7ed83f0f的个人主页 - 老虎社区

7ed83f0f

暂无个人介绍

IP属地：未知

13关注

0粉丝

0主题

0勋章

2021-06-27

Interesting

Square: The Bear Case

2021-06-27

Agreed good stock but too expensive

Amazon: Good Stock, Not Good Price

2021-06-27

Interesting perspective

抱歉，原内容已删除

2021-06-27

Neither of them is good ev bet

Ford Or NIO? The Final Verdict

2021-06-25

No more outsized gains for apple

Why Apple's Stock Valuation Could Present Long-Term Buying Opportunity

2021-06-25

Nok long term play

Nokia Stock: From 5G Winner To Disappointment To Meme

2021-06-25

Cramer knows nothing

抱歉，原内容已删除

2021-06-25

Need to dig deeper to decide on investing this spac

抱歉，原内容已删除

2021-06-25

Good job everyone

Nasdaq and S&P 500 end at record highs; Dow rallies

2021-06-24

Huat

抱歉，原内容已删除

2021-06-24

Ill stay away

抱歉，原内容已删除

2021-06-24

Neutral abt this

Hershey gains on Berkshire Hathaway takeover speculation

2021-06-24

Sea is a must buy

Southeast Asia’s Attempts at Replicating Singles’ Day Sales Drive Shopping Boom

2021-06-24

Informative read

The ‘shelter in suburbia’ trade is about to reverse — and these stocks will suffer

2021-06-22

Buy now?

抱歉，原内容已删除

2021-06-22

Good to know

2 Robinhood Stocks Wall Street Predicts Will Plunge More Than 25%

2021-06-22

Expected

EV stocks fell in morning trading. Chinese EV Stocks Fully Priced Following Recent Rally, Planned Rate Hikes

2021-06-22

Psth buy

Vivendi Shareholders Approve Spinoff of Universal Music

2021-06-22

Author writes like he knows more than the politicians

抱歉，原内容已删除

2021-06-22

Nonsense

抱歉，原内容已删除

去老虎APP查看更多动态

{"i18n":{"language":"zh_CN"},"userPageInfo":{"id":"3586167531065956","uuid":"3586167531065956","gmtCreate":1623073506889,"gmtModify":1623815610953,"name":"7ed83f0f","pinyin":"wave89","introduction":"","introductionEn":"","signature":"","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","hat":null,"hatId":null,"hatName":null,"vip":1,"status":2,"fanSize":0,"headSize":13,"tweetSize":49,"questionSize":0,"limitLevel":999,"accountStatus":4,"level":{"id":1,"name":"萌萌虎","nameTw":"萌萌虎","represent":"呱呱坠地","factor":"评论帖子3次或发布1条主帖（非转发）","iconColor":"3C9E83","bgColor":"A2F1D9"},"themeCounts":0,"badgeCounts":0,"badges":[],"moderator":false,"superModerator":false,"manageSymbols":null,"badgeLevel":null,"boolIsFan":false,"boolIsHead":false,"favoriteSize":0,"symbols":null,"coverImage":null,"realNameVerified":null,"userBadges":[{"badgeId":"e50ce593bb40487ebfb542ca54f6a561-1","templateUuid":"e50ce593bb40487ebfb542ca54f6a561","name":"出道虎友","description":"加入老虎社区500天","bigImgUrl":"https://static.tigerbbs.com/0e4d0ca1da0456dc7894c946d44bf9ab","smallImgUrl":"https://static.tigerbbs.com/0f2f65e8ce4cfaae8db2bea9b127f58b","grayImgUrl":"https://static.tigerbbs.com/c5948a31b6edf154422335b265235809","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.11.08","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1001},{"badgeId":"518b5610c3e8410da5cfad115e4b0f5a-1","templateUuid":"518b5610c3e8410da5cfad115e4b0f5a","name":"实盘交易者","description":"完成一笔实盘交易","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100}],"userBadgeCount":2,"currentWearingBadge":null,"individualDisplayBadges":null,"crmLevel":2,"crmLevelSwitch":0,"location":"未知","starInvestorFollowerNum":0,"starInvestorFlag":false,"starInvestorOrderShareNum":0,"subscribeStarInvestorNum":0,"ror":null,"winRationPercentage":null,"showRor":false,"investmentPhilosophy":null,"starInvestorSubscribeFlag":false},"baikeInfo":{},"tab":"post","tweets":[{"id":124496176,"gmtCreate":1624777484095,"gmtModify":1633948689299,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Interesting","listText":"Interesting","text":"Interesting","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/124496176","repostId":"1117734317","repostType":4,"repost":{"id":"1117734317","pubTimestamp":1624759414,"share":"https://www.laohu8.com/m/news/1117734317?lang=&edition=full","pubTime":"2021-06-27 10:03","market":"us","language":"en","title":"Square: The Bear Case","url":"https://stock-news.laohu8.com/highlight/detail?id=1117734317","media":"seekingalpha","summary":"Summary\n\nOn the surface, Square appears to be a growing company and a good investment with strong re","content":"<p><b>Summary</b></p>\n<ul>\n <li>On the surface, Square appears to be a growing company and a good investment with strong revenue growth and a large Cash App user base.</li>\n <li>In reality, the company has struggled to translate its top line into bottom line earnings.</li>\n <li>This has resulted in Square expanding its products to justify exaggerated revenue valuations which may never result in meaningful earnings growth.</li>\n <li>And whilst at first glance its Cash App story appears to be a budding prospect, it may be nothing more than temporary growth based on necessity.</li>\n <li>Given the current valuation and the increasing Bitcoin headwinds, Square could face significant revisions downwards in revenue and earnings.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f072284e4d267ddbfaf6f17db8b6aa46\" tg-width=\"1536\" tg-height=\"1024\"><span>AndreyPopov/iStock via Getty Images</span></p>\n<p><b>Introduction</b></p>\n<p>Square Inc.(NYSE:SQ)is one of the&nbsp;most popular stocks&nbsp;among retail traders and investors, ranking 57 in Robinhood's top 100 rankings. This has resulted in a 135% increase in price over the last year allowing SQ to reach a market capitalization of greater than $100bln, trading with the volatility of a mid-cap company.</p>\n<p>On the surface the price and valuation may seem justified, with the company sequentially increasing revenues and expanding its portfolio of products through Cash App, Bitcoin (BTC-USD), PPP loans and most recently delving into the commercial loans business with a&nbsp;banking license&nbsp;via Square Financial Services.</p>\n<p>However, these valuations are becoming disaggregated from the fundamentals of the company and its core business on speculation of future revenue projections which are heavily reliant on Bitcoin revenues.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/adc746c80eba08b76805234d32a7eff4\" tg-width=\"638\" tg-height=\"358\"><span>Source: Author, with data from SQ Investor Relations (Q1 2021 Historical Financial Information)</span></p>\n<p>In addition to this, SQ potentially faces several other issues related to small business positioning; policy and regulation; and general macroeconomic factors which may create headwinds that will impact its valuation and pose an asymmetric downside risk for investors, which I will extrapolate on below.</p>\n<p><b>Overview</b></p>\n<p>SQ is a payment processing and business tool provider that facilitates transactions between businesses / sellers and individuals and provides them with hardware, online infrastructure and analytics. Additionally, it services individuals through Cash App which appears to be growing exponentially and allows users to send, receive, hold and invest money, and recently Bitcoin.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/cee1136e6c6e1b5294daf79d06e4a1e8\" tg-width=\"382\" tg-height=\"421\"><span>Source: SQ Investor Relations (Q1 2021 Shareholder Letter - Cash App Inflows vs Gross Profit)</span></p>\n<p>As of March 2020, the&nbsp;company has received a Banking License&nbsp;from the Federal Deposit Insurance Corporation (FDIC) to originate commercial loans to retailers which use SQ for payment processing.</p>\n<p>Given all of this positive news, it is not surprising that the stock has rallied over 330% in the last 3 years on the basis of future growth projections and, since 2020, has chased revenue estimates.</p>\n<p>This was a common occurrence during COVID, as unchartered waters meant that top line growth was imperative for survival. Further, seemingly endless money printing by the Fed, combined with zero rates, meant money flowed into stocks which showed the highest potential for growth.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/214a8d95ef4deef4b9e6e7ec8ca86793\" tg-width=\"640\" tg-height=\"377\"><span>Source: Author, using data from YCHARTS (SQ vs EPS Estimates and Revenue Estimates 2021)</span></p>\n<p>However, in Q1 2021, as the printing slowed, yields began to rise and federal transfers to individuals dissipated, and consequently ever increasing revenue estimates began to mean less for the market, resulting in SQ price action ranging between $200 to $280.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5a03c8294f2805d4e82fbc3fed739f45\" tg-width=\"640\" tg-height=\"377\"><span>Source: Author, using data from YCHARTS (SQ Price YTD)</span></p>\n<p><b>Quantitative</b></p>\n<p>Year to Date, SQ has been a good performer relative to the payment processing sector, returning ~12% price increases to shareholders.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c32bf1243cd5e4252fc8af88b2ee4bfb\" tg-width=\"640\" tg-height=\"377\"><span>Source: Author, using data from YCHARTS (SQ vs Payment Processing Sector &gt;$50 bln Year to Date)</span></p>\n<p>It is also not a surprise to see why when evaluated against these companies on a forward earnings and revenue basis. SQ has above average and median earnings growth for 2021 and 2022, as well as strong revenue growth for 2021.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7b67e41d041b35bf5e8ae3c7adb55c7d\" tg-width=\"640\" tg-height=\"444\"><span>Source: Author, Sector Comparison (Payment Processors)</span></p>\n<p>Whilst SQ's forward PE seems exaggerated in contrast to its counterparts, its forward PS is relatively small and below the sector averages and median, perhaps justifying its present value.</p>\n<p>However, once you remove Bitcoin revenue from the equation, you get much more exaggerated forward PS estimates on much lower revenue growth, which represents SQ's primary business.</p>\n<p>For this equation, I have removed Bitcoin revenue from their Q1 2021 results, and judging by average analyst expectations which show little to no sequential revenue growth from Q2-Q4 2021, multiplied this figure by 4x for a year end revenue estimate of $6,140.70 mln. For prior years, I have removed Bitcoin from Revenue.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/624b2de0076a4f2d6062c52036b5d176\" tg-width=\"640\" tg-height=\"182\"><span>Source: Author, SQ Revenue Growth (2018 to 2021 Estimates with Bitcoin vs excl Bitcoin)</span></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5337259448695cf7fc6a796d86dba775\" tg-width=\"523\" tg-height=\"245\"><span>Source: Author, SQ vs Sector Comps (Revenue Estimates excl Bitcoin)</span></p>\n<p>As we can see this paints a very different picture of the company, and whilst revenue is still growing slightly above comps which also have high PS ratios, suddenly valuations on earnings look more meaningful and it becomes difficult to justify a forward PE 3x above the average and 4.5x above the median. Especially when companies such as American Express Co (AXP), Mastercard Inc (MA), PayPal Holdings Inc (PYPL) and Visa Inc (V) are producing on average 4x higher EPS. The majority of which pay a dividend and have similar growth estimates with less volatility risk.</p>\n<p>Many will suggest that \"this does not matter as BTC is now part of their revenue metrics and that is that, besides transaction volume is what is important\". However, I would cite the example of the 2018 Bitcoin sell off in which&nbsp;Bitcoin fell 70%, and transaction volumes fell from highs by approximately 75% as well:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b01941a1ab02f1b6dc27d73a2705a242\" tg-width=\"640\" tg-height=\"320\"><span>Source: Bitcoinvisuals.com (Bitcoin Market Volume 2018)</span></p>\n<p>On a valuation basis, this presents a substantial downside risk to investors if Bitcoin continued to retrace as a result of being met by increased regulation globally, as the company is essentially trading on revenue metrics propped up by Bitcoin. Quite simply, price down in Bitcoin could mean downwards revisions to revenue estimates and consequently a highly volatile retracement in the price of SQ.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c89cf1b41c0d446571c7a471bb8d8e50\" tg-width=\"640\" tg-height=\"377\"><span>Source: Author, using data from YCHARTS (SQ Price Correlation - Revenue, EPS and EBITDA)</span></p>\n<p>This becomes increasingly likely given the historical volatility of the stock when compared to its peers and it is not surprising that it is also becoming a consensus short position.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2d47874b5957751f0d485a9aa9ec5016\" tg-width=\"640\" tg-height=\"233\"><span>Source: Author (SQ vs Sector Comps Implied and Realized Volatility and Short Interest)</span></p>\n<p>Given the analysis by another Seeking Alpha contributor,The Value Trend&nbsp;in which the author suggests that&nbsp;SQ's 2025 growth is essentially priced in&nbsp;I would have to agree. SQ's reliance on revenue estimates which have been amplified substantially by Bitcoin present an asymmetric risk to the downside in the short to medium term for investors.</p>\n<p><b>Macro</b></p>\n<p>Whilst we are in the process of reopening, many things remain uncertain, such as the level of demand sustainability, job growth and creation, and inflation.</p>\n<p>Whilst the sentiment is overall positive in the media, there are several macroeconomic issues that are beneath the surface which need to be resolved before we can conclude that we are in the clear.</p>\n<p><b>Small Business Environment</b></p>\n<p>SQ's MRQ shows that nearly 49% of the Gross Profit comes from the Seller ecosystem (small businesses).</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a0f50d03e91a1609a120fa139b61e292\" tg-width=\"640\" tg-height=\"319\"><span>Source: SQ Investor Relations (Q1 2021 10Q Page 39 - Segmented Gross Profit)</span></p>\n<p>The majority of this is originating from exposure to sellers with &lt;$500,000 Gross Payment Volume (69.5%). This makes square substantially exposed to fluctuations in the small business cycle.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/75fbdbba973e9d39e9d07b50d6174b03\" tg-width=\"380\" tg-height=\"502\"><span>Source: SQ Investor Relations (Q1 2021 Shareholder Letter)</span></p>\n<p>Delving into the Business Formation Statistics, there is a rosy picture, with over 500,000 business applications for the month of May, 2021 providing an endless surge of opportunity for SQ.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/777bf7fbfba7b466a8c89baa9b21a72d\" tg-width=\"640\" tg-height=\"475\"><span>Source: Census.gov (Business Applications, May 2021)</span></p>\n<p>Again, when we dig deeper and look at the statistics below which rank the optimism of established small businesses, the picture begins to distort and starts to look like the descent into 2008.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e5be8fe67a4c257868eb79101d262e77\" tg-width=\"525\" tg-height=\"557\"><span>Source: NFIB (Small Business Economic Trends - Optimism, May 2021)</span></p>\n<p>Further, when we examine Small Business future outlook on expansion, this has also descended to lows and similar to what was seen in 2008. This could suggest that the bread and butter of SQ's gross profit margin, may not expand at the rate previously seen during 2017 to 2020.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e1a555c19fb385f170bb6deb2b3abcca\" tg-width=\"539\" tg-height=\"319\"><span>Source: NFIB (Small Business Economic Trends - Outlook, May 2021)</span></p>\n<p>Additionally, it should be noted that the two primary reasons small businesses are giving for their negative outlook are \"Economic Conditions\" and \"Political Climate\", which could be related to the election in 2020, COVID, recent policy changes and be somewhat transitory. Alternatively it could resemble the slow march of 2008 to 2016, we simply do not know, except for the fact it is a low reading and consequently could weigh on SQ's high revenue and earnings growth estimates.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4fbef66ecf854fe482a86e001dec91e6\" tg-width=\"523\" tg-height=\"271\"><span>Source: NFIB (Small Business Economic Trends - Reasons for Outlook, May 2021)</span></p>\n<p><b>Small Business Lending</b></p>\n<p>Looking forward, SQ clearly aims to solidify its position in the commercial lending space through acquiring a banking license. This is very positive for the company due to their large and growing small business user base,their experience since 2014, and the&nbsp;PPP program, which stopped on May 31, 2021.</p>\n<p>Currently, bank lending has receded as a result of recovery efforts from COVID.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/327e5b2f822c5f6e8b6298b58c0d4f94\" tg-width=\"640\" tg-height=\"401\"><span>Source: YCHARTS (US Commercial Banks - Commercial and Industrial Loans)</span></p>\n<p>This can be verified through the credit conditions index in the&nbsp;monthly NFIB report. Although, an&nbsp;American Banker survey&nbsp;is reporting that 86% of small businesses are finding it difficult to access credit, and are having to resort to personal credit.</p>\n<p>This is positive for SQ as it will allow them to fill the gap for credit to small business within the market. Though I believe it will be short lived as there is speculation that when the Fed tapers, they will also announce the lifting of&nbsp;capital restraints&nbsp;placed on Wells Fargo &amp; Company (WFC).</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/530b7de3c5d05e7e8f5de219d3582ea7\" tg-width=\"640\" tg-height=\"689\"><span>Source: Credit Suisse (Global Money Dispatch - 25 May 2021)</span></p>\n<p>There is a fairly good probability that this will occur, given that early in 2020 the Fed had&nbsp;lifted these restraints&nbsp;to help small businesses via the PPP program and tapering has a history of upsetting the market. If this occurs, I suspect WFC will become a giant amongst the small business credit space once more and be a very tough competitor to SQ due to their extensive network and history in the space.</p>\n<p><b>Bitcoin, Legislation &amp; Gensler</b></p>\n<p>Bitcoin has been making headlines as of 2H 2020 and much of 1H 2021 for good reason. It is gaining traction amongst retail traders and investors and has shown exceptional appreciation. Further, some minor&nbsp;banks&nbsp;have been interested in the medium although many banks and financial institutions have explicitly banned the&nbsp;purchase of Bitcoin using their services.</p>\n<p>The primary reasons for their objection is more than likely to do with illicit activities, such as&nbsp;money laundering,terrorism,fake transaction volumes, and similar activities which I do not want to get into and neither do banks.</p>\n<p>Consequently, on the recent hype, many countries are now stepping in to regulate the use of Bitcoin, but others are going a step further and are enacting legislation to ban its use and mining, most notably,China&nbsp;and&nbsp;India.</p>\n<p>This has had a negative impact on the price of Bitcoin since the ATHs in May 2021 of ~$65,000, retracing -46% since then.</p>\n<p>It is also extremely negative for Bitcoin going forward as the majority of Bitcoin mining is done in China (~70% YTD) with&nbsp;Hashrates of mining being correlated to the price. Therefore if these recede on decreasing Chinese mining activity, price could surely follow, affecting SQ's Bitcoin holdings and future transaction volumes.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/75ef78953396700241870a3f3ae8d8be\" tg-width=\"640\" tg-height=\"382\"><span>Source: Cambridge University (Cambridge Bitcoin Electricity Consumption Index YTD)</span></p>\n<p>Whilst the SEC has come out and said that&nbsp;Bitcoin regulation is not on their agenda for 2021, Gary Gensler has&nbsp;warned investors to be cautious. Gensler is also has a long history on regulations to protect investors, and despite not putting Bitcoin on the agenda for 2021, I advise readers to study his history with respect to&nbsp;2000 and 2008.</p>\n<p>Looking out further, this does not bode well for Bitcoin and SQ, generally. It is likely that there could be further regulation rather than adoption, negatively impacting its price, leading to a repeat of 2018 lower volumes as well as mining activity.</p>\n<p><b>General Economy - The Worry for Retail</b></p>\n<p>Separately, we could also be seeing a negative situation for retail going forward. Much of the recovery in retail as not been driven by \"pent up demand\" but mostly through subsidies issued throughout&nbsp;2020 and the start of 2021. When examining the graph below, we can see that once you subtract transfer receipts (government stimulus cheques and employment benefits - red line), income is not what it used to be.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/97a5a8cfaa11dd3c5ab5544778a40b90\" tg-width=\"640\" tg-height=\"247\"><span>Source: Federal Reserve Bank of St. Louis (Disposable Income vs Real Income minus Transfers vs Personal Savings vs Retail Trade Sales)</span></p>\n<p>Additionally, we can see that much of the spikes in retail sales (purple) have been driven mainly through the stimulus cheques which bolstered disposable income (blue) and consumer savings (green), though now stimulus has ended and people are having to start to dig into their savings, which is dropped 54% month on month between March and April.</p>\n<p>The consumer spending situation is made worse when examining U6 unemployment, which is&nbsp;considered to be the most revealing&nbsp;amongst economists as it includes unemployed, underemployed and discouraged job seekers. This, generally speaking, does not bode well for consumer discretionary spending patterns going forward.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c09f260d254df1a847962a6b6896764c\" tg-width=\"640\" tg-height=\"388\"><span>Source: Macrotrends.net (U6 Unemployment Rate vs U5 vs Official)</span></p>\n<p>Finally, the rising cost of food and energy, which for food I expect to continue, should hamper consumer discretionary spend going forward. I have previously written articles on The Mosaic Company (MOS)hereand The Andersons (ANDE)here, which outline my justification for this trend.</p>\n<p>In relation to SQ, we can see their historical exposure to consumer discretionary spend based on end 2019 data. When taking into account figures from: retail; professional services, beauty and personal care, home and repair, leisure and entertainment, and casual use, the total exposure is approximately 59%.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/dddddbe8ed21ed16aab29a7b5ebbc846\" tg-width=\"640\" tg-height=\"340\"><span>Source: Statista (Raynor de Best - GPV by Seller Industry Dec 2019)</span></p>\n<p>Whilst this may not impact its revenue figures substantially due to the weighting of bitcoin, I do expect this to undermine is gross profit figures going forward and negatively impact margins as stimulus further fades.</p>\n<p><b>Financials</b></p>\n<p><b>Bitcoin</b></p>\n<p>When examining the financials of SQ we can easily see that Bitcoin is the predominant factor driving its revenue growth (MRQ 69% of total revenue) of which its valuation is derived (see above Introduction section - SQ Price vs Revenue Segments; and Quantitative section - SQ Price correlation).</p>\n<p>From their Q1 2021 Shareholder Letter, page 12 they have stated that on March 31, 2021 the fair value of their holdings was $472 million. On this date the closing price was $58,918.83, or approximately 8,011 Bitcoins. They also state they initially invested $200 million into bitcoin during this period and Q4, so their average price is roughly $25,000 per Bitcoin.</p>\n<p>Currently, the price of Bitcoin sits at approximately $34,600 and it also appears to be struggling to find traction, especially when you examine some other trends. For example, looking at search trends of \"Buy Bitcoin\" on Google Trends, this is clearly waning.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d6b3b70625f48232fa97f1aa14f5548e\" tg-width=\"640\" tg-height=\"333\"><span>Source: Google Trends (Buy Bitcoin search terms - Worldwide 5 Yrs)</span></p>\n<p>Additionally, when you align this data with stimulus payments it is clear there is a relationship between the two in 2H 2020, and much of the recent speculation could be driven by government subsidies.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/54329dbe61b7b1f9fc1347f632aff709\" tg-width=\"640\" tg-height=\"293\"><span>Source: USA.Gov (COVID Stimulus Cheque Dates)</span></p>\n<p>The spike in searches occurs roughly around the time of the two latter government stimulus cheques with a lag of a few days to a few weeks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4c7a198a905e4a89f11faa1b4db4003b\" tg-width=\"640\" tg-height=\"340\"><span>Source: Google Trends (Buy Bitcoin search terms - USA 12 Months)</span></p>\n<p>This also coincides with Bitcoin's price run up in December 2020 and January 2021, as well the failed rally in March and April 2021.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0428576ae2c8312e747c3ae5fccab637\" tg-width=\"640\" tg-height=\"401\"><span>Source: YCHARTS (Bitcoin Price 1 Yr)</span></p>\n<p>Thus, in this example, if we have a continued sell off of -70%, which is similar to what occurred in 2018. We would be back at November 2020 Bitcoin prices of $20,000 approximately.</p>\n<p>This is still feasible on the basis of dwindling volume, further legislation and declining hashrates. It could also be theorized that SQ may carry an impairment charge of $40 million, which would greatly affect operating income, net income and shareholder earnings and future estimates. Though this is purely theoretical without accounting for transactions in the current quarter, such as purchases or sales at or near ATHs.</p>\n<p>Additionally, with the lack of stimulus payments going forward and tighter consumer discretionary spend, the revenue generated from Bitcoin may also decline as less money enters the space and volumes decline. Negatively impacting revenue estimates for SQ and subsequently their price and valuation.</p>\n<p><b>Cash App</b></p>\n<p>On the surface, it looks like Cash App is growing exponentially into a viable platform for users to transact, with more than 36 million monthly transacting active customers, up 50% YoY.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b457a1d1f65d9d40fac153a9926aa167\" tg-width=\"262\" tg-height=\"230\"><span>Source: SQ Investor Relations (Q4 2020 Shareholder Letter)</span></p>\n<p>However, this growth in Cash App may be unsustainable going forward, with SQ elaborating on this in their Quarterly filing notes:</p>\n<blockquote>\n Cash App revenue benefited from growth in numbers of active Cash App customers and from&nbsp;\n <b>government relief programs</b>&nbsp;most recently passed into law in late December 2020 and in March 2021, as well as cumulative benefit from earlier stimulus programs passed in 2020. These programs provided additional stimulus relief and unemployment benefits which resulted in an increase in consumer spending and inflows into our Cash App ecosystem. Cash App revenue growth may not be sustained at the same levels in future quarters and may be impacted by the enactment of further stimulus relief and benefit programs, as well as the demand and market prices for bitcoin, amongst other factors.\n</blockquote>\n<blockquote>\n <i>Source: SQ Investor Relations (Q1 2021 10Q Filings - Page 49)</i>\n</blockquote>\n<p>Part of the issue with Cash App is theoretical continued use and future adoption. Much of the growth seen over the last year was predominantly fueled by stimulus payments through the Cash App ecosystem, and therefore by necessity given the circumstances.</p>\n<p>The two sharp spikes in searches for the app occurred on:</p>\n<ul>\n <li>April 12-18 2020</li>\n <li>January 24-30 2021</li>\n</ul>\n<p>These coincide with stimulus payments as they initially sent them and they gradually deposited them into people's accounts.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f9485d2feac40030b5190195a471781e\" tg-width=\"640\" tg-height=\"337\"><span>Source: Google Trends (Cash App search terms - USA 5 Years)</span></p>\n<p>Therefore, as government stimulus payments end, and Bitcoin again fades from relevancy, and more people return to work and day-trade less, this could negatively impact user growth metrics going forward, impacting SQ revenue estimates, gross profit figures, and its earnings.</p>\n<p>Further, there are a multitude of other more viable platforms, which another Seeking Alpha contributor,The Value Trend, has elaborated onhere.</p>\n<p>It is also important to keep in mind how they define these users, a \"Transacting active Cash App customer\" is the following:</p>\n<blockquote>\n ... has at least\n <b>one financial transaction</b>using any product or service within Cash App during the specified period.\n</blockquote>\n<blockquote>\n <i>Source: SQ Investor Relations (Q4 2020 Shareholder Letter - Page 4)</i>\n</blockquote>\n<p>So, if a customer received their wages from an employer, or unemployment benefit, into Cash App once per month, and transferred all of it to their bank account once per month, they are a \"transacting active Cash App customer\"...</p>\n<p>Perhaps a better quantifier of an \"active\" customer would be greater than 5 transactions.</p>\n<p><b>Technicals</b></p>\n<p>Examining the technicals of SQ, it is clear that the stock is now ranging between $200 and $280, with several breakout attempts at $250 and 2 failed attempts near $300, showing several signs that momentum is dying out.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4c277d5239e06c67b7ff6fd7fff319bb\" tg-width=\"640\" tg-height=\"642\"><span>Source: Author, with data from FINVIZ (SQ Chart)</span></p>\n<p>When examining dark pool order flows, there is a possibility for the current rally to continue as dark pools are at lows, which may likely continue into earnings by August. Although I would not get my hopes up unless some seriously good news occurs and Bitcoin rallies back to ATHs.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3323bfcd903c74dce542b53b0b56e093\" tg-width=\"640\" tg-height=\"281\"><span>Source: Squeezemetrics.com (SQ Dark Pools vs Implied Vol 2 Years)</span></p>\n<p>From the 13F filings, we can also see that many funds have reduced exposure and closed their positions, with fewer new positions being added. The Put to Call ratio is also becoming quite high, especially on a stock that has $100 bln market cap, signaling that we are not the only ones thinking the same thing.</p>\n<p>Caution is required though, as SQ's issues with Bitcoin are obviously becoming a consensus trade, and when those puts are lifted, gamma may turn positive and it could cause the stock to rally significantly.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b221f08c025ba225e32114f0e76dd272\" tg-width=\"640\" tg-height=\"152\"><span>Source: Whalewisdom.com (SQ Funds Positioning)</span></p>\n<p>Further, with relation to ARK ETFs, it is no surprise that there have been&nbsp;significant liquidity issues&nbsp;the last 6 months, and I agree with another Seeking Alpha contributor's thesisherethat we will see a reversion to the mean with respect to prices of stocks held in these ETFs. What can be noted is that Cathie has significantly reduced her exposure to SQ and that she may be picking her battles.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ecce0e1f1cd9e7e47fe27105be3f6ad0\" tg-width=\"640\" tg-height=\"559\"><span>Source: Cathiesark.com (SQ Shares Held - All ETFs)</span></p>\n<p>Given the above information, this is a difficult company to be short. It will either payoff enormously, or rip your face off due to its volatility. Additionally there are many funds wanting some small level of exposure to a company with Bitcoin on the financial statements. Therefore, if you were to trade this as a short at your own risk, discretion is advised and you should always pick your battles.</p>\n<p><b>Price Targets</b></p>\n<p>On the basis of volatility through SQ's ATR it is possible that SQ could move to a low of approximately $100 by the end of the year, moving in favor 40% of the time. This aligns with my year end 2021 price if you remove Bitcoin entirely from the equation.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4ec1e2586568ef7e0aea0c54e3503acc\" tg-width=\"640\" tg-height=\"222\"><span>Source: Author (SQ ATR Calculator)</span></p>\n<p>However, it would not be sensible to do this as it is part of their revenue for the time being, no matter how high Bitcoin volumes were in the start of 2021 and how low they may be at the end of the year.</p>\n<p>I do expect the stock to fall again and retest $200, possibly breaking down to $160. Though it is very difficult to determine a valuation with SQ, mainly because the valuation is derived from Bitcoin revenues, and also the perceived value by funds and the market in the future adoption of the asset.</p>\n<p>If the market begins to perceive Bitcoin again as irrelevant, I would expect SQ to slowly sell off to between $150 and $160 (-37% downside) with a low probability that it will rally past $300 (25% upside).</p>\n<p><b>Risks</b></p>\n<p>With respect to SQ the following risks should be noted.</p>\n<p>The company is growing, whether you like SQ or not. The main questions are: Will the market value Bitcoin on any realistic basis? How much is it growing with and without Bitcoin? What is the potential future growth with and without Bitcoin? And does the market believe it, or for that matter care?</p>\n<p>If the Bitcoin fades from relevancy, and judging by Google Trends, it is more likely than it is not, it is not outlandish to assume that SQ will suffer as a result of this and over the 2H 2021 and take a substantial hit to revenue estimates. However, if Bitcoin adoption increases and negative news fades, since this is a growth company, it could simply continue rallying.</p>\n<p>Further, consumer spending patterns are producing mixed data, and above I have presented a bear case. This could easily turn the other way if people's behavior changes, such as applying for jobs which will increase spending in the economy and hopefully produce small business growth and increase small business optimism and expansion, which is very beneficial for SQ as a cyclical business in the payment processing space.</p>\n<p>Again, caution is necessary, though I do think that future growth of the company is priced in and there is a higher risk to holders of SQ to the downside than to the upside.</p>\n<p><b>Summary</b></p>\n<p>SQ is a high growth company with some potential positive points in the long run; however, its valuation is highly questionable due to its high revenue estimates predominantly derived from Bitcoin transactions and not bottom-line earnings growth.</p>\n<p>From a quantitative perspective, it looks good amongst its peers but upon further examination it appears to be extremely overvalued as future growth, at least for 2021, may be derived from Bitcoin. Further, its Cash App adoption statistics may not continue to see the same run rate going forward without continued government stimulus.</p>\n<p>Additionally, it faces several potential macroeconomic hurdles with respect to small business exposure, lending competitors, consumer transaction competitors, Bitcoin legislation and softening retail demand.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Square: The Bear Case</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSquare: The Bear Case\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-27 10:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4436723-square-the-bear-case><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nOn the surface, Square appears to be a growing company and a good investment with strong revenue growth and a large Cash App user base.\nIn reality, the company has struggled to translate its ...</p>\n\n<a href=\"https://seekingalpha.com/article/4436723-square-the-bear-case\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block"},"source_url":"https://seekingalpha.com/article/4436723-square-the-bear-case","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1117734317","content_text":"Summary\n\nOn the surface, Square appears to be a growing company and a good investment with strong revenue growth and a large Cash App user base.\nIn reality, the company has struggled to translate its top line into bottom line earnings.\nThis has resulted in Square expanding its products to justify exaggerated revenue valuations which may never result in meaningful earnings growth.\nAnd whilst at first glance its Cash App story appears to be a budding prospect, it may be nothing more than temporary growth based on necessity.\nGiven the current valuation and the increasing Bitcoin headwinds, Square could face significant revisions downwards in revenue and earnings.\n\nAndreyPopov/iStock via Getty Images\nIntroduction\nSquare Inc.(NYSE:SQ)is one of the most popular stocks among retail traders and investors, ranking 57 in Robinhood's top 100 rankings. This has resulted in a 135% increase in price over the last year allowing SQ to reach a market capitalization of greater than $100bln, trading with the volatility of a mid-cap company.\nOn the surface the price and valuation may seem justified, with the company sequentially increasing revenues and expanding its portfolio of products through Cash App, Bitcoin (BTC-USD), PPP loans and most recently delving into the commercial loans business with a banking license via Square Financial Services.\nHowever, these valuations are becoming disaggregated from the fundamentals of the company and its core business on speculation of future revenue projections which are heavily reliant on Bitcoin revenues.\nSource: Author, with data from SQ Investor Relations (Q1 2021 Historical Financial Information)\nIn addition to this, SQ potentially faces several other issues related to small business positioning; policy and regulation; and general macroeconomic factors which may create headwinds that will impact its valuation and pose an asymmetric downside risk for investors, which I will extrapolate on below.\nOverview\nSQ is a payment processing and business tool provider that facilitates transactions between businesses / sellers and individuals and provides them with hardware, online infrastructure and analytics. Additionally, it services individuals through Cash App which appears to be growing exponentially and allows users to send, receive, hold and invest money, and recently Bitcoin.\nSource: SQ Investor Relations (Q1 2021 Shareholder Letter - Cash App Inflows vs Gross Profit)\nAs of March 2020, the company has received a Banking License from the Federal Deposit Insurance Corporation (FDIC) to originate commercial loans to retailers which use SQ for payment processing.\nGiven all of this positive news, it is not surprising that the stock has rallied over 330% in the last 3 years on the basis of future growth projections and, since 2020, has chased revenue estimates.\nThis was a common occurrence during COVID, as unchartered waters meant that top line growth was imperative for survival. Further, seemingly endless money printing by the Fed, combined with zero rates, meant money flowed into stocks which showed the highest potential for growth.\nSource: Author, using data from YCHARTS (SQ vs EPS Estimates and Revenue Estimates 2021)\nHowever, in Q1 2021, as the printing slowed, yields began to rise and federal transfers to individuals dissipated, and consequently ever increasing revenue estimates began to mean less for the market, resulting in SQ price action ranging between $200 to $280.\nSource: Author, using data from YCHARTS (SQ Price YTD)\nQuantitative\nYear to Date, SQ has been a good performer relative to the payment processing sector, returning ~12% price increases to shareholders.\nSource: Author, using data from YCHARTS (SQ vs Payment Processing Sector >$50 bln Year to Date)\nIt is also not a surprise to see why when evaluated against these companies on a forward earnings and revenue basis. SQ has above average and median earnings growth for 2021 and 2022, as well as strong revenue growth for 2021.\nSource: Author, Sector Comparison (Payment Processors)\nWhilst SQ's forward PE seems exaggerated in contrast to its counterparts, its forward PS is relatively small and below the sector averages and median, perhaps justifying its present value.\nHowever, once you remove Bitcoin revenue from the equation, you get much more exaggerated forward PS estimates on much lower revenue growth, which represents SQ's primary business.\nFor this equation, I have removed Bitcoin revenue from their Q1 2021 results, and judging by average analyst expectations which show little to no sequential revenue growth from Q2-Q4 2021, multiplied this figure by 4x for a year end revenue estimate of $6,140.70 mln. For prior years, I have removed Bitcoin from Revenue.\nSource: Author, SQ Revenue Growth (2018 to 2021 Estimates with Bitcoin vs excl Bitcoin)\nSource: Author, SQ vs Sector Comps (Revenue Estimates excl Bitcoin)\nAs we can see this paints a very different picture of the company, and whilst revenue is still growing slightly above comps which also have high PS ratios, suddenly valuations on earnings look more meaningful and it becomes difficult to justify a forward PE 3x above the average and 4.5x above the median. Especially when companies such as American Express Co (AXP), Mastercard Inc (MA), PayPal Holdings Inc (PYPL) and Visa Inc (V) are producing on average 4x higher EPS. The majority of which pay a dividend and have similar growth estimates with less volatility risk.\nMany will suggest that \"this does not matter as BTC is now part of their revenue metrics and that is that, besides transaction volume is what is important\". However, I would cite the example of the 2018 Bitcoin sell off in which Bitcoin fell 70%, and transaction volumes fell from highs by approximately 75% as well:\nSource: Bitcoinvisuals.com (Bitcoin Market Volume 2018)\nOn a valuation basis, this presents a substantial downside risk to investors if Bitcoin continued to retrace as a result of being met by increased regulation globally, as the company is essentially trading on revenue metrics propped up by Bitcoin. Quite simply, price down in Bitcoin could mean downwards revisions to revenue estimates and consequently a highly volatile retracement in the price of SQ.\nSource: Author, using data from YCHARTS (SQ Price Correlation - Revenue, EPS and EBITDA)\nThis becomes increasingly likely given the historical volatility of the stock when compared to its peers and it is not surprising that it is also becoming a consensus short position.\nSource: Author (SQ vs Sector Comps Implied and Realized Volatility and Short Interest)\nGiven the analysis by another Seeking Alpha contributor,The Value Trend in which the author suggests that SQ's 2025 growth is essentially priced in I would have to agree. SQ's reliance on revenue estimates which have been amplified substantially by Bitcoin present an asymmetric risk to the downside in the short to medium term for investors.\nMacro\nWhilst we are in the process of reopening, many things remain uncertain, such as the level of demand sustainability, job growth and creation, and inflation.\nWhilst the sentiment is overall positive in the media, there are several macroeconomic issues that are beneath the surface which need to be resolved before we can conclude that we are in the clear.\nSmall Business Environment\nSQ's MRQ shows that nearly 49% of the Gross Profit comes from the Seller ecosystem (small businesses).\nSource: SQ Investor Relations (Q1 2021 10Q Page 39 - Segmented Gross Profit)\nThe majority of this is originating from exposure to sellers with <$500,000 Gross Payment Volume (69.5%). This makes square substantially exposed to fluctuations in the small business cycle.\nSource: SQ Investor Relations (Q1 2021 Shareholder Letter)\nDelving into the Business Formation Statistics, there is a rosy picture, with over 500,000 business applications for the month of May, 2021 providing an endless surge of opportunity for SQ.\nSource: Census.gov (Business Applications, May 2021)\nAgain, when we dig deeper and look at the statistics below which rank the optimism of established small businesses, the picture begins to distort and starts to look like the descent into 2008.\nSource: NFIB (Small Business Economic Trends - Optimism, May 2021)\nFurther, when we examine Small Business future outlook on expansion, this has also descended to lows and similar to what was seen in 2008. This could suggest that the bread and butter of SQ's gross profit margin, may not expand at the rate previously seen during 2017 to 2020.\nSource: NFIB (Small Business Economic Trends - Outlook, May 2021)\nAdditionally, it should be noted that the two primary reasons small businesses are giving for their negative outlook are \"Economic Conditions\" and \"Political Climate\", which could be related to the election in 2020, COVID, recent policy changes and be somewhat transitory. Alternatively it could resemble the slow march of 2008 to 2016, we simply do not know, except for the fact it is a low reading and consequently could weigh on SQ's high revenue and earnings growth estimates.\nSource: NFIB (Small Business Economic Trends - Reasons for Outlook, May 2021)\nSmall Business Lending\nLooking forward, SQ clearly aims to solidify its position in the commercial lending space through acquiring a banking license. This is very positive for the company due to their large and growing small business user base,their experience since 2014, and the PPP program, which stopped on May 31, 2021.\nCurrently, bank lending has receded as a result of recovery efforts from COVID.\nSource: YCHARTS (US Commercial Banks - Commercial and Industrial Loans)\nThis can be verified through the credit conditions index in the monthly NFIB report. Although, an American Banker survey is reporting that 86% of small businesses are finding it difficult to access credit, and are having to resort to personal credit.\nThis is positive for SQ as it will allow them to fill the gap for credit to small business within the market. Though I believe it will be short lived as there is speculation that when the Fed tapers, they will also announce the lifting of capital restraints placed on Wells Fargo & Company (WFC).\nSource: Credit Suisse (Global Money Dispatch - 25 May 2021)\nThere is a fairly good probability that this will occur, given that early in 2020 the Fed had lifted these restraints to help small businesses via the PPP program and tapering has a history of upsetting the market. If this occurs, I suspect WFC will become a giant amongst the small business credit space once more and be a very tough competitor to SQ due to their extensive network and history in the space.\nBitcoin, Legislation & Gensler\nBitcoin has been making headlines as of 2H 2020 and much of 1H 2021 for good reason. It is gaining traction amongst retail traders and investors and has shown exceptional appreciation. Further, some minor banks have been interested in the medium although many banks and financial institutions have explicitly banned the purchase of Bitcoin using their services.\nThe primary reasons for their objection is more than likely to do with illicit activities, such as money laundering,terrorism,fake transaction volumes, and similar activities which I do not want to get into and neither do banks.\nConsequently, on the recent hype, many countries are now stepping in to regulate the use of Bitcoin, but others are going a step further and are enacting legislation to ban its use and mining, most notably,China and India.\nThis has had a negative impact on the price of Bitcoin since the ATHs in May 2021 of ~$65,000, retracing -46% since then.\nIt is also extremely negative for Bitcoin going forward as the majority of Bitcoin mining is done in China (~70% YTD) with Hashrates of mining being correlated to the price. Therefore if these recede on decreasing Chinese mining activity, price could surely follow, affecting SQ's Bitcoin holdings and future transaction volumes.\nSource: Cambridge University (Cambridge Bitcoin Electricity Consumption Index YTD)\nWhilst the SEC has come out and said that Bitcoin regulation is not on their agenda for 2021, Gary Gensler has warned investors to be cautious. Gensler is also has a long history on regulations to protect investors, and despite not putting Bitcoin on the agenda for 2021, I advise readers to study his history with respect to 2000 and 2008.\nLooking out further, this does not bode well for Bitcoin and SQ, generally. It is likely that there could be further regulation rather than adoption, negatively impacting its price, leading to a repeat of 2018 lower volumes as well as mining activity.\nGeneral Economy - The Worry for Retail\nSeparately, we could also be seeing a negative situation for retail going forward. Much of the recovery in retail as not been driven by \"pent up demand\" but mostly through subsidies issued throughout 2020 and the start of 2021. When examining the graph below, we can see that once you subtract transfer receipts (government stimulus cheques and employment benefits - red line), income is not what it used to be.\nSource: Federal Reserve Bank of St. Louis (Disposable Income vs Real Income minus Transfers vs Personal Savings vs Retail Trade Sales)\nAdditionally, we can see that much of the spikes in retail sales (purple) have been driven mainly through the stimulus cheques which bolstered disposable income (blue) and consumer savings (green), though now stimulus has ended and people are having to start to dig into their savings, which is dropped 54% month on month between March and April.\nThe consumer spending situation is made worse when examining U6 unemployment, which is considered to be the most revealing amongst economists as it includes unemployed, underemployed and discouraged job seekers. This, generally speaking, does not bode well for consumer discretionary spending patterns going forward.\nSource: Macrotrends.net (U6 Unemployment Rate vs U5 vs Official)\nFinally, the rising cost of food and energy, which for food I expect to continue, should hamper consumer discretionary spend going forward. I have previously written articles on The Mosaic Company (MOS)hereand The Andersons (ANDE)here, which outline my justification for this trend.\nIn relation to SQ, we can see their historical exposure to consumer discretionary spend based on end 2019 data. When taking into account figures from: retail; professional services, beauty and personal care, home and repair, leisure and entertainment, and casual use, the total exposure is approximately 59%.\nSource: Statista (Raynor de Best - GPV by Seller Industry Dec 2019)\nWhilst this may not impact its revenue figures substantially due to the weighting of bitcoin, I do expect this to undermine is gross profit figures going forward and negatively impact margins as stimulus further fades.\nFinancials\nBitcoin\nWhen examining the financials of SQ we can easily see that Bitcoin is the predominant factor driving its revenue growth (MRQ 69% of total revenue) of which its valuation is derived (see above Introduction section - SQ Price vs Revenue Segments; and Quantitative section - SQ Price correlation).\nFrom their Q1 2021 Shareholder Letter, page 12 they have stated that on March 31, 2021 the fair value of their holdings was $472 million. On this date the closing price was $58,918.83, or approximately 8,011 Bitcoins. They also state they initially invested $200 million into bitcoin during this period and Q4, so their average price is roughly $25,000 per Bitcoin.\nCurrently, the price of Bitcoin sits at approximately $34,600 and it also appears to be struggling to find traction, especially when you examine some other trends. For example, looking at search trends of \"Buy Bitcoin\" on Google Trends, this is clearly waning.\nSource: Google Trends (Buy Bitcoin search terms - Worldwide 5 Yrs)\nAdditionally, when you align this data with stimulus payments it is clear there is a relationship between the two in 2H 2020, and much of the recent speculation could be driven by government subsidies.\nSource: USA.Gov (COVID Stimulus Cheque Dates)\nThe spike in searches occurs roughly around the time of the two latter government stimulus cheques with a lag of a few days to a few weeks.\nSource: Google Trends (Buy Bitcoin search terms - USA 12 Months)\nThis also coincides with Bitcoin's price run up in December 2020 and January 2021, as well the failed rally in March and April 2021.\nSource: YCHARTS (Bitcoin Price 1 Yr)\nThus, in this example, if we have a continued sell off of -70%, which is similar to what occurred in 2018. We would be back at November 2020 Bitcoin prices of $20,000 approximately.\nThis is still feasible on the basis of dwindling volume, further legislation and declining hashrates. It could also be theorized that SQ may carry an impairment charge of $40 million, which would greatly affect operating income, net income and shareholder earnings and future estimates. Though this is purely theoretical without accounting for transactions in the current quarter, such as purchases or sales at or near ATHs.\nAdditionally, with the lack of stimulus payments going forward and tighter consumer discretionary spend, the revenue generated from Bitcoin may also decline as less money enters the space and volumes decline. Negatively impacting revenue estimates for SQ and subsequently their price and valuation.\nCash App\nOn the surface, it looks like Cash App is growing exponentially into a viable platform for users to transact, with more than 36 million monthly transacting active customers, up 50% YoY.\nSource: SQ Investor Relations (Q4 2020 Shareholder Letter)\nHowever, this growth in Cash App may be unsustainable going forward, with SQ elaborating on this in their Quarterly filing notes:\n\n Cash App revenue benefited from growth in numbers of active Cash App customers and from \n government relief programs most recently passed into law in late December 2020 and in March 2021, as well as cumulative benefit from earlier stimulus programs passed in 2020. These programs provided additional stimulus relief and unemployment benefits which resulted in an increase in consumer spending and inflows into our Cash App ecosystem. Cash App revenue growth may not be sustained at the same levels in future quarters and may be impacted by the enactment of further stimulus relief and benefit programs, as well as the demand and market prices for bitcoin, amongst other factors.\n\n\nSource: SQ Investor Relations (Q1 2021 10Q Filings - Page 49)\n\nPart of the issue with Cash App is theoretical continued use and future adoption. Much of the growth seen over the last year was predominantly fueled by stimulus payments through the Cash App ecosystem, and therefore by necessity given the circumstances.\nThe two sharp spikes in searches for the app occurred on:\n\nApril 12-18 2020\nJanuary 24-30 2021\n\nThese coincide with stimulus payments as they initially sent them and they gradually deposited them into people's accounts.\nSource: Google Trends (Cash App search terms - USA 5 Years)\nTherefore, as government stimulus payments end, and Bitcoin again fades from relevancy, and more people return to work and day-trade less, this could negatively impact user growth metrics going forward, impacting SQ revenue estimates, gross profit figures, and its earnings.\nFurther, there are a multitude of other more viable platforms, which another Seeking Alpha contributor,The Value Trend, has elaborated onhere.\nIt is also important to keep in mind how they define these users, a \"Transacting active Cash App customer\" is the following:\n\n ... has at least\n one financial transactionusing any product or service within Cash App during the specified period.\n\n\nSource: SQ Investor Relations (Q4 2020 Shareholder Letter - Page 4)\n\nSo, if a customer received their wages from an employer, or unemployment benefit, into Cash App once per month, and transferred all of it to their bank account once per month, they are a \"transacting active Cash App customer\"...\nPerhaps a better quantifier of an \"active\" customer would be greater than 5 transactions.\nTechnicals\nExamining the technicals of SQ, it is clear that the stock is now ranging between $200 and $280, with several breakout attempts at $250 and 2 failed attempts near $300, showing several signs that momentum is dying out.\nSource: Author, with data from FINVIZ (SQ Chart)\nWhen examining dark pool order flows, there is a possibility for the current rally to continue as dark pools are at lows, which may likely continue into earnings by August. Although I would not get my hopes up unless some seriously good news occurs and Bitcoin rallies back to ATHs.\nSource: Squeezemetrics.com (SQ Dark Pools vs Implied Vol 2 Years)\nFrom the 13F filings, we can also see that many funds have reduced exposure and closed their positions, with fewer new positions being added. The Put to Call ratio is also becoming quite high, especially on a stock that has $100 bln market cap, signaling that we are not the only ones thinking the same thing.\nCaution is required though, as SQ's issues with Bitcoin are obviously becoming a consensus trade, and when those puts are lifted, gamma may turn positive and it could cause the stock to rally significantly.\nSource: Whalewisdom.com (SQ Funds Positioning)\nFurther, with relation to ARK ETFs, it is no surprise that there have been significant liquidity issues the last 6 months, and I agree with another Seeking Alpha contributor's thesisherethat we will see a reversion to the mean with respect to prices of stocks held in these ETFs. What can be noted is that Cathie has significantly reduced her exposure to SQ and that she may be picking her battles.\nSource: Cathiesark.com (SQ Shares Held - All ETFs)\nGiven the above information, this is a difficult company to be short. It will either payoff enormously, or rip your face off due to its volatility. Additionally there are many funds wanting some small level of exposure to a company with Bitcoin on the financial statements. Therefore, if you were to trade this as a short at your own risk, discretion is advised and you should always pick your battles.\nPrice Targets\nOn the basis of volatility through SQ's ATR it is possible that SQ could move to a low of approximately $100 by the end of the year, moving in favor 40% of the time. This aligns with my year end 2021 price if you remove Bitcoin entirely from the equation.\nSource: Author (SQ ATR Calculator)\nHowever, it would not be sensible to do this as it is part of their revenue for the time being, no matter how high Bitcoin volumes were in the start of 2021 and how low they may be at the end of the year.\nI do expect the stock to fall again and retest $200, possibly breaking down to $160. Though it is very difficult to determine a valuation with SQ, mainly because the valuation is derived from Bitcoin revenues, and also the perceived value by funds and the market in the future adoption of the asset.\nIf the market begins to perceive Bitcoin again as irrelevant, I would expect SQ to slowly sell off to between $150 and $160 (-37% downside) with a low probability that it will rally past $300 (25% upside).\nRisks\nWith respect to SQ the following risks should be noted.\nThe company is growing, whether you like SQ or not. The main questions are: Will the market value Bitcoin on any realistic basis? How much is it growing with and without Bitcoin? What is the potential future growth with and without Bitcoin? And does the market believe it, or for that matter care?\nIf the Bitcoin fades from relevancy, and judging by Google Trends, it is more likely than it is not, it is not outlandish to assume that SQ will suffer as a result of this and over the 2H 2021 and take a substantial hit to revenue estimates. However, if Bitcoin adoption increases and negative news fades, since this is a growth company, it could simply continue rallying.\nFurther, consumer spending patterns are producing mixed data, and above I have presented a bear case. This could easily turn the other way if people's behavior changes, such as applying for jobs which will increase spending in the economy and hopefully produce small business growth and increase small business optimism and expansion, which is very beneficial for SQ as a cyclical business in the payment processing space.\nAgain, caution is necessary, though I do think that future growth of the company is priced in and there is a higher risk to holders of SQ to the downside than to the upside.\nSummary\nSQ is a high growth company with some potential positive points in the long run; however, its valuation is highly questionable due to its high revenue estimates predominantly derived from Bitcoin transactions and not bottom-line earnings growth.\nFrom a quantitative perspective, it looks good amongst its peers but upon further examination it appears to be extremely overvalued as future growth, at least for 2021, may be derived from Bitcoin. Further, its Cash App adoption statistics may not continue to see the same run rate going forward without continued government stimulus.\nAdditionally, it faces several potential macroeconomic hurdles with respect to small business exposure, lending competitors, consumer transaction competitors, Bitcoin legislation and softening retail demand.","news_type":1},"isVote":1,"tweetType":1,"viewCount":309,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":124491832,"gmtCreate":1624777192826,"gmtModify":1633948690556,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Agreed good stock but too expensive","listText":"Agreed good stock but too expensive","text":"Agreed good stock but too expensive","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/124491832","repostId":"1184001921","repostType":4,"repost":{"id":"1184001921","pubTimestamp":1624763737,"share":"https://www.laohu8.com/m/news/1184001921?lang=&edition=full","pubTime":"2021-06-27 11:15","market":"us","language":"en","title":"Amazon: Good Stock, Not Good Price","url":"https://stock-news.laohu8.com/highlight/detail?id=1184001921","media":"seekingalpha","summary":"Summary\n\nAmazon is one of the most innovative companies in the world today, leading the E-commerce i","content":"<p><b>Summary</b></p>\n<ul>\n <li>Amazon is one of the most innovative companies in the world today, leading the E-commerce industry and cloud computing services.</li>\n <li>Unfortunately, it's a little overpriced. This is consistent with some of the other mega-cap stocks I've analyzed.</li>\n <li>This article looks at what Amazon stock is most likely worth for us investors.</li>\n <li>I hope you enjoy.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/451bc93115fb453c0fcb76434c40f7f4\" tg-width=\"1536\" tg-height=\"1024\"><span>Sundry Photography/iStock Editorial via Getty Images</span></p>\n<p>Today, Amazon (AMZN) seems to be a little overpriced based on my intrinsic value model.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a82d937a2de3f0709088e1ab4548267b\" tg-width=\"371\" tg-height=\"260\"><span>Source: Author</span></p>\n<p>You might have seen some of my other articles where I've bashed other popular stocks like Apple (AAPL) or Microsoft (MSFT). Well, I guess today it's Amazon's turn. I just try to share what I think companies are worth, and I've found that a lot of companies seem to be overpriced.</p>\n<p>In this article, I'll break down how I came up with Amazon's valuation. I know that there's tons of different opinions out there about Amazon, so I'll try to share the reasoning behind my valuation to help you make better investments in the future.</p>\n<p>Something important you should know - I'm not an expert on Amazon, and I have a really difficult time valuing growth stocks. I really doubt that I have the ability to estimate a company's future growth. I made future growth estimates by looking at past growth and making conservative estimates of the future.</p>\n<p>This method borders on \"data extrapolation\", which is making assumptions based on past data. Data extrapolation isn't great because the future is different from the past - so making future projections based on past data isn't ideal.</p>\n<p>But after valuing hundreds of companies, I've found that this kind of style does a good job of getting the valuation approximately right. I always try to set my valuations low, because it's better to buy low and make a killing than buy high and lose money.</p>\n<blockquote>\n Warren Buffett said, “The three most important words in investing are\n <b>margin of safety</b>.” That means to buy stuff on sale... That's the whole secret to great investing.\n</blockquote>\n<blockquote>\n Rule 1 Investing\n</blockquote>\n<p>This model is built on getting the valuation \"approximately right,\" and looking to buy with a large margin of safety. I hope you enjoy, and as always, I'll try to keep it clean and common sense.</p>\n<p><b>Business Model</b></p>\n<p>Where does Amazon get its money? Amazon is split into 3 segments: North America, International, and AWS.</p>\n<p>As a market leader in 2 high growth industries (E-commerce and cloud computing), Amazon will probably continue to see high growth in the future. In this section, I looked at the past revenue growth and operating margins for each of Amazon's segments, and I used this to make conservative future projections.</p>\n<p>And later, I added up the numbers from each segment to make projections for the whole company. Here's a look at AMZN's North America segment. This segment's revenue comes from retail sales and subscription service revenues.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ce022c0ecacc3829cf83378211bbfd9d\" tg-width=\"640\" tg-height=\"192\"><span>Source: Author with data from 2018 10-K,2019 10-K, and 2020 10-K</span></p>\n<p>I projected declining revenue growth and strong operating margins for this segment. I projected slower revenue growth, because I figure there has to be a cap on how much money Amazon can make in North America.</p>\n<p>Hopefully, Amazon will exceed this revenue growth. But, I do think it would be a pretty incredible feat for Amazon to grow from $200B in revenue to $400B in 5 years.</p>\n<p>Here's a look at Amazon's International segment:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f3d7a5bde370f55e863f58c888abc496\" tg-width=\"640\" tg-height=\"219\"><span>Source: Author with data from 2018 10-K,2019 10-K, and 2020 10-K</span></p>\n<p>For Amazon's international segment, I projected 20% annual revenue growth, and improving operating margins. I figured that operating margins would gradually improve until the margins reached a similar point to what Amazon sees in its US segment.</p>\n<p>And for Amazon's last and most exciting segment, here's AWS:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/769700013871f2cd09e8ce47cfb10966\" tg-width=\"640\" tg-height=\"203\"><span>Source: Author</span></p>\n<p>AWS is undoubtedly going to bring high growth for Amazon, and high profits. I projected that the AWS segment will probably continue to grow at a high rate. I projected a 25-30% annual revenue growth rate because cloud computing has a lot of room to grow, and according to Research and Markets, the cloud computing industry should grow at about&nbsp;17.5% CAGR&nbsp;until 2025.</p>\n<p>Additionally, I projected 28% operating margins, because the AWS business benefits from operating leverage. As more people use the software, the company is able to make higher margins as it spreads costs over more people. It's possible that Amazon could exceed 28% operating margins, so there might be upside to Amazon's fair value.</p>\n<p>These projections were added together to help us figure out what the entire company should be worth.</p>\n<p><b>Capital Allocation</b></p>\n<p>How does Amazon spend its money? You might find it interesting to analyze Amazon's capital allocation, so you can see what Amazon does with its money, and where it might be investing for the future.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/45f5afa0f641ee1aae39aa69cc150165\" tg-width=\"619\" tg-height=\"499\"><span>Source: Author</span></p>\n<p>The biggest portion of Amazon's operating cash flows goes towards capital expenditures. From what I can tell, Amazon has not had any share activity over the past 5 years. The company has issued shares - but from the looks of the cash flow statement, it looks like they haven't raised any money from selling shares, and they haven't spent any money buying back shares.</p>\n<blockquote>\n In February 2016, the Board of Directors authorized a program to repurchase up to $5.0 billion of our common stock, with no fixed expiration.\n <i>There were no repurchases of common stock in 2018, 2019, or 2020.</i>\n</blockquote>\n<blockquote>\n Source:2020 10-K&nbsp;page 60,\n <i>emphasis added</i>\n</blockquote>\n<p>But for our purposes, this quote shows that Amazon hasn't bought back any stock over the past 3 years. They also haven't spent any money on dividends, which is good because they're a high growth company.</p>\n<p>Amazon has consistently spent money on acquisitions and paying down debt. What's really interesting is that Amazon has built up a lot of spare cash over the past 5 years. Their cash position has risen about $58B since 2016, going from about $26B at the end of 2016 to about $84B at the end of 2020.</p>\n<p>Amazon has a lot more cash than they used to, so we could see future spending go towards a dividend, share buybacks, new acquisitions, or maybe more business investments that will lead to growth.</p>\n<p><b>Valuation</b></p>\n<p>First, I used a discount rate of 7.7% for Amazon because that's what I found the company's weighted average cost of capital, or WACC, to be. I assumed an 8% cost of equity, and Amazon has averaged somewhere around a 20-30% tax rate over the past 10 years.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c036264f19bb10fdad477a629b40f803\" tg-width=\"361\" tg-height=\"288\"><span>Source: Author</span></p>\n<p>I used a DCF model to find Amazon's value today. In the model down below, you can see in the top 2 red boxes that I projected that the company would have lower revenue growth and strong operating margins.</p>\n<p>This model projects that Amazon will have over $850B in revenue by 2025. That's absolutely nuts if you think about it, but based on estimated revenue growth, it seems feasible.</p>\n<p>Right now, Walmart(NYSE:WMT)leads the world in revenue with about $550B. Amazon sits in third place for annual revenue, with about $390B. In 5 years, Amazon could easily have the largest revenue of any company in the world.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/95c459abcbda43e35b40379a1083ecae\" tg-width=\"640\" tg-height=\"510\"><span>Source: Author</span></p>\n<p>Down at the bottom of this model, you can see there's a red box that projects unlevered FCF margins. This basically measures how much of the company's revenue will become business profits, without including interest or debt payments. In the turquoise box, I applied the discount rate to see what the future cash flows are worth today.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a3fa0846616fdc847a3fe1fdf7a09bed\" tg-width=\"267\" tg-height=\"404\"><span>Source: Author</span></p>\n<p>Today, it looks like Amazon is slightly overvalued. The model projects that the stock might be about 15% overvalued, and we could expect to make about 5% annual returns over the next 5 years if we invested today.</p>\n<p>These estimations are based on the future cash flows that the business should generate. I don't hate Amazon or anything, I just don't think that Amazon stock would make a great investment at current prices.</p>\n<p>Down at the bottom, I threw in 2 \"Buy Prices\" where Amazon stock might be more appealing. The idea behind this is that the cheaper AMZN stock gets, the higher returns we can expect.</p>\n<p>The model projects that you'd make around 15% annual returns at $2,200 per share, and you might make around 22% annual returns at $1,700 per share.</p>\n<p>\"But doesn't it seem unreasonable to set the buy price in the $2,000s when the stock's trading near $3,500?\" It does a little bit. It seems pretty unlikely that Amazon's share price will nose dive right down past $2,000.</p>\n<p>But the idea is, if we're patient, we might get an opportunity to buy these shares underpriced. Last February, Amazon traded lower than $1,900 (I wish I bought some back then). We'll probably have opportunities in the future to buy Amazon at a discount.</p>\n<p><b>Recap</b></p>\n<p>Today, it seems like Amazon is slightly overvalued, because it seems to offer about 5% annual returns over the next 5 years. That doesn't mean you should sell Amazon if you're a long time holder, because Amazon should continue to do well as a leader in E-commerce and cloud computing.</p>\n<p>But if you're looking for your next stock to invest in, Amazon seems to be too expensive right now. And if you've been eyeing Amazon for a while and you're looking to get in, now's not the best time to get into Amazon.</p>\n<p>Even if we don't invest in the stock, we can still watch Amazon as they become the company with the most revenue in the world. And there's a lot we can learn from studying Amazon and Jeff Bezos. He's a smart dude.</p>\n<p>Thank you very much for reading, and I hope that you have a great rest of your day.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: Good Stock, Not Good Price</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: Good Stock, Not Good Price\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-27 11:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4436641-amazon-good-stock-not-good-price><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nAmazon is one of the most innovative companies in the world today, leading the E-commerce industry and cloud computing services.\nUnfortunately, it's a little overpriced. This is consistent ...</p>\n\n<a href=\"https://seekingalpha.com/article/4436641-amazon-good-stock-not-good-price\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4436641-amazon-good-stock-not-good-price","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1184001921","content_text":"Summary\n\nAmazon is one of the most innovative companies in the world today, leading the E-commerce industry and cloud computing services.\nUnfortunately, it's a little overpriced. This is consistent with some of the other mega-cap stocks I've analyzed.\nThis article looks at what Amazon stock is most likely worth for us investors.\nI hope you enjoy.\n\nSundry Photography/iStock Editorial via Getty Images\nToday, Amazon (AMZN) seems to be a little overpriced based on my intrinsic value model.\nSource: Author\nYou might have seen some of my other articles where I've bashed other popular stocks like Apple (AAPL) or Microsoft (MSFT). Well, I guess today it's Amazon's turn. I just try to share what I think companies are worth, and I've found that a lot of companies seem to be overpriced.\nIn this article, I'll break down how I came up with Amazon's valuation. I know that there's tons of different opinions out there about Amazon, so I'll try to share the reasoning behind my valuation to help you make better investments in the future.\nSomething important you should know - I'm not an expert on Amazon, and I have a really difficult time valuing growth stocks. I really doubt that I have the ability to estimate a company's future growth. I made future growth estimates by looking at past growth and making conservative estimates of the future.\nThis method borders on \"data extrapolation\", which is making assumptions based on past data. Data extrapolation isn't great because the future is different from the past - so making future projections based on past data isn't ideal.\nBut after valuing hundreds of companies, I've found that this kind of style does a good job of getting the valuation approximately right. I always try to set my valuations low, because it's better to buy low and make a killing than buy high and lose money.\n\n Warren Buffett said, “The three most important words in investing are\n margin of safety.” That means to buy stuff on sale... That's the whole secret to great investing.\n\n\n Rule 1 Investing\n\nThis model is built on getting the valuation \"approximately right,\" and looking to buy with a large margin of safety. I hope you enjoy, and as always, I'll try to keep it clean and common sense.\nBusiness Model\nWhere does Amazon get its money? Amazon is split into 3 segments: North America, International, and AWS.\nAs a market leader in 2 high growth industries (E-commerce and cloud computing), Amazon will probably continue to see high growth in the future. In this section, I looked at the past revenue growth and operating margins for each of Amazon's segments, and I used this to make conservative future projections.\nAnd later, I added up the numbers from each segment to make projections for the whole company. Here's a look at AMZN's North America segment. This segment's revenue comes from retail sales and subscription service revenues.\nSource: Author with data from 2018 10-K,2019 10-K, and 2020 10-K\nI projected declining revenue growth and strong operating margins for this segment. I projected slower revenue growth, because I figure there has to be a cap on how much money Amazon can make in North America.\nHopefully, Amazon will exceed this revenue growth. But, I do think it would be a pretty incredible feat for Amazon to grow from $200B in revenue to $400B in 5 years.\nHere's a look at Amazon's International segment:\nSource: Author with data from 2018 10-K,2019 10-K, and 2020 10-K\nFor Amazon's international segment, I projected 20% annual revenue growth, and improving operating margins. I figured that operating margins would gradually improve until the margins reached a similar point to what Amazon sees in its US segment.\nAnd for Amazon's last and most exciting segment, here's AWS:\nSource: Author\nAWS is undoubtedly going to bring high growth for Amazon, and high profits. I projected that the AWS segment will probably continue to grow at a high rate. I projected a 25-30% annual revenue growth rate because cloud computing has a lot of room to grow, and according to Research and Markets, the cloud computing industry should grow at about 17.5% CAGR until 2025.\nAdditionally, I projected 28% operating margins, because the AWS business benefits from operating leverage. As more people use the software, the company is able to make higher margins as it spreads costs over more people. It's possible that Amazon could exceed 28% operating margins, so there might be upside to Amazon's fair value.\nThese projections were added together to help us figure out what the entire company should be worth.\nCapital Allocation\nHow does Amazon spend its money? You might find it interesting to analyze Amazon's capital allocation, so you can see what Amazon does with its money, and where it might be investing for the future.\nSource: Author\nThe biggest portion of Amazon's operating cash flows goes towards capital expenditures. From what I can tell, Amazon has not had any share activity over the past 5 years. The company has issued shares - but from the looks of the cash flow statement, it looks like they haven't raised any money from selling shares, and they haven't spent any money buying back shares.\n\n In February 2016, the Board of Directors authorized a program to repurchase up to $5.0 billion of our common stock, with no fixed expiration.\n There were no repurchases of common stock in 2018, 2019, or 2020.\n\n\n Source:2020 10-K page 60,\n emphasis added\n\nBut for our purposes, this quote shows that Amazon hasn't bought back any stock over the past 3 years. They also haven't spent any money on dividends, which is good because they're a high growth company.\nAmazon has consistently spent money on acquisitions and paying down debt. What's really interesting is that Amazon has built up a lot of spare cash over the past 5 years. Their cash position has risen about $58B since 2016, going from about $26B at the end of 2016 to about $84B at the end of 2020.\nAmazon has a lot more cash than they used to, so we could see future spending go towards a dividend, share buybacks, new acquisitions, or maybe more business investments that will lead to growth.\nValuation\nFirst, I used a discount rate of 7.7% for Amazon because that's what I found the company's weighted average cost of capital, or WACC, to be. I assumed an 8% cost of equity, and Amazon has averaged somewhere around a 20-30% tax rate over the past 10 years.\nSource: Author\nI used a DCF model to find Amazon's value today. In the model down below, you can see in the top 2 red boxes that I projected that the company would have lower revenue growth and strong operating margins.\nThis model projects that Amazon will have over $850B in revenue by 2025. That's absolutely nuts if you think about it, but based on estimated revenue growth, it seems feasible.\nRight now, Walmart(NYSE:WMT)leads the world in revenue with about $550B. Amazon sits in third place for annual revenue, with about $390B. In 5 years, Amazon could easily have the largest revenue of any company in the world.\nSource: Author\nDown at the bottom of this model, you can see there's a red box that projects unlevered FCF margins. This basically measures how much of the company's revenue will become business profits, without including interest or debt payments. In the turquoise box, I applied the discount rate to see what the future cash flows are worth today.\nSource: Author\nToday, it looks like Amazon is slightly overvalued. The model projects that the stock might be about 15% overvalued, and we could expect to make about 5% annual returns over the next 5 years if we invested today.\nThese estimations are based on the future cash flows that the business should generate. I don't hate Amazon or anything, I just don't think that Amazon stock would make a great investment at current prices.\nDown at the bottom, I threw in 2 \"Buy Prices\" where Amazon stock might be more appealing. The idea behind this is that the cheaper AMZN stock gets, the higher returns we can expect.\nThe model projects that you'd make around 15% annual returns at $2,200 per share, and you might make around 22% annual returns at $1,700 per share.\n\"But doesn't it seem unreasonable to set the buy price in the $2,000s when the stock's trading near $3,500?\" It does a little bit. It seems pretty unlikely that Amazon's share price will nose dive right down past $2,000.\nBut the idea is, if we're patient, we might get an opportunity to buy these shares underpriced. Last February, Amazon traded lower than $1,900 (I wish I bought some back then). We'll probably have opportunities in the future to buy Amazon at a discount.\nRecap\nToday, it seems like Amazon is slightly overvalued, because it seems to offer about 5% annual returns over the next 5 years. That doesn't mean you should sell Amazon if you're a long time holder, because Amazon should continue to do well as a leader in E-commerce and cloud computing.\nBut if you're looking for your next stock to invest in, Amazon seems to be too expensive right now. And if you've been eyeing Amazon for a while and you're looking to get in, now's not the best time to get into Amazon.\nEven if we don't invest in the stock, we can still watch Amazon as they become the company with the most revenue in the world. And there's a lot we can learn from studying Amazon and Jeff Bezos. He's a smart dude.\nThank you very much for reading, and I hope that you have a great rest of your day.","news_type":1},"isVote":1,"tweetType":1,"viewCount":210,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":124491997,"gmtCreate":1624777160619,"gmtModify":1633948690902,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Interesting perspective","listText":"Interesting perspective","text":"Interesting perspective","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/124491997","repostId":"1172710941","repostType":4,"isVote":1,"tweetType":1,"viewCount":196,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":124493519,"gmtCreate":1624777123131,"gmtModify":1633948691146,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Neither of them is good ev bet","listText":"Neither of them is good ev bet","text":"Neither of them is good ev bet","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/124493519","repostId":"1137119316","repostType":4,"repost":{"id":"1137119316","pubTimestamp":1624754401,"share":"https://www.laohu8.com/m/news/1137119316?lang=&edition=full","pubTime":"2021-06-27 08:40","market":"us","language":"en","title":"Ford Or NIO? The Final Verdict","url":"https://stock-news.laohu8.com/highlight/detail?id=1137119316","media":"seekingalpha","summary":"I am comparing Ford against NIO in different categories.The comparison is intended to improve the understanding of Ford's and NIO's growth potential while highlighting differences in market position and opportunities.NIO is growing a lot faster than Ford and the high valuation may be justified.With Ford  launching a major offensive in the market for electric vehicles, Chinese EV maker NIO  will face one more rival competing for sales in the future. Which vehicle maker offers the best deal based ","content":"<p><b>Summary</b></p>\n<ul>\n <li>I am comparing Ford against NIO in different categories.</li>\n <li>The comparison is intended to improve the understanding of Ford's and NIO's growth potential while highlighting differences in market position and opportunities.</li>\n <li>NIO is growing a lot faster than Ford and the high valuation may be justified.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5033fa117d7852799244b8275bc1000f\" tg-width=\"1536\" tg-height=\"886\"><span>peterschreiber.media/iStock via Getty Images</span></p>\n<p>With Ford (F) launching a major offensive in the market for electric vehicles, Chinese EV maker NIO (NIO) will face one more rival competing for sales in the future. Which vehicle maker offers the best deal based on market opportunity, scale, revenue model, growth prospects and valuation? I will compare Ford against NIO in each category and issue a final verdict at the end.</p>\n<p><b>Ford vs. NIO: The battle for the global electric vehicle market is heating up</b></p>\n<p>Although there is a world of difference between Ford and NIO, both companies are set to go toe-to-toe in the rapidly growing global electric vehicle market. Ford’s fleet is not yet EV-focused but this is going to change: Feeling that the EV race is heating up, Ford said it is accelerating its electrification plan by investing&nbsp;$30B into its EV manufacturing capabilities until 2025. Ford’s previous capital plan called for a $22B investment in zero-emission vehicles. Ford also set an ambitious sales goal: 40% of its global sales will be electric within the next decade and 33% of pickup truck sales. Electric vehicle sales account for just 1% of Ford's sales today. As Ford is phasing out combustion engines, it is set to evolve into an all-electric vehicle maker by 2040.</p>\n<p><b>Market opportunity</b></p>\n<p>In 2020, 3.2m electric vehicles were sold in the world which represented a small market share of just 4.2%. China, however, was responsible for buying 41% of all electric vehicles in the world in 2020. Chinese buyers purchased 1.3m electric vehicles last year and sales are set to grow fast as Beijing seeks to boost EV adoption. The second largest market for electric vehicles was Europe which accounted for 42% of global EV sales. The US is only the third-largest market for plug-in electric vehicles in the world.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b48c23b32134542f51227d9b1b612887\" tg-width=\"1083\" tg-height=\"863\"><span>(Source: Wikipedia)</span></p>\n<p>China, by far, is the fastest growing EV market in the world, although Europe is catching up fast, in part due to a legislative efforts to increase adoption of zero-emission passenger vehicles and because of massive investments in a Europe-wide charging station network. NIO is&nbsp;on the cusp of entering the European market&nbsp;in a bid to grow market share in the world’s second-largest EV market before the competition is ready.</p>\n<p>Beijing is a driver behind the electrification of the Chinese auto industry: The government wants to see a&nbsp;twenty percent share&nbsp;of electric vehicles for new car sales by 2025 which will drive EV penetration in NIO’s home market.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/9871e44eaf69adb27151425887870ace\" tg-width=\"739\" tg-height=\"454\"><span>(Source:Schroders)</span></p>\n<p>Turning to growth projections.</p>\n<p>With more favorable government policies for EV makers in places like China and Europe, these markets are poised to see the fastest sales growth and the highest EV adoption rates in the world. China is not only the largest market due to population size but is also expected to outperform all other markets in the world in EV sales until 2030.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/61d19dff2f34e2d8828aca854e85d84a\" tg-width=\"825\" tg-height=\"565\"><span>(Source:McKinsey)</span></p>\n<p>Since China has a larger total market size, a higher EV adoption rate, stronger expected sales growth and a more favorable regulatory framework, the winner here would be: NIO.</p>\n<p><b>Scale and manufacturing competence</b></p>\n<p>Ford has a century’s worth of manufacturing experience. But Ford, so far, has only one all-electric vehicle in its product line-up that compares to NIO: The Mustang Mach-E SUV. In 2022, Ford will begin to sell the all-electric F-150 Lightening which builds on the success of Ford’s best-selling pick-up truck. NIO already has a stronger product catalog including the 5-seater ES6 SUV, the 5-seater coupe SUV EC6 and the ES8, a 6-seater and 7-seater full-sized SUV.</p>\n<p>Since NIO is solely focused on producing EVs and occupies a very small and defined niche, the Chinese firm has an advantage as far as EV-manufacturing expertise goes. The question is how long this advantage can last. Ford has extensive experience in building cars and can leverage a global manufacturing base to ramp up EV production faster than any niche EV maker could ever hope to achieve. This makes Ford a very serious rival not only to Tesla (TSLA) in the US, but also to NIO abroad. Ford is accelerating its electrification plans and it has the resources and the ambition to become a leader in EVs within the next decade. Ford’s proposed $30B spending on the electrification of its fleet will accelerate its transformation and turn Ford into a long term threat to other EV makers.</p>\n<p>Winner here: Ford.</p>\n<p><b>Differentiation and BaaS revenue model</b></p>\n<p>Both Ford and NIO know about the importance of differentiation in a market that will only get more competitive over time, which is why both companies are investing heavily in a related field that can break or solidify dominance in the EV market: Battery technology.</p>\n<p>Ford is&nbsp;forming a joint venture&nbsp;with South Korean battery technology company SK Innovation to secure supply of traction battery cells and array modules. The joint venture is meant to accelerate battery deliveries and will produce approximately 60 GWh annually, enough to cover 25% of Ford’s estimated annual energy demand by 2030. NIO is also investing in battery technology and has&nbsp;formed its own joint venture&nbsp;to secure battery supply.</p>\n<p>The difference to Ford is that NIO’s battery investment strategy revolves around a battery subscription model, also called “battery-as-a-service”, which creates a strong, long term revenue opportunity for the Chinese vehicle maker. Under this “BaaS” model, users who buy a NIO electric vehicle get a 70,000 RMB initial discount, equivalent to $10,800, and can sign up for a monthly subscription to rent a rechargeable 70 kWh battery. Batteries can then be exchanged at one of NIO’s battery-swapping stations which can be found in most big Chinese cities. A battery subscription costs 980 RMB monthly which is the equivalent of $150.</p>\n<p>The BaaS model has a couple of benefits for both the vehicle maker and the user: Purchasing an electric vehicle from NIO gets a lot more affordable due to the up-front discount and the subscription model ensures that users benefit from advancement in battery technology and better performance over time. Decoupling battery costs from vehicle prices creates an entirely new revenue stream on a subscription basis for NIO. Revenues from “BaaS” subscriptions could be used to increase the density of NIO’s network of charging/replacement stations. The battery subscription model also binds customers to NIO, potentially increasing customer lifetime value.</p>\n<p>Ford and NIO are primed to benefit from falling battery costs for electric vehicles as they ramp up capital allocations. As more investments flow into developing more efficient batteries, performance will go up and costs will go down which should drive EV adoption and benefit all EV makers. This is because lower battery prices make EVs more competitive to passenger vehicles with combustion engines. But since NIO is structuring a part of its business model explicitly around battery subscriptions, NIO could benefit more than Ford.</p>\n<p>Battery costs for EVs have decreased 70% since 2014, based on information provided by investment firm Schroders, and are set to decrease more this decade.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c42acb75905affe7570a2f399ea3192f\" tg-width=\"758\" tg-height=\"449\"><span>(Source: Schroders)</span></p>\n<p>The “BaaS” model is genius and could develop into a $500M a year revenue opportunity for NIO long term. Although Ford is ramping up its investments in battery technology, the winner in this category is: NIO.</p>\n<p><b>Sales growth and valuation</b></p>\n<p>Ford’s sales in May grew 4.1% Y/Y but electrified vehicle sales (including hybrids) surged 184% Y/Y as Ford sold a record 10,364 EVs/hybrids in May. Escape electrified sales and Explorer Hybrid grew sales at 125% and 132% Y/Y showing strong customer uptake. NIO delivered 6,711 vehicles last month including 3,017 ES6s, 1,412 ES8s and 2,282 EC6s. Total Y/Y delivery growth for May was 95.3%.</p>\n<p>Ford's sales are fifty-four times larger than NIO's which creates more sales growth and revaluation potential for NIO.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/df5a0a393e44ed74241c5effcdd92350\" tg-width=\"635\" tg-height=\"419\"><span>Data by YCharts</span></p>\n<p>The difference in valuation between Ford and NIO is like the difference between night and day. This is because Ford is still seen as a mature vehicle maker with expected enterprise sales growth in the low-to-mid digits, despite explosive growth in the EV category. Ford is expected to grow revenues by 33% until FY 2025 (base year: FY 2020) and NIO by 808%!</p>\n<p>Due to these differences in sales growth, NIO is the complete opposite of Ford, at least as far as valuation goes. The Chinese EV-maker is expected to see sales and delivery growth close to 100% this year and since NIO is only dealing in EVs, NIO gets a much higher market-cap-to-sales ratio than Ford.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/817605c6b1e82c03d0473ea570d32b8f\" tg-width=\"506\" tg-height=\"406\"><span>(Source: Author)</span></p>\n<p><b>NIO has larger risks...</b></p>\n<p>NIO is the more risky venture, but also the one that offers the most promise. Government policy favors EV-makers like NIO. The potential for total global sales growth is larger for NIO as it operates from a smaller revenue base compared to Ford. But there are also a few things that work against NIO. For example, recalls due to production defects would be a much bigger challenge for NIO to overcome than for Ford which can rely on a global service and distribution network. NIO’s valuation is also not without risk as an unexpected slowing of sales growth due to production setbacks would leave a much larger dent in the financials.</p>\n<p><b>Final verdict</b></p>\n<p>NIO is definitely the more “sexy” vehicle maker. Strong adoption and sales growth in China and Europe support NIO. Its super smart BaaS model which decouples vehicle purchase prices from battery costs is genius. You pay a high price for this growth but the market opportunity for NIO is immense.</p>\n<p>Ford’s EV sales are booming and the percentage of EV sales will increase as the vehicle maker electrifies its fleet. Ford has a lot of potential in the EV market but since EV sales are still a relatively low percentage of total sales, it will take a long time for Ford to complete its transformation.</p>\n<p>If you believe in the potential of the global EV market, buy NIO. If you believe in the potential of the global EV market and don’t like much risk, buy Ford.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Ford Or NIO? The Final Verdict</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFord Or NIO? The Final Verdict\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-27 08:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4436600-ford-or-nio-the-final-verdict><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nI am comparing Ford against NIO in different categories.\nThe comparison is intended to improve the understanding of Ford's and NIO's growth potential while highlighting differences in market ...</p>\n\n<a href=\"https://seekingalpha.com/article/4436600-ford-or-nio-the-final-verdict\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"F":"福特汽车","NIO":"蔚来"},"source_url":"https://seekingalpha.com/article/4436600-ford-or-nio-the-final-verdict","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1137119316","content_text":"Summary\n\nI am comparing Ford against NIO in different categories.\nThe comparison is intended to improve the understanding of Ford's and NIO's growth potential while highlighting differences in market position and opportunities.\nNIO is growing a lot faster than Ford and the high valuation may be justified.\n\npeterschreiber.media/iStock via Getty Images\nWith Ford (F) launching a major offensive in the market for electric vehicles, Chinese EV maker NIO (NIO) will face one more rival competing for sales in the future. Which vehicle maker offers the best deal based on market opportunity, scale, revenue model, growth prospects and valuation? I will compare Ford against NIO in each category and issue a final verdict at the end.\nFord vs. NIO: The battle for the global electric vehicle market is heating up\nAlthough there is a world of difference between Ford and NIO, both companies are set to go toe-to-toe in the rapidly growing global electric vehicle market. Ford’s fleet is not yet EV-focused but this is going to change: Feeling that the EV race is heating up, Ford said it is accelerating its electrification plan by investing $30B into its EV manufacturing capabilities until 2025. Ford’s previous capital plan called for a $22B investment in zero-emission vehicles. Ford also set an ambitious sales goal: 40% of its global sales will be electric within the next decade and 33% of pickup truck sales. Electric vehicle sales account for just 1% of Ford's sales today. As Ford is phasing out combustion engines, it is set to evolve into an all-electric vehicle maker by 2040.\nMarket opportunity\nIn 2020, 3.2m electric vehicles were sold in the world which represented a small market share of just 4.2%. China, however, was responsible for buying 41% of all electric vehicles in the world in 2020. Chinese buyers purchased 1.3m electric vehicles last year and sales are set to grow fast as Beijing seeks to boost EV adoption. The second largest market for electric vehicles was Europe which accounted for 42% of global EV sales. The US is only the third-largest market for plug-in electric vehicles in the world.\n(Source: Wikipedia)\nChina, by far, is the fastest growing EV market in the world, although Europe is catching up fast, in part due to a legislative efforts to increase adoption of zero-emission passenger vehicles and because of massive investments in a Europe-wide charging station network. NIO is on the cusp of entering the European market in a bid to grow market share in the world’s second-largest EV market before the competition is ready.\nBeijing is a driver behind the electrification of the Chinese auto industry: The government wants to see a twenty percent share of electric vehicles for new car sales by 2025 which will drive EV penetration in NIO’s home market.\n(Source:Schroders)\nTurning to growth projections.\nWith more favorable government policies for EV makers in places like China and Europe, these markets are poised to see the fastest sales growth and the highest EV adoption rates in the world. China is not only the largest market due to population size but is also expected to outperform all other markets in the world in EV sales until 2030.\n(Source:McKinsey)\nSince China has a larger total market size, a higher EV adoption rate, stronger expected sales growth and a more favorable regulatory framework, the winner here would be: NIO.\nScale and manufacturing competence\nFord has a century’s worth of manufacturing experience. But Ford, so far, has only one all-electric vehicle in its product line-up that compares to NIO: The Mustang Mach-E SUV. In 2022, Ford will begin to sell the all-electric F-150 Lightening which builds on the success of Ford’s best-selling pick-up truck. NIO already has a stronger product catalog including the 5-seater ES6 SUV, the 5-seater coupe SUV EC6 and the ES8, a 6-seater and 7-seater full-sized SUV.\nSince NIO is solely focused on producing EVs and occupies a very small and defined niche, the Chinese firm has an advantage as far as EV-manufacturing expertise goes. The question is how long this advantage can last. Ford has extensive experience in building cars and can leverage a global manufacturing base to ramp up EV production faster than any niche EV maker could ever hope to achieve. This makes Ford a very serious rival not only to Tesla (TSLA) in the US, but also to NIO abroad. Ford is accelerating its electrification plans and it has the resources and the ambition to become a leader in EVs within the next decade. Ford’s proposed $30B spending on the electrification of its fleet will accelerate its transformation and turn Ford into a long term threat to other EV makers.\nWinner here: Ford.\nDifferentiation and BaaS revenue model\nBoth Ford and NIO know about the importance of differentiation in a market that will only get more competitive over time, which is why both companies are investing heavily in a related field that can break or solidify dominance in the EV market: Battery technology.\nFord is forming a joint venture with South Korean battery technology company SK Innovation to secure supply of traction battery cells and array modules. The joint venture is meant to accelerate battery deliveries and will produce approximately 60 GWh annually, enough to cover 25% of Ford’s estimated annual energy demand by 2030. NIO is also investing in battery technology and has formed its own joint venture to secure battery supply.\nThe difference to Ford is that NIO’s battery investment strategy revolves around a battery subscription model, also called “battery-as-a-service”, which creates a strong, long term revenue opportunity for the Chinese vehicle maker. Under this “BaaS” model, users who buy a NIO electric vehicle get a 70,000 RMB initial discount, equivalent to $10,800, and can sign up for a monthly subscription to rent a rechargeable 70 kWh battery. Batteries can then be exchanged at one of NIO’s battery-swapping stations which can be found in most big Chinese cities. A battery subscription costs 980 RMB monthly which is the equivalent of $150.\nThe BaaS model has a couple of benefits for both the vehicle maker and the user: Purchasing an electric vehicle from NIO gets a lot more affordable due to the up-front discount and the subscription model ensures that users benefit from advancement in battery technology and better performance over time. Decoupling battery costs from vehicle prices creates an entirely new revenue stream on a subscription basis for NIO. Revenues from “BaaS” subscriptions could be used to increase the density of NIO’s network of charging/replacement stations. The battery subscription model also binds customers to NIO, potentially increasing customer lifetime value.\nFord and NIO are primed to benefit from falling battery costs for electric vehicles as they ramp up capital allocations. As more investments flow into developing more efficient batteries, performance will go up and costs will go down which should drive EV adoption and benefit all EV makers. This is because lower battery prices make EVs more competitive to passenger vehicles with combustion engines. But since NIO is structuring a part of its business model explicitly around battery subscriptions, NIO could benefit more than Ford.\nBattery costs for EVs have decreased 70% since 2014, based on information provided by investment firm Schroders, and are set to decrease more this decade.\n(Source: Schroders)\nThe “BaaS” model is genius and could develop into a $500M a year revenue opportunity for NIO long term. Although Ford is ramping up its investments in battery technology, the winner in this category is: NIO.\nSales growth and valuation\nFord’s sales in May grew 4.1% Y/Y but electrified vehicle sales (including hybrids) surged 184% Y/Y as Ford sold a record 10,364 EVs/hybrids in May. Escape electrified sales and Explorer Hybrid grew sales at 125% and 132% Y/Y showing strong customer uptake. NIO delivered 6,711 vehicles last month including 3,017 ES6s, 1,412 ES8s and 2,282 EC6s. Total Y/Y delivery growth for May was 95.3%.\nFord's sales are fifty-four times larger than NIO's which creates more sales growth and revaluation potential for NIO.\nData by YCharts\nThe difference in valuation between Ford and NIO is like the difference between night and day. This is because Ford is still seen as a mature vehicle maker with expected enterprise sales growth in the low-to-mid digits, despite explosive growth in the EV category. Ford is expected to grow revenues by 33% until FY 2025 (base year: FY 2020) and NIO by 808%!\nDue to these differences in sales growth, NIO is the complete opposite of Ford, at least as far as valuation goes. The Chinese EV-maker is expected to see sales and delivery growth close to 100% this year and since NIO is only dealing in EVs, NIO gets a much higher market-cap-to-sales ratio than Ford.\n(Source: Author)\nNIO has larger risks...\nNIO is the more risky venture, but also the one that offers the most promise. Government policy favors EV-makers like NIO. The potential for total global sales growth is larger for NIO as it operates from a smaller revenue base compared to Ford. But there are also a few things that work against NIO. For example, recalls due to production defects would be a much bigger challenge for NIO to overcome than for Ford which can rely on a global service and distribution network. NIO’s valuation is also not without risk as an unexpected slowing of sales growth due to production setbacks would leave a much larger dent in the financials.\nFinal verdict\nNIO is definitely the more “sexy” vehicle maker. Strong adoption and sales growth in China and Europe support NIO. Its super smart BaaS model which decouples vehicle purchase prices from battery costs is genius. You pay a high price for this growth but the market opportunity for NIO is immense.\nFord’s EV sales are booming and the percentage of EV sales will increase as the vehicle maker electrifies its fleet. Ford has a lot of potential in the EV market but since EV sales are still a relatively low percentage of total sales, it will take a long time for Ford to complete its transformation.\nIf you believe in the potential of the global EV market, buy NIO. If you believe in the potential of the global EV market and don’t like much risk, buy Ford.","news_type":1},"isVote":1,"tweetType":1,"viewCount":275,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":122385060,"gmtCreate":1624597797950,"gmtModify":1633950696623,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"No more outsized gains for apple","listText":"No more outsized gains for apple","text":"No more outsized gains for apple","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/122385060","repostId":"1136202921","repostType":4,"repost":{"id":"1136202921","pubTimestamp":1624591759,"share":"https://www.laohu8.com/m/news/1136202921?lang=&edition=full","pubTime":"2021-06-25 11:29","market":"us","language":"en","title":"Why Apple's Stock Valuation Could Present Long-Term Buying Opportunity","url":"https://stock-news.laohu8.com/highlight/detail?id=1136202921","media":"Benzinga","summary":"Apple Inc.(NASDAQ:AAPL) shares have shown muted performanceyear-to-date, and an analyst at Morgan St","content":"<p><b>Apple Inc.</b>(NASDAQ:AAPL) shares have shown&nbsp;muted performanceyear-to-date, and an analyst at Morgan Stanley sees long-term buying opportunity in the shares of the tech giant.</p>\n<p><b>The Apple Analyst:</b>Katy Huberty reiterated an Overweight rating on Apple with a $162 price target.</p>\n<p><b>The Apple Takeaways:</b>The incoming call volume on Apple shares is at a low amid investor concerns over a seasonally low&nbsp;period in the iPhone cycle,regulatory risk&nbsp;and difficult comps relative to the COVID-19-driven work-from-home&nbsp;and study-from-home&nbsp;demand, Huberty said in a note.</p>\n<p>Additionally, investors fear&nbsp;a more evolutionary iPhone s-cycle will lead to extended&nbsp;iPhone replacement cycles, the analyst said.</p>\n<p>Revenues will likely decline in 2022, increasing the likelihood of negative estimate revisions, she said.</p>\n<p>\"We recognize these risks but have a more positive outlook,\" Huberty said.</p>\n<p>The dominant bear case narrative now is the iPhone entering a more modest upgrade or \"s\" cycle —&nbsp;a period when iPhone revenue historically declined at a double-digit rate, the analyst said. She forecast a low risk of similar iPhone revenue decline next year.</p>\n<p>This is due to the longer period of iPhone replacement cycle relative to the past, an expansion to Apple's trade-in, financing and installment offers and 5G adoption, which is still in its nascent stage, Huberty said.</p>\n<p>\"Taken together, these factors build confidence that the iPhone 13 cycle will not look like past s-cycles, which is reflected in our updated FY22 iPhone forecast of 231M units,\" the analyst said.</p>\n<p>The June quarter&nbsp;will be stronger than originally expected, as iPhone and iPad builds are tracking ahead of Morgan Stanley's estimate, she said.</p>\n<p>Huberty&nbsp;raised her June quarter revenue and EPS estimates by 3%-5%.</p>\n<p>Apple's catalyst path is more back-end loaded this year, the analyst said.</p>\n<p>The company can drive low-teens annual revenue growth and high-teens annual EPS growth between fiscal years 2020 and 2023, she said.</p>\n<p>\"At24xFV/FCF, we believe the current valuation presents a good long-term buying opportunity.\"</p>","source":"lsy1606299360108","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why Apple's Stock Valuation Could Present Long-Term Buying Opportunity</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy Apple's Stock Valuation Could Present Long-Term Buying Opportunity\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-25 11:29 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/analyst-ratings/analyst-color/21/06/21707490/why-apples-stock-valuation-could-present-long-term-buying-opportunity><strong>Benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Apple Inc.(NASDAQ:AAPL) shares have shown muted performanceyear-to-date, and an analyst at Morgan Stanley sees long-term buying opportunity in the shares of the tech giant.\nThe Apple Analyst:Katy ...</p>\n\n<a href=\"https://www.benzinga.com/analyst-ratings/analyst-color/21/06/21707490/why-apples-stock-valuation-could-present-long-term-buying-opportunity\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果"},"source_url":"https://www.benzinga.com/analyst-ratings/analyst-color/21/06/21707490/why-apples-stock-valuation-could-present-long-term-buying-opportunity","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1136202921","content_text":"Apple Inc.(NASDAQ:AAPL) shares have shown muted performanceyear-to-date, and an analyst at Morgan Stanley sees long-term buying opportunity in the shares of the tech giant.\nThe Apple Analyst:Katy Huberty reiterated an Overweight rating on Apple with a $162 price target.\nThe Apple Takeaways:The incoming call volume on Apple shares is at a low amid investor concerns over a seasonally low period in the iPhone cycle,regulatory risk and difficult comps relative to the COVID-19-driven work-from-home and study-from-home demand, Huberty said in a note.\nAdditionally, investors fear a more evolutionary iPhone s-cycle will lead to extended iPhone replacement cycles, the analyst said.\nRevenues will likely decline in 2022, increasing the likelihood of negative estimate revisions, she said.\n\"We recognize these risks but have a more positive outlook,\" Huberty said.\nThe dominant bear case narrative now is the iPhone entering a more modest upgrade or \"s\" cycle — a period when iPhone revenue historically declined at a double-digit rate, the analyst said. She forecast a low risk of similar iPhone revenue decline next year.\nThis is due to the longer period of iPhone replacement cycle relative to the past, an expansion to Apple's trade-in, financing and installment offers and 5G adoption, which is still in its nascent stage, Huberty said.\n\"Taken together, these factors build confidence that the iPhone 13 cycle will not look like past s-cycles, which is reflected in our updated FY22 iPhone forecast of 231M units,\" the analyst said.\nThe June quarter will be stronger than originally expected, as iPhone and iPad builds are tracking ahead of Morgan Stanley's estimate, she said.\nHuberty raised her June quarter revenue and EPS estimates by 3%-5%.\nApple's catalyst path is more back-end loaded this year, the analyst said.\nThe company can drive low-teens annual revenue growth and high-teens annual EPS growth between fiscal years 2020 and 2023, she said.\n\"At24xFV/FCF, we believe the current valuation presents a good long-term buying opportunity.\"","news_type":1},"isVote":1,"tweetType":1,"viewCount":111,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":122382884,"gmtCreate":1624597774248,"gmtModify":1633950697089,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Nok long term play","listText":"Nok long term play","text":"Nok long term play","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/122382884","repostId":"1170542603","repostType":4,"repost":{"id":"1170542603","pubTimestamp":1624592567,"share":"https://www.laohu8.com/m/news/1170542603?lang=&edition=full","pubTime":"2021-06-25 11:42","market":"us","language":"en","title":"Nokia Stock: From 5G Winner To Disappointment To Meme","url":"https://stock-news.laohu8.com/highlight/detail?id=1170542603","media":"thestreet","summary":"Nokia has gone from (1) failed mobile phone powerhouse to (2) likely winner in one key technology tr","content":"<p>Nokia has gone from (1) failed mobile phone powerhouse to (2) likely winner in one key technology transformation cycle to (3) a source of “juicy tendies” for Wall Street Bets traders. Five years ago, it would have been hard to guess what would have happened to Nokia stock&nbsp;(<b>NOKIA</b>)&nbsp;since the mid-2010s.</p>\n<p>Wall Street Meme tells the story of this tech stock that has morphed from growth to value to meme – and that after fits and starts, still trades around pre-dot com bubble prices.</p>\n<p><b>Nokia: an unlikely journey</b></p>\n<p>In 2007, moments before Apple’s iPhone disrupted (or perhaps reinvented) the world of consumer mobile devices forever, Nokiacontrolled50% of the smartphone market. But the company’s fall from grace did not take long: Nokia accounted for less than 3% of the market by late 2012.</p>\n<p>However, the Finnish growth story did not end there. Between 2016-2017, Nokia began drawing the attention of investors looking to bet on the 5G upgrade cycle that would likely start a couple of years later. The company’s network division had been struggling, but the management team believed in a turnaround as 5G infrastructure had to be built around the globe.</p>\n<p>True to its roots, unfortunately,Nokia disappointed yet again. In 2019, the company warned that its recovery was in jeopardy, as competition with Ericsson and Huawei for 5G contracts became too fierce for Nokia to handle. The company’s dividend payment was slashed, and a restructuring process began.</p>\n<p><b>Meme stock for a day</b></p>\n<p>For the past five years, Nokia stock consistently traded between $3 and $5 per share, with the eventual spikes and dips in share price eventually correcting. The notable exception happened on January 27 of this year.</p>\n<p>On that day, Nokia climbed to $6.55 per share, from only $3.87 two weeks earlier. The stock was “victim” of a bullish Wall Street Bets meme attack, around the time that short interest reached a five-year high of 60 million shares – fertile ground for a short squeeze.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Nokia Stock: From 5G Winner To Disappointment To Meme</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNokia Stock: From 5G Winner To Disappointment To Meme\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-25 11:42 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.thestreet.com/memestocks/other-memes/nokia-stock-from-5g-winner-to-disappointment-to-meme><strong>thestreet</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Nokia has gone from (1) failed mobile phone powerhouse to (2) likely winner in one key technology transformation cycle to (3) a source of “juicy tendies” for Wall Street Bets traders. Five years ago, ...</p>\n\n<a href=\"https://www.thestreet.com/memestocks/other-memes/nokia-stock-from-5g-winner-to-disappointment-to-meme\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NOK":"诺基亚"},"source_url":"https://www.thestreet.com/memestocks/other-memes/nokia-stock-from-5g-winner-to-disappointment-to-meme","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1170542603","content_text":"Nokia has gone from (1) failed mobile phone powerhouse to (2) likely winner in one key technology transformation cycle to (3) a source of “juicy tendies” for Wall Street Bets traders. Five years ago, it would have been hard to guess what would have happened to Nokia stock (NOKIA) since the mid-2010s.\nWall Street Meme tells the story of this tech stock that has morphed from growth to value to meme – and that after fits and starts, still trades around pre-dot com bubble prices.\nNokia: an unlikely journey\nIn 2007, moments before Apple’s iPhone disrupted (or perhaps reinvented) the world of consumer mobile devices forever, Nokiacontrolled50% of the smartphone market. But the company’s fall from grace did not take long: Nokia accounted for less than 3% of the market by late 2012.\nHowever, the Finnish growth story did not end there. Between 2016-2017, Nokia began drawing the attention of investors looking to bet on the 5G upgrade cycle that would likely start a couple of years later. The company’s network division had been struggling, but the management team believed in a turnaround as 5G infrastructure had to be built around the globe.\nTrue to its roots, unfortunately,Nokia disappointed yet again. In 2019, the company warned that its recovery was in jeopardy, as competition with Ericsson and Huawei for 5G contracts became too fierce for Nokia to handle. The company’s dividend payment was slashed, and a restructuring process began.\nMeme stock for a day\nFor the past five years, Nokia stock consistently traded between $3 and $5 per share, with the eventual spikes and dips in share price eventually correcting. The notable exception happened on January 27 of this year.\nOn that day, Nokia climbed to $6.55 per share, from only $3.87 two weeks earlier. The stock was “victim” of a bullish Wall Street Bets meme attack, around the time that short interest reached a five-year high of 60 million shares – fertile ground for a short squeeze.","news_type":1},"isVote":1,"tweetType":1,"viewCount":133,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":122382943,"gmtCreate":1624597755682,"gmtModify":1633950697453,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Cramer knows nothing","listText":"Cramer knows nothing","text":"Cramer knows nothing","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/122382943","repostId":"1137689091","repostType":4,"isVote":1,"tweetType":1,"viewCount":159,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":122386694,"gmtCreate":1624597717418,"gmtModify":1633950697936,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Need to dig deeper to decide on investing this spac","listText":"Need to dig deeper to decide on investing this spac","text":"Need to dig deeper to decide on investing this spac","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/122386694","repostId":"2146023710","repostType":4,"isVote":1,"tweetType":1,"viewCount":292,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":122381503,"gmtCreate":1624597657202,"gmtModify":1633950699061,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Good job everyone","listText":"Good job everyone","text":"Good job everyone","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/122381503","repostId":"2146023477","repostType":4,"repost":{"id":"2146023477","weMediaInfo":{"introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"media_name":"Reuters","id":"1036604489","head_image":"https://static.tigerbbs.com/443ce19704621c837795676028cec868"},"pubTimestamp":1624575912,"share":"https://www.laohu8.com/m/news/2146023477?lang=&edition=full","pubTime":"2021-06-25 07:05","market":"us","language":"en","title":"Nasdaq and S&P 500 end at record highs; Dow rallies","url":"https://stock-news.laohu8.com/highlight/detail?id=2146023477","media":"Reuters","summary":"June 24 (Reuters) - The Nasdaq and the S&P 500 indexes closed at record highs on Thursday, with the ","content":"<p>June 24 (Reuters) - The Nasdaq and the S&amp;P 500 indexes closed at record highs on Thursday, with the Dow also jumping almost 1% after U.S. President Joe Biden embraced a bipartisan Senate infrastructure deal.</p>\n<p>With massive fiscal stimulus helped the U.S. economy grow at a 6.4% annualized rate in the first quarter, investors have been banking on an infrastructure agreement that could steer the next leg of the recovery for the world's largest economy and fuel more stock gains.</p>\n<p>Construction and mining equipment maker Caterpillar and aerospace firm Boeing both jumped more than 2%, helping lift the Dow Jones Industrial Average.</p>\n<p>\"In the short term, I think there will be some 'buy the rumor and sell the news' in materials and industrials, but as we start to see more details come out about how the money will be spent, I think we will get a continued benefit,\" said Sal Bruno, chief investment officer at IndexIQ in New York.</p>\n<p>Fueling the S&amp;P 500's gains more than any other stock, Tesla Inc rose 3.5% after Chief Executive Officer Elon Musk said he would list SpaceX's space internet venture, Starlink, when its cash flow is reasonably predictable, adding that Tesla shareholders could get preference in investing.</p>\n<p>Mega-caps <a href=\"https://laohu8.com/S/PYPL\">PayPal</a> and <a href=\"https://laohu8.com/S/FB\">Facebook</a> Inc each gained more than 1%, and were also among the biggest boosts to the S&amp;P 500 and the Nasdaq.</p>\n<p>Microsoft added 0.5% and ended with a market capitalization above $2 trillion for its first time.</p>\n<p>Initial claims for state unemployment benefits fell 7,000 to 411,000 for the week ended June 19, the Labor Department said on Thursday, but were still higher than the 380,000 that economists had forecast.</p>\n<p>The Commerce Department said the economy grew at a 6.4% rate last quarter, unrevised from the estimate published in May.</p>\n<p>So far this month, the S&amp;P 500 growth index has climbed almost 4%, outperforming the value index's 2% drop.</p>\n<p>The Dow Jones Industrial Average rose 0.95% to end at 34,196.82 points, while the S&amp;P 500 gained 0.58% to 4,266.49.</p>\n<p>The Nasdaq Composite climbed 0.69% to 14,369.71.</p>\n<p>Volume on U.S. exchanges was 9.2 billion shares, less than the 11.0 billion average over the last 20 trading days.</p>\n<p>The S&amp;P 500 technology, healthcare and communication services sector indexes hit record highs.</p>\n<p>So far in 2021, the S&amp;P 500 has gained almost 14%, beating the Nasdaq's 11% rise.</p>\n<p>Eli Lilly and Co jumped 7.3% to a record high after the drugmaker said it would apply for the U.S. Food and Drug Administration's accelerated approval for its experimental Alzheimer's drug this year.</p>\n<p>In response, Biogen Inc , which received a controversial approval for its Alzheimer's drug aducanumab earlier this month, tumbled 6.1%.</p>\n<p>MGM Resorts International rose 2.2% after Deutsche Bank upgraded the casino operator's stock to \"buy\" from \"hold.\"</p>\n<p>Accenture Plc gained 2.1% after the IT consulting firm raised its full-year revenue forecast.</p>\n<p>Advancing issues outnumbered declining ones on the NYSE by a 2.29-to-1 ratio; on Nasdaq, a 2.44-to-1 ratio favored advancers.</p>\n<p>The S&amp;P 500 posted 36 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 105 new highs and 27 new lows.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Nasdaq and S&P 500 end at record highs; Dow rallies</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNasdaq and S&P 500 end at record highs; Dow rallies\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036604489\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/443ce19704621c837795676028cec868);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2021-06-25 07:05</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>June 24 (Reuters) - The Nasdaq and the S&amp;P 500 indexes closed at record highs on Thursday, with the Dow also jumping almost 1% after U.S. President Joe Biden embraced a bipartisan Senate infrastructure deal.</p>\n<p>With massive fiscal stimulus helped the U.S. economy grow at a 6.4% annualized rate in the first quarter, investors have been banking on an infrastructure agreement that could steer the next leg of the recovery for the world's largest economy and fuel more stock gains.</p>\n<p>Construction and mining equipment maker Caterpillar and aerospace firm Boeing both jumped more than 2%, helping lift the Dow Jones Industrial Average.</p>\n<p>\"In the short term, I think there will be some 'buy the rumor and sell the news' in materials and industrials, but as we start to see more details come out about how the money will be spent, I think we will get a continued benefit,\" said Sal Bruno, chief investment officer at IndexIQ in New York.</p>\n<p>Fueling the S&amp;P 500's gains more than any other stock, Tesla Inc rose 3.5% after Chief Executive Officer Elon Musk said he would list SpaceX's space internet venture, Starlink, when its cash flow is reasonably predictable, adding that Tesla shareholders could get preference in investing.</p>\n<p>Mega-caps <a href=\"https://laohu8.com/S/PYPL\">PayPal</a> and <a href=\"https://laohu8.com/S/FB\">Facebook</a> Inc each gained more than 1%, and were also among the biggest boosts to the S&amp;P 500 and the Nasdaq.</p>\n<p>Microsoft added 0.5% and ended with a market capitalization above $2 trillion for its first time.</p>\n<p>Initial claims for state unemployment benefits fell 7,000 to 411,000 for the week ended June 19, the Labor Department said on Thursday, but were still higher than the 380,000 that economists had forecast.</p>\n<p>The Commerce Department said the economy grew at a 6.4% rate last quarter, unrevised from the estimate published in May.</p>\n<p>So far this month, the S&amp;P 500 growth index has climbed almost 4%, outperforming the value index's 2% drop.</p>\n<p>The Dow Jones Industrial Average rose 0.95% to end at 34,196.82 points, while the S&amp;P 500 gained 0.58% to 4,266.49.</p>\n<p>The Nasdaq Composite climbed 0.69% to 14,369.71.</p>\n<p>Volume on U.S. exchanges was 9.2 billion shares, less than the 11.0 billion average over the last 20 trading days.</p>\n<p>The S&amp;P 500 technology, healthcare and communication services sector indexes hit record highs.</p>\n<p>So far in 2021, the S&amp;P 500 has gained almost 14%, beating the Nasdaq's 11% rise.</p>\n<p>Eli Lilly and Co jumped 7.3% to a record high after the drugmaker said it would apply for the U.S. Food and Drug Administration's accelerated approval for its experimental Alzheimer's drug this year.</p>\n<p>In response, Biogen Inc , which received a controversial approval for its Alzheimer's drug aducanumab earlier this month, tumbled 6.1%.</p>\n<p>MGM Resorts International rose 2.2% after Deutsche Bank upgraded the casino operator's stock to \"buy\" from \"hold.\"</p>\n<p>Accenture Plc gained 2.1% after the IT consulting firm raised its full-year revenue forecast.</p>\n<p>Advancing issues outnumbered declining ones on the NYSE by a 2.29-to-1 ratio; on Nasdaq, a 2.44-to-1 ratio favored advancers.</p>\n<p>The S&amp;P 500 posted 36 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 105 new highs and 27 new lows.</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"161125":"标普500","513500":"标普500ETF","OEF":"标普100指数ETF-iShares","SPXU":"三倍做空标普500ETF","SH":"标普500反向ETF","UPRO":"三倍做多标普500ETF",".SPX":"S&P 500 Index","OEX":"标普100",".DJI":"道琼斯","IVV":"标普500指数ETF","MSFT":"微软","SSO":"两倍做多标普500ETF",".IXIC":"NASDAQ Composite","SDS":"两倍做空标普500ETF","SPY":"标普500ETF"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2146023477","content_text":"June 24 (Reuters) - The Nasdaq and the S&P 500 indexes closed at record highs on Thursday, with the Dow also jumping almost 1% after U.S. President Joe Biden embraced a bipartisan Senate infrastructure deal.\nWith massive fiscal stimulus helped the U.S. economy grow at a 6.4% annualized rate in the first quarter, investors have been banking on an infrastructure agreement that could steer the next leg of the recovery for the world's largest economy and fuel more stock gains.\nConstruction and mining equipment maker Caterpillar and aerospace firm Boeing both jumped more than 2%, helping lift the Dow Jones Industrial Average.\n\"In the short term, I think there will be some 'buy the rumor and sell the news' in materials and industrials, but as we start to see more details come out about how the money will be spent, I think we will get a continued benefit,\" said Sal Bruno, chief investment officer at IndexIQ in New York.\nFueling the S&P 500's gains more than any other stock, Tesla Inc rose 3.5% after Chief Executive Officer Elon Musk said he would list SpaceX's space internet venture, Starlink, when its cash flow is reasonably predictable, adding that Tesla shareholders could get preference in investing.\nMega-caps PayPal and Facebook Inc each gained more than 1%, and were also among the biggest boosts to the S&P 500 and the Nasdaq.\nMicrosoft added 0.5% and ended with a market capitalization above $2 trillion for its first time.\nInitial claims for state unemployment benefits fell 7,000 to 411,000 for the week ended June 19, the Labor Department said on Thursday, but were still higher than the 380,000 that economists had forecast.\nThe Commerce Department said the economy grew at a 6.4% rate last quarter, unrevised from the estimate published in May.\nSo far this month, the S&P 500 growth index has climbed almost 4%, outperforming the value index's 2% drop.\nThe Dow Jones Industrial Average rose 0.95% to end at 34,196.82 points, while the S&P 500 gained 0.58% to 4,266.49.\nThe Nasdaq Composite climbed 0.69% to 14,369.71.\nVolume on U.S. exchanges was 9.2 billion shares, less than the 11.0 billion average over the last 20 trading days.\nThe S&P 500 technology, healthcare and communication services sector indexes hit record highs.\nSo far in 2021, the S&P 500 has gained almost 14%, beating the Nasdaq's 11% rise.\nEli Lilly and Co jumped 7.3% to a record high after the drugmaker said it would apply for the U.S. Food and Drug Administration's accelerated approval for its experimental Alzheimer's drug this year.\nIn response, Biogen Inc , which received a controversial approval for its Alzheimer's drug aducanumab earlier this month, tumbled 6.1%.\nMGM Resorts International rose 2.2% after Deutsche Bank upgraded the casino operator's stock to \"buy\" from \"hold.\"\nAccenture Plc gained 2.1% after the IT consulting firm raised its full-year revenue forecast.\nAdvancing issues outnumbered declining ones on the NYSE by a 2.29-to-1 ratio; on Nasdaq, a 2.44-to-1 ratio favored advancers.\nThe S&P 500 posted 36 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 105 new highs and 27 new lows.","news_type":1},"isVote":1,"tweetType":1,"viewCount":398,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":126112358,"gmtCreate":1624547332874,"gmtModify":1634004522940,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Huat","listText":"Huat","text":"Huat","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/126112358","repostId":"1120000038","repostType":4,"isVote":1,"tweetType":1,"viewCount":234,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":126116049,"gmtCreate":1624547305981,"gmtModify":1634004523883,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Ill stay away","listText":"Ill stay away","text":"Ill stay away","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/126116049","repostId":"1149719439","repostType":4,"isVote":1,"tweetType":1,"viewCount":21,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":126118367,"gmtCreate":1624547284659,"gmtModify":1634004524721,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Neutral abt this","listText":"Neutral abt this","text":"Neutral abt this","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/126118367","repostId":"1162964404","repostType":4,"repost":{"id":"1162964404","pubTimestamp":1624545616,"share":"https://www.laohu8.com/m/news/1162964404?lang=&edition=full","pubTime":"2021-06-24 22:40","market":"us","language":"en","title":"Hershey gains on Berkshire Hathaway takeover speculation","url":"https://stock-news.laohu8.com/highlight/detail?id=1162964404","media":"seekingalpha","summary":"Hershey rose 1.6% after a report indicated that Hershey's corporate plane was seen in Omaha, the hea","content":"<p>Hershey&nbsp;rose 1.6%&nbsp;after a report indicated that Hershey's corporate plane was seen in Omaha, the headquarters of Warren Buffett's Berkshire Hathaway(NYSE:BRK.B), a few weeks ago.</p>\n<p>The plane spotting is interesting because Berkshire Hathaway owns Sees's Candies and Buffett helped finance Mars's purchase of Wrigley&nbsp;in 2008.</p>\n<p>A sale of Hershey has always been difficult because the Hershey Trust has to approve any kind of deal, though it seems that a transaction with Buffett might be amenable, according to traders, who cited a Gordon Haskett note.</p>\n<p>Hershey didn't immediately respond to Seeking Alpha request for comment.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Hershey gains on Berkshire Hathaway takeover speculation</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHershey gains on Berkshire Hathaway takeover speculation\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-24 22:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/news/3709624-hershey-gains-on-berkshire-hathaway-takeover-speculation><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Hershey rose 1.6% after a report indicated that Hershey's corporate plane was seen in Omaha, the headquarters of Warren Buffett's Berkshire Hathaway(NYSE:BRK.B), a few weeks ago.\nThe plane spotting is...</p>\n\n<a href=\"https://seekingalpha.com/news/3709624-hershey-gains-on-berkshire-hathaway-takeover-speculation\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BRK.B":"伯克希尔B","HSY":"好时","BRK.A":"伯克希尔"},"source_url":"https://seekingalpha.com/news/3709624-hershey-gains-on-berkshire-hathaway-takeover-speculation","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1162964404","content_text":"Hershey rose 1.6% after a report indicated that Hershey's corporate plane was seen in Omaha, the headquarters of Warren Buffett's Berkshire Hathaway(NYSE:BRK.B), a few weeks ago.\nThe plane spotting is interesting because Berkshire Hathaway owns Sees's Candies and Buffett helped finance Mars's purchase of Wrigley in 2008.\nA sale of Hershey has always been difficult because the Hershey Trust has to approve any kind of deal, though it seems that a transaction with Buffett might be amenable, according to traders, who cited a Gordon Haskett note.\nHershey didn't immediately respond to Seeking Alpha request for comment.","news_type":1},"isVote":1,"tweetType":1,"viewCount":99,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":126119601,"gmtCreate":1624547225103,"gmtModify":1634004527036,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Sea is a must buy","listText":"Sea is a must buy","text":"Sea is a must buy","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/126119601","repostId":"1120836318","repostType":4,"repost":{"id":"1120836318","pubTimestamp":1624545855,"share":"https://www.laohu8.com/m/news/1120836318?lang=&edition=full","pubTime":"2021-06-24 22:44","market":"sg","language":"en","title":"Southeast Asia’s Attempts at Replicating Singles’ Day Sales Drive Shopping Boom","url":"https://stock-news.laohu8.com/highlight/detail?id=1120836318","media":"Bloomberg","summary":"Sea Ltd rose over 5% in morning trading Thursday.\n\n(Bloomberg) -- Monthly mega-sales events are emer","content":"<p><img src=\"https://static.tigerbbs.com/aa7a5c57d1b1b99cf909292dac1b2558\" tg-width=\"960\" tg-height=\"625\"></p>\n<p><a href=\"https://laohu8.com/S/SE\">Sea Ltd</a> rose over 5% in morning trading&nbsp;Thursday.</p>\n<p><img src=\"https://static.tigerbbs.com/67d3a0d876a9b7237bb2aee7a671d4f8\" tg-width=\"603\" tg-height=\"499\"></p>\n<p>(Bloomberg) -- Monthly mega-sales events are emerging as a key driver for Southeast Asia’s online-shopping boom, a study showed, as the region’s retailers are seeking to duplicate the success of China’s Singles Day and North America’s Black Friday.</p>\n<p>About 86% of the roughly 4,000 people surveyed in Southeast Asia said they bought products online during sales days pegged to identical-number dates such as 6/6 and 7/7, according to the study by Facebook Inc. and Bain &amp; Co. Of these buyers, 43% were first-time online shoppers, with the highest percentage of them in Thailand and Vietnam.</p>\n<p>Alibaba Group Holding Ltd.’s Lazada, Sea Ltd.’s Shopee and Qoo10 are trying to lure online shoppers by offering huge bargains and special deals in the region of more than 650 million people. Since the outbreak of Covid-19, a growing number of retailers and brands have piggybacked on the e-commerce giants’ marketing to capture a bigger share of online sales.</p>\n<p>“Mega-sales days are something that uniquely started happening within Southeast Asia,” Benjamin Joe, vice president of Southeast Asia and emerging markets at Facebook, said during a virtual briefing on Wednesday. “Historically, it was a discount-driven, one-day event, but what we’re seeing is a repeat of numbers like 7/7, a pattern,” with apps offering rewards and gamification to attract buyers, he added.</p>\n<p>About 72% of the surveyed said they plan their mega-sales purchases ahead of the events. About 63% used social media to discover new products and a majority of those said they did so via video.</p>\n<p>Facebook’s Instagram Adds Shopping Via Images, Virtual Try-On</p>\n<p>The report used data from GlobalWebIndex Core Survey Panel involving about 4,000 internet users across Indonesia, Malaysia, the Philippines, Thailand and Vietnam in the fourth quarter of 2020.</p>","source":"lsy1584095487587","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Southeast Asia’s Attempts at Replicating Singles’ Day Sales Drive Shopping Boom</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSoutheast Asia’s Attempts at Replicating Singles’ Day Sales Drive Shopping Boom\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-24 22:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/southeast-asia-attempts-replicating-singles-082630590.html><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Sea Ltd rose over 5% in morning trading Thursday.\n\n(Bloomberg) -- Monthly mega-sales events are emerging as a key driver for Southeast Asia’s online-shopping boom, a study showed, as the region’s ...</p>\n\n<a href=\"https://finance.yahoo.com/news/southeast-asia-attempts-replicating-singles-082630590.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SE":"Sea Ltd"},"source_url":"https://finance.yahoo.com/news/southeast-asia-attempts-replicating-singles-082630590.html","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1120836318","content_text":"Sea Ltd rose over 5% in morning trading Thursday.\n\n(Bloomberg) -- Monthly mega-sales events are emerging as a key driver for Southeast Asia’s online-shopping boom, a study showed, as the region’s retailers are seeking to duplicate the success of China’s Singles Day and North America’s Black Friday.\nAbout 86% of the roughly 4,000 people surveyed in Southeast Asia said they bought products online during sales days pegged to identical-number dates such as 6/6 and 7/7, according to the study by Facebook Inc. and Bain & Co. Of these buyers, 43% were first-time online shoppers, with the highest percentage of them in Thailand and Vietnam.\nAlibaba Group Holding Ltd.’s Lazada, Sea Ltd.’s Shopee and Qoo10 are trying to lure online shoppers by offering huge bargains and special deals in the region of more than 650 million people. Since the outbreak of Covid-19, a growing number of retailers and brands have piggybacked on the e-commerce giants’ marketing to capture a bigger share of online sales.\n“Mega-sales days are something that uniquely started happening within Southeast Asia,” Benjamin Joe, vice president of Southeast Asia and emerging markets at Facebook, said during a virtual briefing on Wednesday. “Historically, it was a discount-driven, one-day event, but what we’re seeing is a repeat of numbers like 7/7, a pattern,” with apps offering rewards and gamification to attract buyers, he added.\nAbout 72% of the surveyed said they plan their mega-sales purchases ahead of the events. About 63% used social media to discover new products and a majority of those said they did so via video.\nFacebook’s Instagram Adds Shopping Via Images, Virtual Try-On\nThe report used data from GlobalWebIndex Core Survey Panel involving about 4,000 internet users across Indonesia, Malaysia, the Philippines, Thailand and Vietnam in the fourth quarter of 2020.","news_type":1},"isVote":1,"tweetType":1,"viewCount":46,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":126110135,"gmtCreate":1624547197527,"gmtModify":1634004527981,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Informative read","listText":"Informative read","text":"Informative read","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/126110135","repostId":"1187819280","repostType":4,"repost":{"id":"1187819280","pubTimestamp":1624529642,"share":"https://www.laohu8.com/m/news/1187819280?lang=&edition=full","pubTime":"2021-06-24 18:14","market":"us","language":"en","title":"The ‘shelter in suburbia’ trade is about to reverse — and these stocks will suffer","url":"https://stock-news.laohu8.com/highlight/detail?id=1187819280","media":"MarketWatch","summary":"5 reasons the pandemic megatrend is over.\n\nOne of the biggest investment stories of the COVID-19 pan","content":"<blockquote>\n <b>5 reasons the pandemic megatrend is over.</b>\n</blockquote>\n<p>One of the biggest investment stories of the COVID-19 pandemic has been the boom in consumer discretionary stocks with a “shelter in suburbia” theme. From e-commerce platforms to home improvement stores to furniture and housewares merchants, many of the top performers have fit this flavor.</p>\n<p>Take the broad-based Vanguard Consumer Discretionary Index Fund ETF VCR, +0.66% that surged more than 90% from March 2020 to March 2021. That was thanks to components like home improvement stocks Lowe’s LOW, -0.30% and Home Depot HD, -0.33% alongside retailers like TJX TJX, -0.08%.</p>\n<p>Lately, however, performance has started to lag for many of these names. In fact, since April 1 we’ve seen these three stocks all drift slightly into the red even as the S&amp;P 500 SPX, -0.11% has tacked on about 6% in the same period.</p>\n<p>And some fear that may only be the beginning. As one Wall Street insider said recently in a Bloomberg interview, a “huge unwind” is coming for stay-at-home stocks, including hardware stores and home-goods merchants.</p>\n<p>While some big-name “suburbia” trades are still relatively stable, signs of trouble are already emerging at the fringes. Century Communities CCS, -0.34% and Dream Finders Homes DFH, -2.55%, two mid-tier single family homebuilders, have seen shares crash by double digits over the last month. On the furnishings side, appliance giant Whirlpool Corporation WHR, -0.51% and department store Nordstrom JWN, +2.03% are down sharply from their spring highs.</p>\n<p><b>Here are five big reasons why:</b></p>\n<p><b>1.</b>&nbsp;<b>The upgrade cycle is over</b></p>\n<p>Last summer, white-collar workers who were stuck at home made note of overdue projects and took advantage of being able to easily meet with contractors. But in many ways, this growth is not sustainable.</p>\n<p>Consider the kind of purchases homeowners were making according to data from the NPD Group. Faucets, kitchen cabinets and even toilets were among the most popular products sold in 2020. Needless to say, even the most profligate homeowners aren’t going to follow this upgrade cycle of remodeling kitchens and bathrooms on an annual basis.</p>\n<p>The same is true for furniture and other home goods. Internet giant Comscore recorded the highest visitation to related websites in history in May 2020 with 133 million web surfers shopping for some kind of home goods. Once again, a new couch or lamp is not an annual purchase — so this trend seems unsustainable for much longer.</p>\n<p><b>2.&nbsp;Valuations are stretched</b></p>\n<p>Speaking of post-pandemic peaks for home-goods purveyors, we’ve seen the financials bear out these big increases via boosted profits and sales. However, we’ve also seen the stock of many related merchants surge even more — stretching their valuations from historical norms.</p>\n<p>Take TJX. Currently this discount retailer has a forward price-to-earnings ratio of more than 26, compared with a forward P/E of just 21 in spring 2020. Its trailing price-to-sales ratio is now 2.1 compared with 1.4.</p>\n<p>What’s more, valuations for previous darlings like TJX are out of line with peers, too. Consider the forward P/E of the overall S&amp;P 500 index is 22 right now, and other similar names like Macy’s M, +0.70% and Big Lots BIG, -3.71% actually have forward P/E ratios well under 10. You can argue TJX is unique, of course… but you also may want to be aware of what “fair value” looks like for many other stocks outside fashionable stay-at-home trades right now.</p>\n<p><b>3.&nbsp;Delays and shortages</b></p>\n<p>Future growth from pandemic-fueled peaks in these stocks is not impossible, of course. But given supply chain disruptions it seems highly unlikely. There are a host of reasons for these delays, including overseas shipping delays as well as capacity and output crunches that are affecting many industries, but “stay at home” stocks seem particularly hard hit.</p>\n<p>Home improvement products are simply nowhere to be found, with roughly 94% of builders reporting “at least some serious shortages of appliances” according to the National Association of Home Builders. Another 93% are running short on framing lumber and 87% say it is hard to obtain windows and doors.</p>\n<p>Even if you can get past demand concerns, without the raw materials to get to work it’s very hard to see future growth in this category.</p>\n<p><b>4.&nbsp;Inflationary pressures</b></p>\n<p>For the people who haven’t already ponied up the cash for a contractor or made their peace with extended delays for their expensive new furniture, there is a pretty big disincentive right now for new shoppers: inflation.</p>\n<p>The cost of living as measured by the Consumer Price Index jumped 0.6% in May to run at a 5% annual rate. That was not only higher than expectations, but the fastest pace since the summer of 2008. The inflation risks were so pronounced that the Federal Reserve publicly stated it could move up the schedule for expected interest rate increases to keep the risks under wraps.</p>\n<p>Inflation isn’t always a death knell, of course. But it has historically eroded purchasing power and could curtail some of the spending in “stay at home” stocks that we’ve seen in the last year or so.</p>\n<p><b>5.&nbsp;Home-equity hubris</b></p>\n<p>Speaking of red-hot inflation: In May, the median price for U.S. homes topped $350,000 for the first time ever — up 23.6% from 2020. What’s more, a Realtor.com survey showed roughly a third of selling homeowners expect to get more than their asking price, and roughly the same amount expect an offer within a week of listing.</p>\n<p>Some of this is justifiable. Many articles have been written in recent years about the dearth of supply in attractive markets, and it’s important to acknowledge the remote work of the pandemic has indeed created some disruptive introspection into why people live where they do.</p>\n<p>But here’s where things get dicey: homeowners who have already spent the expected premium on their home’s price well in advance. According to Freddie Mac, about $152.7 billion in equity loans were taken out on U.S. houses last year, a massive increase of 41.7% from 2019 and the highest refinancing cash-out dollar amount since 2007.</p>\n<p>Anyone remember what happened to the real-estate market in 2007? Or the similar sense of seller entitlement from those days? There’s no clear signs of a bubble bursting just yet, but there’s real risk American homeowners may be overly optimistic about what their homes are worth — and a chance this home equity loan free-for-all simply isn’t sustainable for much longer.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The ‘shelter in suburbia’ trade is about to reverse — and these stocks will suffer</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe ‘shelter in suburbia’ trade is about to reverse — and these stocks will suffer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-24 18:14 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/the-shelter-in-suburbia-trade-is-about-to-reverse-and-these-stocks-will-suffer-11624457411?siteid=yhoof2><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>5 reasons the pandemic megatrend is over.\n\nOne of the biggest investment stories of the COVID-19 pandemic has been the boom in consumer discretionary stocks with a “shelter in suburbia” theme. From e-...</p>\n\n<a href=\"https://www.marketwatch.com/story/the-shelter-in-suburbia-trade-is-about-to-reverse-and-these-stocks-will-suffer-11624457411?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".SPX":"S&P 500 Index","SPY":"标普500ETF",".IXIC":"NASDAQ Composite",".DJI":"道琼斯"},"source_url":"https://www.marketwatch.com/story/the-shelter-in-suburbia-trade-is-about-to-reverse-and-these-stocks-will-suffer-11624457411?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1187819280","content_text":"5 reasons the pandemic megatrend is over.\n\nOne of the biggest investment stories of the COVID-19 pandemic has been the boom in consumer discretionary stocks with a “shelter in suburbia” theme. From e-commerce platforms to home improvement stores to furniture and housewares merchants, many of the top performers have fit this flavor.\nTake the broad-based Vanguard Consumer Discretionary Index Fund ETF VCR, +0.66% that surged more than 90% from March 2020 to March 2021. That was thanks to components like home improvement stocks Lowe’s LOW, -0.30% and Home Depot HD, -0.33% alongside retailers like TJX TJX, -0.08%.\nLately, however, performance has started to lag for many of these names. In fact, since April 1 we’ve seen these three stocks all drift slightly into the red even as the S&P 500 SPX, -0.11% has tacked on about 6% in the same period.\nAnd some fear that may only be the beginning. As one Wall Street insider said recently in a Bloomberg interview, a “huge unwind” is coming for stay-at-home stocks, including hardware stores and home-goods merchants.\nWhile some big-name “suburbia” trades are still relatively stable, signs of trouble are already emerging at the fringes. Century Communities CCS, -0.34% and Dream Finders Homes DFH, -2.55%, two mid-tier single family homebuilders, have seen shares crash by double digits over the last month. On the furnishings side, appliance giant Whirlpool Corporation WHR, -0.51% and department store Nordstrom JWN, +2.03% are down sharply from their spring highs.\nHere are five big reasons why:\n1. The upgrade cycle is over\nLast summer, white-collar workers who were stuck at home made note of overdue projects and took advantage of being able to easily meet with contractors. But in many ways, this growth is not sustainable.\nConsider the kind of purchases homeowners were making according to data from the NPD Group. Faucets, kitchen cabinets and even toilets were among the most popular products sold in 2020. Needless to say, even the most profligate homeowners aren’t going to follow this upgrade cycle of remodeling kitchens and bathrooms on an annual basis.\nThe same is true for furniture and other home goods. Internet giant Comscore recorded the highest visitation to related websites in history in May 2020 with 133 million web surfers shopping for some kind of home goods. Once again, a new couch or lamp is not an annual purchase — so this trend seems unsustainable for much longer.\n2. Valuations are stretched\nSpeaking of post-pandemic peaks for home-goods purveyors, we’ve seen the financials bear out these big increases via boosted profits and sales. However, we’ve also seen the stock of many related merchants surge even more — stretching their valuations from historical norms.\nTake TJX. Currently this discount retailer has a forward price-to-earnings ratio of more than 26, compared with a forward P/E of just 21 in spring 2020. Its trailing price-to-sales ratio is now 2.1 compared with 1.4.\nWhat’s more, valuations for previous darlings like TJX are out of line with peers, too. Consider the forward P/E of the overall S&P 500 index is 22 right now, and other similar names like Macy’s M, +0.70% and Big Lots BIG, -3.71% actually have forward P/E ratios well under 10. You can argue TJX is unique, of course… but you also may want to be aware of what “fair value” looks like for many other stocks outside fashionable stay-at-home trades right now.\n3. Delays and shortages\nFuture growth from pandemic-fueled peaks in these stocks is not impossible, of course. But given supply chain disruptions it seems highly unlikely. There are a host of reasons for these delays, including overseas shipping delays as well as capacity and output crunches that are affecting many industries, but “stay at home” stocks seem particularly hard hit.\nHome improvement products are simply nowhere to be found, with roughly 94% of builders reporting “at least some serious shortages of appliances” according to the National Association of Home Builders. Another 93% are running short on framing lumber and 87% say it is hard to obtain windows and doors.\nEven if you can get past demand concerns, without the raw materials to get to work it’s very hard to see future growth in this category.\n4. Inflationary pressures\nFor the people who haven’t already ponied up the cash for a contractor or made their peace with extended delays for their expensive new furniture, there is a pretty big disincentive right now for new shoppers: inflation.\nThe cost of living as measured by the Consumer Price Index jumped 0.6% in May to run at a 5% annual rate. That was not only higher than expectations, but the fastest pace since the summer of 2008. The inflation risks were so pronounced that the Federal Reserve publicly stated it could move up the schedule for expected interest rate increases to keep the risks under wraps.\nInflation isn’t always a death knell, of course. But it has historically eroded purchasing power and could curtail some of the spending in “stay at home” stocks that we’ve seen in the last year or so.\n5. Home-equity hubris\nSpeaking of red-hot inflation: In May, the median price for U.S. homes topped $350,000 for the first time ever — up 23.6% from 2020. What’s more, a Realtor.com survey showed roughly a third of selling homeowners expect to get more than their asking price, and roughly the same amount expect an offer within a week of listing.\nSome of this is justifiable. Many articles have been written in recent years about the dearth of supply in attractive markets, and it’s important to acknowledge the remote work of the pandemic has indeed created some disruptive introspection into why people live where they do.\nBut here’s where things get dicey: homeowners who have already spent the expected premium on their home’s price well in advance. According to Freddie Mac, about $152.7 billion in equity loans were taken out on U.S. houses last year, a massive increase of 41.7% from 2019 and the highest refinancing cash-out dollar amount since 2007.\nAnyone remember what happened to the real-estate market in 2007? Or the similar sense of seller entitlement from those days? There’s no clear signs of a bubble bursting just yet, but there’s real risk American homeowners may be overly optimistic about what their homes are worth — and a chance this home equity loan free-for-all simply isn’t sustainable for much longer.","news_type":1},"isVote":1,"tweetType":1,"viewCount":171,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":129244379,"gmtCreate":1624375407991,"gmtModify":1634007032098,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Buy now?","listText":"Buy now?","text":"Buy now?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/129244379","repostId":"1186919064","repostType":2,"isVote":1,"tweetType":1,"viewCount":122,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":129246036,"gmtCreate":1624375258225,"gmtModify":1634007033588,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Good to know","listText":"Good to know","text":"Good to know","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/129246036","repostId":"2145905996","repostType":4,"repost":{"id":"2145905996","pubTimestamp":1624371120,"share":"https://www.laohu8.com/m/news/2145905996?lang=&edition=full","pubTime":"2021-06-22 22:12","market":"us","language":"en","title":"2 Robinhood Stocks Wall Street Predicts Will Plunge More Than 25%","url":"https://stock-news.laohu8.com/highlight/detail?id=2145905996","media":"Motley Fool","summary":"But are analysts' pessimistic predictions likely to be right?","content":"<p>Small investors and Wall Street analysts are on the same page quite a bit. For example, several of the 100 most popular stocks on Robinhood -- a trading platform that caters to small investors -- are also favorites of analysts.</p>\n<p>However, there are certainly some differences of opinion. Some picks that retail investors think have great prospects are ones that analysts are decidedly bearish about. Here are two popular Robinhood stocks that Wall Street predicts will plunge more than 25%.</p>\n<p><img src=\"https://static.tigerbbs.com/a430e7af76c4520c2ef789ff347c5c4c\" tg-width=\"700\" tg-height=\"507\" referrerpolicy=\"no-referrer\"></p>\n<p>Image source: Getty Images.</p>\n<h3>BlackBerry</h3>\n<p><b>BlackBerry</b> (NYSE:BB) has ranked among the most popular stocks on Robinhood for quite awhile now. That's not surprising considering that the tech stock has almost doubled year to date.</p>\n<p>Wall Street analysts don't think so highly of BlackBerry, though. The consensus price target is nearly 40% lower than the current share price. Analysts appear to see limited near-term growth opportunities for the company.</p>\n<p>Are Robinhood (and Reddit) investors seeing something in BlackBerry that Wall Street is missing? Maybe so. The company isn't solely focused on smartphones, as it was in the past. It now also develops cybersecurity products and software used in vehicles' driver-assistance, instrument, and infotainment systems.</p>\n<p>BlackBerry's QNX operating system has scored wins with 23 of the top 25 electric vehicle original-equipment manufacturers in the world. The company is working with <b>Amazon</b>&nbsp;on the IVY cloud-connected platform that enables automakers to gather and use vehicle data.</p>\n<p>The company's SecuSUITE voice and text encryption is used by 18 governments. Its Jarvis security testing platform was named \"best in breed\" for protecting mission-critical software supply chains in an analysis conducted on behalf of the U.S. Department of Defense.</p>\n<p>Wall Street could be right about BlackBerry. But it just might be <a href=\"https://laohu8.com/S/AONE\">one</a> of a handful of meme stocks that could still make investors rich over the long run.</p>\n<h3>Senseonics Holdings</h3>\n<p><b>Senseonics Holdings</b> (NYSEMKT:SENS) isn't as popular with Robinhood investors as BlackBerry is. But the medical device maker still ranks in Robinhood's top 100. Its stock has also been a huge winner in 2021 with shares skyrocketing close to 270%.</p>\n<p>Wall Street appears to believe that Senseonics has gained too much too quickly. The average price target for the healthcare stock is 27% below the current share price.</p>\n<p>Senseonics markets the Eversense implantable continuous glucose monitoring (CGM) system for diabetics. The company recently reported promising results from a clinical study of this system, showing a confirmed detection rate of 93% for low blood sugar alerts with the device's primary sensor and 94% with its secondary sensor.</p>\n<p>Probably the main issue that analysts have with Senseonics right now is its valuation. Shares trade at a whopping 119 times sales. And the sales the company has generated so far are puny: only $2.85 million in the latest quarter.</p>\n<p>So why do Robinhood investors like Senseonics so much? They're likely confident about the company's prospects. For example, the Food and Drug Administration is reviewing Senseonics' filing for authorization of a version of Eversense with sensors that last for 180 days, which is twice as long as the current version of the device.</p>\n<p>Investors could also be upbeat about Senseonics' partnership with Ascensia. The large diabetes-care company took over full commercialization of Eversense in the U.S. market in April. Ascensia is also handling sales and marketing of the CGM in certain European markets. The company should be able to drive higher sales in a way that Senseonics couldn't do on its own.</p>\n<p>However, Senseonics expects sales in 2021 will only be in the range of $12 million to $15 million. That might not be enough growth to keep its valuation propped up at the current nosebleed levels.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>2 Robinhood Stocks Wall Street Predicts Will Plunge More Than 25%</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n2 Robinhood Stocks Wall Street Predicts Will Plunge More Than 25%\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-22 22:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/22/2-robinhood-stocks-wall-street-predicts-will-plung/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Small investors and Wall Street analysts are on the same page quite a bit. For example, several of the 100 most popular stocks on Robinhood -- a trading platform that caters to small investors -- are ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/22/2-robinhood-stocks-wall-street-predicts-will-plung/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BB":"黑莓","SENS":"Senseonics Holdings,Inc."},"source_url":"https://www.fool.com/investing/2021/06/22/2-robinhood-stocks-wall-street-predicts-will-plung/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2145905996","content_text":"Small investors and Wall Street analysts are on the same page quite a bit. For example, several of the 100 most popular stocks on Robinhood -- a trading platform that caters to small investors -- are also favorites of analysts.\nHowever, there are certainly some differences of opinion. Some picks that retail investors think have great prospects are ones that analysts are decidedly bearish about. Here are two popular Robinhood stocks that Wall Street predicts will plunge more than 25%.\n\nImage source: Getty Images.\nBlackBerry\nBlackBerry (NYSE:BB) has ranked among the most popular stocks on Robinhood for quite awhile now. That's not surprising considering that the tech stock has almost doubled year to date.\nWall Street analysts don't think so highly of BlackBerry, though. The consensus price target is nearly 40% lower than the current share price. Analysts appear to see limited near-term growth opportunities for the company.\nAre Robinhood (and Reddit) investors seeing something in BlackBerry that Wall Street is missing? Maybe so. The company isn't solely focused on smartphones, as it was in the past. It now also develops cybersecurity products and software used in vehicles' driver-assistance, instrument, and infotainment systems.\nBlackBerry's QNX operating system has scored wins with 23 of the top 25 electric vehicle original-equipment manufacturers in the world. The company is working with Amazon on the IVY cloud-connected platform that enables automakers to gather and use vehicle data.\nThe company's SecuSUITE voice and text encryption is used by 18 governments. Its Jarvis security testing platform was named \"best in breed\" for protecting mission-critical software supply chains in an analysis conducted on behalf of the U.S. Department of Defense.\nWall Street could be right about BlackBerry. But it just might be one of a handful of meme stocks that could still make investors rich over the long run.\nSenseonics Holdings\nSenseonics Holdings (NYSEMKT:SENS) isn't as popular with Robinhood investors as BlackBerry is. But the medical device maker still ranks in Robinhood's top 100. Its stock has also been a huge winner in 2021 with shares skyrocketing close to 270%.\nWall Street appears to believe that Senseonics has gained too much too quickly. The average price target for the healthcare stock is 27% below the current share price.\nSenseonics markets the Eversense implantable continuous glucose monitoring (CGM) system for diabetics. The company recently reported promising results from a clinical study of this system, showing a confirmed detection rate of 93% for low blood sugar alerts with the device's primary sensor and 94% with its secondary sensor.\nProbably the main issue that analysts have with Senseonics right now is its valuation. Shares trade at a whopping 119 times sales. And the sales the company has generated so far are puny: only $2.85 million in the latest quarter.\nSo why do Robinhood investors like Senseonics so much? They're likely confident about the company's prospects. For example, the Food and Drug Administration is reviewing Senseonics' filing for authorization of a version of Eversense with sensors that last for 180 days, which is twice as long as the current version of the device.\nInvestors could also be upbeat about Senseonics' partnership with Ascensia. The large diabetes-care company took over full commercialization of Eversense in the U.S. market in April. Ascensia is also handling sales and marketing of the CGM in certain European markets. The company should be able to drive higher sales in a way that Senseonics couldn't do on its own.\nHowever, Senseonics expects sales in 2021 will only be in the range of $12 million to $15 million. That might not be enough growth to keep its valuation propped up at the current nosebleed levels.","news_type":1},"isVote":1,"tweetType":1,"viewCount":32,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":129257457,"gmtCreate":1624375053579,"gmtModify":1634007036026,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Expected","listText":"Expected","text":"Expected","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/129257457","repostId":"1143759096","repostType":4,"repost":{"id":"1143759096","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1624371721,"share":"https://www.laohu8.com/m/news/1143759096?lang=&edition=full","pubTime":"2021-06-22 22:22","market":"us","language":"en","title":"EV stocks fell in morning trading. Chinese EV Stocks Fully Priced Following Recent Rally, Planned Rate Hikes","url":"https://stock-news.laohu8.com/highlight/detail?id=1143759096","media":"Tiger Newspress","summary":"(June 22) EV stocks fell in morning trading. Tesla fell 0.33%, XPeng fell over 5%, NIO fell over 3%,","content":"<p>(June 22)&nbsp;EV stocks fell in morning trading.&nbsp;Tesla fell 0.33%, XPeng fell over 5%, NIO fell over 3%,&nbsp;LI&nbsp;fell&nbsp;about&nbsp;2%.</p>\n<p><img src=\"https://static.tigerbbs.com/a423484cc524b2f71e91b83e759455a9\" tg-width=\"289\" tg-height=\"211\" referrerpolicy=\"no-referrer\"></p>\n<p><b>Li Auto, Nio, Xpeng: Chinese EV Stocks Fully Priced Following Recent Rally, Planned Rate Hikes,</b>&nbsp;<b>According&nbsp;To&nbsp;Forbes.</b></p>\n<p>The stocks of Chinese EV players have surged over the last month, largely reversing the effects of the sell-off seen earlier this year.Nio stock(NYSE: NIO) has rallied by almost 38% over the last month, Li Auto (NASDAQ: LI) gained 45%, and Xpeng (NYSE: XPEV) surged by almost 58%. Now although the three companies posted mixed delivery figures for the month of May, with Nio and Li Auto both posting declines in their deliveries versus April, and Xpeng growing sales marginally, the sales numbers likely weren’t as bad as expected, considering the semiconductor shortage that has roiled the auto industry. In contrast, major auto players such as GM and Ford had to temporarily idle or scale back production at several plants.</p>\n<p>The outlook provided by the three companies was also stronger than expected, giving investors confidence that the worst of the semiconductor shortage is likely over. Li Auto has guided to 14,500 to 15,500 deliveries for the second quarter, a sequential increase of 22% on the upper end. The company says that it is optimistic that actual numbers will exceed guidance, given that it is seeing stronger than expected orders for the upgraded version of its Li One SUV. Nio also reiterated its Q2 2021 delivery guidance of 21,000 to 22,000 vehicles, implying that it could deliver a record 8,200 vehicles in June.</p>\n<p>Now are the stocks a buy at current levels? While the growth outlook is certainly strong, the stocks don’t exactly appear cheap at current valuations. Nio trades at 14x forward revenue, while Li Auto trades at 9x, and Xpeng trades at about 16x. Near-term threats to EV valuations include higher inflation and recent commentary by the U.S. Federal Reserve, which is now apparently looking at two interest rate hikes in 2023, instead of 2024. This could put pressure on high-multiple, high-growth stocks, including EV names. In our analysis&nbsp;<b>Nio, Xpeng &amp; Li Auto: How Do Chinese EV Stocks Compare?</b>&nbsp;we compare the financial performance and valuations of the major U.S. listed Chinese electric vehicle players.</p>\n<p><b>[6/2/2021] Is The Worst Of The Semiconductor Crunch Over For Chinese EVs?</b></p>\n<p>Chinese electric vehicle majorsNio (NYSE: NIO)and Xpeng (NYSE: XPEV) provided mixed delivery figures for the month of May, as they continued to be impacted by the current shortage of semiconductors. While Nio delivered a total of 6,711 vehicles in May, down 5.5% from April, Xpeng was able to grow deliveries by about 10% over the last month to 5,686 units, although the number is below peak monthly sales of 6,015 vehicles witnessed in January. Although both companies reported robust year-over-year growth numbers (2x to 6x), the sequential figures are more closely tracked for fast-growing companies.</p>\n<p>However, things are probably going to get better from here. Nio, for instance, reiterated its Q2 2021 delivery guidance of 21,000 to 22,000 vehicles, implying that it could deliver as many as 8,200 vehicles in June, a monthly record. This is likely an indicator that the global automotive semiconductor shortage is easing off, and also a sign that Nio is holding its own in the Chinese EV market, despite mounting competition. Nio stock rallied by almost 10% in Tuesday’s trading, while Xpeng’s stock was up by about 8% following the report.</p>\n<p>Despite the recent rally, the stocks might still be worth considering at current levels. Nio stock remains down by about 20% year-to-date while Xpeng is down by about 22%. See our analysis on&nbsp;<b>Nio, Xpeng &amp; Li Auto: How Do Chinese EV Stocks Compare?</b>for an overview of the financial and valuation metrics of the three U.S. listed Chinese EV players.</p>\n<p><b>[5/21/2021] How Do Chinese EV Stocks Compare?</b></p>\n<p>U.S. listed Chinese EV players Nio (NYSE: NIO), Xpeng (NYSE: XPEV), and Li Auto (NASDAQ: LI) have underperformed this year, with their stocks down by roughly 30% each, since early January. So how do these stocks compare post the correction? While Nio and Xpeng remain pricier compared to Li Auto, they probably justify their higher valuation for a couple of reasons. Here is a bit more about these companies.</p>\n<p>Our analysis&nbsp;<b>Nio, Xpeng &amp; Li Auto: How Do Chinese EV Stocks Compare?</b>&nbsp;compares the financial performance and valuation of the major U.S. listed Chinese electric vehicle players.</p>\n<p>Nio remains the most richly valued of the three companies, trading at about 10.5x forward revenue. Revenues are likely to grow by over 110% this year, per consensus estimates. Longer-term growth is also likely to remain strong, given the company’s wide product portfolio (it already has three models on the market), its unique innovations such as battery swapping, its global expansion plans, and investments into autonomous driving. Nio brand also has a lot more buzz, with the company viewed as the most direct rival to Tesla in China. Gross margins stood at 19.5% in Q1 2021, up from a negative 12% a year ago.</p>\n<p>Xpeng trades at about 10x projected 2021 revenues. Sales growth is projected to be the strongest among the three companies, rising by over 150% this year, per consensus estimates. Besides its higher projected growth, investors have been assigning a premium to the company due to its progress in the autonomous driving space. Xpeng currently sells the G3 SUV and the P7 sedan and its new P5 compact sedan is likely to hit the roads later this year. Although Xpeng’s gross margins have improved, rising to about 11% over Q1, versus negative levels a year ago, they are still below Nio’s margins.</p>\n<p>Li Auto trades at just 6x projected 2021 revenues, the lowest of the three companies. Revenues are likely to roughly double this year, with gross margins standing at 17.5% as of Q4 2020 (the company has yet to report Q1 results). The lower valuation is likely due to the company’s focus on a single product - the Li Xiang ONE, an electric SUV that also has a small gasoline engine and also due to the fact that Li Auto is behind rivals in terms of autonomous driving tech.</p>\n<p><b>[10/30/2020] How Do Nio, Xpeng, and Li Auto Compare</b></p>\n<p>The Chinese electric vehicle space is booming, with China-based manufacturers accounting for over 50% of global EV deliveries. Demand for EVs in China is likely to remain robust as the Chinese government wants about 25% of all new cars sold in the country to be electric by 2025, up from roughly 5% at present.[1]While Tesla is a leader in the Chinese luxury EV market driven by production at its new Shanghai facility, Nio, Xpeng (NYSE: XPEV), and Li Auto (NASDAQ: LI) - three relatively young U.S. listed Chinese electric vehicle players, have also been gaining traction. In our analysis<b>Nio, Xpeng &amp; Li Auto: How Do Chinese EV Stocks Compare?</b>we compare the financial performance and valuation of the major U.S. listed Chinese electric vehicle players. Parts of the analysis are summarized below.</p>\n<p><b>Overview Of Nio, Li Auto &amp; Xpeng’s Business</b></p>\n<p>Nio, which was founded in 2014, currently offers three premium electric SUVs, ES8, ES6, and EC6, which are priced starting at about $50k. The company is working on developing self-driving technology and also offers other unique innovations such as Battery as a Service (BaaS) - which allows customers to subscribe for car batteries, rather than paying for them upfront. While the company has scaled up production, it hasn’t come without challenges, as it recalled about 5,000 vehicles last year after reports of multiple fires.</p>\n<p>Li Auto sells Extended-Range Electric Vehicles, which are essentially EVs that also have a small gasoline engine that can generate additional electric power for the battery. This reduces the need for EV-charging infrastructure, which is currently limited in China. The company’s hybrid strategy appears to be paying off - with its Li ONE SUV, which is priced at about $46,000 - ranking as the top-selling SUV in the new energy vehicle segment in China in September 2020. The new energy segment includes fuel cell, electric, and plug-in hybrid vehicles.</p>\n<p>Xpeng produces and sells premium electric vehicles including the G3 SUV and the P7 four-door sedan, which are roughly positioned as rivals to Tesla’s Model Y SUV and Model 3 sedan, although they are more affordable, with the basic version of the G3 starting at about $22,000 post subsidies. The G3 SUV was among the top 3 Electric SUVs in terms of sales in China in 2019. While the company began production in late 2018, initially via a deal with an established automaker, it has started production at its own factory in the Guangdong province.</p>\n<p><b>How Have The Deliveries, Revenues &amp; Margins Trended</b></p>\n<p>Nio delivered about 21k vehicles in 2019, up from about 11k vehicles in 2018. This compares to Xpeng which delivered about 13k vehicles in 2019 and Li Auto which delivered about 1k vehicles, considering that it began production only late last year. While Nio’s deliveries this year could approach about 40k units, Li Auto and Xpeng are likely to deliver around 25k vehicles with Li Auto seeing the highest growth. Over 2019, Nio’s Revenues stood at $1.1 billion, compared to about $40 million for Li Auto and $330 million for Xpeng. Nio’s Revenues are likely to grow 95% this year, while Xpeng’s Revenues are likely to grow by about 120%. All three companies remain deeply lossmaking as costs related to R&amp;D and SG&amp;A remain high relative to Revenues. Nio’s Net Margins stood at -195% in 2019, Li Auto’s margins stood at about -860% while Xpeng’s margins stood at -160%. However, margins are likely to improve sharply in 2020, as volumes pick up.</p>\n<p><b>Valuation</b></p>\n<p>Nio’s Market Cap stood at about $37 billion as of October 28, 2020, with its stock price rising by about 7x year-to-date due to surging investor interest in EV stocks. Li Auto and Xpeng, which were both listed in the U.S. around August as they looked to capitalize on surging valuations, have a market cap of about $15 billion and $14 billion, respectively. On a relative basis, Nio trades at about 15x projected 2020 Revenues, Li Auto trades at about 12x, while Xpeng trades at about 20x.</p>\n<p>While valuations are certainly high, investors are likely betting that these companies will continue to grow in the domestic market, while eventually playing a larger role in the global EV space leveraging China’s relatively low-cost manufacturing, and the country’s ecosystem of battery and auto parts suppliers. Of the three companies, Nio might be the safer bet, considering its slightly longer track record, higher Revenues, and investments in technology such as battery swaps and self-driving. Li Auto also looks attractive considering its rapid growth - driven by the uptake of its hybrid powertrains - and relatively attractive valuation of about 12x 2020 Revenues.</p>\n<p>Electric vehicles are the future of transportation, but picking the right EV stocks can be tricky. Investing in<b>Electric Vehicle Component Supplier Stocks</b>can be a good alternative to play the growth in the EV market.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>EV stocks fell in morning trading. Chinese EV Stocks Fully Priced Following Recent Rally, Planned Rate Hikes</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEV stocks fell in morning trading. Chinese EV Stocks Fully Priced Following Recent Rally, Planned Rate Hikes\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2021-06-22 22:22</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>(June 22)&nbsp;EV stocks fell in morning trading.&nbsp;Tesla fell 0.33%, XPeng fell over 5%, NIO fell over 3%,&nbsp;LI&nbsp;fell&nbsp;about&nbsp;2%.</p>\n<p><img src=\"https://static.tigerbbs.com/a423484cc524b2f71e91b83e759455a9\" tg-width=\"289\" tg-height=\"211\" referrerpolicy=\"no-referrer\"></p>\n<p><b>Li Auto, Nio, Xpeng: Chinese EV Stocks Fully Priced Following Recent Rally, Planned Rate Hikes,</b>&nbsp;<b>According&nbsp;To&nbsp;Forbes.</b></p>\n<p>The stocks of Chinese EV players have surged over the last month, largely reversing the effects of the sell-off seen earlier this year.Nio stock(NYSE: NIO) has rallied by almost 38% over the last month, Li Auto (NASDAQ: LI) gained 45%, and Xpeng (NYSE: XPEV) surged by almost 58%. Now although the three companies posted mixed delivery figures for the month of May, with Nio and Li Auto both posting declines in their deliveries versus April, and Xpeng growing sales marginally, the sales numbers likely weren’t as bad as expected, considering the semiconductor shortage that has roiled the auto industry. In contrast, major auto players such as GM and Ford had to temporarily idle or scale back production at several plants.</p>\n<p>The outlook provided by the three companies was also stronger than expected, giving investors confidence that the worst of the semiconductor shortage is likely over. Li Auto has guided to 14,500 to 15,500 deliveries for the second quarter, a sequential increase of 22% on the upper end. The company says that it is optimistic that actual numbers will exceed guidance, given that it is seeing stronger than expected orders for the upgraded version of its Li One SUV. Nio also reiterated its Q2 2021 delivery guidance of 21,000 to 22,000 vehicles, implying that it could deliver a record 8,200 vehicles in June.</p>\n<p>Now are the stocks a buy at current levels? While the growth outlook is certainly strong, the stocks don’t exactly appear cheap at current valuations. Nio trades at 14x forward revenue, while Li Auto trades at 9x, and Xpeng trades at about 16x. Near-term threats to EV valuations include higher inflation and recent commentary by the U.S. Federal Reserve, which is now apparently looking at two interest rate hikes in 2023, instead of 2024. This could put pressure on high-multiple, high-growth stocks, including EV names. In our analysis&nbsp;<b>Nio, Xpeng &amp; Li Auto: How Do Chinese EV Stocks Compare?</b>&nbsp;we compare the financial performance and valuations of the major U.S. listed Chinese electric vehicle players.</p>\n<p><b>[6/2/2021] Is The Worst Of The Semiconductor Crunch Over For Chinese EVs?</b></p>\n<p>Chinese electric vehicle majorsNio (NYSE: NIO)and Xpeng (NYSE: XPEV) provided mixed delivery figures for the month of May, as they continued to be impacted by the current shortage of semiconductors. While Nio delivered a total of 6,711 vehicles in May, down 5.5% from April, Xpeng was able to grow deliveries by about 10% over the last month to 5,686 units, although the number is below peak monthly sales of 6,015 vehicles witnessed in January. Although both companies reported robust year-over-year growth numbers (2x to 6x), the sequential figures are more closely tracked for fast-growing companies.</p>\n<p>However, things are probably going to get better from here. Nio, for instance, reiterated its Q2 2021 delivery guidance of 21,000 to 22,000 vehicles, implying that it could deliver as many as 8,200 vehicles in June, a monthly record. This is likely an indicator that the global automotive semiconductor shortage is easing off, and also a sign that Nio is holding its own in the Chinese EV market, despite mounting competition. Nio stock rallied by almost 10% in Tuesday’s trading, while Xpeng’s stock was up by about 8% following the report.</p>\n<p>Despite the recent rally, the stocks might still be worth considering at current levels. Nio stock remains down by about 20% year-to-date while Xpeng is down by about 22%. See our analysis on&nbsp;<b>Nio, Xpeng &amp; Li Auto: How Do Chinese EV Stocks Compare?</b>for an overview of the financial and valuation metrics of the three U.S. listed Chinese EV players.</p>\n<p><b>[5/21/2021] How Do Chinese EV Stocks Compare?</b></p>\n<p>U.S. listed Chinese EV players Nio (NYSE: NIO), Xpeng (NYSE: XPEV), and Li Auto (NASDAQ: LI) have underperformed this year, with their stocks down by roughly 30% each, since early January. So how do these stocks compare post the correction? While Nio and Xpeng remain pricier compared to Li Auto, they probably justify their higher valuation for a couple of reasons. Here is a bit more about these companies.</p>\n<p>Our analysis&nbsp;<b>Nio, Xpeng &amp; Li Auto: How Do Chinese EV Stocks Compare?</b>&nbsp;compares the financial performance and valuation of the major U.S. listed Chinese electric vehicle players.</p>\n<p>Nio remains the most richly valued of the three companies, trading at about 10.5x forward revenue. Revenues are likely to grow by over 110% this year, per consensus estimates. Longer-term growth is also likely to remain strong, given the company’s wide product portfolio (it already has three models on the market), its unique innovations such as battery swapping, its global expansion plans, and investments into autonomous driving. Nio brand also has a lot more buzz, with the company viewed as the most direct rival to Tesla in China. Gross margins stood at 19.5% in Q1 2021, up from a negative 12% a year ago.</p>\n<p>Xpeng trades at about 10x projected 2021 revenues. Sales growth is projected to be the strongest among the three companies, rising by over 150% this year, per consensus estimates. Besides its higher projected growth, investors have been assigning a premium to the company due to its progress in the autonomous driving space. Xpeng currently sells the G3 SUV and the P7 sedan and its new P5 compact sedan is likely to hit the roads later this year. Although Xpeng’s gross margins have improved, rising to about 11% over Q1, versus negative levels a year ago, they are still below Nio’s margins.</p>\n<p>Li Auto trades at just 6x projected 2021 revenues, the lowest of the three companies. Revenues are likely to roughly double this year, with gross margins standing at 17.5% as of Q4 2020 (the company has yet to report Q1 results). The lower valuation is likely due to the company’s focus on a single product - the Li Xiang ONE, an electric SUV that also has a small gasoline engine and also due to the fact that Li Auto is behind rivals in terms of autonomous driving tech.</p>\n<p><b>[10/30/2020] How Do Nio, Xpeng, and Li Auto Compare</b></p>\n<p>The Chinese electric vehicle space is booming, with China-based manufacturers accounting for over 50% of global EV deliveries. Demand for EVs in China is likely to remain robust as the Chinese government wants about 25% of all new cars sold in the country to be electric by 2025, up from roughly 5% at present.[1]While Tesla is a leader in the Chinese luxury EV market driven by production at its new Shanghai facility, Nio, Xpeng (NYSE: XPEV), and Li Auto (NASDAQ: LI) - three relatively young U.S. listed Chinese electric vehicle players, have also been gaining traction. In our analysis<b>Nio, Xpeng &amp; Li Auto: How Do Chinese EV Stocks Compare?</b>we compare the financial performance and valuation of the major U.S. listed Chinese electric vehicle players. Parts of the analysis are summarized below.</p>\n<p><b>Overview Of Nio, Li Auto &amp; Xpeng’s Business</b></p>\n<p>Nio, which was founded in 2014, currently offers three premium electric SUVs, ES8, ES6, and EC6, which are priced starting at about $50k. The company is working on developing self-driving technology and also offers other unique innovations such as Battery as a Service (BaaS) - which allows customers to subscribe for car batteries, rather than paying for them upfront. While the company has scaled up production, it hasn’t come without challenges, as it recalled about 5,000 vehicles last year after reports of multiple fires.</p>\n<p>Li Auto sells Extended-Range Electric Vehicles, which are essentially EVs that also have a small gasoline engine that can generate additional electric power for the battery. This reduces the need for EV-charging infrastructure, which is currently limited in China. The company’s hybrid strategy appears to be paying off - with its Li ONE SUV, which is priced at about $46,000 - ranking as the top-selling SUV in the new energy vehicle segment in China in September 2020. The new energy segment includes fuel cell, electric, and plug-in hybrid vehicles.</p>\n<p>Xpeng produces and sells premium electric vehicles including the G3 SUV and the P7 four-door sedan, which are roughly positioned as rivals to Tesla’s Model Y SUV and Model 3 sedan, although they are more affordable, with the basic version of the G3 starting at about $22,000 post subsidies. The G3 SUV was among the top 3 Electric SUVs in terms of sales in China in 2019. While the company began production in late 2018, initially via a deal with an established automaker, it has started production at its own factory in the Guangdong province.</p>\n<p><b>How Have The Deliveries, Revenues &amp; Margins Trended</b></p>\n<p>Nio delivered about 21k vehicles in 2019, up from about 11k vehicles in 2018. This compares to Xpeng which delivered about 13k vehicles in 2019 and Li Auto which delivered about 1k vehicles, considering that it began production only late last year. While Nio’s deliveries this year could approach about 40k units, Li Auto and Xpeng are likely to deliver around 25k vehicles with Li Auto seeing the highest growth. Over 2019, Nio’s Revenues stood at $1.1 billion, compared to about $40 million for Li Auto and $330 million for Xpeng. Nio’s Revenues are likely to grow 95% this year, while Xpeng’s Revenues are likely to grow by about 120%. All three companies remain deeply lossmaking as costs related to R&amp;D and SG&amp;A remain high relative to Revenues. Nio’s Net Margins stood at -195% in 2019, Li Auto’s margins stood at about -860% while Xpeng’s margins stood at -160%. However, margins are likely to improve sharply in 2020, as volumes pick up.</p>\n<p><b>Valuation</b></p>\n<p>Nio’s Market Cap stood at about $37 billion as of October 28, 2020, with its stock price rising by about 7x year-to-date due to surging investor interest in EV stocks. Li Auto and Xpeng, which were both listed in the U.S. around August as they looked to capitalize on surging valuations, have a market cap of about $15 billion and $14 billion, respectively. On a relative basis, Nio trades at about 15x projected 2020 Revenues, Li Auto trades at about 12x, while Xpeng trades at about 20x.</p>\n<p>While valuations are certainly high, investors are likely betting that these companies will continue to grow in the domestic market, while eventually playing a larger role in the global EV space leveraging China’s relatively low-cost manufacturing, and the country’s ecosystem of battery and auto parts suppliers. Of the three companies, Nio might be the safer bet, considering its slightly longer track record, higher Revenues, and investments in technology such as battery swaps and self-driving. Li Auto also looks attractive considering its rapid growth - driven by the uptake of its hybrid powertrains - and relatively attractive valuation of about 12x 2020 Revenues.</p>\n<p>Electric vehicles are the future of transportation, but picking the right EV stocks can be tricky. Investing in<b>Electric Vehicle Component Supplier Stocks</b>can be a good alternative to play the growth in the EV market.</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"XPEV":"小鹏汽车","TSLA":"特斯拉","LI":"理想汽车","NIO":"蔚来"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1143759096","content_text":"(June 22) EV stocks fell in morning trading. Tesla fell 0.33%, XPeng fell over 5%, NIO fell over 3%, LI fell about 2%.\n\nLi Auto, Nio, Xpeng: Chinese EV Stocks Fully Priced Following Recent Rally, Planned Rate Hikes, According To Forbes.\nThe stocks of Chinese EV players have surged over the last month, largely reversing the effects of the sell-off seen earlier this year.Nio stock(NYSE: NIO) has rallied by almost 38% over the last month, Li Auto (NASDAQ: LI) gained 45%, and Xpeng (NYSE: XPEV) surged by almost 58%. Now although the three companies posted mixed delivery figures for the month of May, with Nio and Li Auto both posting declines in their deliveries versus April, and Xpeng growing sales marginally, the sales numbers likely weren’t as bad as expected, considering the semiconductor shortage that has roiled the auto industry. In contrast, major auto players such as GM and Ford had to temporarily idle or scale back production at several plants.\nThe outlook provided by the three companies was also stronger than expected, giving investors confidence that the worst of the semiconductor shortage is likely over. Li Auto has guided to 14,500 to 15,500 deliveries for the second quarter, a sequential increase of 22% on the upper end. The company says that it is optimistic that actual numbers will exceed guidance, given that it is seeing stronger than expected orders for the upgraded version of its Li One SUV. Nio also reiterated its Q2 2021 delivery guidance of 21,000 to 22,000 vehicles, implying that it could deliver a record 8,200 vehicles in June.\nNow are the stocks a buy at current levels? While the growth outlook is certainly strong, the stocks don’t exactly appear cheap at current valuations. Nio trades at 14x forward revenue, while Li Auto trades at 9x, and Xpeng trades at about 16x. Near-term threats to EV valuations include higher inflation and recent commentary by the U.S. Federal Reserve, which is now apparently looking at two interest rate hikes in 2023, instead of 2024. This could put pressure on high-multiple, high-growth stocks, including EV names. In our analysis Nio, Xpeng & Li Auto: How Do Chinese EV Stocks Compare? we compare the financial performance and valuations of the major U.S. listed Chinese electric vehicle players.\n[6/2/2021] Is The Worst Of The Semiconductor Crunch Over For Chinese EVs?\nChinese electric vehicle majorsNio (NYSE: NIO)and Xpeng (NYSE: XPEV) provided mixed delivery figures for the month of May, as they continued to be impacted by the current shortage of semiconductors. While Nio delivered a total of 6,711 vehicles in May, down 5.5% from April, Xpeng was able to grow deliveries by about 10% over the last month to 5,686 units, although the number is below peak monthly sales of 6,015 vehicles witnessed in January. Although both companies reported robust year-over-year growth numbers (2x to 6x), the sequential figures are more closely tracked for fast-growing companies.\nHowever, things are probably going to get better from here. Nio, for instance, reiterated its Q2 2021 delivery guidance of 21,000 to 22,000 vehicles, implying that it could deliver as many as 8,200 vehicles in June, a monthly record. This is likely an indicator that the global automotive semiconductor shortage is easing off, and also a sign that Nio is holding its own in the Chinese EV market, despite mounting competition. Nio stock rallied by almost 10% in Tuesday’s trading, while Xpeng’s stock was up by about 8% following the report.\nDespite the recent rally, the stocks might still be worth considering at current levels. Nio stock remains down by about 20% year-to-date while Xpeng is down by about 22%. See our analysis on Nio, Xpeng & Li Auto: How Do Chinese EV Stocks Compare?for an overview of the financial and valuation metrics of the three U.S. listed Chinese EV players.\n[5/21/2021] How Do Chinese EV Stocks Compare?\nU.S. listed Chinese EV players Nio (NYSE: NIO), Xpeng (NYSE: XPEV), and Li Auto (NASDAQ: LI) have underperformed this year, with their stocks down by roughly 30% each, since early January. So how do these stocks compare post the correction? While Nio and Xpeng remain pricier compared to Li Auto, they probably justify their higher valuation for a couple of reasons. Here is a bit more about these companies.\nOur analysis Nio, Xpeng & Li Auto: How Do Chinese EV Stocks Compare? compares the financial performance and valuation of the major U.S. listed Chinese electric vehicle players.\nNio remains the most richly valued of the three companies, trading at about 10.5x forward revenue. Revenues are likely to grow by over 110% this year, per consensus estimates. Longer-term growth is also likely to remain strong, given the company’s wide product portfolio (it already has three models on the market), its unique innovations such as battery swapping, its global expansion plans, and investments into autonomous driving. Nio brand also has a lot more buzz, with the company viewed as the most direct rival to Tesla in China. Gross margins stood at 19.5% in Q1 2021, up from a negative 12% a year ago.\nXpeng trades at about 10x projected 2021 revenues. Sales growth is projected to be the strongest among the three companies, rising by over 150% this year, per consensus estimates. Besides its higher projected growth, investors have been assigning a premium to the company due to its progress in the autonomous driving space. Xpeng currently sells the G3 SUV and the P7 sedan and its new P5 compact sedan is likely to hit the roads later this year. Although Xpeng’s gross margins have improved, rising to about 11% over Q1, versus negative levels a year ago, they are still below Nio’s margins.\nLi Auto trades at just 6x projected 2021 revenues, the lowest of the three companies. Revenues are likely to roughly double this year, with gross margins standing at 17.5% as of Q4 2020 (the company has yet to report Q1 results). The lower valuation is likely due to the company’s focus on a single product - the Li Xiang ONE, an electric SUV that also has a small gasoline engine and also due to the fact that Li Auto is behind rivals in terms of autonomous driving tech.\n[10/30/2020] How Do Nio, Xpeng, and Li Auto Compare\nThe Chinese electric vehicle space is booming, with China-based manufacturers accounting for over 50% of global EV deliveries. Demand for EVs in China is likely to remain robust as the Chinese government wants about 25% of all new cars sold in the country to be electric by 2025, up from roughly 5% at present.[1]While Tesla is a leader in the Chinese luxury EV market driven by production at its new Shanghai facility, Nio, Xpeng (NYSE: XPEV), and Li Auto (NASDAQ: LI) - three relatively young U.S. listed Chinese electric vehicle players, have also been gaining traction. In our analysisNio, Xpeng & Li Auto: How Do Chinese EV Stocks Compare?we compare the financial performance and valuation of the major U.S. listed Chinese electric vehicle players. Parts of the analysis are summarized below.\nOverview Of Nio, Li Auto & Xpeng’s Business\nNio, which was founded in 2014, currently offers three premium electric SUVs, ES8, ES6, and EC6, which are priced starting at about $50k. The company is working on developing self-driving technology and also offers other unique innovations such as Battery as a Service (BaaS) - which allows customers to subscribe for car batteries, rather than paying for them upfront. While the company has scaled up production, it hasn’t come without challenges, as it recalled about 5,000 vehicles last year after reports of multiple fires.\nLi Auto sells Extended-Range Electric Vehicles, which are essentially EVs that also have a small gasoline engine that can generate additional electric power for the battery. This reduces the need for EV-charging infrastructure, which is currently limited in China. The company’s hybrid strategy appears to be paying off - with its Li ONE SUV, which is priced at about $46,000 - ranking as the top-selling SUV in the new energy vehicle segment in China in September 2020. The new energy segment includes fuel cell, electric, and plug-in hybrid vehicles.\nXpeng produces and sells premium electric vehicles including the G3 SUV and the P7 four-door sedan, which are roughly positioned as rivals to Tesla’s Model Y SUV and Model 3 sedan, although they are more affordable, with the basic version of the G3 starting at about $22,000 post subsidies. The G3 SUV was among the top 3 Electric SUVs in terms of sales in China in 2019. While the company began production in late 2018, initially via a deal with an established automaker, it has started production at its own factory in the Guangdong province.\nHow Have The Deliveries, Revenues & Margins Trended\nNio delivered about 21k vehicles in 2019, up from about 11k vehicles in 2018. This compares to Xpeng which delivered about 13k vehicles in 2019 and Li Auto which delivered about 1k vehicles, considering that it began production only late last year. While Nio’s deliveries this year could approach about 40k units, Li Auto and Xpeng are likely to deliver around 25k vehicles with Li Auto seeing the highest growth. Over 2019, Nio’s Revenues stood at $1.1 billion, compared to about $40 million for Li Auto and $330 million for Xpeng. Nio’s Revenues are likely to grow 95% this year, while Xpeng’s Revenues are likely to grow by about 120%. All three companies remain deeply lossmaking as costs related to R&D and SG&A remain high relative to Revenues. Nio’s Net Margins stood at -195% in 2019, Li Auto’s margins stood at about -860% while Xpeng’s margins stood at -160%. However, margins are likely to improve sharply in 2020, as volumes pick up.\nValuation\nNio’s Market Cap stood at about $37 billion as of October 28, 2020, with its stock price rising by about 7x year-to-date due to surging investor interest in EV stocks. Li Auto and Xpeng, which were both listed in the U.S. around August as they looked to capitalize on surging valuations, have a market cap of about $15 billion and $14 billion, respectively. On a relative basis, Nio trades at about 15x projected 2020 Revenues, Li Auto trades at about 12x, while Xpeng trades at about 20x.\nWhile valuations are certainly high, investors are likely betting that these companies will continue to grow in the domestic market, while eventually playing a larger role in the global EV space leveraging China’s relatively low-cost manufacturing, and the country’s ecosystem of battery and auto parts suppliers. Of the three companies, Nio might be the safer bet, considering its slightly longer track record, higher Revenues, and investments in technology such as battery swaps and self-driving. Li Auto also looks attractive considering its rapid growth - driven by the uptake of its hybrid powertrains - and relatively attractive valuation of about 12x 2020 Revenues.\nElectric vehicles are the future of transportation, but picking the right EV stocks can be tricky. Investing inElectric Vehicle Component Supplier Stockscan be a good alternative to play the growth in the EV market.","news_type":1},"isVote":1,"tweetType":1,"viewCount":153,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":129257038,"gmtCreate":1624375025224,"gmtModify":1634007036673,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Psth buy","listText":"Psth buy","text":"Psth buy","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/129257038","repostId":"1185822687","repostType":4,"repost":{"id":"1185822687","pubTimestamp":1624374519,"share":"https://www.laohu8.com/m/news/1185822687?lang=&edition=full","pubTime":"2021-06-22 23:08","market":"us","language":"en","title":"Vivendi Shareholders Approve Spinoff of Universal Music","url":"https://stock-news.laohu8.com/highlight/detail?id=1185822687","media":"The Wall Street Journal","summary":"Universal shares to be listed in Amsterdam in September.\n\nVivendi SE shareholders approved the Frenc","content":"<blockquote>\n Universal shares to be listed in Amsterdam in September.\n</blockquote>\n<p>Vivendi SE shareholders approved the French media conglomerate’s plan to spin off its Universal Music Group unit, bringing the world’s largest music company a step closer to becoming its own public entity.</p>\n<p>With more than 99% approval, shareholders backed the plan to distribute 60% of Universal’s shares to existing Vivendi shareholders and to list the company on the Euronext Amsterdam stock exchange. Vivendi executives said the listing would take place on Sept. 21.</p>\n<p>Universal, home to stars including Taylor Swift, Billie Eilish, Queen and the Beatles, commands some 40% market share in the domestic recorded music business—30% globally—and operates the world’s second-largest music publishing company, which last year bought Bob Dylan’s entire songwriting catalog.</p>\n<p>Over the weekend, Vivendi reached an agreement for a 10% investment in Universal by William Ackman’s Pershing Square Tontine Holdings Ltd., valuing the company at €35 billion, or about $40 billion. The Wall Street Journalpreviously reportedon the discussions. In an email to employees, Universal Chief Executive Lucian Grainge called the investment a “strong validation.”</p>\n<p>Tencent Holdings Ltd. owns about 20% of Universal after the Chinese internet conglomeratedoubled its stakelast year in a deal that valued the business at about €30 billion.</p>\n<p>“The fact that we now have, in addition to Vivendi, two committed investors—the consortium led by Tencent, as well as PSTH—is as powerful an endorsement as one could imagine from the investment and technology communities,” said Mr. Grainge in the note.</p>\n<p>Universal is set to join Warner Music Group Corp. in the public market. The third-largest recorded music company—which owns labels including Atlantic, Elektra and its flagship Warner Records, as well as Warner Chappell Music, the third-largest music publisher—listed on the Nasdaq last June. Shares surged in their debut and have climbed 15% over the past year.</p>\n<p>The resurgent music industry has piqued the interest of the investment community as it has been growing quickly thanks to the rise of streaming on services such as Spotify and Apple Music. After a 15-year decline amid rampant online piracy, the music business’s fortunes started to turn around in 2016, when thegrowth from streaming servicesbegan to outweigh dropping CD and digital download sales. Streaming now accounts for more than 80% of recorded-music revenue in the U.S. and more than 60% globally.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Vivendi Shareholders Approve Spinoff of Universal Music</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nVivendi Shareholders Approve Spinoff of Universal Music\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-22 23:08 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.wsj.com/articles/vivendi-shareholders-approve-spinoff-of-universal-music-11624357650><strong>The Wall Street Journal</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Universal shares to be listed in Amsterdam in September.\n\nVivendi SE shareholders approved the French media conglomerate’s plan to spin off its Universal Music Group unit, bringing the world’s largest...</p>\n\n<a href=\"https://www.wsj.com/articles/vivendi-shareholders-approve-spinoff-of-universal-music-11624357650\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://www.wsj.com/articles/vivendi-shareholders-approve-spinoff-of-universal-music-11624357650","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1185822687","content_text":"Universal shares to be listed in Amsterdam in September.\n\nVivendi SE shareholders approved the French media conglomerate’s plan to spin off its Universal Music Group unit, bringing the world’s largest music company a step closer to becoming its own public entity.\nWith more than 99% approval, shareholders backed the plan to distribute 60% of Universal’s shares to existing Vivendi shareholders and to list the company on the Euronext Amsterdam stock exchange. Vivendi executives said the listing would take place on Sept. 21.\nUniversal, home to stars including Taylor Swift, Billie Eilish, Queen and the Beatles, commands some 40% market share in the domestic recorded music business—30% globally—and operates the world’s second-largest music publishing company, which last year bought Bob Dylan’s entire songwriting catalog.\nOver the weekend, Vivendi reached an agreement for a 10% investment in Universal by William Ackman’s Pershing Square Tontine Holdings Ltd., valuing the company at €35 billion, or about $40 billion. The Wall Street Journalpreviously reportedon the discussions. In an email to employees, Universal Chief Executive Lucian Grainge called the investment a “strong validation.”\nTencent Holdings Ltd. owns about 20% of Universal after the Chinese internet conglomeratedoubled its stakelast year in a deal that valued the business at about €30 billion.\n“The fact that we now have, in addition to Vivendi, two committed investors—the consortium led by Tencent, as well as PSTH—is as powerful an endorsement as one could imagine from the investment and technology communities,” said Mr. Grainge in the note.\nUniversal is set to join Warner Music Group Corp. in the public market. The third-largest recorded music company—which owns labels including Atlantic, Elektra and its flagship Warner Records, as well as Warner Chappell Music, the third-largest music publisher—listed on the Nasdaq last June. Shares surged in their debut and have climbed 15% over the past year.\nThe resurgent music industry has piqued the interest of the investment community as it has been growing quickly thanks to the rise of streaming on services such as Spotify and Apple Music. After a 15-year decline amid rampant online piracy, the music business’s fortunes started to turn around in 2016, when thegrowth from streaming servicesbegan to outweigh dropping CD and digital download sales. Streaming now accounts for more than 80% of recorded-music revenue in the U.S. and more than 60% globally.","news_type":1},"isVote":1,"tweetType":1,"viewCount":278,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":129255422,"gmtCreate":1624374956866,"gmtModify":1634007037239,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Author writes like he knows more than the politicians","listText":"Author writes like he knows more than the politicians","text":"Author writes like he knows more than the politicians","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/129255422","repostId":"1180651681","repostType":4,"isVote":1,"tweetType":1,"viewCount":69,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":129252634,"gmtCreate":1624374902128,"gmtModify":1634007038034,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Nonsense","listText":"Nonsense","text":"Nonsense","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/129252634","repostId":"1177499959","repostType":4,"isVote":1,"tweetType":1,"viewCount":214,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":166731984,"gmtCreate":1624024704748,"gmtModify":1634023938414,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Never move the stock price much","listText":"Never move the stock price much","text":"Never move the stock price much","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":2,"repostSize":0,"link":"https://laohu8.com/post/166731984","repostId":"1171510497","repostType":4,"repost":{"id":"1171510497","pubTimestamp":1624024592,"share":"https://www.laohu8.com/m/news/1171510497?lang=&edition=full","pubTime":"2021-06-18 21:56","market":"us","language":"en","title":"Court Rules In Favor Of AstraZeneca Over Delay In COVID-19 Shot Deliveries","url":"https://stock-news.laohu8.com/highlight/detail?id=1171510497","media":"benzinga","summary":"AstraZeneca Plc claims victory in a court tussle with the European Union over allegations that the c","content":"<ul>\n <li><b>AstraZeneca Plc</b>&nbsp;claims victory in a court tussle&nbsp;with the European Union over allegations that the company was not producing shots fast enough, thus missing COVID-19 vaccine deliveries.</li>\n <li>The company had planned 120 million vaccine doses cumulatively by the end of June 2021 and 300 million doses by the end of September.</li>\n <li>AZN intends to deliver more than 70 million by the end of the month.</li>\n <li>A judge ordered delivery of 80.2M doses by the end of September.</li>\n <li>The judgment also acknowledged that the company experienced substantial difficulties in producing the vaccine, which explains the delay.</li>\n <li>Last month, the E.U.’s lawyer had asked the court to force AZN to pay €10 per dose for each day of delay&nbsp;as compensation for breaching the E.U. contract.</li>\n <li><b>Price Action</b>: AZN shares are down 0.75% at $57.91 during the premarket trading session on the last check Friday.</li>\n</ul>","source":"lsy1606299360108","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Court Rules In Favor Of AstraZeneca Over Delay In COVID-19 Shot Deliveries</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCourt Rules In Favor Of AstraZeneca Over Delay In COVID-19 Shot Deliveries\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-18 21:56 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/general/biotech/21/06/21625016/court-rules-in-favor-of-astrazeneca-over-delay-in-covid-19-shot-deliveries><strong>benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>AstraZeneca Plc claims victory in a court tussle with the European Union over allegations that the company was not producing shots fast enough, thus missing COVID-19 vaccine deliveries.\nThe company ...</p>\n\n<a href=\"https://www.benzinga.com/general/biotech/21/06/21625016/court-rules-in-favor-of-astrazeneca-over-delay-in-covid-19-shot-deliveries\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AZN":"阿斯利康"},"source_url":"https://www.benzinga.com/general/biotech/21/06/21625016/court-rules-in-favor-of-astrazeneca-over-delay-in-covid-19-shot-deliveries","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1171510497","content_text":"AstraZeneca Plc claims victory in a court tussle with the European Union over allegations that the company was not producing shots fast enough, thus missing COVID-19 vaccine deliveries.\nThe company had planned 120 million vaccine doses cumulatively by the end of June 2021 and 300 million doses by the end of September.\nAZN intends to deliver more than 70 million by the end of the month.\nA judge ordered delivery of 80.2M doses by the end of September.\nThe judgment also acknowledged that the company experienced substantial difficulties in producing the vaccine, which explains the delay.\nLast month, the E.U.’s lawyer had asked the court to force AZN to pay €10 per dose for each day of delay as compensation for breaching the E.U. contract.\nPrice Action: AZN shares are down 0.75% at $57.91 during the premarket trading session on the last check Friday.","news_type":1},"isVote":1,"tweetType":1,"viewCount":232,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":124491832,"gmtCreate":1624777192826,"gmtModify":1633948690556,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Agreed good stock but too expensive","listText":"Agreed good stock but too expensive","text":"Agreed good stock but too expensive","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/124491832","repostId":"1184001921","repostType":4,"repost":{"id":"1184001921","pubTimestamp":1624763737,"share":"https://www.laohu8.com/m/news/1184001921?lang=&edition=full","pubTime":"2021-06-27 11:15","market":"us","language":"en","title":"Amazon: Good Stock, Not Good Price","url":"https://stock-news.laohu8.com/highlight/detail?id=1184001921","media":"seekingalpha","summary":"Summary\n\nAmazon is one of the most innovative companies in the world today, leading the E-commerce i","content":"<p><b>Summary</b></p>\n<ul>\n <li>Amazon is one of the most innovative companies in the world today, leading the E-commerce industry and cloud computing services.</li>\n <li>Unfortunately, it's a little overpriced. This is consistent with some of the other mega-cap stocks I've analyzed.</li>\n <li>This article looks at what Amazon stock is most likely worth for us investors.</li>\n <li>I hope you enjoy.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/451bc93115fb453c0fcb76434c40f7f4\" tg-width=\"1536\" tg-height=\"1024\"><span>Sundry Photography/iStock Editorial via Getty Images</span></p>\n<p>Today, Amazon (AMZN) seems to be a little overpriced based on my intrinsic value model.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a82d937a2de3f0709088e1ab4548267b\" tg-width=\"371\" tg-height=\"260\"><span>Source: Author</span></p>\n<p>You might have seen some of my other articles where I've bashed other popular stocks like Apple (AAPL) or Microsoft (MSFT). Well, I guess today it's Amazon's turn. I just try to share what I think companies are worth, and I've found that a lot of companies seem to be overpriced.</p>\n<p>In this article, I'll break down how I came up with Amazon's valuation. I know that there's tons of different opinions out there about Amazon, so I'll try to share the reasoning behind my valuation to help you make better investments in the future.</p>\n<p>Something important you should know - I'm not an expert on Amazon, and I have a really difficult time valuing growth stocks. I really doubt that I have the ability to estimate a company's future growth. I made future growth estimates by looking at past growth and making conservative estimates of the future.</p>\n<p>This method borders on \"data extrapolation\", which is making assumptions based on past data. Data extrapolation isn't great because the future is different from the past - so making future projections based on past data isn't ideal.</p>\n<p>But after valuing hundreds of companies, I've found that this kind of style does a good job of getting the valuation approximately right. I always try to set my valuations low, because it's better to buy low and make a killing than buy high and lose money.</p>\n<blockquote>\n Warren Buffett said, “The three most important words in investing are\n <b>margin of safety</b>.” That means to buy stuff on sale... That's the whole secret to great investing.\n</blockquote>\n<blockquote>\n Rule 1 Investing\n</blockquote>\n<p>This model is built on getting the valuation \"approximately right,\" and looking to buy with a large margin of safety. I hope you enjoy, and as always, I'll try to keep it clean and common sense.</p>\n<p><b>Business Model</b></p>\n<p>Where does Amazon get its money? Amazon is split into 3 segments: North America, International, and AWS.</p>\n<p>As a market leader in 2 high growth industries (E-commerce and cloud computing), Amazon will probably continue to see high growth in the future. In this section, I looked at the past revenue growth and operating margins for each of Amazon's segments, and I used this to make conservative future projections.</p>\n<p>And later, I added up the numbers from each segment to make projections for the whole company. Here's a look at AMZN's North America segment. This segment's revenue comes from retail sales and subscription service revenues.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ce022c0ecacc3829cf83378211bbfd9d\" tg-width=\"640\" tg-height=\"192\"><span>Source: Author with data from 2018 10-K,2019 10-K, and 2020 10-K</span></p>\n<p>I projected declining revenue growth and strong operating margins for this segment. I projected slower revenue growth, because I figure there has to be a cap on how much money Amazon can make in North America.</p>\n<p>Hopefully, Amazon will exceed this revenue growth. But, I do think it would be a pretty incredible feat for Amazon to grow from $200B in revenue to $400B in 5 years.</p>\n<p>Here's a look at Amazon's International segment:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f3d7a5bde370f55e863f58c888abc496\" tg-width=\"640\" tg-height=\"219\"><span>Source: Author with data from 2018 10-K,2019 10-K, and 2020 10-K</span></p>\n<p>For Amazon's international segment, I projected 20% annual revenue growth, and improving operating margins. I figured that operating margins would gradually improve until the margins reached a similar point to what Amazon sees in its US segment.</p>\n<p>And for Amazon's last and most exciting segment, here's AWS:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/769700013871f2cd09e8ce47cfb10966\" tg-width=\"640\" tg-height=\"203\"><span>Source: Author</span></p>\n<p>AWS is undoubtedly going to bring high growth for Amazon, and high profits. I projected that the AWS segment will probably continue to grow at a high rate. I projected a 25-30% annual revenue growth rate because cloud computing has a lot of room to grow, and according to Research and Markets, the cloud computing industry should grow at about&nbsp;17.5% CAGR&nbsp;until 2025.</p>\n<p>Additionally, I projected 28% operating margins, because the AWS business benefits from operating leverage. As more people use the software, the company is able to make higher margins as it spreads costs over more people. It's possible that Amazon could exceed 28% operating margins, so there might be upside to Amazon's fair value.</p>\n<p>These projections were added together to help us figure out what the entire company should be worth.</p>\n<p><b>Capital Allocation</b></p>\n<p>How does Amazon spend its money? You might find it interesting to analyze Amazon's capital allocation, so you can see what Amazon does with its money, and where it might be investing for the future.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/45f5afa0f641ee1aae39aa69cc150165\" tg-width=\"619\" tg-height=\"499\"><span>Source: Author</span></p>\n<p>The biggest portion of Amazon's operating cash flows goes towards capital expenditures. From what I can tell, Amazon has not had any share activity over the past 5 years. The company has issued shares - but from the looks of the cash flow statement, it looks like they haven't raised any money from selling shares, and they haven't spent any money buying back shares.</p>\n<blockquote>\n In February 2016, the Board of Directors authorized a program to repurchase up to $5.0 billion of our common stock, with no fixed expiration.\n <i>There were no repurchases of common stock in 2018, 2019, or 2020.</i>\n</blockquote>\n<blockquote>\n Source:2020 10-K&nbsp;page 60,\n <i>emphasis added</i>\n</blockquote>\n<p>But for our purposes, this quote shows that Amazon hasn't bought back any stock over the past 3 years. They also haven't spent any money on dividends, which is good because they're a high growth company.</p>\n<p>Amazon has consistently spent money on acquisitions and paying down debt. What's really interesting is that Amazon has built up a lot of spare cash over the past 5 years. Their cash position has risen about $58B since 2016, going from about $26B at the end of 2016 to about $84B at the end of 2020.</p>\n<p>Amazon has a lot more cash than they used to, so we could see future spending go towards a dividend, share buybacks, new acquisitions, or maybe more business investments that will lead to growth.</p>\n<p><b>Valuation</b></p>\n<p>First, I used a discount rate of 7.7% for Amazon because that's what I found the company's weighted average cost of capital, or WACC, to be. I assumed an 8% cost of equity, and Amazon has averaged somewhere around a 20-30% tax rate over the past 10 years.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c036264f19bb10fdad477a629b40f803\" tg-width=\"361\" tg-height=\"288\"><span>Source: Author</span></p>\n<p>I used a DCF model to find Amazon's value today. In the model down below, you can see in the top 2 red boxes that I projected that the company would have lower revenue growth and strong operating margins.</p>\n<p>This model projects that Amazon will have over $850B in revenue by 2025. That's absolutely nuts if you think about it, but based on estimated revenue growth, it seems feasible.</p>\n<p>Right now, Walmart(NYSE:WMT)leads the world in revenue with about $550B. Amazon sits in third place for annual revenue, with about $390B. In 5 years, Amazon could easily have the largest revenue of any company in the world.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/95c459abcbda43e35b40379a1083ecae\" tg-width=\"640\" tg-height=\"510\"><span>Source: Author</span></p>\n<p>Down at the bottom of this model, you can see there's a red box that projects unlevered FCF margins. This basically measures how much of the company's revenue will become business profits, without including interest or debt payments. In the turquoise box, I applied the discount rate to see what the future cash flows are worth today.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a3fa0846616fdc847a3fe1fdf7a09bed\" tg-width=\"267\" tg-height=\"404\"><span>Source: Author</span></p>\n<p>Today, it looks like Amazon is slightly overvalued. The model projects that the stock might be about 15% overvalued, and we could expect to make about 5% annual returns over the next 5 years if we invested today.</p>\n<p>These estimations are based on the future cash flows that the business should generate. I don't hate Amazon or anything, I just don't think that Amazon stock would make a great investment at current prices.</p>\n<p>Down at the bottom, I threw in 2 \"Buy Prices\" where Amazon stock might be more appealing. The idea behind this is that the cheaper AMZN stock gets, the higher returns we can expect.</p>\n<p>The model projects that you'd make around 15% annual returns at $2,200 per share, and you might make around 22% annual returns at $1,700 per share.</p>\n<p>\"But doesn't it seem unreasonable to set the buy price in the $2,000s when the stock's trading near $3,500?\" It does a little bit. It seems pretty unlikely that Amazon's share price will nose dive right down past $2,000.</p>\n<p>But the idea is, if we're patient, we might get an opportunity to buy these shares underpriced. Last February, Amazon traded lower than $1,900 (I wish I bought some back then). We'll probably have opportunities in the future to buy Amazon at a discount.</p>\n<p><b>Recap</b></p>\n<p>Today, it seems like Amazon is slightly overvalued, because it seems to offer about 5% annual returns over the next 5 years. That doesn't mean you should sell Amazon if you're a long time holder, because Amazon should continue to do well as a leader in E-commerce and cloud computing.</p>\n<p>But if you're looking for your next stock to invest in, Amazon seems to be too expensive right now. And if you've been eyeing Amazon for a while and you're looking to get in, now's not the best time to get into Amazon.</p>\n<p>Even if we don't invest in the stock, we can still watch Amazon as they become the company with the most revenue in the world. And there's a lot we can learn from studying Amazon and Jeff Bezos. He's a smart dude.</p>\n<p>Thank you very much for reading, and I hope that you have a great rest of your day.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: Good Stock, Not Good Price</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: Good Stock, Not Good Price\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-27 11:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4436641-amazon-good-stock-not-good-price><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nAmazon is one of the most innovative companies in the world today, leading the E-commerce industry and cloud computing services.\nUnfortunately, it's a little overpriced. This is consistent ...</p>\n\n<a href=\"https://seekingalpha.com/article/4436641-amazon-good-stock-not-good-price\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4436641-amazon-good-stock-not-good-price","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1184001921","content_text":"Summary\n\nAmazon is one of the most innovative companies in the world today, leading the E-commerce industry and cloud computing services.\nUnfortunately, it's a little overpriced. This is consistent with some of the other mega-cap stocks I've analyzed.\nThis article looks at what Amazon stock is most likely worth for us investors.\nI hope you enjoy.\n\nSundry Photography/iStock Editorial via Getty Images\nToday, Amazon (AMZN) seems to be a little overpriced based on my intrinsic value model.\nSource: Author\nYou might have seen some of my other articles where I've bashed other popular stocks like Apple (AAPL) or Microsoft (MSFT). Well, I guess today it's Amazon's turn. I just try to share what I think companies are worth, and I've found that a lot of companies seem to be overpriced.\nIn this article, I'll break down how I came up with Amazon's valuation. I know that there's tons of different opinions out there about Amazon, so I'll try to share the reasoning behind my valuation to help you make better investments in the future.\nSomething important you should know - I'm not an expert on Amazon, and I have a really difficult time valuing growth stocks. I really doubt that I have the ability to estimate a company's future growth. I made future growth estimates by looking at past growth and making conservative estimates of the future.\nThis method borders on \"data extrapolation\", which is making assumptions based on past data. Data extrapolation isn't great because the future is different from the past - so making future projections based on past data isn't ideal.\nBut after valuing hundreds of companies, I've found that this kind of style does a good job of getting the valuation approximately right. I always try to set my valuations low, because it's better to buy low and make a killing than buy high and lose money.\n\n Warren Buffett said, “The three most important words in investing are\n margin of safety.” That means to buy stuff on sale... That's the whole secret to great investing.\n\n\n Rule 1 Investing\n\nThis model is built on getting the valuation \"approximately right,\" and looking to buy with a large margin of safety. I hope you enjoy, and as always, I'll try to keep it clean and common sense.\nBusiness Model\nWhere does Amazon get its money? Amazon is split into 3 segments: North America, International, and AWS.\nAs a market leader in 2 high growth industries (E-commerce and cloud computing), Amazon will probably continue to see high growth in the future. In this section, I looked at the past revenue growth and operating margins for each of Amazon's segments, and I used this to make conservative future projections.\nAnd later, I added up the numbers from each segment to make projections for the whole company. Here's a look at AMZN's North America segment. This segment's revenue comes from retail sales and subscription service revenues.\nSource: Author with data from 2018 10-K,2019 10-K, and 2020 10-K\nI projected declining revenue growth and strong operating margins for this segment. I projected slower revenue growth, because I figure there has to be a cap on how much money Amazon can make in North America.\nHopefully, Amazon will exceed this revenue growth. But, I do think it would be a pretty incredible feat for Amazon to grow from $200B in revenue to $400B in 5 years.\nHere's a look at Amazon's International segment:\nSource: Author with data from 2018 10-K,2019 10-K, and 2020 10-K\nFor Amazon's international segment, I projected 20% annual revenue growth, and improving operating margins. I figured that operating margins would gradually improve until the margins reached a similar point to what Amazon sees in its US segment.\nAnd for Amazon's last and most exciting segment, here's AWS:\nSource: Author\nAWS is undoubtedly going to bring high growth for Amazon, and high profits. I projected that the AWS segment will probably continue to grow at a high rate. I projected a 25-30% annual revenue growth rate because cloud computing has a lot of room to grow, and according to Research and Markets, the cloud computing industry should grow at about 17.5% CAGR until 2025.\nAdditionally, I projected 28% operating margins, because the AWS business benefits from operating leverage. As more people use the software, the company is able to make higher margins as it spreads costs over more people. It's possible that Amazon could exceed 28% operating margins, so there might be upside to Amazon's fair value.\nThese projections were added together to help us figure out what the entire company should be worth.\nCapital Allocation\nHow does Amazon spend its money? You might find it interesting to analyze Amazon's capital allocation, so you can see what Amazon does with its money, and where it might be investing for the future.\nSource: Author\nThe biggest portion of Amazon's operating cash flows goes towards capital expenditures. From what I can tell, Amazon has not had any share activity over the past 5 years. The company has issued shares - but from the looks of the cash flow statement, it looks like they haven't raised any money from selling shares, and they haven't spent any money buying back shares.\n\n In February 2016, the Board of Directors authorized a program to repurchase up to $5.0 billion of our common stock, with no fixed expiration.\n There were no repurchases of common stock in 2018, 2019, or 2020.\n\n\n Source:2020 10-K page 60,\n emphasis added\n\nBut for our purposes, this quote shows that Amazon hasn't bought back any stock over the past 3 years. They also haven't spent any money on dividends, which is good because they're a high growth company.\nAmazon has consistently spent money on acquisitions and paying down debt. What's really interesting is that Amazon has built up a lot of spare cash over the past 5 years. Their cash position has risen about $58B since 2016, going from about $26B at the end of 2016 to about $84B at the end of 2020.\nAmazon has a lot more cash than they used to, so we could see future spending go towards a dividend, share buybacks, new acquisitions, or maybe more business investments that will lead to growth.\nValuation\nFirst, I used a discount rate of 7.7% for Amazon because that's what I found the company's weighted average cost of capital, or WACC, to be. I assumed an 8% cost of equity, and Amazon has averaged somewhere around a 20-30% tax rate over the past 10 years.\nSource: Author\nI used a DCF model to find Amazon's value today. In the model down below, you can see in the top 2 red boxes that I projected that the company would have lower revenue growth and strong operating margins.\nThis model projects that Amazon will have over $850B in revenue by 2025. That's absolutely nuts if you think about it, but based on estimated revenue growth, it seems feasible.\nRight now, Walmart(NYSE:WMT)leads the world in revenue with about $550B. Amazon sits in third place for annual revenue, with about $390B. In 5 years, Amazon could easily have the largest revenue of any company in the world.\nSource: Author\nDown at the bottom of this model, you can see there's a red box that projects unlevered FCF margins. This basically measures how much of the company's revenue will become business profits, without including interest or debt payments. In the turquoise box, I applied the discount rate to see what the future cash flows are worth today.\nSource: Author\nToday, it looks like Amazon is slightly overvalued. The model projects that the stock might be about 15% overvalued, and we could expect to make about 5% annual returns over the next 5 years if we invested today.\nThese estimations are based on the future cash flows that the business should generate. I don't hate Amazon or anything, I just don't think that Amazon stock would make a great investment at current prices.\nDown at the bottom, I threw in 2 \"Buy Prices\" where Amazon stock might be more appealing. The idea behind this is that the cheaper AMZN stock gets, the higher returns we can expect.\nThe model projects that you'd make around 15% annual returns at $2,200 per share, and you might make around 22% annual returns at $1,700 per share.\n\"But doesn't it seem unreasonable to set the buy price in the $2,000s when the stock's trading near $3,500?\" It does a little bit. It seems pretty unlikely that Amazon's share price will nose dive right down past $2,000.\nBut the idea is, if we're patient, we might get an opportunity to buy these shares underpriced. Last February, Amazon traded lower than $1,900 (I wish I bought some back then). We'll probably have opportunities in the future to buy Amazon at a discount.\nRecap\nToday, it seems like Amazon is slightly overvalued, because it seems to offer about 5% annual returns over the next 5 years. That doesn't mean you should sell Amazon if you're a long time holder, because Amazon should continue to do well as a leader in E-commerce and cloud computing.\nBut if you're looking for your next stock to invest in, Amazon seems to be too expensive right now. And if you've been eyeing Amazon for a while and you're looking to get in, now's not the best time to get into Amazon.\nEven if we don't invest in the stock, we can still watch Amazon as they become the company with the most revenue in the world. And there's a lot we can learn from studying Amazon and Jeff Bezos. He's a smart dude.\nThank you very much for reading, and I hope that you have a great rest of your day.","news_type":1},"isVote":1,"tweetType":1,"viewCount":210,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":129258446,"gmtCreate":1624374844385,"gmtModify":1634007039076,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Dont trust these fools man","listText":"Dont trust these fools man","text":"Dont trust these fools man","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/129258446","repostId":"2145056554","repostType":4,"repost":{"id":"2145056554","pubTimestamp":1624356900,"share":"https://www.laohu8.com/m/news/2145056554?lang=&edition=full","pubTime":"2021-06-22 18:15","market":"us","language":"en","title":"These 3 Dow Stocks Are Set to Soar in 2021's Second Half","url":"https://stock-news.laohu8.com/highlight/detail?id=2145056554","media":"Motley Fool","summary":"Here are the companies investors are most excited about -- and why.","content":"<p>The <b>Dow Jones Industrial Average </b>(DJINDICES:^DJI) has had a solid year so far in 2021. Gains of 9% might not seem like all that much compared to the double-digit percentage gains we've seen in past years. But given everything that's happening in the economy, it's not surprising to see investors rein in their expectations somewhat on some of the top-performing stocks in the market.</p>\n<p>Yet even with the gains the overall market has seen, there are still some Dow stocks that haven't climbed as far as they might. In particular, analysts looking at three stocks among the Dow Jones Industrials see the potential for substantial gains in the second half of 2021 and beyond. Below, we'll look at these three companies to see what it'll take for them to produce the big returns that investors want right now.</p>\n<h3>UnitedHealth: 34% upside</h3>\n<p><b>UnitedHealth Group </b>(NYSE:UNH) has already put in a reasonable performance in the Dow so far this year. The health insurance giant's stock is up about 11% year to date, outpacing the broader average very slightly.</p>\n<p>Yet investors see a lot more upside for the healthcare giant. The top price target among Wall Street analysts for UnitedHealth is $522 per share, which implies roughly a 34% gain from current levels.</p>\n<p>UnitedHealth has done an excellent job of navigating the ever-changing landscape of the healthcare and health insurance industries. As the largest health insurance company in the world, UnitedHealth offers coverage not just for private businesses but also for those eligible for government programs like Medicare and Medicaid.</p>\n<p>Indeed, UnitedHealth's handling of plans under the Affordable Care Act has been masterful, with the company having participated in the program better known as Obamacare while not overcommitting to it. With the Supreme Court having recently upheld the validity of the Affordable Care Act, UnitedHealth finds itself in a strong position to keep benefiting from its mix of business.</p>\n<p><img src=\"https://static.tigerbbs.com/ffe66b7aafd67e07dd42007f2b60d638\" tg-width=\"700\" tg-height=\"466\" referrerpolicy=\"no-referrer\"></p>\n<p>Image source: Getty Images.</p>\n<p>Yet many overlook the value of UnitedHealth's Optum health services unit. By aiming to help providers encourage health and wellness, Optum generates higher-margin revenue while often producing better outcomes for patients and members. With both growth drivers pushing the company forward, UnitedHealth looks well poised to keep climbing.</p>\n<h3>Goldman Sachs: 36% upside</h3>\n<p>Wall Street has enjoyed the bull market in stocks, and that's been a blessing for investment bank <b>Goldman Sachs </b>(NYSE:GS). The perennial financial giant has seen its stock rise 34% so far in 2021 after less impressive performance during 2020.</p>\n<p>On <a href=\"https://laohu8.com/S/AONE\">one</a> hand, Goldman has reflected the broader performance of financial stocks across the market. Interest rates have generally been on the rise, and that's bolstered the prospects for more net-interest income from retail banking operations. Goldman lags behind its big-bank peers on the consumer banking front, but its relatively new Marcus unit has done a good job of attracting capital thus far.</p>\n<p>On the other hand, Goldman continues to rely on its investment banking operations, and strong activity levels among initial public offerings and mergers and acquisitions (M&amp;A) have fed the company's coffers nicely. Financing remains relatively easy to get, and that could spur more M&amp;A activity that in turn could keep growing revenue for Goldman's investment banking division. Add to that possible tailwinds from macroeconomic factors, and it is in a solid position to climb as high as the $484 per share that represents the top price target among those following the financial stock.</p>\n<h3>Apple: 42% upside</h3>\n<p>Lastly, <b>Apple </b>(NASDAQ:AAPL) rounds out this list. Recently fetching $130 per share, some see the iPhone maker's stock climbing to $185. That'd be a 42% jump to help Apple recover from its 2% loss so far in 2021.</p>\n<p>Apple's gains have continued to impress. Revenue jumped 54% in its most recent quarter, with sales of the iPhone 12 and various other products and accessories continuing to drive sales for the company. Returning capital to shareholders via dividends and stock buybacks has had a substantial impact on financial performance, especially with the number of outstanding shares having plunged by roughly 35% in just the past decade.</p>\n<p>Many fear that Apple hasn't generated the innovative product lines that drove its success in the mid-2000s. However, at least for now, consumers seem content with iterations on existing product lines, and as long as that remains a successful strategy, further gains for the stock seem realistic.</p>\n<h3>Further to run?</h3>\n<p>Even with solid gains for the Dow in 2021, the long-term trajectory for stocks remains upward. That's a big part of why Apple, Goldman Sachs, and UnitedHealth Group look as promising as they do. Smart investors should at least keep an eye on these three stocks to see if they can live up to their full potential.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>These 3 Dow Stocks Are Set to Soar in 2021's Second Half</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThese 3 Dow Stocks Are Set to Soar in 2021's Second Half\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-22 18:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/22/these-3-dow-stocks-set-to-soar-2021s-second-half/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The Dow Jones Industrial Average (DJINDICES:^DJI) has had a solid year so far in 2021. Gains of 9% might not seem like all that much compared to the double-digit percentage gains we've seen in past ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/22/these-3-dow-stocks-set-to-soar-2021s-second-half/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"09086":"华夏纳指-U","03086":"华夏纳指","UNH":"联合健康","GS":"高盛","AAPL":"苹果"},"source_url":"https://www.fool.com/investing/2021/06/22/these-3-dow-stocks-set-to-soar-2021s-second-half/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2145056554","content_text":"The Dow Jones Industrial Average (DJINDICES:^DJI) has had a solid year so far in 2021. Gains of 9% might not seem like all that much compared to the double-digit percentage gains we've seen in past years. But given everything that's happening in the economy, it's not surprising to see investors rein in their expectations somewhat on some of the top-performing stocks in the market.\nYet even with the gains the overall market has seen, there are still some Dow stocks that haven't climbed as far as they might. In particular, analysts looking at three stocks among the Dow Jones Industrials see the potential for substantial gains in the second half of 2021 and beyond. Below, we'll look at these three companies to see what it'll take for them to produce the big returns that investors want right now.\nUnitedHealth: 34% upside\nUnitedHealth Group (NYSE:UNH) has already put in a reasonable performance in the Dow so far this year. The health insurance giant's stock is up about 11% year to date, outpacing the broader average very slightly.\nYet investors see a lot more upside for the healthcare giant. The top price target among Wall Street analysts for UnitedHealth is $522 per share, which implies roughly a 34% gain from current levels.\nUnitedHealth has done an excellent job of navigating the ever-changing landscape of the healthcare and health insurance industries. As the largest health insurance company in the world, UnitedHealth offers coverage not just for private businesses but also for those eligible for government programs like Medicare and Medicaid.\nIndeed, UnitedHealth's handling of plans under the Affordable Care Act has been masterful, with the company having participated in the program better known as Obamacare while not overcommitting to it. With the Supreme Court having recently upheld the validity of the Affordable Care Act, UnitedHealth finds itself in a strong position to keep benefiting from its mix of business.\n\nImage source: Getty Images.\nYet many overlook the value of UnitedHealth's Optum health services unit. By aiming to help providers encourage health and wellness, Optum generates higher-margin revenue while often producing better outcomes for patients and members. With both growth drivers pushing the company forward, UnitedHealth looks well poised to keep climbing.\nGoldman Sachs: 36% upside\nWall Street has enjoyed the bull market in stocks, and that's been a blessing for investment bank Goldman Sachs (NYSE:GS). The perennial financial giant has seen its stock rise 34% so far in 2021 after less impressive performance during 2020.\nOn one hand, Goldman has reflected the broader performance of financial stocks across the market. Interest rates have generally been on the rise, and that's bolstered the prospects for more net-interest income from retail banking operations. Goldman lags behind its big-bank peers on the consumer banking front, but its relatively new Marcus unit has done a good job of attracting capital thus far.\nOn the other hand, Goldman continues to rely on its investment banking operations, and strong activity levels among initial public offerings and mergers and acquisitions (M&A) have fed the company's coffers nicely. Financing remains relatively easy to get, and that could spur more M&A activity that in turn could keep growing revenue for Goldman's investment banking division. Add to that possible tailwinds from macroeconomic factors, and it is in a solid position to climb as high as the $484 per share that represents the top price target among those following the financial stock.\nApple: 42% upside\nLastly, Apple (NASDAQ:AAPL) rounds out this list. Recently fetching $130 per share, some see the iPhone maker's stock climbing to $185. That'd be a 42% jump to help Apple recover from its 2% loss so far in 2021.\nApple's gains have continued to impress. Revenue jumped 54% in its most recent quarter, with sales of the iPhone 12 and various other products and accessories continuing to drive sales for the company. Returning capital to shareholders via dividends and stock buybacks has had a substantial impact on financial performance, especially with the number of outstanding shares having plunged by roughly 35% in just the past decade.\nMany fear that Apple hasn't generated the innovative product lines that drove its success in the mid-2000s. However, at least for now, consumers seem content with iterations on existing product lines, and as long as that remains a successful strategy, further gains for the stock seem realistic.\nFurther to run?\nEven with solid gains for the Dow in 2021, the long-term trajectory for stocks remains upward. That's a big part of why Apple, Goldman Sachs, and UnitedHealth Group look as promising as they do. Smart investors should at least keep an eye on these three stocks to see if they can live up to their full potential.","news_type":1},"isVote":1,"tweetType":1,"viewCount":33,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":122382943,"gmtCreate":1624597755682,"gmtModify":1633950697453,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Cramer knows nothing","listText":"Cramer knows nothing","text":"Cramer knows nothing","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/122382943","repostId":"1137689091","repostType":4,"isVote":1,"tweetType":1,"viewCount":159,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":163020227,"gmtCreate":1623853984469,"gmtModify":1634027016002,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Comment and like this please!","listText":"Comment and like this please!","text":"Comment and like this please!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":2,"repostSize":0,"link":"https://laohu8.com/post/163020227","repostId":"1118154026","repostType":4,"repost":{"id":"1118154026","weMediaInfo":{"introduction":"Providing stock market headlines, business news, financials and earnings ","home_visible":1,"media_name":"Tiger Newspress","id":"1079075236","head_image":"https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba"},"pubTimestamp":1623850220,"share":"https://www.laohu8.com/m/news/1118154026?lang=&edition=full","pubTime":"2021-06-16 21:30","market":"us","language":"en","title":"S&P 500 is flat near a record with all eyes on Federal Reserve’s update","url":"https://stock-news.laohu8.com/highlight/detail?id=1118154026","media":"Tiger Newspress","summary":"U.S. stocks were mostly flat on Wednesday ahead of theFederal Reserve’s updateon monetary policy.\nTh","content":"<p>U.S. stocks were mostly flat on Wednesday ahead of theFederal Reserve’s updateon monetary policy.</p> \n<p>The Dow Jones Industrial Average traded 20 points higher. The S&amp;P 500 inched up 0.1%, sitting just a few points below an all-time high reached in the previous session. The tech-heavy Nasdaq Composite edged up 0.2%.</p> \n<p>Large tech shares like Tesla and Nvidia were slightly lower, while shares of economic reopening plays Royal Caribbean and Carnival gained 1% each.</p> \n<p>Stocks pulled back from record levels duringTuesday’s trading session, with the S&amp;P 500 closing 0.2% lower after hitting an all-time intraday high earlier in the day. The Dow slid nearly 100 points and the Nasdaq Composite dipped 0.7% amid weakness in shares of Big Tech.</p> \n<p>The Federal Reserve kicked off its two-day meeting on Tuesday. The central bank is not expected to make any policy moves, but it could signal that it’s beginning to think abouteasing its bond-buying policy. The Fed will also release new forecasts on Wednesday, which could indicate a possible first rate hike penciled in for 2023. Previously, Fed officials hadn’t come to a consensus for a rate hike through 2023.</p> \n<p>The Fed’s statement and forecasts will come out at 2 p.m. ET followed by a press conference by Chairman Jerome Powell 30 minutes later.</p> \n<p>The meeting comes as inflation heats up, with producer prices rising at their fastest annual rate in nearly 11 years duringMay, a report on Tuesday showed. This has prompted some, including Paul Tudor Jones, to call for the central bank to re-think its easy monetary policy.</p> \n<p>\"I still think&nbsp;equities are going higher,\" BlackRock global bond chief&nbsp;Rick Rieder&nbsp;said on CNBC's \"Squawk Box\" on Wednesday.&nbsp;\"If we don't hear anything&nbsp;different, then I worry a little&nbsp;bit about risk&nbsp;the system creates — you can&nbsp;create asset bubbles&nbsp;you can create leverage.&nbsp;We've seen markets that are a&nbsp;little bit concerning with&nbsp;literally zero spread to them&nbsp;for risk assets.\"</p> \n<p>The central bank has been buying $120 billion worth of bonds each month as the economy continues to recover from the coronavirus pandemic.</p> \n<p>\"The drama this week will be whether the Fed sits tight or admits that inflation is rising and that the Fed needs to tighten,\" said Brad McMillan, CIO at Commonwealth Financial Network. \"Since the Fed has a dual mandate—unemployment and inflation—that suggests it should indeed keep its focus on unemployment, rather than inflation.\"</p> \n<p>Minutes from the central bank's last meeting showed that some Fed officials said it could be appropriate to start discussing adjustments to the bond-buying program should the economy continue to recover. Economists predict that while some of these discussions could begin, concrete details will not be revealed until later this year.</p> \n<p>On Wednesday,China said it will release industrial metalsincluding copper, aluminum and zinc from its national reserves to curb commodity prices. Copper price has fallen more than 10% from its record high, dipping into correction territory on Tuesday.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>S&P 500 is flat near a record with all eyes on Federal Reserve’s update</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nS&P 500 is flat near a record with all eyes on Federal Reserve’s update\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1079075236\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/8274c5b9d4c2852bfb1c4d6ce16c68ba);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Tiger Newspress </p>\n<p class=\"h-time\">2021-06-16 21:30</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>U.S. stocks were mostly flat on Wednesday ahead of theFederal Reserve’s updateon monetary policy.</p> \n<p>The Dow Jones Industrial Average traded 20 points higher. The S&amp;P 500 inched up 0.1%, sitting just a few points below an all-time high reached in the previous session. The tech-heavy Nasdaq Composite edged up 0.2%.</p> \n<p>Large tech shares like Tesla and Nvidia were slightly lower, while shares of economic reopening plays Royal Caribbean and Carnival gained 1% each.</p> \n<p>Stocks pulled back from record levels duringTuesday’s trading session, with the S&amp;P 500 closing 0.2% lower after hitting an all-time intraday high earlier in the day. The Dow slid nearly 100 points and the Nasdaq Composite dipped 0.7% amid weakness in shares of Big Tech.</p> \n<p>The Federal Reserve kicked off its two-day meeting on Tuesday. The central bank is not expected to make any policy moves, but it could signal that it’s beginning to think abouteasing its bond-buying policy. The Fed will also release new forecasts on Wednesday, which could indicate a possible first rate hike penciled in for 2023. Previously, Fed officials hadn’t come to a consensus for a rate hike through 2023.</p> \n<p>The Fed’s statement and forecasts will come out at 2 p.m. ET followed by a press conference by Chairman Jerome Powell 30 minutes later.</p> \n<p>The meeting comes as inflation heats up, with producer prices rising at their fastest annual rate in nearly 11 years duringMay, a report on Tuesday showed. This has prompted some, including Paul Tudor Jones, to call for the central bank to re-think its easy monetary policy.</p> \n<p>\"I still think&nbsp;equities are going higher,\" BlackRock global bond chief&nbsp;Rick Rieder&nbsp;said on CNBC's \"Squawk Box\" on Wednesday.&nbsp;\"If we don't hear anything&nbsp;different, then I worry a little&nbsp;bit about risk&nbsp;the system creates — you can&nbsp;create asset bubbles&nbsp;you can create leverage.&nbsp;We've seen markets that are a&nbsp;little bit concerning with&nbsp;literally zero spread to them&nbsp;for risk assets.\"</p> \n<p>The central bank has been buying $120 billion worth of bonds each month as the economy continues to recover from the coronavirus pandemic.</p> \n<p>\"The drama this week will be whether the Fed sits tight or admits that inflation is rising and that the Fed needs to tighten,\" said Brad McMillan, CIO at Commonwealth Financial Network. \"Since the Fed has a dual mandate—unemployment and inflation—that suggests it should indeed keep its focus on unemployment, rather than inflation.\"</p> \n<p>Minutes from the central bank's last meeting showed that some Fed officials said it could be appropriate to start discussing adjustments to the bond-buying program should the economy continue to recover. Economists predict that while some of these discussions could begin, concrete details will not be revealed until later this year.</p> \n<p>On Wednesday,China said it will release industrial metalsincluding copper, aluminum and zinc from its national reserves to curb commodity prices. Copper price has fallen more than 10% from its record high, dipping into correction territory on Tuesday.</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1118154026","content_text":"U.S. stocks were mostly flat on Wednesday ahead of theFederal Reserve’s updateon monetary policy.\nThe Dow Jones Industrial Average traded 20 points higher. The S&P 500 inched up 0.1%, sitting just a few points below an all-time high reached in the previous session. The tech-heavy Nasdaq Composite edged up 0.2%.\nLarge tech shares like Tesla and Nvidia were slightly lower, while shares of economic reopening plays Royal Caribbean and Carnival gained 1% each.\nStocks pulled back from record levels duringTuesday’s trading session, with the S&P 500 closing 0.2% lower after hitting an all-time intraday high earlier in the day. The Dow slid nearly 100 points and the Nasdaq Composite dipped 0.7% amid weakness in shares of Big Tech.\nThe Federal Reserve kicked off its two-day meeting on Tuesday. The central bank is not expected to make any policy moves, but it could signal that it’s beginning to think abouteasing its bond-buying policy. The Fed will also release new forecasts on Wednesday, which could indicate a possible first rate hike penciled in for 2023. Previously, Fed officials hadn’t come to a consensus for a rate hike through 2023.\nThe Fed’s statement and forecasts will come out at 2 p.m. ET followed by a press conference by Chairman Jerome Powell 30 minutes later.\nThe meeting comes as inflation heats up, with producer prices rising at their fastest annual rate in nearly 11 years duringMay, a report on Tuesday showed. This has prompted some, including Paul Tudor Jones, to call for the central bank to re-think its easy monetary policy.\n\"I still think equities are going higher,\" BlackRock global bond chief Rick Rieder said on CNBC's \"Squawk Box\" on Wednesday. \"If we don't hear anything different, then I worry a little bit about risk the system creates — you can create asset bubbles you can create leverage. We've seen markets that are a little bit concerning with literally zero spread to them for risk assets.\"\nThe central bank has been buying $120 billion worth of bonds each month as the economy continues to recover from the coronavirus pandemic.\n\"The drama this week will be whether the Fed sits tight or admits that inflation is rising and that the Fed needs to tighten,\" said Brad McMillan, CIO at Commonwealth Financial Network. \"Since the Fed has a dual mandate—unemployment and inflation—that suggests it should indeed keep its focus on unemployment, rather than inflation.\"\nMinutes from the central bank's last meeting showed that some Fed officials said it could be appropriate to start discussing adjustments to the bond-buying program should the economy continue to recover. Economists predict that while some of these discussions could begin, concrete details will not be revealed until later this year.\nOn Wednesday,China said it will release industrial metalsincluding copper, aluminum and zinc from its national reserves to curb commodity prices. Copper price has fallen more than 10% from its record high, dipping into correction territory on Tuesday.","news_type":1},"isVote":1,"tweetType":1,"viewCount":76,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":122386694,"gmtCreate":1624597717418,"gmtModify":1633950697936,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Need to dig deeper to decide on investing this spac","listText":"Need to dig deeper to decide on investing this spac","text":"Need to dig deeper to decide on investing this spac","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/122386694","repostId":"2146023710","repostType":4,"isVote":1,"tweetType":1,"viewCount":292,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":122381503,"gmtCreate":1624597657202,"gmtModify":1633950699061,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Good job everyone","listText":"Good job everyone","text":"Good job everyone","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/122381503","repostId":"2146023477","repostType":4,"repost":{"id":"2146023477","weMediaInfo":{"introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"media_name":"Reuters","id":"1036604489","head_image":"https://static.tigerbbs.com/443ce19704621c837795676028cec868"},"pubTimestamp":1624575912,"share":"https://www.laohu8.com/m/news/2146023477?lang=&edition=full","pubTime":"2021-06-25 07:05","market":"us","language":"en","title":"Nasdaq and S&P 500 end at record highs; Dow rallies","url":"https://stock-news.laohu8.com/highlight/detail?id=2146023477","media":"Reuters","summary":"June 24 (Reuters) - The Nasdaq and the S&P 500 indexes closed at record highs on Thursday, with the ","content":"<p>June 24 (Reuters) - The Nasdaq and the S&amp;P 500 indexes closed at record highs on Thursday, with the Dow also jumping almost 1% after U.S. President Joe Biden embraced a bipartisan Senate infrastructure deal.</p>\n<p>With massive fiscal stimulus helped the U.S. economy grow at a 6.4% annualized rate in the first quarter, investors have been banking on an infrastructure agreement that could steer the next leg of the recovery for the world's largest economy and fuel more stock gains.</p>\n<p>Construction and mining equipment maker Caterpillar and aerospace firm Boeing both jumped more than 2%, helping lift the Dow Jones Industrial Average.</p>\n<p>\"In the short term, I think there will be some 'buy the rumor and sell the news' in materials and industrials, but as we start to see more details come out about how the money will be spent, I think we will get a continued benefit,\" said Sal Bruno, chief investment officer at IndexIQ in New York.</p>\n<p>Fueling the S&amp;P 500's gains more than any other stock, Tesla Inc rose 3.5% after Chief Executive Officer Elon Musk said he would list SpaceX's space internet venture, Starlink, when its cash flow is reasonably predictable, adding that Tesla shareholders could get preference in investing.</p>\n<p>Mega-caps <a href=\"https://laohu8.com/S/PYPL\">PayPal</a> and <a href=\"https://laohu8.com/S/FB\">Facebook</a> Inc each gained more than 1%, and were also among the biggest boosts to the S&amp;P 500 and the Nasdaq.</p>\n<p>Microsoft added 0.5% and ended with a market capitalization above $2 trillion for its first time.</p>\n<p>Initial claims for state unemployment benefits fell 7,000 to 411,000 for the week ended June 19, the Labor Department said on Thursday, but were still higher than the 380,000 that economists had forecast.</p>\n<p>The Commerce Department said the economy grew at a 6.4% rate last quarter, unrevised from the estimate published in May.</p>\n<p>So far this month, the S&amp;P 500 growth index has climbed almost 4%, outperforming the value index's 2% drop.</p>\n<p>The Dow Jones Industrial Average rose 0.95% to end at 34,196.82 points, while the S&amp;P 500 gained 0.58% to 4,266.49.</p>\n<p>The Nasdaq Composite climbed 0.69% to 14,369.71.</p>\n<p>Volume on U.S. exchanges was 9.2 billion shares, less than the 11.0 billion average over the last 20 trading days.</p>\n<p>The S&amp;P 500 technology, healthcare and communication services sector indexes hit record highs.</p>\n<p>So far in 2021, the S&amp;P 500 has gained almost 14%, beating the Nasdaq's 11% rise.</p>\n<p>Eli Lilly and Co jumped 7.3% to a record high after the drugmaker said it would apply for the U.S. Food and Drug Administration's accelerated approval for its experimental Alzheimer's drug this year.</p>\n<p>In response, Biogen Inc , which received a controversial approval for its Alzheimer's drug aducanumab earlier this month, tumbled 6.1%.</p>\n<p>MGM Resorts International rose 2.2% after Deutsche Bank upgraded the casino operator's stock to \"buy\" from \"hold.\"</p>\n<p>Accenture Plc gained 2.1% after the IT consulting firm raised its full-year revenue forecast.</p>\n<p>Advancing issues outnumbered declining ones on the NYSE by a 2.29-to-1 ratio; on Nasdaq, a 2.44-to-1 ratio favored advancers.</p>\n<p>The S&amp;P 500 posted 36 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 105 new highs and 27 new lows.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Nasdaq and S&P 500 end at record highs; Dow rallies</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNasdaq and S&P 500 end at record highs; Dow rallies\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036604489\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/443ce19704621c837795676028cec868);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2021-06-25 07:05</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>June 24 (Reuters) - The Nasdaq and the S&amp;P 500 indexes closed at record highs on Thursday, with the Dow also jumping almost 1% after U.S. President Joe Biden embraced a bipartisan Senate infrastructure deal.</p>\n<p>With massive fiscal stimulus helped the U.S. economy grow at a 6.4% annualized rate in the first quarter, investors have been banking on an infrastructure agreement that could steer the next leg of the recovery for the world's largest economy and fuel more stock gains.</p>\n<p>Construction and mining equipment maker Caterpillar and aerospace firm Boeing both jumped more than 2%, helping lift the Dow Jones Industrial Average.</p>\n<p>\"In the short term, I think there will be some 'buy the rumor and sell the news' in materials and industrials, but as we start to see more details come out about how the money will be spent, I think we will get a continued benefit,\" said Sal Bruno, chief investment officer at IndexIQ in New York.</p>\n<p>Fueling the S&amp;P 500's gains more than any other stock, Tesla Inc rose 3.5% after Chief Executive Officer Elon Musk said he would list SpaceX's space internet venture, Starlink, when its cash flow is reasonably predictable, adding that Tesla shareholders could get preference in investing.</p>\n<p>Mega-caps <a href=\"https://laohu8.com/S/PYPL\">PayPal</a> and <a href=\"https://laohu8.com/S/FB\">Facebook</a> Inc each gained more than 1%, and were also among the biggest boosts to the S&amp;P 500 and the Nasdaq.</p>\n<p>Microsoft added 0.5% and ended with a market capitalization above $2 trillion for its first time.</p>\n<p>Initial claims for state unemployment benefits fell 7,000 to 411,000 for the week ended June 19, the Labor Department said on Thursday, but were still higher than the 380,000 that economists had forecast.</p>\n<p>The Commerce Department said the economy grew at a 6.4% rate last quarter, unrevised from the estimate published in May.</p>\n<p>So far this month, the S&amp;P 500 growth index has climbed almost 4%, outperforming the value index's 2% drop.</p>\n<p>The Dow Jones Industrial Average rose 0.95% to end at 34,196.82 points, while the S&amp;P 500 gained 0.58% to 4,266.49.</p>\n<p>The Nasdaq Composite climbed 0.69% to 14,369.71.</p>\n<p>Volume on U.S. exchanges was 9.2 billion shares, less than the 11.0 billion average over the last 20 trading days.</p>\n<p>The S&amp;P 500 technology, healthcare and communication services sector indexes hit record highs.</p>\n<p>So far in 2021, the S&amp;P 500 has gained almost 14%, beating the Nasdaq's 11% rise.</p>\n<p>Eli Lilly and Co jumped 7.3% to a record high after the drugmaker said it would apply for the U.S. Food and Drug Administration's accelerated approval for its experimental Alzheimer's drug this year.</p>\n<p>In response, Biogen Inc , which received a controversial approval for its Alzheimer's drug aducanumab earlier this month, tumbled 6.1%.</p>\n<p>MGM Resorts International rose 2.2% after Deutsche Bank upgraded the casino operator's stock to \"buy\" from \"hold.\"</p>\n<p>Accenture Plc gained 2.1% after the IT consulting firm raised its full-year revenue forecast.</p>\n<p>Advancing issues outnumbered declining ones on the NYSE by a 2.29-to-1 ratio; on Nasdaq, a 2.44-to-1 ratio favored advancers.</p>\n<p>The S&amp;P 500 posted 36 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 105 new highs and 27 new lows.</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"161125":"标普500","513500":"标普500ETF","OEF":"标普100指数ETF-iShares","SPXU":"三倍做空标普500ETF","SH":"标普500反向ETF","UPRO":"三倍做多标普500ETF",".SPX":"S&P 500 Index","OEX":"标普100",".DJI":"道琼斯","IVV":"标普500指数ETF","MSFT":"微软","SSO":"两倍做多标普500ETF",".IXIC":"NASDAQ Composite","SDS":"两倍做空标普500ETF","SPY":"标普500ETF"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2146023477","content_text":"June 24 (Reuters) - The Nasdaq and the S&P 500 indexes closed at record highs on Thursday, with the Dow also jumping almost 1% after U.S. President Joe Biden embraced a bipartisan Senate infrastructure deal.\nWith massive fiscal stimulus helped the U.S. economy grow at a 6.4% annualized rate in the first quarter, investors have been banking on an infrastructure agreement that could steer the next leg of the recovery for the world's largest economy and fuel more stock gains.\nConstruction and mining equipment maker Caterpillar and aerospace firm Boeing both jumped more than 2%, helping lift the Dow Jones Industrial Average.\n\"In the short term, I think there will be some 'buy the rumor and sell the news' in materials and industrials, but as we start to see more details come out about how the money will be spent, I think we will get a continued benefit,\" said Sal Bruno, chief investment officer at IndexIQ in New York.\nFueling the S&P 500's gains more than any other stock, Tesla Inc rose 3.5% after Chief Executive Officer Elon Musk said he would list SpaceX's space internet venture, Starlink, when its cash flow is reasonably predictable, adding that Tesla shareholders could get preference in investing.\nMega-caps PayPal and Facebook Inc each gained more than 1%, and were also among the biggest boosts to the S&P 500 and the Nasdaq.\nMicrosoft added 0.5% and ended with a market capitalization above $2 trillion for its first time.\nInitial claims for state unemployment benefits fell 7,000 to 411,000 for the week ended June 19, the Labor Department said on Thursday, but were still higher than the 380,000 that economists had forecast.\nThe Commerce Department said the economy grew at a 6.4% rate last quarter, unrevised from the estimate published in May.\nSo far this month, the S&P 500 growth index has climbed almost 4%, outperforming the value index's 2% drop.\nThe Dow Jones Industrial Average rose 0.95% to end at 34,196.82 points, while the S&P 500 gained 0.58% to 4,266.49.\nThe Nasdaq Composite climbed 0.69% to 14,369.71.\nVolume on U.S. exchanges was 9.2 billion shares, less than the 11.0 billion average over the last 20 trading days.\nThe S&P 500 technology, healthcare and communication services sector indexes hit record highs.\nSo far in 2021, the S&P 500 has gained almost 14%, beating the Nasdaq's 11% rise.\nEli Lilly and Co jumped 7.3% to a record high after the drugmaker said it would apply for the U.S. Food and Drug Administration's accelerated approval for its experimental Alzheimer's drug this year.\nIn response, Biogen Inc , which received a controversial approval for its Alzheimer's drug aducanumab earlier this month, tumbled 6.1%.\nMGM Resorts International rose 2.2% after Deutsche Bank upgraded the casino operator's stock to \"buy\" from \"hold.\"\nAccenture Plc gained 2.1% after the IT consulting firm raised its full-year revenue forecast.\nAdvancing issues outnumbered declining ones on the NYSE by a 2.29-to-1 ratio; on Nasdaq, a 2.44-to-1 ratio favored advancers.\nThe S&P 500 posted 36 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 105 new highs and 27 new lows.","news_type":1},"isVote":1,"tweetType":1,"viewCount":398,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":129255422,"gmtCreate":1624374956866,"gmtModify":1634007037239,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Author writes like he knows more than the politicians","listText":"Author writes like he knows more than the politicians","text":"Author writes like he knows more than the politicians","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/129255422","repostId":"1180651681","repostType":4,"repost":{"id":"1180651681","pubTimestamp":1624374662,"share":"https://www.laohu8.com/m/news/1180651681?lang=&edition=full","pubTime":"2021-06-22 23:11","market":"us","language":"en","title":"Someone At The Fed Needs To Speak Up To Avoid Committing A Major Policy Error","url":"https://stock-news.laohu8.com/highlight/detail?id=1180651681","media":"zerohedge","summary":"Someone At The Fed Needs To Speak Up To Save Itself From Committing A Major Policy Blunder\nMonetary ","content":"<p><b>Someone At The Fed Needs To Speak Up To Save Itself From Committing A Major Policy Blunder</b></p>\n<p>Monetary policy in 2021 is actively promoting the fast cyclical growth bounce and even welcoming the uptick in inflation. That's in sharp contrast to how the old generation of policymakers confronted a similar cyclical bounce in 1994. Back then, policymakers worked quickly and aggressively to restrain the cyclical expansion, particularly the uptick in inflation.</p>\n<p><i><b>Someone at the Fed needs to speak up to save itself from committing a major policy blunder. Institutional rigidities of transparency and predictability are keeping a policy of easy money for longer than is needed. The current approach puts the economy on a course for a hard landing compared to the soft landing the old generation of policymakers engineered in 1995 when faced with a similar scenario in 1994.</b></i></p>\n<p><u><b>2021 vs. 1994</b></u></p>\n<p>The economy in 2021 has a lot of the same features as in 1994. Both years saw rapid growth and price pressures emerge as headwinds faded. In 2021, the strong rebound reflects the re-opening of the economy helped along with easy money and fiscal stimulus. The catalyst for the rebound in 1994 came from an extended span of easy money and the end of household deleveraging, corporate restructuring, and defense cutbacks.</p>\n<p>2021 rapid growth is faster and broader as it followed a record decline in the prior year. Consensus estimates put Real GDP growth in 2021 in the 6% to 7% range, whereas the increase in 1994 came in at 4%. But the big difference between the two years is inflation.</p>\n<p>Core consumer inflation runs at a 5% annualized rate through the first five months of 2021, whereas inflation peaked at 3% in 1994. Pipeline inflation is more than three times as fast.<b>Core prices for intermediate materials have increased 17% in the past year versus a peak of 5% in 1994.</b></p>\n<p>The current generation of policymakers thinks that the supply and demand in the product markets will at some point \"autocorrect.\" That implies pipeline inflation pressures will disappear as companies raise production levels to meet the higher level of demand without causing any disturbances in the economy. Of course, in reality, a single or two product markets can readjust. But, it is naive to think of multiple product markets, and housing and many parts of the service economy can do so simultaneously.</p>\n<p>Institutional rigidities of transparency and predictability stop policymakers from ending the asset purchase program for housing that everyone agrees is no longer needed. Is that the proper way to conduct monetary policy? Just because policymakers did not tell or inform the financial markets it planned to curtail its asset purchase program, it cannot do so until complete transparency. That makes zero sense.<b>A policy that fuels an unsustainable surge in demand and a rise in house prices that is wrong today will be even more so tomorrow.</b></p>\n<p>In 1994, the old generation of policymakers saw strong ordering and material price increases as evidence that companies needed more inventories to protect production schedules. There have already been examples in 2021 in which companies had to curtail production because of a shortage of parts. Subduing final demand was seen as a necessary condition to break and shorten the cyclical uptick in inflation. Thus, in 1994 policymakers lifted official rates for twelve consecutive months, doubling official rates from 3% to 6%. That ratcheting up of official rates brought about a soft landing in 1995.</p>\n<p><img src=\"https://static.tigerbbs.com/e215035587498373a49afd2e7a1eb321\" tg-width=\"500\" tg-height=\"372\"><b>The current policy stance of zero official rates and asset purchases puts the economy on a different course, with a hard landing a much likelier outcome</b>. Someone at the Fed needs to speak up soon as record monetary accommodation is no longer necessary against a backdrop of fast growth and rising price pressure and, in the process, puts the economy on an unsustainable course that will end badly.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Someone At The Fed Needs To Speak Up To Avoid Committing A Major Policy Error</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSomeone At The Fed Needs To Speak Up To Avoid Committing A Major Policy Error\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-22 23:11 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/markets/someone-fed-needs-speak-avoid-committing-major-policy-error?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29><strong>zerohedge</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Someone At The Fed Needs To Speak Up To Save Itself From Committing A Major Policy Blunder\nMonetary policy in 2021 is actively promoting the fast cyclical growth bounce and even welcoming the uptick ...</p>\n\n<a href=\"https://www.zerohedge.com/markets/someone-fed-needs-speak-avoid-committing-major-policy-error?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".SPX":"S&P 500 Index","SPY":"标普500ETF",".IXIC":"NASDAQ Composite",".DJI":"道琼斯"},"source_url":"https://www.zerohedge.com/markets/someone-fed-needs-speak-avoid-committing-major-policy-error?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1180651681","content_text":"Someone At The Fed Needs To Speak Up To Save Itself From Committing A Major Policy Blunder\nMonetary policy in 2021 is actively promoting the fast cyclical growth bounce and even welcoming the uptick in inflation. That's in sharp contrast to how the old generation of policymakers confronted a similar cyclical bounce in 1994. Back then, policymakers worked quickly and aggressively to restrain the cyclical expansion, particularly the uptick in inflation.\nSomeone at the Fed needs to speak up to save itself from committing a major policy blunder. Institutional rigidities of transparency and predictability are keeping a policy of easy money for longer than is needed. The current approach puts the economy on a course for a hard landing compared to the soft landing the old generation of policymakers engineered in 1995 when faced with a similar scenario in 1994.\n2021 vs. 1994\nThe economy in 2021 has a lot of the same features as in 1994. Both years saw rapid growth and price pressures emerge as headwinds faded. In 2021, the strong rebound reflects the re-opening of the economy helped along with easy money and fiscal stimulus. The catalyst for the rebound in 1994 came from an extended span of easy money and the end of household deleveraging, corporate restructuring, and defense cutbacks.\n2021 rapid growth is faster and broader as it followed a record decline in the prior year. Consensus estimates put Real GDP growth in 2021 in the 6% to 7% range, whereas the increase in 1994 came in at 4%. But the big difference between the two years is inflation.\nCore consumer inflation runs at a 5% annualized rate through the first five months of 2021, whereas inflation peaked at 3% in 1994. Pipeline inflation is more than three times as fast.Core prices for intermediate materials have increased 17% in the past year versus a peak of 5% in 1994.\nThe current generation of policymakers thinks that the supply and demand in the product markets will at some point \"autocorrect.\" That implies pipeline inflation pressures will disappear as companies raise production levels to meet the higher level of demand without causing any disturbances in the economy. Of course, in reality, a single or two product markets can readjust. But, it is naive to think of multiple product markets, and housing and many parts of the service economy can do so simultaneously.\nInstitutional rigidities of transparency and predictability stop policymakers from ending the asset purchase program for housing that everyone agrees is no longer needed. Is that the proper way to conduct monetary policy? Just because policymakers did not tell or inform the financial markets it planned to curtail its asset purchase program, it cannot do so until complete transparency. That makes zero sense.A policy that fuels an unsustainable surge in demand and a rise in house prices that is wrong today will be even more so tomorrow.\nIn 1994, the old generation of policymakers saw strong ordering and material price increases as evidence that companies needed more inventories to protect production schedules. There have already been examples in 2021 in which companies had to curtail production because of a shortage of parts. Subduing final demand was seen as a necessary condition to break and shorten the cyclical uptick in inflation. Thus, in 1994 policymakers lifted official rates for twelve consecutive months, doubling official rates from 3% to 6%. That ratcheting up of official rates brought about a soft landing in 1995.\nThe current policy stance of zero official rates and asset purchases puts the economy on a different course, with a hard landing a much likelier outcome. Someone at the Fed needs to speak up soon as record monetary accommodation is no longer necessary against a backdrop of fast growth and rising price pressure and, in the process, puts the economy on an unsustainable course that will end badly.","news_type":1},"isVote":1,"tweetType":1,"viewCount":69,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":166735066,"gmtCreate":1624024829955,"gmtModify":1634023935146,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"U like me i will like u back","listText":"U like me i will like u back","text":"U like me i will like u back","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/166735066","repostId":"2144779308","repostType":4,"isVote":1,"tweetType":1,"viewCount":13,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":169177735,"gmtCreate":1623824973527,"gmtModify":1634027507276,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"All in!!","listText":"All in!!","text":"All in!!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/169177735","repostId":"1114934376","repostType":4,"repost":{"id":"1114934376","pubTimestamp":1623823279,"share":"https://www.laohu8.com/m/news/1114934376?lang=&edition=full","pubTime":"2021-06-16 14:01","market":"us","language":"en","title":"Odds favor the Dow being higher at the end of 2021 and 125 years of history supports this","url":"https://stock-news.laohu8.com/highlight/detail?id=1114934376","media":"MarketWatch","summary":"Second half of the year tends to be strong for U.S. stocks\nGETTY IMAGES\nOdds are good that the U.S. ","content":"<p>Second half of the year tends to be strong for U.S. stocks</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/fa48171959ef33c4e5ded6b6a1dac2df\" tg-width=\"1260\" tg-height=\"840\"><span>GETTY IMAGES</span></p>\n<p>Odds are good that the U.S. stock market will be higher at the end of December. Don’t get too excited; these odds have nothing to do with how strong the U.S. economy is right now or the stock market’s impressive returns so far this year. In fact, the chance of a winning second half of 2021 would be the same even if stocks were in a bear market or the economy was in recession.</p>\n<p>The reason why has to do with the stock market’s efficiency. Its level at any given point reflects all available information up to that point. For example, if on June 30 the odds were better-than-usual that stocks would be higher in six months’ time, traders would have already bid up prices to take those better odds into account. They wouldn’t wait until later in the year to up their bets.</p>\n<p>That’s also true if the odds of a higher market were worse than usual. If traders at the midyear mark knew that the market would most likely be lower in six months’ time, they would sell immediately rather than wait.</p>\n<p>The net result of their actions in both cases would that the market’s odds of rising in the second half of the year are more or less the same. Those odds are 66.9% — about two out of three — based on the Dow Jones Industrial Average&nbsp;back to its creation in the late 1890s.</p>\n<p>Notice from the chart below that these odds are largely the same regardless of what has happened with the Dow through mid-year. In those calendar years in which the Dow rose over the first six months, it in the second half rose 72.4% of the time. The increase from 66.9% to 72.4% is not significant at the 95% confidence level that statisticians often use when determining if a pattern is genuine.</p>\n<p><img src=\"https://static.tigerbbs.com/727712f5fc7e02a4333de6df26576024\" tg-width=\"1260\" tg-height=\"849\"></p>\n<p>Or take the first years of the presidential four-year term, which is the year we’re in now. Over the second halves of those years, the stock market has risen 64.5% of the time. That is not statistically significantly different than the odds that apply to all years.</p>\n<p>You may be disappointed that a strong first half doesn’t increase the odds of a strong second half. Yet no one complained a year ago when the identical statistical analysis suggested that there was a two-out-of-three chance the stock market would be higher at the end of 2020. Sure enough, it was: Following a 9.6% decline for the first half of last year, the Dow rose 18.6% in the second.</p>\n<p>It’s because of the market’s efficiency that a buy-and-hold strategy is so hard to beat over the long term. When you deviate from that buy-and-hold approach, you’re in effect betting that you know more and have greater insight than the collective wisdom of millions of other stock market investors. It’s not out of the question that you do, but — as history has shown numerous times — it’s a low probability bet.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Odds favor the Dow being higher at the end of 2021 and 125 years of history supports this</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOdds favor the Dow being higher at the end of 2021 and 125 years of history supports this\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 14:01 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/the-odds-of-the-dow-being-higher-at-the-end-of-2021-are-about-two-in-three-11623737505?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Second half of the year tends to be strong for U.S. stocks\nGETTY IMAGES\nOdds are good that the U.S. stock market will be higher at the end of December. Don’t get too excited; these odds have nothing ...</p>\n\n<a href=\"https://www.marketwatch.com/story/the-odds-of-the-dow-being-higher-at-the-end-of-2021-are-about-two-in-three-11623737505?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".SPX":"S&P 500 Index",".DJI":"道琼斯",".IXIC":"NASDAQ Composite"},"source_url":"https://www.marketwatch.com/story/the-odds-of-the-dow-being-higher-at-the-end-of-2021-are-about-two-in-three-11623737505?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1114934376","content_text":"Second half of the year tends to be strong for U.S. stocks\nGETTY IMAGES\nOdds are good that the U.S. stock market will be higher at the end of December. Don’t get too excited; these odds have nothing to do with how strong the U.S. economy is right now or the stock market’s impressive returns so far this year. In fact, the chance of a winning second half of 2021 would be the same even if stocks were in a bear market or the economy was in recession.\nThe reason why has to do with the stock market’s efficiency. Its level at any given point reflects all available information up to that point. For example, if on June 30 the odds were better-than-usual that stocks would be higher in six months’ time, traders would have already bid up prices to take those better odds into account. They wouldn’t wait until later in the year to up their bets.\nThat’s also true if the odds of a higher market were worse than usual. If traders at the midyear mark knew that the market would most likely be lower in six months’ time, they would sell immediately rather than wait.\nThe net result of their actions in both cases would that the market’s odds of rising in the second half of the year are more or less the same. Those odds are 66.9% — about two out of three — based on the Dow Jones Industrial Average back to its creation in the late 1890s.\nNotice from the chart below that these odds are largely the same regardless of what has happened with the Dow through mid-year. In those calendar years in which the Dow rose over the first six months, it in the second half rose 72.4% of the time. The increase from 66.9% to 72.4% is not significant at the 95% confidence level that statisticians often use when determining if a pattern is genuine.\n\nOr take the first years of the presidential four-year term, which is the year we’re in now. Over the second halves of those years, the stock market has risen 64.5% of the time. That is not statistically significantly different than the odds that apply to all years.\nYou may be disappointed that a strong first half doesn’t increase the odds of a strong second half. Yet no one complained a year ago when the identical statistical analysis suggested that there was a two-out-of-three chance the stock market would be higher at the end of 2020. Sure enough, it was: Following a 9.6% decline for the first half of last year, the Dow rose 18.6% in the second.\nIt’s because of the market’s efficiency that a buy-and-hold strategy is so hard to beat over the long term. When you deviate from that buy-and-hold approach, you’re in effect betting that you know more and have greater insight than the collective wisdom of millions of other stock market investors. It’s not out of the question that you do, but — as history has shown numerous times — it’s a low probability bet.","news_type":1},"isVote":1,"tweetType":1,"viewCount":30,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":169174636,"gmtCreate":1623824870825,"gmtModify":1634027508727,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Sell sell!","listText":"Sell sell!","text":"Sell sell!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":2,"repostSize":0,"link":"https://laohu8.com/post/169174636","repostId":"1182315358","repostType":4,"repost":{"id":"1182315358","pubTimestamp":1623814338,"share":"https://www.laohu8.com/m/news/1182315358?lang=&edition=full","pubTime":"2021-06-16 11:32","market":"us","language":"en","title":"It’s time to be smart like Soros in the ‘blow-off’ stage of the bull market in stocks","url":"https://stock-news.laohu8.com/highlight/detail?id=1182315358","media":"MarketWatch","summary":"If you’re an investor, you need to be flexible, neither a bull nor a bear.\nIt takes brains and brawn","content":"<p>If you’re an investor, you need to be flexible, neither a bull nor a bear.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/724d1ea0bb18bddb367c79abf08c1af9\" tg-width=\"1260\" tg-height=\"841\"><span>It takes brains and brawn to be an investor these days. (Photo by Isaac Lawrence/AFP via Getty Images)</span></p>\n<p>I don’t know when what I call the Blow-Off Top of the Bubble-Blowing Bull Market will end.</p>\n<p>After 12 years being long and strong and having diamond hands without even knowing that term existed, maybe I’m wrong to turn more cautious.</p>\n<p>Maybe the economy will reopen and rejuvenate the country in such a strong manner that corporate earnings in 2022 and 2023 will make today’s prices seem like bargains.</p>\n<p>But I simply don’t think that’s the most likely outcome.</p>\n<p>And if I’m right that we’re in the throes of the Blow-Off Top of the Bubble-Blowing Bull Market, I do not want to be overly long and on the wrong side of the great unwind when it does start.</p>\n<p>I’m not calling for a near-term crash. I am saying that it’s likely going to be hard for the bulls to make as much money this year as they did last year.</p>\n<p>Trading and investing are tough. There’s always someone on the other side of every trade you make. Always think about who that is and why they are willing to take the other side of your transaction. When you buy, why are they selling it to you at that price? When you sell, who is buying it from you and what are their motivations? Remember, I’ve talked before about how&nbsp;good analysis starts with empathy.</p>\n<p><b>If I’m selling, who’s buying — and why?</b></p>\n<p>So let’s answer this question right now. Who is buying stocks and cryptos from me when I’ve trimmed and sold for the past month or so? Sure, there are banks and institutions and hedge funds and family offices investing and trading, just as always. On the other hand, remember two years ago when I got back from a hedge fund investment conference&nbsp;in Abu Dhabi and everybody was desperate for returns:</p>\n<p>Amid low interest rates and other investors’ focus on options, credit and currencies, “the lack of focus on traditional stocks and funds that invest in publicly traded stocks makes me think that there is probably more opportunity in such assets than people realize. I certainly see some very compelling long ideas in Revolutionary companies like WORK and TWTR and TSLA.”</p>\n<p>Since that post, back a year and a half ago, Slack&nbsp;went from $21 to being bought out at $45, Twitter&nbsp;went from $27 to $61, and Tesla&nbsp;went from $81 to $616. And funds that were looking everywhere but in the stock market for big gains are … well, pretty much in the markets now and long a bunch of stocks and even long a few cryptos.</p>\n<p>And now that those stocks and cryptos and most other assets have gone parabolic in the past year — coming on top of the 10-year bull market — the billion-dollar fund managers are joined by&nbsp;23-year-old TikTok influencers&nbsp;doing bitcoin&nbsp;trading astrology.</p>\n<p>Yes, for real, and she’s very popular. She’s even been right about some of bitcoin’s action in the past few months! If you’re selling cryptos and fintech stocks right now, you’re selling to her and her followers. And also to my friend’s son, who just graduated from a tiny, rural school and whose unemployed uncle gave him $500 to “buy some cryptos. And make sure you get some fintech. I don’t know the symbol, but just look it up and you’ll do fine over the long run.”&nbsp;Bearish anecdotes everywhere I look, as I wrote recently.</p>\n<p><b>Mr. Market</b></p>\n<p>The other thing to remember about who’s on the other side of your trade is always to remember that there are smart, cutthroat traders and investors who went to the best schools and have access to more research and real-time data and instant trading access to all kinds of derivatives to layer into their bets. And the only thing they do all day, every day, is figure out how to take your money in mostly legal ways. They’re not playing around. They have no sympathy for you, even if they might empathize with you to better understand your motivations to better take your money.</p>\n<p>Mr. Market is mean. He’s not nice. He can be cruel. He can force liquidations that create other liquidations. He can shut off access to capital. He can take down 200-year-old banks in a day. In one day.</p>\n<p>Sometimes the markets lead the economy and not the other way around. Ironically, when we were young, we were taught that the Great Depression started when the stock market crashed on Black Friday in 1929. But then when we get older, we were taught that it wasn’t actually the crash that created the Great Depression, rather the economy was already crashing and the stock market just didn’t realize it as it continued on its merry way toward a terrible Blow-Off Top of a nine-year Bubble-Blowing Bull Market that culminated with the Dow Jones Industrial Average&nbsp;up 400% from the 1921 lows to the 1929 highs.</p>\n<p><img src=\"https://static.tigerbbs.com/3a6516337aacc614d83584ea90e174f2\" tg-width=\"1260\" tg-height=\"870\"></p>\n<p><b>Learning from Soros</b></p>\n<p>But looking back, it’s clear that both theories are equally right and wrong — the market crashed because the economy wasn’t as good as the market thought it was,<i>and</i>the economy crashed because the markets shut down access to capital for investment and growth.</p>\n<p>It was “reflexive,” to borrow a term from the great hedge fund manager&nbsp;George Soros.</p>\n<p>He wrote, and the concept is important to understand:</p>\n<p>“I continued to consider myself a failed philosopher. All this changed as a result of the financial crisis of 2008. My conceptual framework enabled me both to anticipate the crisis and to deal with it when it finally struck…</p>\n<p>“I can state the core idea in two relatively simple propositions. One is that in situations that have thinking participants, the participants’ view of the world is always partial and distorted. That is the principle of fallibility. The other is that these distorted views can influence the situation to which they relate because false views lead to inappropriate actions. That is the principle of reflexivity…</p>\n<p>“Recognizing reflexivity has been sacrificed to the vain pursuit of certainty in human affairs, most notably in economics, and yet, uncertainty is the key feature of human affairs. Economic theory is built on the concept of equilibrium, and that concept is in direct contradiction with the concept of reflexivity…</p>\n<p>“A positive feedback process is self-reinforcing. It cannot go on forever because eventually the participants’ views would become so far removed from objective reality that the participants would have to recognize them as unrealistic. Nor can the iterative process occur without any change in the actual state of affairs, because it is in the nature of positive feedback that it reinforces whatever tendency prevails in the real world. Instead of equilibrium, we are faced with a dynamic disequilibrium or what may be described as far-from-equilibrium conditions. Usually in far-from-equilibrium situations the divergence between perceptions and reality leads to a climax which sets in motion a positive feedback process in the opposite direction. Such initially self-reinforcing but eventually self-defeating boom-bust processes or bubbles are characteristic of financial markets, but they can also be found in other spheres. There, I call them fertile fallacies—interpretations of reality that are distorted, yet produce results which reinforce the distortion.”</p>\n<p>Stay flexible</p>\n<p>Far-from-equilibrium conditions was what we had in 2010-2013 when we loaded up on Revolutionary stocks and started buying cryptos like bitcoin. Far-from-equilibrium conditions might be what we have in front of us right now when I suggest getting cautious instead.</p>\n<p>We don’t want to be permabulls. (You for sure don’t want to be a permabear!) We have to be flexible. We have to let our analysis and risk/reward scenarios dictate how much risk we’re taking and when. We have to pay attention to the cycles, the self-reinforcing cycles that drive economies and markets and valuations and earnings and societal interactions and bailouts and financial crises and bubbles and busts and, heaven forbid, just simple stagnation.</p>\n<p>It’s as if everybody forgets that markets can bubble and crash and stagnate. They forget that markets can grind for years on end without making new highs, or without even making higher highs. Do you not remember telling your money manager sometime in 2010-2012 that “If I’d just handled the Great Financial Crisis (and/or the Dot-Com Crash) a little better, I’d be in better shape.” I used to hear people say that to me all the time. I haven’t heard anybody say that lately. Everybody’s having fun in this market … at least for now.</p>\n<p>Most traders will tell you that they are “just trading the market that is in front of them.” Well, I don’t know when the bubble will pop, but I do know that I don’t want to be on the wrong side of this market when it does. And I do know that we won’t know the bubble has really popped until the self-reinforcing reflexive feedback loop has made it painful for the vast majority of people who are right now feeling wealthy, feeling secure, feeling like they’ve got this trading and investing thing all figured out.</p>\n<p>We are all fallible. Be careful while it’s fun. Be bold when it’s painful. That’s how I’ve done it for the last 25 years. We were boldly buying these assets when it was painful for others. I’m careful right now because everybody else is having fun.</p>\n<p>I spend a lot of time looking for new ideas and I won’t let my overall market outlook deter me from buying a new name or two. But I want to remain overall cautious and less aggressive than I have been for most of the last decade.</p>\n<p>As a matter of fact,&nbsp;I might have at least a couple Trade Alerts that I’ll be sending out this week, one long and one short idea. Being flexible, see?</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>It’s time to be smart like Soros in the ‘blow-off’ stage of the bull market in stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIt’s time to be smart like Soros in the ‘blow-off’ stage of the bull market in stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-16 11:32 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/its-time-to-be-smart-like-soros-in-the-blow-off-stage-of-the-bull-market-in-stocks-11623788897?siteid=yhoof2><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you’re an investor, you need to be flexible, neither a bull nor a bear.\nIt takes brains and brawn to be an investor these days. (Photo by Isaac Lawrence/AFP via Getty Images)\nI don’t know when what...</p>\n\n<a href=\"https://www.marketwatch.com/story/its-time-to-be-smart-like-soros-in-the-blow-off-stage-of-the-bull-market-in-stocks-11623788897?siteid=yhoof2\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite",".DJI":"道琼斯"},"source_url":"https://www.marketwatch.com/story/its-time-to-be-smart-like-soros-in-the-blow-off-stage-of-the-bull-market-in-stocks-11623788897?siteid=yhoof2","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1182315358","content_text":"If you’re an investor, you need to be flexible, neither a bull nor a bear.\nIt takes brains and brawn to be an investor these days. (Photo by Isaac Lawrence/AFP via Getty Images)\nI don’t know when what I call the Blow-Off Top of the Bubble-Blowing Bull Market will end.\nAfter 12 years being long and strong and having diamond hands without even knowing that term existed, maybe I’m wrong to turn more cautious.\nMaybe the economy will reopen and rejuvenate the country in such a strong manner that corporate earnings in 2022 and 2023 will make today’s prices seem like bargains.\nBut I simply don’t think that’s the most likely outcome.\nAnd if I’m right that we’re in the throes of the Blow-Off Top of the Bubble-Blowing Bull Market, I do not want to be overly long and on the wrong side of the great unwind when it does start.\nI’m not calling for a near-term crash. I am saying that it’s likely going to be hard for the bulls to make as much money this year as they did last year.\nTrading and investing are tough. There’s always someone on the other side of every trade you make. Always think about who that is and why they are willing to take the other side of your transaction. When you buy, why are they selling it to you at that price? When you sell, who is buying it from you and what are their motivations? Remember, I’ve talked before about how good analysis starts with empathy.\nIf I’m selling, who’s buying — and why?\nSo let’s answer this question right now. Who is buying stocks and cryptos from me when I’ve trimmed and sold for the past month or so? Sure, there are banks and institutions and hedge funds and family offices investing and trading, just as always. On the other hand, remember two years ago when I got back from a hedge fund investment conference in Abu Dhabi and everybody was desperate for returns:\nAmid low interest rates and other investors’ focus on options, credit and currencies, “the lack of focus on traditional stocks and funds that invest in publicly traded stocks makes me think that there is probably more opportunity in such assets than people realize. I certainly see some very compelling long ideas in Revolutionary companies like WORK and TWTR and TSLA.”\nSince that post, back a year and a half ago, Slack went from $21 to being bought out at $45, Twitter went from $27 to $61, and Tesla went from $81 to $616. And funds that were looking everywhere but in the stock market for big gains are … well, pretty much in the markets now and long a bunch of stocks and even long a few cryptos.\nAnd now that those stocks and cryptos and most other assets have gone parabolic in the past year — coming on top of the 10-year bull market — the billion-dollar fund managers are joined by 23-year-old TikTok influencers doing bitcoin trading astrology.\nYes, for real, and she’s very popular. She’s even been right about some of bitcoin’s action in the past few months! If you’re selling cryptos and fintech stocks right now, you’re selling to her and her followers. And also to my friend’s son, who just graduated from a tiny, rural school and whose unemployed uncle gave him $500 to “buy some cryptos. And make sure you get some fintech. I don’t know the symbol, but just look it up and you’ll do fine over the long run.” Bearish anecdotes everywhere I look, as I wrote recently.\nMr. Market\nThe other thing to remember about who’s on the other side of your trade is always to remember that there are smart, cutthroat traders and investors who went to the best schools and have access to more research and real-time data and instant trading access to all kinds of derivatives to layer into their bets. And the only thing they do all day, every day, is figure out how to take your money in mostly legal ways. They’re not playing around. They have no sympathy for you, even if they might empathize with you to better understand your motivations to better take your money.\nMr. Market is mean. He’s not nice. He can be cruel. He can force liquidations that create other liquidations. He can shut off access to capital. He can take down 200-year-old banks in a day. In one day.\nSometimes the markets lead the economy and not the other way around. Ironically, when we were young, we were taught that the Great Depression started when the stock market crashed on Black Friday in 1929. But then when we get older, we were taught that it wasn’t actually the crash that created the Great Depression, rather the economy was already crashing and the stock market just didn’t realize it as it continued on its merry way toward a terrible Blow-Off Top of a nine-year Bubble-Blowing Bull Market that culminated with the Dow Jones Industrial Average up 400% from the 1921 lows to the 1929 highs.\n\nLearning from Soros\nBut looking back, it’s clear that both theories are equally right and wrong — the market crashed because the economy wasn’t as good as the market thought it was,andthe economy crashed because the markets shut down access to capital for investment and growth.\nIt was “reflexive,” to borrow a term from the great hedge fund manager George Soros.\nHe wrote, and the concept is important to understand:\n“I continued to consider myself a failed philosopher. All this changed as a result of the financial crisis of 2008. My conceptual framework enabled me both to anticipate the crisis and to deal with it when it finally struck…\n“I can state the core idea in two relatively simple propositions. One is that in situations that have thinking participants, the participants’ view of the world is always partial and distorted. That is the principle of fallibility. The other is that these distorted views can influence the situation to which they relate because false views lead to inappropriate actions. That is the principle of reflexivity…\n“Recognizing reflexivity has been sacrificed to the vain pursuit of certainty in human affairs, most notably in economics, and yet, uncertainty is the key feature of human affairs. Economic theory is built on the concept of equilibrium, and that concept is in direct contradiction with the concept of reflexivity…\n“A positive feedback process is self-reinforcing. It cannot go on forever because eventually the participants’ views would become so far removed from objective reality that the participants would have to recognize them as unrealistic. Nor can the iterative process occur without any change in the actual state of affairs, because it is in the nature of positive feedback that it reinforces whatever tendency prevails in the real world. Instead of equilibrium, we are faced with a dynamic disequilibrium or what may be described as far-from-equilibrium conditions. Usually in far-from-equilibrium situations the divergence between perceptions and reality leads to a climax which sets in motion a positive feedback process in the opposite direction. Such initially self-reinforcing but eventually self-defeating boom-bust processes or bubbles are characteristic of financial markets, but they can also be found in other spheres. There, I call them fertile fallacies—interpretations of reality that are distorted, yet produce results which reinforce the distortion.”\nStay flexible\nFar-from-equilibrium conditions was what we had in 2010-2013 when we loaded up on Revolutionary stocks and started buying cryptos like bitcoin. Far-from-equilibrium conditions might be what we have in front of us right now when I suggest getting cautious instead.\nWe don’t want to be permabulls. (You for sure don’t want to be a permabear!) We have to be flexible. We have to let our analysis and risk/reward scenarios dictate how much risk we’re taking and when. We have to pay attention to the cycles, the self-reinforcing cycles that drive economies and markets and valuations and earnings and societal interactions and bailouts and financial crises and bubbles and busts and, heaven forbid, just simple stagnation.\nIt’s as if everybody forgets that markets can bubble and crash and stagnate. They forget that markets can grind for years on end without making new highs, or without even making higher highs. Do you not remember telling your money manager sometime in 2010-2012 that “If I’d just handled the Great Financial Crisis (and/or the Dot-Com Crash) a little better, I’d be in better shape.” I used to hear people say that to me all the time. I haven’t heard anybody say that lately. Everybody’s having fun in this market … at least for now.\nMost traders will tell you that they are “just trading the market that is in front of them.” Well, I don’t know when the bubble will pop, but I do know that I don’t want to be on the wrong side of this market when it does. And I do know that we won’t know the bubble has really popped until the self-reinforcing reflexive feedback loop has made it painful for the vast majority of people who are right now feeling wealthy, feeling secure, feeling like they’ve got this trading and investing thing all figured out.\nWe are all fallible. Be careful while it’s fun. Be bold when it’s painful. That’s how I’ve done it for the last 25 years. We were boldly buying these assets when it was painful for others. I’m careful right now because everybody else is having fun.\nI spend a lot of time looking for new ideas and I won’t let my overall market outlook deter me from buying a new name or two. But I want to remain overall cautious and less aggressive than I have been for most of the last decade.\nAs a matter of fact, I might have at least a couple Trade Alerts that I’ll be sending out this week, one long and one short idea. Being flexible, see?","news_type":1},"isVote":1,"tweetType":1,"viewCount":88,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":124491997,"gmtCreate":1624777160619,"gmtModify":1633948690902,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Interesting perspective","listText":"Interesting perspective","text":"Interesting perspective","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/124491997","repostId":"1172710941","repostType":4,"isVote":1,"tweetType":1,"viewCount":196,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":124493519,"gmtCreate":1624777123131,"gmtModify":1633948691146,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Neither of them is good ev bet","listText":"Neither of them is good ev bet","text":"Neither of them is good ev bet","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/124493519","repostId":"1137119316","repostType":4,"repost":{"id":"1137119316","pubTimestamp":1624754401,"share":"https://www.laohu8.com/m/news/1137119316?lang=&edition=full","pubTime":"2021-06-27 08:40","market":"us","language":"en","title":"Ford Or NIO? The Final Verdict","url":"https://stock-news.laohu8.com/highlight/detail?id=1137119316","media":"seekingalpha","summary":"I am comparing Ford against NIO in different categories.The comparison is intended to improve the understanding of Ford's and NIO's growth potential while highlighting differences in market position and opportunities.NIO is growing a lot faster than Ford and the high valuation may be justified.With Ford  launching a major offensive in the market for electric vehicles, Chinese EV maker NIO  will face one more rival competing for sales in the future. Which vehicle maker offers the best deal based ","content":"<p><b>Summary</b></p>\n<ul>\n <li>I am comparing Ford against NIO in different categories.</li>\n <li>The comparison is intended to improve the understanding of Ford's and NIO's growth potential while highlighting differences in market position and opportunities.</li>\n <li>NIO is growing a lot faster than Ford and the high valuation may be justified.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5033fa117d7852799244b8275bc1000f\" tg-width=\"1536\" tg-height=\"886\"><span>peterschreiber.media/iStock via Getty Images</span></p>\n<p>With Ford (F) launching a major offensive in the market for electric vehicles, Chinese EV maker NIO (NIO) will face one more rival competing for sales in the future. Which vehicle maker offers the best deal based on market opportunity, scale, revenue model, growth prospects and valuation? I will compare Ford against NIO in each category and issue a final verdict at the end.</p>\n<p><b>Ford vs. NIO: The battle for the global electric vehicle market is heating up</b></p>\n<p>Although there is a world of difference between Ford and NIO, both companies are set to go toe-to-toe in the rapidly growing global electric vehicle market. Ford’s fleet is not yet EV-focused but this is going to change: Feeling that the EV race is heating up, Ford said it is accelerating its electrification plan by investing&nbsp;$30B into its EV manufacturing capabilities until 2025. Ford’s previous capital plan called for a $22B investment in zero-emission vehicles. Ford also set an ambitious sales goal: 40% of its global sales will be electric within the next decade and 33% of pickup truck sales. Electric vehicle sales account for just 1% of Ford's sales today. As Ford is phasing out combustion engines, it is set to evolve into an all-electric vehicle maker by 2040.</p>\n<p><b>Market opportunity</b></p>\n<p>In 2020, 3.2m electric vehicles were sold in the world which represented a small market share of just 4.2%. China, however, was responsible for buying 41% of all electric vehicles in the world in 2020. Chinese buyers purchased 1.3m electric vehicles last year and sales are set to grow fast as Beijing seeks to boost EV adoption. The second largest market for electric vehicles was Europe which accounted for 42% of global EV sales. The US is only the third-largest market for plug-in electric vehicles in the world.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b48c23b32134542f51227d9b1b612887\" tg-width=\"1083\" tg-height=\"863\"><span>(Source: Wikipedia)</span></p>\n<p>China, by far, is the fastest growing EV market in the world, although Europe is catching up fast, in part due to a legislative efforts to increase adoption of zero-emission passenger vehicles and because of massive investments in a Europe-wide charging station network. NIO is&nbsp;on the cusp of entering the European market&nbsp;in a bid to grow market share in the world’s second-largest EV market before the competition is ready.</p>\n<p>Beijing is a driver behind the electrification of the Chinese auto industry: The government wants to see a&nbsp;twenty percent share&nbsp;of electric vehicles for new car sales by 2025 which will drive EV penetration in NIO’s home market.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/9871e44eaf69adb27151425887870ace\" tg-width=\"739\" tg-height=\"454\"><span>(Source:Schroders)</span></p>\n<p>Turning to growth projections.</p>\n<p>With more favorable government policies for EV makers in places like China and Europe, these markets are poised to see the fastest sales growth and the highest EV adoption rates in the world. China is not only the largest market due to population size but is also expected to outperform all other markets in the world in EV sales until 2030.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/61d19dff2f34e2d8828aca854e85d84a\" tg-width=\"825\" tg-height=\"565\"><span>(Source:McKinsey)</span></p>\n<p>Since China has a larger total market size, a higher EV adoption rate, stronger expected sales growth and a more favorable regulatory framework, the winner here would be: NIO.</p>\n<p><b>Scale and manufacturing competence</b></p>\n<p>Ford has a century’s worth of manufacturing experience. But Ford, so far, has only one all-electric vehicle in its product line-up that compares to NIO: The Mustang Mach-E SUV. In 2022, Ford will begin to sell the all-electric F-150 Lightening which builds on the success of Ford’s best-selling pick-up truck. NIO already has a stronger product catalog including the 5-seater ES6 SUV, the 5-seater coupe SUV EC6 and the ES8, a 6-seater and 7-seater full-sized SUV.</p>\n<p>Since NIO is solely focused on producing EVs and occupies a very small and defined niche, the Chinese firm has an advantage as far as EV-manufacturing expertise goes. The question is how long this advantage can last. Ford has extensive experience in building cars and can leverage a global manufacturing base to ramp up EV production faster than any niche EV maker could ever hope to achieve. This makes Ford a very serious rival not only to Tesla (TSLA) in the US, but also to NIO abroad. Ford is accelerating its electrification plans and it has the resources and the ambition to become a leader in EVs within the next decade. Ford’s proposed $30B spending on the electrification of its fleet will accelerate its transformation and turn Ford into a long term threat to other EV makers.</p>\n<p>Winner here: Ford.</p>\n<p><b>Differentiation and BaaS revenue model</b></p>\n<p>Both Ford and NIO know about the importance of differentiation in a market that will only get more competitive over time, which is why both companies are investing heavily in a related field that can break or solidify dominance in the EV market: Battery technology.</p>\n<p>Ford is&nbsp;forming a joint venture&nbsp;with South Korean battery technology company SK Innovation to secure supply of traction battery cells and array modules. The joint venture is meant to accelerate battery deliveries and will produce approximately 60 GWh annually, enough to cover 25% of Ford’s estimated annual energy demand by 2030. NIO is also investing in battery technology and has&nbsp;formed its own joint venture&nbsp;to secure battery supply.</p>\n<p>The difference to Ford is that NIO’s battery investment strategy revolves around a battery subscription model, also called “battery-as-a-service”, which creates a strong, long term revenue opportunity for the Chinese vehicle maker. Under this “BaaS” model, users who buy a NIO electric vehicle get a 70,000 RMB initial discount, equivalent to $10,800, and can sign up for a monthly subscription to rent a rechargeable 70 kWh battery. Batteries can then be exchanged at one of NIO’s battery-swapping stations which can be found in most big Chinese cities. A battery subscription costs 980 RMB monthly which is the equivalent of $150.</p>\n<p>The BaaS model has a couple of benefits for both the vehicle maker and the user: Purchasing an electric vehicle from NIO gets a lot more affordable due to the up-front discount and the subscription model ensures that users benefit from advancement in battery technology and better performance over time. Decoupling battery costs from vehicle prices creates an entirely new revenue stream on a subscription basis for NIO. Revenues from “BaaS” subscriptions could be used to increase the density of NIO’s network of charging/replacement stations. The battery subscription model also binds customers to NIO, potentially increasing customer lifetime value.</p>\n<p>Ford and NIO are primed to benefit from falling battery costs for electric vehicles as they ramp up capital allocations. As more investments flow into developing more efficient batteries, performance will go up and costs will go down which should drive EV adoption and benefit all EV makers. This is because lower battery prices make EVs more competitive to passenger vehicles with combustion engines. But since NIO is structuring a part of its business model explicitly around battery subscriptions, NIO could benefit more than Ford.</p>\n<p>Battery costs for EVs have decreased 70% since 2014, based on information provided by investment firm Schroders, and are set to decrease more this decade.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c42acb75905affe7570a2f399ea3192f\" tg-width=\"758\" tg-height=\"449\"><span>(Source: Schroders)</span></p>\n<p>The “BaaS” model is genius and could develop into a $500M a year revenue opportunity for NIO long term. Although Ford is ramping up its investments in battery technology, the winner in this category is: NIO.</p>\n<p><b>Sales growth and valuation</b></p>\n<p>Ford’s sales in May grew 4.1% Y/Y but electrified vehicle sales (including hybrids) surged 184% Y/Y as Ford sold a record 10,364 EVs/hybrids in May. Escape electrified sales and Explorer Hybrid grew sales at 125% and 132% Y/Y showing strong customer uptake. NIO delivered 6,711 vehicles last month including 3,017 ES6s, 1,412 ES8s and 2,282 EC6s. Total Y/Y delivery growth for May was 95.3%.</p>\n<p>Ford's sales are fifty-four times larger than NIO's which creates more sales growth and revaluation potential for NIO.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/df5a0a393e44ed74241c5effcdd92350\" tg-width=\"635\" tg-height=\"419\"><span>Data by YCharts</span></p>\n<p>The difference in valuation between Ford and NIO is like the difference between night and day. This is because Ford is still seen as a mature vehicle maker with expected enterprise sales growth in the low-to-mid digits, despite explosive growth in the EV category. Ford is expected to grow revenues by 33% until FY 2025 (base year: FY 2020) and NIO by 808%!</p>\n<p>Due to these differences in sales growth, NIO is the complete opposite of Ford, at least as far as valuation goes. The Chinese EV-maker is expected to see sales and delivery growth close to 100% this year and since NIO is only dealing in EVs, NIO gets a much higher market-cap-to-sales ratio than Ford.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/817605c6b1e82c03d0473ea570d32b8f\" tg-width=\"506\" tg-height=\"406\"><span>(Source: Author)</span></p>\n<p><b>NIO has larger risks...</b></p>\n<p>NIO is the more risky venture, but also the one that offers the most promise. Government policy favors EV-makers like NIO. The potential for total global sales growth is larger for NIO as it operates from a smaller revenue base compared to Ford. But there are also a few things that work against NIO. For example, recalls due to production defects would be a much bigger challenge for NIO to overcome than for Ford which can rely on a global service and distribution network. NIO’s valuation is also not without risk as an unexpected slowing of sales growth due to production setbacks would leave a much larger dent in the financials.</p>\n<p><b>Final verdict</b></p>\n<p>NIO is definitely the more “sexy” vehicle maker. Strong adoption and sales growth in China and Europe support NIO. Its super smart BaaS model which decouples vehicle purchase prices from battery costs is genius. You pay a high price for this growth but the market opportunity for NIO is immense.</p>\n<p>Ford’s EV sales are booming and the percentage of EV sales will increase as the vehicle maker electrifies its fleet. Ford has a lot of potential in the EV market but since EV sales are still a relatively low percentage of total sales, it will take a long time for Ford to complete its transformation.</p>\n<p>If you believe in the potential of the global EV market, buy NIO. If you believe in the potential of the global EV market and don’t like much risk, buy Ford.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Ford Or NIO? The Final Verdict</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFord Or NIO? The Final Verdict\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-27 08:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4436600-ford-or-nio-the-final-verdict><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nI am comparing Ford against NIO in different categories.\nThe comparison is intended to improve the understanding of Ford's and NIO's growth potential while highlighting differences in market ...</p>\n\n<a href=\"https://seekingalpha.com/article/4436600-ford-or-nio-the-final-verdict\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"F":"福特汽车","NIO":"蔚来"},"source_url":"https://seekingalpha.com/article/4436600-ford-or-nio-the-final-verdict","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1137119316","content_text":"Summary\n\nI am comparing Ford against NIO in different categories.\nThe comparison is intended to improve the understanding of Ford's and NIO's growth potential while highlighting differences in market position and opportunities.\nNIO is growing a lot faster than Ford and the high valuation may be justified.\n\npeterschreiber.media/iStock via Getty Images\nWith Ford (F) launching a major offensive in the market for electric vehicles, Chinese EV maker NIO (NIO) will face one more rival competing for sales in the future. Which vehicle maker offers the best deal based on market opportunity, scale, revenue model, growth prospects and valuation? I will compare Ford against NIO in each category and issue a final verdict at the end.\nFord vs. NIO: The battle for the global electric vehicle market is heating up\nAlthough there is a world of difference between Ford and NIO, both companies are set to go toe-to-toe in the rapidly growing global electric vehicle market. Ford’s fleet is not yet EV-focused but this is going to change: Feeling that the EV race is heating up, Ford said it is accelerating its electrification plan by investing $30B into its EV manufacturing capabilities until 2025. Ford’s previous capital plan called for a $22B investment in zero-emission vehicles. Ford also set an ambitious sales goal: 40% of its global sales will be electric within the next decade and 33% of pickup truck sales. Electric vehicle sales account for just 1% of Ford's sales today. As Ford is phasing out combustion engines, it is set to evolve into an all-electric vehicle maker by 2040.\nMarket opportunity\nIn 2020, 3.2m electric vehicles were sold in the world which represented a small market share of just 4.2%. China, however, was responsible for buying 41% of all electric vehicles in the world in 2020. Chinese buyers purchased 1.3m electric vehicles last year and sales are set to grow fast as Beijing seeks to boost EV adoption. The second largest market for electric vehicles was Europe which accounted for 42% of global EV sales. The US is only the third-largest market for plug-in electric vehicles in the world.\n(Source: Wikipedia)\nChina, by far, is the fastest growing EV market in the world, although Europe is catching up fast, in part due to a legislative efforts to increase adoption of zero-emission passenger vehicles and because of massive investments in a Europe-wide charging station network. NIO is on the cusp of entering the European market in a bid to grow market share in the world’s second-largest EV market before the competition is ready.\nBeijing is a driver behind the electrification of the Chinese auto industry: The government wants to see a twenty percent share of electric vehicles for new car sales by 2025 which will drive EV penetration in NIO’s home market.\n(Source:Schroders)\nTurning to growth projections.\nWith more favorable government policies for EV makers in places like China and Europe, these markets are poised to see the fastest sales growth and the highest EV adoption rates in the world. China is not only the largest market due to population size but is also expected to outperform all other markets in the world in EV sales until 2030.\n(Source:McKinsey)\nSince China has a larger total market size, a higher EV adoption rate, stronger expected sales growth and a more favorable regulatory framework, the winner here would be: NIO.\nScale and manufacturing competence\nFord has a century’s worth of manufacturing experience. But Ford, so far, has only one all-electric vehicle in its product line-up that compares to NIO: The Mustang Mach-E SUV. In 2022, Ford will begin to sell the all-electric F-150 Lightening which builds on the success of Ford’s best-selling pick-up truck. NIO already has a stronger product catalog including the 5-seater ES6 SUV, the 5-seater coupe SUV EC6 and the ES8, a 6-seater and 7-seater full-sized SUV.\nSince NIO is solely focused on producing EVs and occupies a very small and defined niche, the Chinese firm has an advantage as far as EV-manufacturing expertise goes. The question is how long this advantage can last. Ford has extensive experience in building cars and can leverage a global manufacturing base to ramp up EV production faster than any niche EV maker could ever hope to achieve. This makes Ford a very serious rival not only to Tesla (TSLA) in the US, but also to NIO abroad. Ford is accelerating its electrification plans and it has the resources and the ambition to become a leader in EVs within the next decade. Ford’s proposed $30B spending on the electrification of its fleet will accelerate its transformation and turn Ford into a long term threat to other EV makers.\nWinner here: Ford.\nDifferentiation and BaaS revenue model\nBoth Ford and NIO know about the importance of differentiation in a market that will only get more competitive over time, which is why both companies are investing heavily in a related field that can break or solidify dominance in the EV market: Battery technology.\nFord is forming a joint venture with South Korean battery technology company SK Innovation to secure supply of traction battery cells and array modules. The joint venture is meant to accelerate battery deliveries and will produce approximately 60 GWh annually, enough to cover 25% of Ford’s estimated annual energy demand by 2030. NIO is also investing in battery technology and has formed its own joint venture to secure battery supply.\nThe difference to Ford is that NIO’s battery investment strategy revolves around a battery subscription model, also called “battery-as-a-service”, which creates a strong, long term revenue opportunity for the Chinese vehicle maker. Under this “BaaS” model, users who buy a NIO electric vehicle get a 70,000 RMB initial discount, equivalent to $10,800, and can sign up for a monthly subscription to rent a rechargeable 70 kWh battery. Batteries can then be exchanged at one of NIO’s battery-swapping stations which can be found in most big Chinese cities. A battery subscription costs 980 RMB monthly which is the equivalent of $150.\nThe BaaS model has a couple of benefits for both the vehicle maker and the user: Purchasing an electric vehicle from NIO gets a lot more affordable due to the up-front discount and the subscription model ensures that users benefit from advancement in battery technology and better performance over time. Decoupling battery costs from vehicle prices creates an entirely new revenue stream on a subscription basis for NIO. Revenues from “BaaS” subscriptions could be used to increase the density of NIO’s network of charging/replacement stations. The battery subscription model also binds customers to NIO, potentially increasing customer lifetime value.\nFord and NIO are primed to benefit from falling battery costs for electric vehicles as they ramp up capital allocations. As more investments flow into developing more efficient batteries, performance will go up and costs will go down which should drive EV adoption and benefit all EV makers. This is because lower battery prices make EVs more competitive to passenger vehicles with combustion engines. But since NIO is structuring a part of its business model explicitly around battery subscriptions, NIO could benefit more than Ford.\nBattery costs for EVs have decreased 70% since 2014, based on information provided by investment firm Schroders, and are set to decrease more this decade.\n(Source: Schroders)\nThe “BaaS” model is genius and could develop into a $500M a year revenue opportunity for NIO long term. Although Ford is ramping up its investments in battery technology, the winner in this category is: NIO.\nSales growth and valuation\nFord’s sales in May grew 4.1% Y/Y but electrified vehicle sales (including hybrids) surged 184% Y/Y as Ford sold a record 10,364 EVs/hybrids in May. Escape electrified sales and Explorer Hybrid grew sales at 125% and 132% Y/Y showing strong customer uptake. NIO delivered 6,711 vehicles last month including 3,017 ES6s, 1,412 ES8s and 2,282 EC6s. Total Y/Y delivery growth for May was 95.3%.\nFord's sales are fifty-four times larger than NIO's which creates more sales growth and revaluation potential for NIO.\nData by YCharts\nThe difference in valuation between Ford and NIO is like the difference between night and day. This is because Ford is still seen as a mature vehicle maker with expected enterprise sales growth in the low-to-mid digits, despite explosive growth in the EV category. Ford is expected to grow revenues by 33% until FY 2025 (base year: FY 2020) and NIO by 808%!\nDue to these differences in sales growth, NIO is the complete opposite of Ford, at least as far as valuation goes. The Chinese EV-maker is expected to see sales and delivery growth close to 100% this year and since NIO is only dealing in EVs, NIO gets a much higher market-cap-to-sales ratio than Ford.\n(Source: Author)\nNIO has larger risks...\nNIO is the more risky venture, but also the one that offers the most promise. Government policy favors EV-makers like NIO. The potential for total global sales growth is larger for NIO as it operates from a smaller revenue base compared to Ford. But there are also a few things that work against NIO. For example, recalls due to production defects would be a much bigger challenge for NIO to overcome than for Ford which can rely on a global service and distribution network. NIO’s valuation is also not without risk as an unexpected slowing of sales growth due to production setbacks would leave a much larger dent in the financials.\nFinal verdict\nNIO is definitely the more “sexy” vehicle maker. Strong adoption and sales growth in China and Europe support NIO. Its super smart BaaS model which decouples vehicle purchase prices from battery costs is genius. You pay a high price for this growth but the market opportunity for NIO is immense.\nFord’s EV sales are booming and the percentage of EV sales will increase as the vehicle maker electrifies its fleet. Ford has a lot of potential in the EV market but since EV sales are still a relatively low percentage of total sales, it will take a long time for Ford to complete its transformation.\nIf you believe in the potential of the global EV market, buy NIO. If you believe in the potential of the global EV market and don’t like much risk, buy Ford.","news_type":1},"isVote":1,"tweetType":1,"viewCount":275,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":126112358,"gmtCreate":1624547332874,"gmtModify":1634004522940,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Huat","listText":"Huat","text":"Huat","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/126112358","repostId":"1120000038","repostType":4,"isVote":1,"tweetType":1,"viewCount":234,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":129246036,"gmtCreate":1624375258225,"gmtModify":1634007033588,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Good to know","listText":"Good to know","text":"Good to know","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/129246036","repostId":"2145905996","repostType":4,"isVote":1,"tweetType":1,"viewCount":32,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":169802355,"gmtCreate":1623825313577,"gmtModify":1634027502756,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Exciting times ahead","listText":"Exciting times ahead","text":"Exciting times ahead","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/169802355","repostId":"2143680537","repostType":4,"repost":{"id":"2143680537","weMediaInfo":{"introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"media_name":"Reuters","id":"1036604489","head_image":"https://static.tigerbbs.com/443ce19704621c837795676028cec868"},"pubTimestamp":1623797252,"share":"https://www.laohu8.com/m/news/2143680537?lang=&edition=full","pubTime":"2021-06-16 06:47","market":"us","language":"en","title":"Wall Street ends down as data spooks investors awaiting Fed report","url":"https://stock-news.laohu8.com/highlight/detail?id=2143680537","media":"Reuters","summary":"Wall Street’s main indices closed lower on Tuesday as data showing stronger inflation and weaker U.S. retail sales in May spooked already-jittery investors awaiting the results of the Federal Reserve’s latest policy meeting.Assurance from the Fed that rising prices are transitory and falling U.S. Treasury yields have helped ease some concerns over inflation and supported U.S. stocks in recent weeks. All eyes are now on the central bank’s statement at the end of its two-day policy meeting on Wedn","content":"<p>Wall Street’s main indices closed lower on Tuesday as data showing stronger inflation and weaker U.S. retail sales in May spooked already-jittery investors awaiting the results of the Federal Reserve’s latest policy meeting.</p>\n<p>Assurance from the Fed that rising prices are transitory and falling U.S. Treasury yields have helped ease some concerns over inflation and supported U.S. stocks in recent weeks. All eyes are now on the central bank’s statement at the end of its two-day policy meeting on Wednesday.</p>\n<p>Data showed an acceleration in producer prices last month as supply chains struggled to meet demand unleashed by the reopening of the economy. A separate report showed U.S. retail sales dropped more than expected in May.</p>\n<p>“There was a bit of a reaction to the economic data we got, which, for the most part, shows that the economy is starting to wean itself off stimulus, the recovery is slowing down a little, and inflation is continuing to grow,” said Ed Moya, senior market analyst for the Americas at OANDA.</p>\n<p>“We’re seeing some very modest weakness, and it’ll be choppy leading up to the Fed decision. Right now, the Fed is probably in a position to show they are thinking about tapering, but they’re still a long way from actually doing it.”</p>\n<p>The Fed is likely to announce in August or September a strategy for reducing its massive bond buying program, but will not start cutting monthly purchases until early next year, a Reuters poll of economists found.</p>\n<p>The benchmark S&amp;P 500, the blue-chip Dow Jones and the tech-focused Nasdaq have risen 13%, 12.1% and 9.2% respectively so far this year, largely driven by optimism about an economic reopening.</p>\n<p>However, the S&amp;P 500 has been broadly stuck within a range, despite recording its 29th record-high finish of 2021 on Monday, versus 33 for all of last year.</p>\n<p>The Dow Jones Industrial Average fell 94.42 points, or 0.27%, to 34,299.33, the S&amp;P 500 lost 8.56 points, or 0.20%, to 4,246.59 and the Nasdaq Composite dropped 101.29 points, or 0.71%, to 14,072.86.</p>\n<p>Seven of the 11 major S&amp;P sectors slipped. Among them was communication services, which ended 0.5% lower, having hit a record intraday high earlier in the session.</p>\n<p>The largest gainer was the energy index, which rose 2.1% on oil prices hitting multi-year highs on a positive demand outlook. Exxon Mobil Corp had its best day since Mar. 5, jumping 3.6%. [O/R]</p>\n<p>In corporate news, Boeing Co gained 0.6% after the United States and the European Union agreed on a truce in their 17-year conflict over aircraft subsidies involving the planemaker and its rival Airbus.</p>\n<p>Having slumped 19% on Monday, Lordstown Motors Corp shares rebounded 11.3% after comments from the electric truck manufacturer’s president on orders.</p>\n<p>Volume on U.S. exchanges was 9.98 billion shares, compared with the 10.58 billion average over the last 20 trading days.</p>\n<p>The S&amp;P 500 posted 36 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 87 new highs and 21 new lows.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Wall Street ends down as data spooks investors awaiting Fed report</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWall Street ends down as data spooks investors awaiting Fed report\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036604489\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/443ce19704621c837795676028cec868);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2021-06-16 06:47</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>Wall Street’s main indices closed lower on Tuesday as data showing stronger inflation and weaker U.S. retail sales in May spooked already-jittery investors awaiting the results of the Federal Reserve’s latest policy meeting.</p>\n<p>Assurance from the Fed that rising prices are transitory and falling U.S. Treasury yields have helped ease some concerns over inflation and supported U.S. stocks in recent weeks. All eyes are now on the central bank’s statement at the end of its two-day policy meeting on Wednesday.</p>\n<p>Data showed an acceleration in producer prices last month as supply chains struggled to meet demand unleashed by the reopening of the economy. A separate report showed U.S. retail sales dropped more than expected in May.</p>\n<p>“There was a bit of a reaction to the economic data we got, which, for the most part, shows that the economy is starting to wean itself off stimulus, the recovery is slowing down a little, and inflation is continuing to grow,” said Ed Moya, senior market analyst for the Americas at OANDA.</p>\n<p>“We’re seeing some very modest weakness, and it’ll be choppy leading up to the Fed decision. Right now, the Fed is probably in a position to show they are thinking about tapering, but they’re still a long way from actually doing it.”</p>\n<p>The Fed is likely to announce in August or September a strategy for reducing its massive bond buying program, but will not start cutting monthly purchases until early next year, a Reuters poll of economists found.</p>\n<p>The benchmark S&amp;P 500, the blue-chip Dow Jones and the tech-focused Nasdaq have risen 13%, 12.1% and 9.2% respectively so far this year, largely driven by optimism about an economic reopening.</p>\n<p>However, the S&amp;P 500 has been broadly stuck within a range, despite recording its 29th record-high finish of 2021 on Monday, versus 33 for all of last year.</p>\n<p>The Dow Jones Industrial Average fell 94.42 points, or 0.27%, to 34,299.33, the S&amp;P 500 lost 8.56 points, or 0.20%, to 4,246.59 and the Nasdaq Composite dropped 101.29 points, or 0.71%, to 14,072.86.</p>\n<p>Seven of the 11 major S&amp;P sectors slipped. Among them was communication services, which ended 0.5% lower, having hit a record intraday high earlier in the session.</p>\n<p>The largest gainer was the energy index, which rose 2.1% on oil prices hitting multi-year highs on a positive demand outlook. Exxon Mobil Corp had its best day since Mar. 5, jumping 3.6%. [O/R]</p>\n<p>In corporate news, Boeing Co gained 0.6% after the United States and the European Union agreed on a truce in their 17-year conflict over aircraft subsidies involving the planemaker and its rival Airbus.</p>\n<p>Having slumped 19% on Monday, Lordstown Motors Corp shares rebounded 11.3% after comments from the electric truck manufacturer’s president on orders.</p>\n<p>Volume on U.S. exchanges was 9.98 billion shares, compared with the 10.58 billion average over the last 20 trading days.</p>\n<p>The S&amp;P 500 posted 36 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 87 new highs and 21 new lows.</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"161125":"标普500","513500":"标普500ETF","UDOW":"道指三倍做多ETF-ProShares","UPRO":"三倍做多标普500ETF","DJX":"1/100道琼斯","QID":"纳指两倍做空ETF","SH":"标普500反向ETF","IVV":"标普500指数ETF","SSO":"两倍做多标普500ETF","BA":"波音","SPXU":"三倍做空标普500ETF","OEF":"标普100指数ETF-iShares","SQQQ":"纳指三倍做空ETF","DXD":"道指两倍做空ETF","QLD":"纳指两倍做多ETF","PSQ":"纳指反向ETF","DDM":"道指两倍做多ETF","SDOW":"道指三倍做空ETF-ProShares",".DJI":"道琼斯",".IXIC":"NASDAQ Composite","SDS":"两倍做空标普500ETF","TQQQ":"纳指三倍做多ETF",".SPX":"S&P 500 Index","OEX":"标普100","QQQ":"纳指100ETF","DOG":"道指反向ETF"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143680537","content_text":"Wall Street’s main indices closed lower on Tuesday as data showing stronger inflation and weaker U.S. retail sales in May spooked already-jittery investors awaiting the results of the Federal Reserve’s latest policy meeting.\nAssurance from the Fed that rising prices are transitory and falling U.S. Treasury yields have helped ease some concerns over inflation and supported U.S. stocks in recent weeks. All eyes are now on the central bank’s statement at the end of its two-day policy meeting on Wednesday.\nData showed an acceleration in producer prices last month as supply chains struggled to meet demand unleashed by the reopening of the economy. A separate report showed U.S. retail sales dropped more than expected in May.\n“There was a bit of a reaction to the economic data we got, which, for the most part, shows that the economy is starting to wean itself off stimulus, the recovery is slowing down a little, and inflation is continuing to grow,” said Ed Moya, senior market analyst for the Americas at OANDA.\n“We’re seeing some very modest weakness, and it’ll be choppy leading up to the Fed decision. Right now, the Fed is probably in a position to show they are thinking about tapering, but they’re still a long way from actually doing it.”\nThe Fed is likely to announce in August or September a strategy for reducing its massive bond buying program, but will not start cutting monthly purchases until early next year, a Reuters poll of economists found.\nThe benchmark S&P 500, the blue-chip Dow Jones and the tech-focused Nasdaq have risen 13%, 12.1% and 9.2% respectively so far this year, largely driven by optimism about an economic reopening.\nHowever, the S&P 500 has been broadly stuck within a range, despite recording its 29th record-high finish of 2021 on Monday, versus 33 for all of last year.\nThe Dow Jones Industrial Average fell 94.42 points, or 0.27%, to 34,299.33, the S&P 500 lost 8.56 points, or 0.20%, to 4,246.59 and the Nasdaq Composite dropped 101.29 points, or 0.71%, to 14,072.86.\nSeven of the 11 major S&P sectors slipped. Among them was communication services, which ended 0.5% lower, having hit a record intraday high earlier in the session.\nThe largest gainer was the energy index, which rose 2.1% on oil prices hitting multi-year highs on a positive demand outlook. Exxon Mobil Corp had its best day since Mar. 5, jumping 3.6%. [O/R]\nIn corporate news, Boeing Co gained 0.6% after the United States and the European Union agreed on a truce in their 17-year conflict over aircraft subsidies involving the planemaker and its rival Airbus.\nHaving slumped 19% on Monday, Lordstown Motors Corp shares rebounded 11.3% after comments from the electric truck manufacturer’s president on orders.\nVolume on U.S. exchanges was 9.98 billion shares, compared with the 10.58 billion average over the last 20 trading days.\nThe S&P 500 posted 36 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 87 new highs and 21 new lows.","news_type":1},"isVote":1,"tweetType":1,"viewCount":44,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":160985724,"gmtCreate":1623769435868,"gmtModify":1634028555996,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Cruise or tesla?","listText":"Cruise or tesla?","text":"Cruise or tesla?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/160985724","repostId":"1121368819","repostType":4,"isVote":1,"tweetType":1,"viewCount":84,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":160982001,"gmtCreate":1623769364603,"gmtModify":1634028557729,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Buy the dips","listText":"Buy the dips","text":"Buy the dips","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/160982001","repostId":"2143751575","repostType":2,"repost":{"id":"2143751575","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1623760860,"share":"https://www.laohu8.com/m/news/2143751575?lang=&edition=full","pubTime":"2021-06-15 20:41","market":"us","language":"en","title":"AMC stock slips 2.2% premarket, after running up 33.1% over the past 2 sessions","url":"https://stock-news.laohu8.com/highlight/detail?id=2143751575","media":"Dow Jones","summary":"MW AMC stock slips 2.2% premarket, after running up 33.1% over the past 2 sessions\n\n\n \n\n\n$(END)$ Dow","content":"<html><body><font class=\"NormalMinus1\" face=\"Arial\">\n<p>\nMW AMC stock slips 2.2% premarket, after running up 33.1% over the past 2 sessions\n</p>\n<pre>\n \n</pre>\n<p>\n  <a href=\"https://laohu8.com/S/END\">$(END)$</a> Dow Jones Newswires\n</p>\n<p>\n  June 15, 2021 08:41 ET (12:41 GMT)\n</p>\n<p>\n  Copyright (c) 2021 Dow Jones &amp; Company, Inc.\n</p>\n</font></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>AMC stock slips 2.2% premarket, after running up 33.1% over the past 2 sessions</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAMC stock slips 2.2% premarket, after running up 33.1% over the past 2 sessions\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2021-06-15 20:41</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><body><font class=\"NormalMinus1\" face=\"Arial\">\n<p>\nMW AMC stock slips 2.2% premarket, after running up 33.1% over the past 2 sessions\n</p>\n<pre>\n \n</pre>\n<p>\n  <a href=\"https://laohu8.com/S/END\">$(END)$</a> Dow Jones Newswires\n</p>\n<p>\n  June 15, 2021 08:41 ET (12:41 GMT)\n</p>\n<p>\n  Copyright (c) 2021 Dow Jones &amp; Company, Inc.\n</p>\n</font></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMC":"AMC院线","CRCT":"Cricut, Inc.","TERN":"Terns Pharmaceuticals, Inc."},"source_url":"http://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2143751575","content_text":"MW AMC stock slips 2.2% premarket, after running up 33.1% over the past 2 sessions\n\n\n \n\n\n$(END)$ Dow Jones Newswires\n\n\n  June 15, 2021 08:41 ET (12:41 GMT)\n\n\n  Copyright (c) 2021 Dow Jones & Company, Inc.","news_type":1},"isVote":1,"tweetType":1,"viewCount":150,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":160935718,"gmtCreate":1623768790234,"gmtModify":1634028571623,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Soon rocket","listText":"Soon rocket","text":"Soon rocket","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/160935718","repostId":"1179958588","repostType":4,"repost":{"id":"1179958588","pubTimestamp":1623766192,"share":"https://www.laohu8.com/m/news/1179958588?lang=&edition=full","pubTime":"2021-06-15 22:09","market":"us","language":"en","title":"Tesla Going Through A \"Rather Dry Spell\", Says Morgan Stanley's Adam Jonas","url":"https://stock-news.laohu8.com/highlight/detail?id=1179958588","media":"zerohedge","summary":"In most respects, the latest note from Adam Jonas at Morgan Stanley on Tesla has been more of the sa","content":"<p>In most respects, the latest note from Adam Jonas at Morgan Stanley on Tesla has been more of the same.</p>\n<p>You've got your bona fide comedy, as Jonas starts his note&nbsp;by saying \"Let’s begin with a healthy dose of intellectual honesty on the starting point for&nbsp;the stock,\" before defending his $900 price target on the name...</p>\n<p><img src=\"https://static.tigerbbs.com/c9cc9bfba9fba1bf3593b4b6f4e20dbf\" tg-width=\"500\" tg-height=\"198\" referrerpolicy=\"no-referrer\"></p>\n<p>You've got your \"pie in the sky\" style lofty estimates about a SaaS revenue stream that doesn't exist and that the company likely doesn't even have the infrastructure for...</p>\n<p><img src=\"https://static.tigerbbs.com/e525d8ff30b02cefbdc8daecdcfcca7b\" tg-width=\"500\" tg-height=\"246\" referrerpolicy=\"no-referrer\">You've got your insane valuation for Tesla's insurance business...</p>\n<p><img src=\"https://static.tigerbbs.com/67267c0686d45416d0cb73fda3e253c7\" tg-width=\"516\" tg-height=\"648\" referrerpolicy=\"no-referrer\">...and finally, you've got your proclamation that Tesla is going to exceed its timelines for autonomous productions. You know, because the company has been so masterful with handling timelines in the past.</p>\n<p><img src=\"https://static.tigerbbs.com/f7526beef593477f8a494eac3cd07e6f\" tg-width=\"500\" tg-height=\"97\"></p>\n<p>All told, it was a pretty standard Adam Jonas ticker tape parade for the company.</p>\n<p>But tucked into what can only be described as the \"endless optimism\" of Jonas' note was an interesting point that the analyst made.<b>Namely, he appears to make the suggestion that CEO Elon Musk's latest obsession with bitcoin is indicative that Tesla's underlying business could be going through a \"dry spell\".</b></p>\n<p><b>\"Over the past couple of months, incoming client interest on Tesla is focused mostly on Chinese sales/production data and Elon Musk’s tweets regarding Bitcoin. Might Tesla-Bitcoin fever may be telling us something about the lull in Tesla sentiment?</b>\" Jonas asks toward the beginning of his note.</p>\n<p>He continues:<b>\"You just know it’s a rather dry spell for Tesla when Bitcoin is the dominant new story and dominant driver of investor discussion day in, day out.</b>In our opinion, what’s considerably more interesting than ‘decoding’ the TSLA-Bitcoin relationship is the fact that there is a virtual ‘vacuum’ of developments and news related to other areas of technological and commercial progress that the company is involved with on renewable energy, storage networking and transportation.\"</p>\n<p>He begrudgingly concludes&nbsp;about Tesla's underwhelming Model S Plaid unveil: \"<b>Yes, the Model S Plaid unveil was fun, but where’s the next ‘big’ development to move the company forward?\"</b></p>\n<p>The lines even stood out CNBC's Carl Quintanilla who pointed it out early this morning.</p>\n<p><img src=\"https://static.tigerbbs.com/ec9ba5f7279aee4c62994fd1495bdcec\" tg-width=\"507\" tg-height=\"530\">It's interesting to note this level of what appears to just be bemusement and exhaustion from Jonas. But whether or not it sticks out to the \"sophisticated investors\" buying Tesla stock remains another question...</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Tesla Going Through A \"Rather Dry Spell\", Says Morgan Stanley's Adam Jonas</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTesla Going Through A \"Rather Dry Spell\", Says Morgan Stanley's Adam Jonas\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-15 22:09 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.zerohedge.com/markets/tesla-going-through-rather-dry-spell-says-morgan-stanleys-adam-jonas><strong>zerohedge</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>In most respects, the latest note from Adam Jonas at Morgan Stanley on Tesla has been more of the same.\nYou've got your bona fide comedy, as Jonas starts his note by saying \"Let’s begin with a healthy...</p>\n\n<a href=\"https://www.zerohedge.com/markets/tesla-going-through-rather-dry-spell-says-morgan-stanleys-adam-jonas\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"TSLA":"特斯拉"},"source_url":"https://www.zerohedge.com/markets/tesla-going-through-rather-dry-spell-says-morgan-stanleys-adam-jonas","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1179958588","content_text":"In most respects, the latest note from Adam Jonas at Morgan Stanley on Tesla has been more of the same.\nYou've got your bona fide comedy, as Jonas starts his note by saying \"Let’s begin with a healthy dose of intellectual honesty on the starting point for the stock,\" before defending his $900 price target on the name...\n\nYou've got your \"pie in the sky\" style lofty estimates about a SaaS revenue stream that doesn't exist and that the company likely doesn't even have the infrastructure for...\nYou've got your insane valuation for Tesla's insurance business...\n...and finally, you've got your proclamation that Tesla is going to exceed its timelines for autonomous productions. You know, because the company has been so masterful with handling timelines in the past.\n\nAll told, it was a pretty standard Adam Jonas ticker tape parade for the company.\nBut tucked into what can only be described as the \"endless optimism\" of Jonas' note was an interesting point that the analyst made.Namely, he appears to make the suggestion that CEO Elon Musk's latest obsession with bitcoin is indicative that Tesla's underlying business could be going through a \"dry spell\".\n\"Over the past couple of months, incoming client interest on Tesla is focused mostly on Chinese sales/production data and Elon Musk’s tweets regarding Bitcoin. Might Tesla-Bitcoin fever may be telling us something about the lull in Tesla sentiment?\" Jonas asks toward the beginning of his note.\nHe continues:\"You just know it’s a rather dry spell for Tesla when Bitcoin is the dominant new story and dominant driver of investor discussion day in, day out.In our opinion, what’s considerably more interesting than ‘decoding’ the TSLA-Bitcoin relationship is the fact that there is a virtual ‘vacuum’ of developments and news related to other areas of technological and commercial progress that the company is involved with on renewable energy, storage networking and transportation.\"\nHe begrudgingly concludes about Tesla's underwhelming Model S Plaid unveil: \"Yes, the Model S Plaid unveil was fun, but where’s the next ‘big’ development to move the company forward?\"\nThe lines even stood out CNBC's Carl Quintanilla who pointed it out early this morning.\nIt's interesting to note this level of what appears to just be bemusement and exhaustion from Jonas. But whether or not it sticks out to the \"sophisticated investors\" buying Tesla stock remains another question...","news_type":1},"isVote":1,"tweetType":1,"viewCount":253,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":124496176,"gmtCreate":1624777484095,"gmtModify":1633948689299,"author":{"id":"3586167531065956","authorId":"3586167531065956","name":"7ed83f0f","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","crmLevel":2,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3586167531065956","authorIdStr":"3586167531065956"},"themes":[],"htmlText":"Interesting","listText":"Interesting","text":"Interesting","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/124496176","repostId":"1117734317","repostType":4,"repost":{"id":"1117734317","pubTimestamp":1624759414,"share":"https://www.laohu8.com/m/news/1117734317?lang=&edition=full","pubTime":"2021-06-27 10:03","market":"us","language":"en","title":"Square: The Bear Case","url":"https://stock-news.laohu8.com/highlight/detail?id=1117734317","media":"seekingalpha","summary":"Summary\n\nOn the surface, Square appears to be a growing company and a good investment with strong re","content":"<p><b>Summary</b></p>\n<ul>\n <li>On the surface, Square appears to be a growing company and a good investment with strong revenue growth and a large Cash App user base.</li>\n <li>In reality, the company has struggled to translate its top line into bottom line earnings.</li>\n <li>This has resulted in Square expanding its products to justify exaggerated revenue valuations which may never result in meaningful earnings growth.</li>\n <li>And whilst at first glance its Cash App story appears to be a budding prospect, it may be nothing more than temporary growth based on necessity.</li>\n <li>Given the current valuation and the increasing Bitcoin headwinds, Square could face significant revisions downwards in revenue and earnings.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f072284e4d267ddbfaf6f17db8b6aa46\" tg-width=\"1536\" tg-height=\"1024\"><span>AndreyPopov/iStock via Getty Images</span></p>\n<p><b>Introduction</b></p>\n<p>Square Inc.(NYSE:SQ)is one of the&nbsp;most popular stocks&nbsp;among retail traders and investors, ranking 57 in Robinhood's top 100 rankings. This has resulted in a 135% increase in price over the last year allowing SQ to reach a market capitalization of greater than $100bln, trading with the volatility of a mid-cap company.</p>\n<p>On the surface the price and valuation may seem justified, with the company sequentially increasing revenues and expanding its portfolio of products through Cash App, Bitcoin (BTC-USD), PPP loans and most recently delving into the commercial loans business with a&nbsp;banking license&nbsp;via Square Financial Services.</p>\n<p>However, these valuations are becoming disaggregated from the fundamentals of the company and its core business on speculation of future revenue projections which are heavily reliant on Bitcoin revenues.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/adc746c80eba08b76805234d32a7eff4\" tg-width=\"638\" tg-height=\"358\"><span>Source: Author, with data from SQ Investor Relations (Q1 2021 Historical Financial Information)</span></p>\n<p>In addition to this, SQ potentially faces several other issues related to small business positioning; policy and regulation; and general macroeconomic factors which may create headwinds that will impact its valuation and pose an asymmetric downside risk for investors, which I will extrapolate on below.</p>\n<p><b>Overview</b></p>\n<p>SQ is a payment processing and business tool provider that facilitates transactions between businesses / sellers and individuals and provides them with hardware, online infrastructure and analytics. Additionally, it services individuals through Cash App which appears to be growing exponentially and allows users to send, receive, hold and invest money, and recently Bitcoin.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/cee1136e6c6e1b5294daf79d06e4a1e8\" tg-width=\"382\" tg-height=\"421\"><span>Source: SQ Investor Relations (Q1 2021 Shareholder Letter - Cash App Inflows vs Gross Profit)</span></p>\n<p>As of March 2020, the&nbsp;company has received a Banking License&nbsp;from the Federal Deposit Insurance Corporation (FDIC) to originate commercial loans to retailers which use SQ for payment processing.</p>\n<p>Given all of this positive news, it is not surprising that the stock has rallied over 330% in the last 3 years on the basis of future growth projections and, since 2020, has chased revenue estimates.</p>\n<p>This was a common occurrence during COVID, as unchartered waters meant that top line growth was imperative for survival. Further, seemingly endless money printing by the Fed, combined with zero rates, meant money flowed into stocks which showed the highest potential for growth.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/214a8d95ef4deef4b9e6e7ec8ca86793\" tg-width=\"640\" tg-height=\"377\"><span>Source: Author, using data from YCHARTS (SQ vs EPS Estimates and Revenue Estimates 2021)</span></p>\n<p>However, in Q1 2021, as the printing slowed, yields began to rise and federal transfers to individuals dissipated, and consequently ever increasing revenue estimates began to mean less for the market, resulting in SQ price action ranging between $200 to $280.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5a03c8294f2805d4e82fbc3fed739f45\" tg-width=\"640\" tg-height=\"377\"><span>Source: Author, using data from YCHARTS (SQ Price YTD)</span></p>\n<p><b>Quantitative</b></p>\n<p>Year to Date, SQ has been a good performer relative to the payment processing sector, returning ~12% price increases to shareholders.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c32bf1243cd5e4252fc8af88b2ee4bfb\" tg-width=\"640\" tg-height=\"377\"><span>Source: Author, using data from YCHARTS (SQ vs Payment Processing Sector &gt;$50 bln Year to Date)</span></p>\n<p>It is also not a surprise to see why when evaluated against these companies on a forward earnings and revenue basis. SQ has above average and median earnings growth for 2021 and 2022, as well as strong revenue growth for 2021.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7b67e41d041b35bf5e8ae3c7adb55c7d\" tg-width=\"640\" tg-height=\"444\"><span>Source: Author, Sector Comparison (Payment Processors)</span></p>\n<p>Whilst SQ's forward PE seems exaggerated in contrast to its counterparts, its forward PS is relatively small and below the sector averages and median, perhaps justifying its present value.</p>\n<p>However, once you remove Bitcoin revenue from the equation, you get much more exaggerated forward PS estimates on much lower revenue growth, which represents SQ's primary business.</p>\n<p>For this equation, I have removed Bitcoin revenue from their Q1 2021 results, and judging by average analyst expectations which show little to no sequential revenue growth from Q2-Q4 2021, multiplied this figure by 4x for a year end revenue estimate of $6,140.70 mln. For prior years, I have removed Bitcoin from Revenue.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/624b2de0076a4f2d6062c52036b5d176\" tg-width=\"640\" tg-height=\"182\"><span>Source: Author, SQ Revenue Growth (2018 to 2021 Estimates with Bitcoin vs excl Bitcoin)</span></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5337259448695cf7fc6a796d86dba775\" tg-width=\"523\" tg-height=\"245\"><span>Source: Author, SQ vs Sector Comps (Revenue Estimates excl Bitcoin)</span></p>\n<p>As we can see this paints a very different picture of the company, and whilst revenue is still growing slightly above comps which also have high PS ratios, suddenly valuations on earnings look more meaningful and it becomes difficult to justify a forward PE 3x above the average and 4.5x above the median. Especially when companies such as American Express Co (AXP), Mastercard Inc (MA), PayPal Holdings Inc (PYPL) and Visa Inc (V) are producing on average 4x higher EPS. The majority of which pay a dividend and have similar growth estimates with less volatility risk.</p>\n<p>Many will suggest that \"this does not matter as BTC is now part of their revenue metrics and that is that, besides transaction volume is what is important\". However, I would cite the example of the 2018 Bitcoin sell off in which&nbsp;Bitcoin fell 70%, and transaction volumes fell from highs by approximately 75% as well:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b01941a1ab02f1b6dc27d73a2705a242\" tg-width=\"640\" tg-height=\"320\"><span>Source: Bitcoinvisuals.com (Bitcoin Market Volume 2018)</span></p>\n<p>On a valuation basis, this presents a substantial downside risk to investors if Bitcoin continued to retrace as a result of being met by increased regulation globally, as the company is essentially trading on revenue metrics propped up by Bitcoin. Quite simply, price down in Bitcoin could mean downwards revisions to revenue estimates and consequently a highly volatile retracement in the price of SQ.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c89cf1b41c0d446571c7a471bb8d8e50\" tg-width=\"640\" tg-height=\"377\"><span>Source: Author, using data from YCHARTS (SQ Price Correlation - Revenue, EPS and EBITDA)</span></p>\n<p>This becomes increasingly likely given the historical volatility of the stock when compared to its peers and it is not surprising that it is also becoming a consensus short position.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2d47874b5957751f0d485a9aa9ec5016\" tg-width=\"640\" tg-height=\"233\"><span>Source: Author (SQ vs Sector Comps Implied and Realized Volatility and Short Interest)</span></p>\n<p>Given the analysis by another Seeking Alpha contributor,The Value Trend&nbsp;in which the author suggests that&nbsp;SQ's 2025 growth is essentially priced in&nbsp;I would have to agree. SQ's reliance on revenue estimates which have been amplified substantially by Bitcoin present an asymmetric risk to the downside in the short to medium term for investors.</p>\n<p><b>Macro</b></p>\n<p>Whilst we are in the process of reopening, many things remain uncertain, such as the level of demand sustainability, job growth and creation, and inflation.</p>\n<p>Whilst the sentiment is overall positive in the media, there are several macroeconomic issues that are beneath the surface which need to be resolved before we can conclude that we are in the clear.</p>\n<p><b>Small Business Environment</b></p>\n<p>SQ's MRQ shows that nearly 49% of the Gross Profit comes from the Seller ecosystem (small businesses).</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a0f50d03e91a1609a120fa139b61e292\" tg-width=\"640\" tg-height=\"319\"><span>Source: SQ Investor Relations (Q1 2021 10Q Page 39 - Segmented Gross Profit)</span></p>\n<p>The majority of this is originating from exposure to sellers with &lt;$500,000 Gross Payment Volume (69.5%). This makes square substantially exposed to fluctuations in the small business cycle.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/75fbdbba973e9d39e9d07b50d6174b03\" tg-width=\"380\" tg-height=\"502\"><span>Source: SQ Investor Relations (Q1 2021 Shareholder Letter)</span></p>\n<p>Delving into the Business Formation Statistics, there is a rosy picture, with over 500,000 business applications for the month of May, 2021 providing an endless surge of opportunity for SQ.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/777bf7fbfba7b466a8c89baa9b21a72d\" tg-width=\"640\" tg-height=\"475\"><span>Source: Census.gov (Business Applications, May 2021)</span></p>\n<p>Again, when we dig deeper and look at the statistics below which rank the optimism of established small businesses, the picture begins to distort and starts to look like the descent into 2008.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e5be8fe67a4c257868eb79101d262e77\" tg-width=\"525\" tg-height=\"557\"><span>Source: NFIB (Small Business Economic Trends - Optimism, May 2021)</span></p>\n<p>Further, when we examine Small Business future outlook on expansion, this has also descended to lows and similar to what was seen in 2008. This could suggest that the bread and butter of SQ's gross profit margin, may not expand at the rate previously seen during 2017 to 2020.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e1a555c19fb385f170bb6deb2b3abcca\" tg-width=\"539\" tg-height=\"319\"><span>Source: NFIB (Small Business Economic Trends - Outlook, May 2021)</span></p>\n<p>Additionally, it should be noted that the two primary reasons small businesses are giving for their negative outlook are \"Economic Conditions\" and \"Political Climate\", which could be related to the election in 2020, COVID, recent policy changes and be somewhat transitory. Alternatively it could resemble the slow march of 2008 to 2016, we simply do not know, except for the fact it is a low reading and consequently could weigh on SQ's high revenue and earnings growth estimates.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4fbef66ecf854fe482a86e001dec91e6\" tg-width=\"523\" tg-height=\"271\"><span>Source: NFIB (Small Business Economic Trends - Reasons for Outlook, May 2021)</span></p>\n<p><b>Small Business Lending</b></p>\n<p>Looking forward, SQ clearly aims to solidify its position in the commercial lending space through acquiring a banking license. This is very positive for the company due to their large and growing small business user base,their experience since 2014, and the&nbsp;PPP program, which stopped on May 31, 2021.</p>\n<p>Currently, bank lending has receded as a result of recovery efforts from COVID.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/327e5b2f822c5f6e8b6298b58c0d4f94\" tg-width=\"640\" tg-height=\"401\"><span>Source: YCHARTS (US Commercial Banks - Commercial and Industrial Loans)</span></p>\n<p>This can be verified through the credit conditions index in the&nbsp;monthly NFIB report. Although, an&nbsp;American Banker survey&nbsp;is reporting that 86% of small businesses are finding it difficult to access credit, and are having to resort to personal credit.</p>\n<p>This is positive for SQ as it will allow them to fill the gap for credit to small business within the market. Though I believe it will be short lived as there is speculation that when the Fed tapers, they will also announce the lifting of&nbsp;capital restraints&nbsp;placed on Wells Fargo &amp; Company (WFC).</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/530b7de3c5d05e7e8f5de219d3582ea7\" tg-width=\"640\" tg-height=\"689\"><span>Source: Credit Suisse (Global Money Dispatch - 25 May 2021)</span></p>\n<p>There is a fairly good probability that this will occur, given that early in 2020 the Fed had&nbsp;lifted these restraints&nbsp;to help small businesses via the PPP program and tapering has a history of upsetting the market. If this occurs, I suspect WFC will become a giant amongst the small business credit space once more and be a very tough competitor to SQ due to their extensive network and history in the space.</p>\n<p><b>Bitcoin, Legislation &amp; Gensler</b></p>\n<p>Bitcoin has been making headlines as of 2H 2020 and much of 1H 2021 for good reason. It is gaining traction amongst retail traders and investors and has shown exceptional appreciation. Further, some minor&nbsp;banks&nbsp;have been interested in the medium although many banks and financial institutions have explicitly banned the&nbsp;purchase of Bitcoin using their services.</p>\n<p>The primary reasons for their objection is more than likely to do with illicit activities, such as&nbsp;money laundering,terrorism,fake transaction volumes, and similar activities which I do not want to get into and neither do banks.</p>\n<p>Consequently, on the recent hype, many countries are now stepping in to regulate the use of Bitcoin, but others are going a step further and are enacting legislation to ban its use and mining, most notably,China&nbsp;and&nbsp;India.</p>\n<p>This has had a negative impact on the price of Bitcoin since the ATHs in May 2021 of ~$65,000, retracing -46% since then.</p>\n<p>It is also extremely negative for Bitcoin going forward as the majority of Bitcoin mining is done in China (~70% YTD) with&nbsp;Hashrates of mining being correlated to the price. Therefore if these recede on decreasing Chinese mining activity, price could surely follow, affecting SQ's Bitcoin holdings and future transaction volumes.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/75ef78953396700241870a3f3ae8d8be\" tg-width=\"640\" tg-height=\"382\"><span>Source: Cambridge University (Cambridge Bitcoin Electricity Consumption Index YTD)</span></p>\n<p>Whilst the SEC has come out and said that&nbsp;Bitcoin regulation is not on their agenda for 2021, Gary Gensler has&nbsp;warned investors to be cautious. Gensler is also has a long history on regulations to protect investors, and despite not putting Bitcoin on the agenda for 2021, I advise readers to study his history with respect to&nbsp;2000 and 2008.</p>\n<p>Looking out further, this does not bode well for Bitcoin and SQ, generally. It is likely that there could be further regulation rather than adoption, negatively impacting its price, leading to a repeat of 2018 lower volumes as well as mining activity.</p>\n<p><b>General Economy - The Worry for Retail</b></p>\n<p>Separately, we could also be seeing a negative situation for retail going forward. Much of the recovery in retail as not been driven by \"pent up demand\" but mostly through subsidies issued throughout&nbsp;2020 and the start of 2021. When examining the graph below, we can see that once you subtract transfer receipts (government stimulus cheques and employment benefits - red line), income is not what it used to be.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/97a5a8cfaa11dd3c5ab5544778a40b90\" tg-width=\"640\" tg-height=\"247\"><span>Source: Federal Reserve Bank of St. Louis (Disposable Income vs Real Income minus Transfers vs Personal Savings vs Retail Trade Sales)</span></p>\n<p>Additionally, we can see that much of the spikes in retail sales (purple) have been driven mainly through the stimulus cheques which bolstered disposable income (blue) and consumer savings (green), though now stimulus has ended and people are having to start to dig into their savings, which is dropped 54% month on month between March and April.</p>\n<p>The consumer spending situation is made worse when examining U6 unemployment, which is&nbsp;considered to be the most revealing&nbsp;amongst economists as it includes unemployed, underemployed and discouraged job seekers. This, generally speaking, does not bode well for consumer discretionary spending patterns going forward.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c09f260d254df1a847962a6b6896764c\" tg-width=\"640\" tg-height=\"388\"><span>Source: Macrotrends.net (U6 Unemployment Rate vs U5 vs Official)</span></p>\n<p>Finally, the rising cost of food and energy, which for food I expect to continue, should hamper consumer discretionary spend going forward. I have previously written articles on The Mosaic Company (MOS)hereand The Andersons (ANDE)here, which outline my justification for this trend.</p>\n<p>In relation to SQ, we can see their historical exposure to consumer discretionary spend based on end 2019 data. When taking into account figures from: retail; professional services, beauty and personal care, home and repair, leisure and entertainment, and casual use, the total exposure is approximately 59%.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/dddddbe8ed21ed16aab29a7b5ebbc846\" tg-width=\"640\" tg-height=\"340\"><span>Source: Statista (Raynor de Best - GPV by Seller Industry Dec 2019)</span></p>\n<p>Whilst this may not impact its revenue figures substantially due to the weighting of bitcoin, I do expect this to undermine is gross profit figures going forward and negatively impact margins as stimulus further fades.</p>\n<p><b>Financials</b></p>\n<p><b>Bitcoin</b></p>\n<p>When examining the financials of SQ we can easily see that Bitcoin is the predominant factor driving its revenue growth (MRQ 69% of total revenue) of which its valuation is derived (see above Introduction section - SQ Price vs Revenue Segments; and Quantitative section - SQ Price correlation).</p>\n<p>From their Q1 2021 Shareholder Letter, page 12 they have stated that on March 31, 2021 the fair value of their holdings was $472 million. On this date the closing price was $58,918.83, or approximately 8,011 Bitcoins. They also state they initially invested $200 million into bitcoin during this period and Q4, so their average price is roughly $25,000 per Bitcoin.</p>\n<p>Currently, the price of Bitcoin sits at approximately $34,600 and it also appears to be struggling to find traction, especially when you examine some other trends. For example, looking at search trends of \"Buy Bitcoin\" on Google Trends, this is clearly waning.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d6b3b70625f48232fa97f1aa14f5548e\" tg-width=\"640\" tg-height=\"333\"><span>Source: Google Trends (Buy Bitcoin search terms - Worldwide 5 Yrs)</span></p>\n<p>Additionally, when you align this data with stimulus payments it is clear there is a relationship between the two in 2H 2020, and much of the recent speculation could be driven by government subsidies.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/54329dbe61b7b1f9fc1347f632aff709\" tg-width=\"640\" tg-height=\"293\"><span>Source: USA.Gov (COVID Stimulus Cheque Dates)</span></p>\n<p>The spike in searches occurs roughly around the time of the two latter government stimulus cheques with a lag of a few days to a few weeks.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4c7a198a905e4a89f11faa1b4db4003b\" tg-width=\"640\" tg-height=\"340\"><span>Source: Google Trends (Buy Bitcoin search terms - USA 12 Months)</span></p>\n<p>This also coincides with Bitcoin's price run up in December 2020 and January 2021, as well the failed rally in March and April 2021.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0428576ae2c8312e747c3ae5fccab637\" tg-width=\"640\" tg-height=\"401\"><span>Source: YCHARTS (Bitcoin Price 1 Yr)</span></p>\n<p>Thus, in this example, if we have a continued sell off of -70%, which is similar to what occurred in 2018. We would be back at November 2020 Bitcoin prices of $20,000 approximately.</p>\n<p>This is still feasible on the basis of dwindling volume, further legislation and declining hashrates. It could also be theorized that SQ may carry an impairment charge of $40 million, which would greatly affect operating income, net income and shareholder earnings and future estimates. Though this is purely theoretical without accounting for transactions in the current quarter, such as purchases or sales at or near ATHs.</p>\n<p>Additionally, with the lack of stimulus payments going forward and tighter consumer discretionary spend, the revenue generated from Bitcoin may also decline as less money enters the space and volumes decline. Negatively impacting revenue estimates for SQ and subsequently their price and valuation.</p>\n<p><b>Cash App</b></p>\n<p>On the surface, it looks like Cash App is growing exponentially into a viable platform for users to transact, with more than 36 million monthly transacting active customers, up 50% YoY.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b457a1d1f65d9d40fac153a9926aa167\" tg-width=\"262\" tg-height=\"230\"><span>Source: SQ Investor Relations (Q4 2020 Shareholder Letter)</span></p>\n<p>However, this growth in Cash App may be unsustainable going forward, with SQ elaborating on this in their Quarterly filing notes:</p>\n<blockquote>\n Cash App revenue benefited from growth in numbers of active Cash App customers and from&nbsp;\n <b>government relief programs</b>&nbsp;most recently passed into law in late December 2020 and in March 2021, as well as cumulative benefit from earlier stimulus programs passed in 2020. These programs provided additional stimulus relief and unemployment benefits which resulted in an increase in consumer spending and inflows into our Cash App ecosystem. Cash App revenue growth may not be sustained at the same levels in future quarters and may be impacted by the enactment of further stimulus relief and benefit programs, as well as the demand and market prices for bitcoin, amongst other factors.\n</blockquote>\n<blockquote>\n <i>Source: SQ Investor Relations (Q1 2021 10Q Filings - Page 49)</i>\n</blockquote>\n<p>Part of the issue with Cash App is theoretical continued use and future adoption. Much of the growth seen over the last year was predominantly fueled by stimulus payments through the Cash App ecosystem, and therefore by necessity given the circumstances.</p>\n<p>The two sharp spikes in searches for the app occurred on:</p>\n<ul>\n <li>April 12-18 2020</li>\n <li>January 24-30 2021</li>\n</ul>\n<p>These coincide with stimulus payments as they initially sent them and they gradually deposited them into people's accounts.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f9485d2feac40030b5190195a471781e\" tg-width=\"640\" tg-height=\"337\"><span>Source: Google Trends (Cash App search terms - USA 5 Years)</span></p>\n<p>Therefore, as government stimulus payments end, and Bitcoin again fades from relevancy, and more people return to work and day-trade less, this could negatively impact user growth metrics going forward, impacting SQ revenue estimates, gross profit figures, and its earnings.</p>\n<p>Further, there are a multitude of other more viable platforms, which another Seeking Alpha contributor,The Value Trend, has elaborated onhere.</p>\n<p>It is also important to keep in mind how they define these users, a \"Transacting active Cash App customer\" is the following:</p>\n<blockquote>\n ... has at least\n <b>one financial transaction</b>using any product or service within Cash App during the specified period.\n</blockquote>\n<blockquote>\n <i>Source: SQ Investor Relations (Q4 2020 Shareholder Letter - Page 4)</i>\n</blockquote>\n<p>So, if a customer received their wages from an employer, or unemployment benefit, into Cash App once per month, and transferred all of it to their bank account once per month, they are a \"transacting active Cash App customer\"...</p>\n<p>Perhaps a better quantifier of an \"active\" customer would be greater than 5 transactions.</p>\n<p><b>Technicals</b></p>\n<p>Examining the technicals of SQ, it is clear that the stock is now ranging between $200 and $280, with several breakout attempts at $250 and 2 failed attempts near $300, showing several signs that momentum is dying out.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4c277d5239e06c67b7ff6fd7fff319bb\" tg-width=\"640\" tg-height=\"642\"><span>Source: Author, with data from FINVIZ (SQ Chart)</span></p>\n<p>When examining dark pool order flows, there is a possibility for the current rally to continue as dark pools are at lows, which may likely continue into earnings by August. Although I would not get my hopes up unless some seriously good news occurs and Bitcoin rallies back to ATHs.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3323bfcd903c74dce542b53b0b56e093\" tg-width=\"640\" tg-height=\"281\"><span>Source: Squeezemetrics.com (SQ Dark Pools vs Implied Vol 2 Years)</span></p>\n<p>From the 13F filings, we can also see that many funds have reduced exposure and closed their positions, with fewer new positions being added. The Put to Call ratio is also becoming quite high, especially on a stock that has $100 bln market cap, signaling that we are not the only ones thinking the same thing.</p>\n<p>Caution is required though, as SQ's issues with Bitcoin are obviously becoming a consensus trade, and when those puts are lifted, gamma may turn positive and it could cause the stock to rally significantly.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b221f08c025ba225e32114f0e76dd272\" tg-width=\"640\" tg-height=\"152\"><span>Source: Whalewisdom.com (SQ Funds Positioning)</span></p>\n<p>Further, with relation to ARK ETFs, it is no surprise that there have been&nbsp;significant liquidity issues&nbsp;the last 6 months, and I agree with another Seeking Alpha contributor's thesisherethat we will see a reversion to the mean with respect to prices of stocks held in these ETFs. What can be noted is that Cathie has significantly reduced her exposure to SQ and that she may be picking her battles.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ecce0e1f1cd9e7e47fe27105be3f6ad0\" tg-width=\"640\" tg-height=\"559\"><span>Source: Cathiesark.com (SQ Shares Held - All ETFs)</span></p>\n<p>Given the above information, this is a difficult company to be short. It will either payoff enormously, or rip your face off due to its volatility. Additionally there are many funds wanting some small level of exposure to a company with Bitcoin on the financial statements. Therefore, if you were to trade this as a short at your own risk, discretion is advised and you should always pick your battles.</p>\n<p><b>Price Targets</b></p>\n<p>On the basis of volatility through SQ's ATR it is possible that SQ could move to a low of approximately $100 by the end of the year, moving in favor 40% of the time. This aligns with my year end 2021 price if you remove Bitcoin entirely from the equation.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4ec1e2586568ef7e0aea0c54e3503acc\" tg-width=\"640\" tg-height=\"222\"><span>Source: Author (SQ ATR Calculator)</span></p>\n<p>However, it would not be sensible to do this as it is part of their revenue for the time being, no matter how high Bitcoin volumes were in the start of 2021 and how low they may be at the end of the year.</p>\n<p>I do expect the stock to fall again and retest $200, possibly breaking down to $160. Though it is very difficult to determine a valuation with SQ, mainly because the valuation is derived from Bitcoin revenues, and also the perceived value by funds and the market in the future adoption of the asset.</p>\n<p>If the market begins to perceive Bitcoin again as irrelevant, I would expect SQ to slowly sell off to between $150 and $160 (-37% downside) with a low probability that it will rally past $300 (25% upside).</p>\n<p><b>Risks</b></p>\n<p>With respect to SQ the following risks should be noted.</p>\n<p>The company is growing, whether you like SQ or not. The main questions are: Will the market value Bitcoin on any realistic basis? How much is it growing with and without Bitcoin? What is the potential future growth with and without Bitcoin? And does the market believe it, or for that matter care?</p>\n<p>If the Bitcoin fades from relevancy, and judging by Google Trends, it is more likely than it is not, it is not outlandish to assume that SQ will suffer as a result of this and over the 2H 2021 and take a substantial hit to revenue estimates. However, if Bitcoin adoption increases and negative news fades, since this is a growth company, it could simply continue rallying.</p>\n<p>Further, consumer spending patterns are producing mixed data, and above I have presented a bear case. This could easily turn the other way if people's behavior changes, such as applying for jobs which will increase spending in the economy and hopefully produce small business growth and increase small business optimism and expansion, which is very beneficial for SQ as a cyclical business in the payment processing space.</p>\n<p>Again, caution is necessary, though I do think that future growth of the company is priced in and there is a higher risk to holders of SQ to the downside than to the upside.</p>\n<p><b>Summary</b></p>\n<p>SQ is a high growth company with some potential positive points in the long run; however, its valuation is highly questionable due to its high revenue estimates predominantly derived from Bitcoin transactions and not bottom-line earnings growth.</p>\n<p>From a quantitative perspective, it looks good amongst its peers but upon further examination it appears to be extremely overvalued as future growth, at least for 2021, may be derived from Bitcoin. Further, its Cash App adoption statistics may not continue to see the same run rate going forward without continued government stimulus.</p>\n<p>Additionally, it faces several potential macroeconomic hurdles with respect to small business exposure, lending competitors, consumer transaction competitors, Bitcoin legislation and softening retail demand.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Square: The Bear Case</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSquare: The Bear Case\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-27 10:03 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4436723-square-the-bear-case><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nOn the surface, Square appears to be a growing company and a good investment with strong revenue growth and a large Cash App user base.\nIn reality, the company has struggled to translate its ...</p>\n\n<a href=\"https://seekingalpha.com/article/4436723-square-the-bear-case\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block"},"source_url":"https://seekingalpha.com/article/4436723-square-the-bear-case","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1117734317","content_text":"Summary\n\nOn the surface, Square appears to be a growing company and a good investment with strong revenue growth and a large Cash App user base.\nIn reality, the company has struggled to translate its top line into bottom line earnings.\nThis has resulted in Square expanding its products to justify exaggerated revenue valuations which may never result in meaningful earnings growth.\nAnd whilst at first glance its Cash App story appears to be a budding prospect, it may be nothing more than temporary growth based on necessity.\nGiven the current valuation and the increasing Bitcoin headwinds, Square could face significant revisions downwards in revenue and earnings.\n\nAndreyPopov/iStock via Getty Images\nIntroduction\nSquare Inc.(NYSE:SQ)is one of the most popular stocks among retail traders and investors, ranking 57 in Robinhood's top 100 rankings. This has resulted in a 135% increase in price over the last year allowing SQ to reach a market capitalization of greater than $100bln, trading with the volatility of a mid-cap company.\nOn the surface the price and valuation may seem justified, with the company sequentially increasing revenues and expanding its portfolio of products through Cash App, Bitcoin (BTC-USD), PPP loans and most recently delving into the commercial loans business with a banking license via Square Financial Services.\nHowever, these valuations are becoming disaggregated from the fundamentals of the company and its core business on speculation of future revenue projections which are heavily reliant on Bitcoin revenues.\nSource: Author, with data from SQ Investor Relations (Q1 2021 Historical Financial Information)\nIn addition to this, SQ potentially faces several other issues related to small business positioning; policy and regulation; and general macroeconomic factors which may create headwinds that will impact its valuation and pose an asymmetric downside risk for investors, which I will extrapolate on below.\nOverview\nSQ is a payment processing and business tool provider that facilitates transactions between businesses / sellers and individuals and provides them with hardware, online infrastructure and analytics. Additionally, it services individuals through Cash App which appears to be growing exponentially and allows users to send, receive, hold and invest money, and recently Bitcoin.\nSource: SQ Investor Relations (Q1 2021 Shareholder Letter - Cash App Inflows vs Gross Profit)\nAs of March 2020, the company has received a Banking License from the Federal Deposit Insurance Corporation (FDIC) to originate commercial loans to retailers which use SQ for payment processing.\nGiven all of this positive news, it is not surprising that the stock has rallied over 330% in the last 3 years on the basis of future growth projections and, since 2020, has chased revenue estimates.\nThis was a common occurrence during COVID, as unchartered waters meant that top line growth was imperative for survival. Further, seemingly endless money printing by the Fed, combined with zero rates, meant money flowed into stocks which showed the highest potential for growth.\nSource: Author, using data from YCHARTS (SQ vs EPS Estimates and Revenue Estimates 2021)\nHowever, in Q1 2021, as the printing slowed, yields began to rise and federal transfers to individuals dissipated, and consequently ever increasing revenue estimates began to mean less for the market, resulting in SQ price action ranging between $200 to $280.\nSource: Author, using data from YCHARTS (SQ Price YTD)\nQuantitative\nYear to Date, SQ has been a good performer relative to the payment processing sector, returning ~12% price increases to shareholders.\nSource: Author, using data from YCHARTS (SQ vs Payment Processing Sector >$50 bln Year to Date)\nIt is also not a surprise to see why when evaluated against these companies on a forward earnings and revenue basis. SQ has above average and median earnings growth for 2021 and 2022, as well as strong revenue growth for 2021.\nSource: Author, Sector Comparison (Payment Processors)\nWhilst SQ's forward PE seems exaggerated in contrast to its counterparts, its forward PS is relatively small and below the sector averages and median, perhaps justifying its present value.\nHowever, once you remove Bitcoin revenue from the equation, you get much more exaggerated forward PS estimates on much lower revenue growth, which represents SQ's primary business.\nFor this equation, I have removed Bitcoin revenue from their Q1 2021 results, and judging by average analyst expectations which show little to no sequential revenue growth from Q2-Q4 2021, multiplied this figure by 4x for a year end revenue estimate of $6,140.70 mln. For prior years, I have removed Bitcoin from Revenue.\nSource: Author, SQ Revenue Growth (2018 to 2021 Estimates with Bitcoin vs excl Bitcoin)\nSource: Author, SQ vs Sector Comps (Revenue Estimates excl Bitcoin)\nAs we can see this paints a very different picture of the company, and whilst revenue is still growing slightly above comps which also have high PS ratios, suddenly valuations on earnings look more meaningful and it becomes difficult to justify a forward PE 3x above the average and 4.5x above the median. Especially when companies such as American Express Co (AXP), Mastercard Inc (MA), PayPal Holdings Inc (PYPL) and Visa Inc (V) are producing on average 4x higher EPS. The majority of which pay a dividend and have similar growth estimates with less volatility risk.\nMany will suggest that \"this does not matter as BTC is now part of their revenue metrics and that is that, besides transaction volume is what is important\". However, I would cite the example of the 2018 Bitcoin sell off in which Bitcoin fell 70%, and transaction volumes fell from highs by approximately 75% as well:\nSource: Bitcoinvisuals.com (Bitcoin Market Volume 2018)\nOn a valuation basis, this presents a substantial downside risk to investors if Bitcoin continued to retrace as a result of being met by increased regulation globally, as the company is essentially trading on revenue metrics propped up by Bitcoin. Quite simply, price down in Bitcoin could mean downwards revisions to revenue estimates and consequently a highly volatile retracement in the price of SQ.\nSource: Author, using data from YCHARTS (SQ Price Correlation - Revenue, EPS and EBITDA)\nThis becomes increasingly likely given the historical volatility of the stock when compared to its peers and it is not surprising that it is also becoming a consensus short position.\nSource: Author (SQ vs Sector Comps Implied and Realized Volatility and Short Interest)\nGiven the analysis by another Seeking Alpha contributor,The Value Trend in which the author suggests that SQ's 2025 growth is essentially priced in I would have to agree. SQ's reliance on revenue estimates which have been amplified substantially by Bitcoin present an asymmetric risk to the downside in the short to medium term for investors.\nMacro\nWhilst we are in the process of reopening, many things remain uncertain, such as the level of demand sustainability, job growth and creation, and inflation.\nWhilst the sentiment is overall positive in the media, there are several macroeconomic issues that are beneath the surface which need to be resolved before we can conclude that we are in the clear.\nSmall Business Environment\nSQ's MRQ shows that nearly 49% of the Gross Profit comes from the Seller ecosystem (small businesses).\nSource: SQ Investor Relations (Q1 2021 10Q Page 39 - Segmented Gross Profit)\nThe majority of this is originating from exposure to sellers with <$500,000 Gross Payment Volume (69.5%). This makes square substantially exposed to fluctuations in the small business cycle.\nSource: SQ Investor Relations (Q1 2021 Shareholder Letter)\nDelving into the Business Formation Statistics, there is a rosy picture, with over 500,000 business applications for the month of May, 2021 providing an endless surge of opportunity for SQ.\nSource: Census.gov (Business Applications, May 2021)\nAgain, when we dig deeper and look at the statistics below which rank the optimism of established small businesses, the picture begins to distort and starts to look like the descent into 2008.\nSource: NFIB (Small Business Economic Trends - Optimism, May 2021)\nFurther, when we examine Small Business future outlook on expansion, this has also descended to lows and similar to what was seen in 2008. This could suggest that the bread and butter of SQ's gross profit margin, may not expand at the rate previously seen during 2017 to 2020.\nSource: NFIB (Small Business Economic Trends - Outlook, May 2021)\nAdditionally, it should be noted that the two primary reasons small businesses are giving for their negative outlook are \"Economic Conditions\" and \"Political Climate\", which could be related to the election in 2020, COVID, recent policy changes and be somewhat transitory. Alternatively it could resemble the slow march of 2008 to 2016, we simply do not know, except for the fact it is a low reading and consequently could weigh on SQ's high revenue and earnings growth estimates.\nSource: NFIB (Small Business Economic Trends - Reasons for Outlook, May 2021)\nSmall Business Lending\nLooking forward, SQ clearly aims to solidify its position in the commercial lending space through acquiring a banking license. This is very positive for the company due to their large and growing small business user base,their experience since 2014, and the PPP program, which stopped on May 31, 2021.\nCurrently, bank lending has receded as a result of recovery efforts from COVID.\nSource: YCHARTS (US Commercial Banks - Commercial and Industrial Loans)\nThis can be verified through the credit conditions index in the monthly NFIB report. Although, an American Banker survey is reporting that 86% of small businesses are finding it difficult to access credit, and are having to resort to personal credit.\nThis is positive for SQ as it will allow them to fill the gap for credit to small business within the market. Though I believe it will be short lived as there is speculation that when the Fed tapers, they will also announce the lifting of capital restraints placed on Wells Fargo & Company (WFC).\nSource: Credit Suisse (Global Money Dispatch - 25 May 2021)\nThere is a fairly good probability that this will occur, given that early in 2020 the Fed had lifted these restraints to help small businesses via the PPP program and tapering has a history of upsetting the market. If this occurs, I suspect WFC will become a giant amongst the small business credit space once more and be a very tough competitor to SQ due to their extensive network and history in the space.\nBitcoin, Legislation & Gensler\nBitcoin has been making headlines as of 2H 2020 and much of 1H 2021 for good reason. It is gaining traction amongst retail traders and investors and has shown exceptional appreciation. Further, some minor banks have been interested in the medium although many banks and financial institutions have explicitly banned the purchase of Bitcoin using their services.\nThe primary reasons for their objection is more than likely to do with illicit activities, such as money laundering,terrorism,fake transaction volumes, and similar activities which I do not want to get into and neither do banks.\nConsequently, on the recent hype, many countries are now stepping in to regulate the use of Bitcoin, but others are going a step further and are enacting legislation to ban its use and mining, most notably,China and India.\nThis has had a negative impact on the price of Bitcoin since the ATHs in May 2021 of ~$65,000, retracing -46% since then.\nIt is also extremely negative for Bitcoin going forward as the majority of Bitcoin mining is done in China (~70% YTD) with Hashrates of mining being correlated to the price. Therefore if these recede on decreasing Chinese mining activity, price could surely follow, affecting SQ's Bitcoin holdings and future transaction volumes.\nSource: Cambridge University (Cambridge Bitcoin Electricity Consumption Index YTD)\nWhilst the SEC has come out and said that Bitcoin regulation is not on their agenda for 2021, Gary Gensler has warned investors to be cautious. Gensler is also has a long history on regulations to protect investors, and despite not putting Bitcoin on the agenda for 2021, I advise readers to study his history with respect to 2000 and 2008.\nLooking out further, this does not bode well for Bitcoin and SQ, generally. It is likely that there could be further regulation rather than adoption, negatively impacting its price, leading to a repeat of 2018 lower volumes as well as mining activity.\nGeneral Economy - The Worry for Retail\nSeparately, we could also be seeing a negative situation for retail going forward. Much of the recovery in retail as not been driven by \"pent up demand\" but mostly through subsidies issued throughout 2020 and the start of 2021. When examining the graph below, we can see that once you subtract transfer receipts (government stimulus cheques and employment benefits - red line), income is not what it used to be.\nSource: Federal Reserve Bank of St. Louis (Disposable Income vs Real Income minus Transfers vs Personal Savings vs Retail Trade Sales)\nAdditionally, we can see that much of the spikes in retail sales (purple) have been driven mainly through the stimulus cheques which bolstered disposable income (blue) and consumer savings (green), though now stimulus has ended and people are having to start to dig into their savings, which is dropped 54% month on month between March and April.\nThe consumer spending situation is made worse when examining U6 unemployment, which is considered to be the most revealing amongst economists as it includes unemployed, underemployed and discouraged job seekers. This, generally speaking, does not bode well for consumer discretionary spending patterns going forward.\nSource: Macrotrends.net (U6 Unemployment Rate vs U5 vs Official)\nFinally, the rising cost of food and energy, which for food I expect to continue, should hamper consumer discretionary spend going forward. I have previously written articles on The Mosaic Company (MOS)hereand The Andersons (ANDE)here, which outline my justification for this trend.\nIn relation to SQ, we can see their historical exposure to consumer discretionary spend based on end 2019 data. When taking into account figures from: retail; professional services, beauty and personal care, home and repair, leisure and entertainment, and casual use, the total exposure is approximately 59%.\nSource: Statista (Raynor de Best - GPV by Seller Industry Dec 2019)\nWhilst this may not impact its revenue figures substantially due to the weighting of bitcoin, I do expect this to undermine is gross profit figures going forward and negatively impact margins as stimulus further fades.\nFinancials\nBitcoin\nWhen examining the financials of SQ we can easily see that Bitcoin is the predominant factor driving its revenue growth (MRQ 69% of total revenue) of which its valuation is derived (see above Introduction section - SQ Price vs Revenue Segments; and Quantitative section - SQ Price correlation).\nFrom their Q1 2021 Shareholder Letter, page 12 they have stated that on March 31, 2021 the fair value of their holdings was $472 million. On this date the closing price was $58,918.83, or approximately 8,011 Bitcoins. They also state they initially invested $200 million into bitcoin during this period and Q4, so their average price is roughly $25,000 per Bitcoin.\nCurrently, the price of Bitcoin sits at approximately $34,600 and it also appears to be struggling to find traction, especially when you examine some other trends. For example, looking at search trends of \"Buy Bitcoin\" on Google Trends, this is clearly waning.\nSource: Google Trends (Buy Bitcoin search terms - Worldwide 5 Yrs)\nAdditionally, when you align this data with stimulus payments it is clear there is a relationship between the two in 2H 2020, and much of the recent speculation could be driven by government subsidies.\nSource: USA.Gov (COVID Stimulus Cheque Dates)\nThe spike in searches occurs roughly around the time of the two latter government stimulus cheques with a lag of a few days to a few weeks.\nSource: Google Trends (Buy Bitcoin search terms - USA 12 Months)\nThis also coincides with Bitcoin's price run up in December 2020 and January 2021, as well the failed rally in March and April 2021.\nSource: YCHARTS (Bitcoin Price 1 Yr)\nThus, in this example, if we have a continued sell off of -70%, which is similar to what occurred in 2018. We would be back at November 2020 Bitcoin prices of $20,000 approximately.\nThis is still feasible on the basis of dwindling volume, further legislation and declining hashrates. It could also be theorized that SQ may carry an impairment charge of $40 million, which would greatly affect operating income, net income and shareholder earnings and future estimates. Though this is purely theoretical without accounting for transactions in the current quarter, such as purchases or sales at or near ATHs.\nAdditionally, with the lack of stimulus payments going forward and tighter consumer discretionary spend, the revenue generated from Bitcoin may also decline as less money enters the space and volumes decline. Negatively impacting revenue estimates for SQ and subsequently their price and valuation.\nCash App\nOn the surface, it looks like Cash App is growing exponentially into a viable platform for users to transact, with more than 36 million monthly transacting active customers, up 50% YoY.\nSource: SQ Investor Relations (Q4 2020 Shareholder Letter)\nHowever, this growth in Cash App may be unsustainable going forward, with SQ elaborating on this in their Quarterly filing notes:\n\n Cash App revenue benefited from growth in numbers of active Cash App customers and from \n government relief programs most recently passed into law in late December 2020 and in March 2021, as well as cumulative benefit from earlier stimulus programs passed in 2020. These programs provided additional stimulus relief and unemployment benefits which resulted in an increase in consumer spending and inflows into our Cash App ecosystem. Cash App revenue growth may not be sustained at the same levels in future quarters and may be impacted by the enactment of further stimulus relief and benefit programs, as well as the demand and market prices for bitcoin, amongst other factors.\n\n\nSource: SQ Investor Relations (Q1 2021 10Q Filings - Page 49)\n\nPart of the issue with Cash App is theoretical continued use and future adoption. Much of the growth seen over the last year was predominantly fueled by stimulus payments through the Cash App ecosystem, and therefore by necessity given the circumstances.\nThe two sharp spikes in searches for the app occurred on:\n\nApril 12-18 2020\nJanuary 24-30 2021\n\nThese coincide with stimulus payments as they initially sent them and they gradually deposited them into people's accounts.\nSource: Google Trends (Cash App search terms - USA 5 Years)\nTherefore, as government stimulus payments end, and Bitcoin again fades from relevancy, and more people return to work and day-trade less, this could negatively impact user growth metrics going forward, impacting SQ revenue estimates, gross profit figures, and its earnings.\nFurther, there are a multitude of other more viable platforms, which another Seeking Alpha contributor,The Value Trend, has elaborated onhere.\nIt is also important to keep in mind how they define these users, a \"Transacting active Cash App customer\" is the following:\n\n ... has at least\n one financial transactionusing any product or service within Cash App during the specified period.\n\n\nSource: SQ Investor Relations (Q4 2020 Shareholder Letter - Page 4)\n\nSo, if a customer received their wages from an employer, or unemployment benefit, into Cash App once per month, and transferred all of it to their bank account once per month, they are a \"transacting active Cash App customer\"...\nPerhaps a better quantifier of an \"active\" customer would be greater than 5 transactions.\nTechnicals\nExamining the technicals of SQ, it is clear that the stock is now ranging between $200 and $280, with several breakout attempts at $250 and 2 failed attempts near $300, showing several signs that momentum is dying out.\nSource: Author, with data from FINVIZ (SQ Chart)\nWhen examining dark pool order flows, there is a possibility for the current rally to continue as dark pools are at lows, which may likely continue into earnings by August. Although I would not get my hopes up unless some seriously good news occurs and Bitcoin rallies back to ATHs.\nSource: Squeezemetrics.com (SQ Dark Pools vs Implied Vol 2 Years)\nFrom the 13F filings, we can also see that many funds have reduced exposure and closed their positions, with fewer new positions being added. The Put to Call ratio is also becoming quite high, especially on a stock that has $100 bln market cap, signaling that we are not the only ones thinking the same thing.\nCaution is required though, as SQ's issues with Bitcoin are obviously becoming a consensus trade, and when those puts are lifted, gamma may turn positive and it could cause the stock to rally significantly.\nSource: Whalewisdom.com (SQ Funds Positioning)\nFurther, with relation to ARK ETFs, it is no surprise that there have been significant liquidity issues the last 6 months, and I agree with another Seeking Alpha contributor's thesisherethat we will see a reversion to the mean with respect to prices of stocks held in these ETFs. What can be noted is that Cathie has significantly reduced her exposure to SQ and that she may be picking her battles.\nSource: Cathiesark.com (SQ Shares Held - All ETFs)\nGiven the above information, this is a difficult company to be short. It will either payoff enormously, or rip your face off due to its volatility. Additionally there are many funds wanting some small level of exposure to a company with Bitcoin on the financial statements. Therefore, if you were to trade this as a short at your own risk, discretion is advised and you should always pick your battles.\nPrice Targets\nOn the basis of volatility through SQ's ATR it is possible that SQ could move to a low of approximately $100 by the end of the year, moving in favor 40% of the time. This aligns with my year end 2021 price if you remove Bitcoin entirely from the equation.\nSource: Author (SQ ATR Calculator)\nHowever, it would not be sensible to do this as it is part of their revenue for the time being, no matter how high Bitcoin volumes were in the start of 2021 and how low they may be at the end of the year.\nI do expect the stock to fall again and retest $200, possibly breaking down to $160. Though it is very difficult to determine a valuation with SQ, mainly because the valuation is derived from Bitcoin revenues, and also the perceived value by funds and the market in the future adoption of the asset.\nIf the market begins to perceive Bitcoin again as irrelevant, I would expect SQ to slowly sell off to between $150 and $160 (-37% downside) with a low probability that it will rally past $300 (25% upside).\nRisks\nWith respect to SQ the following risks should be noted.\nThe company is growing, whether you like SQ or not. The main questions are: Will the market value Bitcoin on any realistic basis? How much is it growing with and without Bitcoin? What is the potential future growth with and without Bitcoin? And does the market believe it, or for that matter care?\nIf the Bitcoin fades from relevancy, and judging by Google Trends, it is more likely than it is not, it is not outlandish to assume that SQ will suffer as a result of this and over the 2H 2021 and take a substantial hit to revenue estimates. However, if Bitcoin adoption increases and negative news fades, since this is a growth company, it could simply continue rallying.\nFurther, consumer spending patterns are producing mixed data, and above I have presented a bear case. This could easily turn the other way if people's behavior changes, such as applying for jobs which will increase spending in the economy and hopefully produce small business growth and increase small business optimism and expansion, which is very beneficial for SQ as a cyclical business in the payment processing space.\nAgain, caution is necessary, though I do think that future growth of the company is priced in and there is a higher risk to holders of SQ to the downside than to the upside.\nSummary\nSQ is a high growth company with some potential positive points in the long run; however, its valuation is highly questionable due to its high revenue estimates predominantly derived from Bitcoin transactions and not bottom-line earnings growth.\nFrom a quantitative perspective, it looks good amongst its peers but upon further examination it appears to be extremely overvalued as future growth, at least for 2021, may be derived from Bitcoin. Further, its Cash App adoption statistics may not continue to see the same run rate going forward without continued government stimulus.\nAdditionally, it faces several potential macroeconomic hurdles with respect to small business exposure, lending competitors, consumer transaction competitors, Bitcoin legislation and softening retail demand.","news_type":1},"isVote":1,"tweetType":1,"viewCount":309,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}