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1 Stock That Could Weather the Storm
Apple (NASDAQ: AAPL) is the largest component of the Nasdaq Composite, making up almost 13% of the index as of Sept. 30. Considering Apple is down only 12% year to date, it is helping to prop up the index. This stock price resiliency is due to Apple's operational resiliency. While other big tech companies are crashing and burning after reporting earnings, Apple continues to chug along and post stable results. Apple seems to be weathering the storm of an uncertain global economy right now, but let's find out why that could continue and why you might want to buy shares of this stock if you're looking to take advantage of the Nasdaq bear market.
Apple's fourth quarter proved why the company is handily outperforming the Nasdaq this year. While other companies are seeing demand stagnate and cash flows fall, Apple is leaning on its competitive advantages to continue thriving. Chances are high that the company will come out more powerful than ever from this downdraft in the economy.
Stocks Slide as Fed Leaves Investors Unsure About Path Ahead
Stocks seesawed on Wednesday, but eventually ended the day lower, after Jerome H. Powell, the Federal Reserve chair, dashed investors’ hopes that an end to the central bank’s rate increases may soon be over.
The S&P 500 slumped to a loss of 2.5 percent for the day, after fluctuating between gains and losses as Mr. Powell spoke during an afternoon news conference about the Fed’s latest decision.
Stocks had started the day lower as investors braced for the Fed to raise interest rates a further 0.75 percentage points. The central bank followed through on that expectation, but attention quickly shifted to what the Fed was thinking about interest rate increases to come.
The S&P 500 rallied soon after the statement was released, climbing into positive territory. It’s “very premature” to be talking about pausing rate increases, he said. Investors quickly responded, and the S&P 500 fell sharply. Trading in government bonds was similarly upended, with yields rising in the late afternoon after falling earlier in the day. The two-year Treasury yield, which is sensitive to changes in Fed policy, ended 0.06 percentage points higher at 4.59 percent.
The S&P 500 rose roughly 8 percent in October, partly on better-than-expected corporate earnings but also as some investors began to bet that a pivot in the Fed’s messaging was coming.
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Global Payments (GPN) Lags Q3 Earnings Estimates
Global Payments (GPN) came out with quarterly earnings of $2.48 per share, missing the Zacks Consensus Estimate of $2.49 per share. This compares to earnings of $2.18 per share a year ago. These figures are adjusted for non-recurring items. Global Payments , which belongs to the Zacks Financial Transaction Services industry, posted revenues of $2.06 billion for the quarter ended September 2022, surpassing the Zacks Consensus Estimate by 0.17%. This compares to year-ago revenues of $2 billion. The company has topped consensus revenue estimates two times over the last four quarters. Global Payments shares have lost about 7.3% since the beginning of the year versus the S&P 500's decline of -18.2%.
While Global Payments has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
Argo Blockchain is at risk of closing if it fails further financing
Argo Blockchain has been selling its Bitcoin holdings earlier this year to cut debt to Michael Novogratz’s crypto investment firm Galaxy Digital. The London Stock Exchange-listed cryptocurrency firm Argo Blockchain has warned that it’s at risk of ceasing operations due to a lack of financing. Argo has been seeking to raise about 24 million British pounds ($27 million) via subscription for ordinary shares. “The company no longer believes that this subscription will be consummated under the previously announced terms,” Argo said in a statement. While Argo is exploring other financing options, there can be no assurance that it will sign any definitive agreements or consummate any deals. The firm will continue to work to reach sufficient capital for at least the next 12 months from the day of the announcement, Argo noted.
Earnings momentum seemed to give the stock a lift again.
Shares of Shopify (SHOP 0.12%) were bucking the broad-market trend today and gaining two trading days after it posted better-than-expected third-quarter results and a day after rival Amazon missed the mark badly in its fourth-quarter guidance. Shopify stock was up 3.8% while the Nasdaq had lost 1.4%.
Shopify's gains today appear to be an extension of its momentum from its earnings report last Thursday when the stock jumped 17%, and investors may be taking a closer look at the stock after Amazon plunged on weak guidance.The company posted solid top-line growth with revenue up 22%, though gross merchandise volume was only up 11%.
Ethereum Dominance Rises
Ethereum's dominance, the ratio of its market cap to the total crypto market cap, rebounded to 19.67% this week with the recent crypto price bounce. It fell below 18% from around 21% following Ethereum's merge to a proof-of-stake network in mid-September, data from Trading View shows. Bitcoin, the largest cryptocurrency, maintains its dominance at 39% of the market.
The S&P 500 (^GSPC) gained 2.5%. The Dow Jones Industrial Average (^DJI) bounced more than 800 points, or 2.6%, to a two-month high, as it also notched a fourth-straight week of gains and its best week of the year. The tech-heavy Nasdaq Composite (^IXI) rose 2.9%. The moves came even as Treasury yields climbed back above 4%.
Twitter (TWTR) Gains But Lags Market
Twitter (TWTR) closed at $53.70 in the latest trading session, marking a +0.66% move from the prior day. The stock lagged the S&P 500's daily gain of 2.46%. Meanwhile, the Dow gained 2.59%, and the Nasdaq, a tech-heavy index, lost 0.23%.Coming into today, shares of the short messaging service had gained 25.64% in the past month. In that same time, the Computer and Technology sector lost 1.56%, while the S&P 500 gained 4.56%.
Shopify Stock Soars On Earnings Beat, Reacceleration Of Sales Growth
Shares of e-commerce firm Shopify (SHOP) soared Thursday after the company reported a smaller-than-expected loss for the September quarter and revenue that topped analyst estimates. SHOP stock was up by double digits on the news. Canada-based Shopify said it lost 2 cents per share on an adjusted basis. Revenue for SHOP stock rose 22% to $1.4 billion, the company said. Revenue growth reaccelerated after six quarters of slowing growth due to the coronavirus pandemic fading and online shopping normalizing. SHOP stock surged 17.3% to close at 34.10 on the stock market today. Prior to Thursday, Shopify stock had retreated 78% in 2022 amid the bear market.
Shopify "may have benefited from the strength in the U.S. dollar versus the Canadian dollar with its revenues in U.S. dollars and many of its operating expenses in Canadian dollars." Shopify sets up e-commerce websites for small businesses, and partners with others to handle digital payments and shipping. Meanwhile, the company plans to cut 10% of its workforce. SHOP stock holds a Relative Strength Rating of 13 out of a best-possible 99.
Core Scientific
Even stocks reaching fresh lows on the year are followed by analysts. Core Scientific is an example of that. The company hit $0.8407 on Tuesday, down over 90% since the start of the year. A mix of negative sentient, heavy selling pressure, and a muted cryptocurrency and Web3 market have helped with that trend. But the surge in cryptocurrency prices on Tuesday has helped bring some new life into the stock.Core Scientific provides high-performance blockchain data centers and software solutions. In its September update report, Core explained that it continues growing its infrastructure. CEO Mike Levitt said, “Despite these challenges, Core Scientific continued to lead the industry in bitcoin production. We produced 1,213 bitcoins for our own account. We expanded our total fleet (owned and colocated) to approximately 232,000 servers representing approximately 22.5 EH/s. I am proud of our team’s resilience, adaptability, and dedication in the face of difficult industry conditions.”
While it has been difficult, analysts have remained bullish on the penny stock.
Penny Stocks To Buy
Shares of lidar technology company Ouster had a tough last few months. But this week, OUST stock is beginning to heat up. The company announced last week that it launched a new REV7 sensor platform that doubled the range powered by its lidar chip. Obviously, with a focus on EV and autonomous vehicles, lidar stocks have received some pointed interest as new developments have emerged.Ouster’s newest addition is specific to production-scale fleets. It comes at a time when significant automakers and EV companies are getting more serious about launching commercial fleet product lines. Companies, including Volvo and Tesla, have recently announced trucking lines to add to the EV mix.
Cryptocurrency prices have finally turned around (for now). That has brought plenty of bullish and speculative interest in related public companies. Stronghold Digital is one of the companies in question, and shares surged higher on Tuesday thanks to a move in Bitcoin price. One of the reasons for this has to do with the company’s business model.
Stronghold is a bitcoin mining company. It focuses on environmentally friendly operations, one of the hang-ups for those analysing digital currency ESG activities. Higher energy consumption for traditional mining operations has strained an already fragile power grid. Companies like Stronghold have taken the proactive approach of mitigating this strain through creative strategies.
Moreover, last month’s insider activity has come back into focus. CEO Gregory Beard bought over 600,000 shares of SDIG stock at an average price of $1.66 per share. The roughly $1 million purchase caught the attention of some traders at the time.
Cryptocurrency prices have finally turned around (for now). That has brought plenty of bullish and speculative interest in related public companies. Stronghold Digital is one of the companies in question, and shares surged higher on Tuesday thanks to a move in Bitcoin price. One of the reasons for this has to do with the company’s business model.
Stronghold is a bitcoin mining company. It focuses on environmentally friendly operations, one of the hang-ups for those analysing digital currency ESG activities. Higher energy consumption for traditional mining operations has strained an already fragile power grid. Companies like Stronghold have taken the proactive approach of mitigating this strain through creative strategies.
Moreover, last month’s insider activity has come back into focus. CEO Gregory Beard bought over 600,000 shares of SDIG stock at an average price of $1.66 per share. The roughly $1 million purchase caught the attention of some traders at the time.
Shopify Stock Is Down 80% This Year
Shopify's (SHOP 3.49%) stock is down roughly 80% since the start of the year. The e-commerce platform's stock has fallen even farther from its all-time high, which came in late 2021. Shopify has endured more than a year of quickly decelerating growth rates.
Toast Launches Invoicing to Help Restaurants Grow Their Catering and Events Business
Toast Invoicing integrates directly with a restaurant’s menu in Toast, so they can simply itemize invoices from their existing menu. It also allows restaurants to accept tips with an invoice and digitally distribute them to staff using Toast Payroll & Team Management. Toast customers have the ability to send an invoice from any device, not just their point of sale system. They can set payment due dates and reminders as well as collect and redeem deposits. Through Toast Invoicing, a restaurant’s customer has the flexibility to pay online at any time.
Bill.com Holdings Inc (BILL) stock is trading at $130.42 as of 12:16 PM on Tuesday, Oct 18, a gain of $5.24, or 4.19% from the previous closing price of $125.18. The stock has traded between $127.59 and $136.46 so far today. Volume today is light. So far 774,544 shares have traded compared to average volume of 1,887,202 shares.