Price movement vs earning reports:- Uber; Roku and Airbnb
There are three shares that I have followed due to some market highlight. Namely Uber; Airbnb and Roku. Of the three, I owned Roku and Airbnb through option assignment. First I would like to comment on the observation of the stocks in relation to the current market sentiment and leave the readers to digest these general observations.US market has went through a huge dipped in first half of 2022 with index pointing to 'extreme fear'. The plunge was so great and fast that almost it was almost quite difficult for retail investors to react to the price drop to take enough time to really think 'what's the next step'. MARKET NEWS seems to DOMINATE and feeds that extreme fear. Every price movement were capped on the upside. Doom and gloom camps are over YouTube (with also bull
This rebound is necessary for:- the oversold of shares for past weeks resulted funds has to cover back by buying back shares that they do not own. Shares cannot be short sell to zero and not covered back. Borrow shares without returning is stealing. Rebound will not be very long as it's still a bear market, when the funds had their covering, it's just a matter of time, they use 'bad news' to short counters again.True bull run will only come when Fed do a QE or when the valuation is appropriate and economy is recovering.Key for now is:- taking the current plunge and May/June plunge to understand the bottoming of company share price movement. Buy into the dip.
I am skeptical on crypto. If you HAVE to invest on crypto, please be prepared with a mindset that IF this asset can end up 'negligible' value (If not '$0'). The upside of risk of buying a company in crash is it recovers and shoot up. But the absolute downside is, the company went BUSTED and NEVER returns. Many often think of buying dip but few understand the consequence of asset being BUSTED. I still believe there are assets having value, but not on things with speculative but no true intrinsic value. Can we buy bread and butter now with a crypto coin?At the moment, crypto is frozen in trading.
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$Tesla Motors(TSLA)$I mean can buy in moderation. But this split will last a long way before if any future split to be. But it is also a different kind of split compare to previous split. Now more novice investors already comes in into EV revolution where Tesla will face real competition. China is super in copying technology. Catching up is fast, and tesla have to have ‘new ideas’ that Chinese don’t have. Near term neutral, future canbe bearish
Stock split increase liquidity, so those retail investors that can afford 200-300 range stocks will comein the trading scene. More mid-affluent investors will be in the tesla market. That will stabilise the price. Upside wise I think it will take time to proof themselves as more prudent trading will take more stand than speculative ones. I will expect IV of option to come down after split and upside or downside being more stabilise.
SoFi - The upcoming and rising star. I have been invested in this Fintech bank for the past 2 years. Recently, it has its breakout and survive recent market turmoil. Having 12 out of 16 straight days in the green. Would recommend this stock for the mid to long term investment, given interest rate environment is improving and 2025 and 2026 has much install for the company. Cheers.
In view of bullish trend on a mid to long term. Share your picks that you have the greatest conviction that can 2x to 10x coming future. I will start my pick on Lending Club. Reason for resilience in trouble time and ability to scale business steadily even in high interest environment. Do share your opinion your best shot.🙂
Agree. Many people think advertising budget cut isa linear cut across all ad base industries (That is $x dollars has to be share among 5 or more companies doing ad business). But ad product gets promoted not a linear way. I think product company will choose the correct platform to do their ad, and also if budget allows, they can get more ad companies do their ad all in one go. Not necessarily a shared pie linear concept.
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Bitcoin will still be around. But take all tycoons words with pinch of salt, knowing their words influencemarket movement as well. Bitcoin is like Diamond, darling to the rich at one point but a dump when recession comes. Face it, wecan't always buy bread and butter with Bitcoin directlyStocks is like Gold and currency, still more tradable.
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Are analysts ratings bias and manipulative? Should there be some kind of penalty impose if their ratings deviate way too far from actual market price? Afterall they are suppose to be 'professional'?
Lately, there are several analysts downgrading Sofi stocks, as today another added to the downgrade. Certainly the downgrade brings down the price, but the earlier downgrades sizzle away while market remain bullish. One ridiculous analyst even put a $3 price tag to a highly promising growth stock. The price tag was not even been reach at 2021 bear at the lowest price. On another case, JPM place a buy ratingof $50 for a close-to-bankrupt Carvana. These analysts aren't they not appeared to be manipulative? I felt there should be some kind of regulators that regulate ridiculous rating and penalise these unruly analysts as they cause unnecessary volatility movement.
A broken clock can be right twice a day. If a person shouts all days about down market, he eventuallyget it right. Burry bought Warner Discovery stocks and fell. (Was he right in his decision?) You holds your own money, invest wise. Market sentiment moves by large funds hands influence price of stock, not a single Burry who is expert in shorting but can't help an ailing economy to recover.
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$Tesla Motors(TSLA)$ one more round of major correction. Macro sentiment is not going to spare any stocks from plunge. Nothing is cheap, it can be cheaper. Look at the valuation is crucial. Fundamental is important. Musk as CEO is also a major factor. If he leaves tesla, it will plunge even it is profitable company. If one think it is cheap, DCA might be a more defensive approach to invest into it.
Options idea for 2 great stocks:- Enphase (ENPH) and SoFi (SOFI). Lately Enphase, a leading solar company in US, has its stock price fell nearer to its 9 months low. Offers a good entry price for a long term play. I have acquire 500 shares through options at 85.0 and since the earning fall, it has hover at around 81-83+ range. For premium and shares acquisition play, one can open puts at 79 or 80.0 strike with 3+ dollars premium in 2 weeks. While I also open covered calls at 97.0 strike at around 1 dollar premium. Enphase can trend back its 100.0 range when market recover, even last night SP500 downtrend, it remains stable. SoFi has defy the bearish trend holding well at its current price, trend projected to be bullish and expected to beat earnings again in Q4, selling puts at 10.0 or even
I don't really think it matters very much. Except more retail investors will trade in the stocks, meaning both upside and downside can be more volatile perhaps. I would take advantage that a hundred shares is enough to start an option chain in covered callselling
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