A very happy Manic Monday to you all. The averages all seem to be operating on a negatively today as the market seems to be reacting to several different economic indicators around the globe. Unless something drastic happens within the next few minutes the market will start this new trading week down.
Square shares jump to a record after company gets regulatory green light for cryptocurrency trading in New York. Shares of the company hit a 52-week high after the announcement and have surged 88 percent this year. While Square launched crypto trading through its payments app in late January, that feature had been unavailable in New York. Analyst as saying “This was the missing piece of their puzzle”. I’m still unsure about the whole eco-system or crypto-currency so I won’t offer an in-depth analysis since that’s out of my field of knowledge.
The news was not all shining and gold in the tech sector today. Domo, last valued at $2.28 billion, could go public at a valuation of $511 million – bad news for investors. Domo updated its S-1 filing to say that it had undergone a reverse stock split: Every 15 shares of the company is now combined into one. Domo unveiled an expected price range on today for its upcoming IPO, with shares to be priced between $19 and $22 each. This could be yet another example of the tech unicorn effect, where every tech darling is perceived as going to be the next multi-billion IPO. When reality a lot of them could be just inflated overvalued ordinary concepts.
Apple announced a partnership with TV icon and media mogul Oprah Winfrey last week. For Apple, it could offer a springboard for an aggressive video-content strategy over the next 12 to 18 months. Apple could ramp up content spending to $3 billion to $4 billion in 2019, when it potentially launches its own streaming service after years of internal debate and withering competition.
More than ever before we are operating in a completely global market. There is no longer such things such as isolated regional market moves. Especially with the retaliatory tariffs being throw around by the U.S. and China, every small market move is seen is a larger market indicator. I urged patience and caution in regards to large additional to your portfolio or any large sell offs. Make sure you are making a pragmatic decision and not an emotional one.
Information from this weekly email is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for analysis purposes only. Be sure to understand all risks involved with each strategy, before attempting to place any trade.
Per usual hope you all have a great and prosperous week and an even better investment week. Will talk to you soon!!
Jamaal W Vetose
Director of Research & Analysis