đȘ Why the Digital Revolution is Here to Stayâand Getting Stronger
By -Edward Lance Lorilla
February 15, 202118 minute read
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Good morning. Reddit is now on Wall Street's radar for investment ideas (welcome to the party).
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.
Good morning.Reddit is now on Wall Street's radar for investment ideas (welcome to the party). But while Wall Street may be focused on the retail traders in WallStreetBets, other parts of the site can offer some great investment lessons as well.
For instance, one user posted the results of a survey they conducted on LinkedIn to determine what has caused the latest shifts in digital transformation. The overwhelming response? The pandemic. That data gives insight that company leaders may not have been ahead of the curve, but they knew how to react when a dire situation presented itself. The investment lesson? Digital trends are still ongoing, and investors likely have years of ample opportunities to profit in the space.
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The past year has seen a strong uptick in digital transformations for companies. That includes content delivery, operations, as well as services like payment systems.
With these powerful trends in place, growth is likely to continue. That will continue to attract capital to the space, and be a strong source of returns for investors going forward. One of the more powerful trends will be in digital payments.
Anthony Jabbour, CEO of Dun & Bradstreet (DNB), recently bought 42,900 shares. The buy increased his holdings by nearly 1 percent, and came to a cost just under $1 million.
He was joined by the company CFO, who picked up 5,000 shares on the same day, paying just over $116,000 to make the trade. The two insiders made similar buys at this time last year. Otherwise, there have been no other insider transactions over the past three years.
Media giant ViacomCBS (VIAC) has been on a tear in recent months. After spiking as high as $60, however, at least one trader sees a pullback in the cards.
That's based on the June $55 put options. Over 4,300 contracts traded, a 39-fold rise over the prior open interest of 110. With 123 days until expiration, shares would need to decline about 5 percent for the trade to move in-the-money. The buyer paid about $6.80 for the option.
Electric airline startup firm Joby Aviation looks to do for planes what Tesla Motors (TSLA) has done for cars. Last year, the company got nearly $600 million in funding from companies led by Toyota Motors(TM). Now, the company looks to go public via a Special Purpose Acquisition Company (SPAC), with a potential valuation of $10 billion.
Reminiscent of the Beanie Babies speculation in the late 1990s, investors are clamoring for sports memorabilia and driving the price higher. The big winner? Trading cards. In just a few weeks, the price of a Michael Jordan rookie card went from $215,000 to $730,000 in auctions. And in January, a Mickey Mantle went for a record $5.2 million.
Entertainment giant The Walt Disney Company (DIS) is still dealing with reduced capacity at its parks thanks to the pandemic. But its heavy investment in streaming is paying off. The company reported a profit for the fourth quarter of 2020 against expectations of a loss. Paid subscribers to Disney+ have now topped 95 million users at the end of last year.
Oil prices have been creeping higher in recent weeks, topping nearly $60 per barrel. Up for 10 of the past 11 trading days, it's possible that supply reductions by OPEC and other nations could fuel a further rise. A move to $70 per barrel may go even higher, even as demand for oil remains muted thanks to lower economic growth.
House Democrats unveiled a plan to further provide $1,400 in direct stimulus payments, as well as provided extended unemployment benefits and additional payments to families with children on Friday. Some provisions will likely face challenges in the Senate, but approval could come as soon as the end of the month, just before many existing provisions expire.
S&P 500 MOVERS
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ILMN
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TER
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MOS
5.099%
DISCA
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BOTTOM
DVA
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7.14%
DLR
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Quote of the Day
With so few new listings hitting the market, I expect bidding wars to become more common and involve even more potential buyers as we head into the spring homebuying season.
- Daryl Fairweather, chief economist at Redfin, on why the housing market continues to be tight in many areas, and why that could push prices even higher this year.
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