. All of them are very similar.

    This leads me to really the most important and last point since they are so similar, which one is the most tax efficient? While it doesn't seem like a huge deal when looking at it initially due to the differences being small, if you are in a higher tax bracket and intend to put a decent amount of money per month in this fund and keep it for a long time, even the smallest difference is an important consideration. This is where it gets a little more uncertain for me. It appears that they have a similar dividend, but Vanguard's are more consistently qualified dividends (so I would be paying capital gains tax compared to regular income tax) compared to iShares which appears too have been giving more non-qualified dividends lately. This leads me to going towards vanguards over iShares. Is there any other tax considerations (or any considerations at all) I should be looking at in regards to these 6 ETF's?

    submitted by /u/bb0110
    [link] [comments]

    Stocks Best Positioned for Data Science Analytics

    Posted: 02 Nov 2021 09:11 AM PDT

    A friend of mine in tech told me recently that there's so much data out there in the world right now, that companies don't know what to do with it. It got me wondering about which companies would be best poised to take advantage of data in the future?

    Some potential options in the sector I've been contemplating:
    Teradata

    PLTR

    Machine Learning Sector (applications for data analytics):
    Crowdstrike

    NVDA

    ​

    What are other people's thoughts?

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

    Italian watchdog drops Google display adv case as EU antitrust investigates

    Posted: 02 Nov 2021 12:55 PM PDT

    Italy's competition watchdog said on Tuesday it had dropped a probe into Alphabet's Google alleged abuse of its dominant position in the online display advertising market after the EU antitrust started a similar investigation.

    The Italian watchdog decided non to take any action as under EU laws the case is now out of its responsibility, it said in its weekly bulletin.

    The European Commission opened an investigation in June into whether Google distorts competition by favouring its own online advertising technology services to the detriment of rivals, advertisers and online publishers.

    Source.

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

    Does this type of investing have a name ? Either I don’t remember or have never heard of it.

    Posted: 02 Nov 2021 09:58 AM PDT

    Its basically a dead stock that wakes up at closing time and rises until opening bell the next day. A few late comers left holden the bag and maybe some get out pre-market. I can't get in and out of a stock that fast, so its not worth it to me. I'll just lose whatever i put in. I took some screen shots. That volume in the second picture is really loud, and i don't think it counts for after-hours the day before when it began. So its more. https://imgur.com/a/xBFs0nB

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

    Super League Gaming $SLGG Strategy to Empower Creators Delivers Impressive Audience Reach Inside the Metaverse

    Posted: 02 Nov 2021 05:14 AM PDT

    Super League Gaming (Nasdaq: SLGG), a global leader in video game experiences and entertainment at the intersection of the creator economy, gameplay content, and the metaverse, announced today significant growth in its global reach to users within Roblox and Minecraft. Only one month after the close of the company's acquisition of Bloxbiz, the dynamic advertising platform designed specifically for metaverse environments, Super League is demonstrating an exciting new level of scale for brands seeking engagement opportunities with such a crucial consumer audience.

    In the full month of October 2021, within games developed by an enviable network of talented, culturally relevant creators that were visited almost 85 million times, Super League reached nearly 63 million monthly active users. The MAU (Monthly Active Users) level represents approximately 30% of all Roblox users, according to estimates from RTrack that peg Roblox MAUs at 206 million as of June 2021. Also in October 2021, advertising units served through Bloxbiz within Roblox game titles had a total exposure time of more than 142 years. Ad exposure time within Bloxbiz is validated in multiple ways and aligns with thresholds and guidelines for in-game ads set by the International Advertising Bureau (IAB) and the Media Ratings Council (MRC), including, but not limited to, the requirements that an ad must be on screen and unobstructed by objects, be viewable from a reasonable angle from a player's line of sight, and excluding idling users.

    Super League has seen similar growth within Minehut, its signature Minecraft community and the largest free Minecraft Java edition server host in North America. Minehut, where millions of user-generated Minecraft gameplay environments have been created by individual players, has experienced 85% year-over-year increases in MAUs and total hours of gameplay within the platform.

    submitted by /u/brbbins1
    [link] [comments]

    Can someone explain to me how margin actually is useful?

    Posted: 02 Nov 2021 05:52 PM PDT

    I'm struggling to justify the use of margin, particularly in naked puts. I learn best by doing, but before doing I need to learn, so I'm in a bit of a catch-22 with margin.

    The problem I'm having is visualizing the risk-reward to using it. I can take on substantially more risk with cash than I can take on with margin. And I can substantially concentrate my trades more with cash than with margin. (That is to say, the more concentrated in higher volatility, the more my margin buying power just begins to look like cash-only).

    So inevitably it looks like I can outperform with cash more than I can with margin.

    Thus the question, how is margin actually useful?

    For simplicity, if I want to 2x my buying power, but I have to reduce my return by 1/2x, then I have effectively accomplished nothing. Correct? So for margin to be useful I have to be able to both maintain a certain rate of return AND increase the buying power. Yes?

    I have some other advanced questions about house surplus, equity and journaling times, but I think first I just need to see someone justify the use of margin in the first place.

    Another problem with a margin call that I have is that it removes my ability to choose when I lose. Now the brokerage gets to choose when I lose, and they don't care if 2 weeks later the trade reverses and I would be a complete winner.

    That alone is a very big hindrance when working a long-game high risk trade.

    Maybe someone can comment a little on that as well.

    Thanks

    submitted by /u/DarthTrader357
    [link] [comments]

    Which app do you use for Portfolio Management?

    Posted: 02 Nov 2021 10:25 AM PDT

    Hey guys, I've been looking for an app that would be pretty much an all-in-one. Precisely an app that would let you track the Crypto, ETFs and stocks that you own without having to enter how much you bought / sold / have manually (Preferably, iOS). Something that is connected to the exchanges and also the brokers.

    I wouldn't mind having 2 apps, like one exclusively for crypto and another for ETFs / Stocks

    I'm european so Personal Capital isn't available for me, unfortunately.

    Which app(s) do you use?

    submitted by /u/Verinagos210
    [link] [comments]

    Do futures trading and commodity trading negatively impact the spot price of the underlying?

    Posted: 01 Nov 2021 11:30 PM PDT

    I have got a question.

    Do futures trading and commodity trading negatively impact the spot price of the underlying?

    Futures and commodity trading are one of the main way (if not the main way) how spot prices get determined.

    But the sheer scale of futures and commodities market and their notional value is mind boggling and almost none of them lead to actual underlying being delivered. This makes me wonder, if there were no futures or commodity trades, wouldn't there be much more demand for the "real thing" and wouldn't it make the price much more volatile and much more higher than current price (as demand for the price appreciation or depreciation of that product is being fulfilled electronically rather than using the underlying asset). Speculators are fulfilling their need for speculation by trading the derivative instead of the underlying, what if there were no derivatives?

    I hear about silver being a manipulated commodity where SLV etf in conjunction with futures is being used to keep spot price low; some people even imply that futures and commodity trading have helped keep speculators invest their money in those assets thus reducing the overall inflation in the broader economy as their money chase may be S&P 500 futures instead of investing that money into the "real" economy.

    How accurate are these notions? Do futures and commodity trading really impact the underlying in a negative way? An extension to the question would be, do futures and other speculative activities etc really help keep a lid on inflation?

    submitted by /u/Last_Interview_4332
    [link] [comments]
    Read more
    at

    No comments:

    Post a Comment