vestact posted: " Market Scorecard Markets on Wall Street closed up strongly yesterday as technology stocks were in hot demand. Long-term investors seem to have shrugged off fears of a recession, and are now afraid of missing out on further gains. The tech-heavy Na"
Markets on Wall Street closed up strongly yesterday as technology stocks were in hot demand. Long-term investors seem to have shrugged off fears of a recession, and are now afraid of missing out on further gains. The tech-heavy Nasdaq index was in bear territory not long ago, but has since clawed its way to within a few percentage points of its all-time highs.
In company news, Twitter shares surged by 27% on news that Elon Musk bought a 9.2% stake in the company. This is the biggest pop in Twitter's history since its listing in 2013. Elsewhere, Tesla also had a big day, with its shares closing up 5.6% on the back of those strong delivery figures.
In summary, the JSE All-share closed down 0.10%, the S&P 500 was up 0.81%, and the Nasdaq galloped ahead by 1.90%.
Our 10c Worth
One Thing, From Paul
I'm engaging in some long-range planning today. In the investment business, it pays to think ahead!
So, here's a list of companies that I would like to own, at some point in the future. Of course, some of our existing holdings could transition to fulfilling these services for society.
The company that makes it possible for human brains to seamlessly access information. I'm tired of pecking at my cellphone, and I don't like interacting with Siri or Alexa. I'd like to simply "know" all the information on the internet.
The company that finds the cure to cancer. I'm guessing that this will require the ability to re-engineer the genes of immune system T-cells on a person-by-person basis.
The company that dominates autonomous urban mobility. Badly-driven cars and taxis, who needs them? Not me.
The company that provides safe and affordable interplanetary travel. SpaceX, time to do that stock market listing, I'm ready.
Byron's Beats
As Paul mentioned last week, Nvidia CEO Jensen Huang said that their total addressable market would reach $1 trillion soon. Of that $1 trillion, autonomous vehicles would be around $300 billion. That's one of their biggest opportunities, similar in scale to data centres.
Note that autonomous vehicles and self-driving cars are not the same thing. We already have autonomous vehicles that stay in their lane, automatically brake when the car in front of you slows down and park on their own. That functionality requires a brain and Nvidia's DRIVE technology is one of the global leaders.
High-profile current clients include Mercedes Benz, Land Rover and Jaguar. Their biggest competitor in the space is Tesla, who make their own autonomous technology. That is fine, Tesla most likely won't share this with their competitors.
Nvidia has a market cap of $680 billion. It could well be the next big tech player to reach $1 trillion. Buy some before it gets there.
Michael's Musings
We've mentioned Netflix's "Drive to Survive" series a few times here because it's been a huge success for both F1 and for Netflix. The series gives viewers a behind-the-scenes look at F1, and is designed to introduce new fans to a sport that can seem very technical. It makes noisy cars going around a track for two hours really enthralling.
The producers of Drive to Survive are hoping to have similar success with a series about the Tour de France this year. Netflix producers will follow eight teams through the tour, giving a behind-the-scenes look at what happens. The idea is to bring a human element to a sport that can also seem a bit complicated and boring. The show will be released in early 2023.
Given how many new fans Drive to Survive brought to F1, I suspect that the Tour de France might be paying Netflix for this series. If not, this still sounds like a great addition to their content catalogue.
Bright's Banter
Shein, a fast-fashion app, is looking to raise $1 billion in a funding round that values the business at more than $100 billion. This is mind-blowing; the Chinese start-up will now be more valuable than the high street clothing giants H&M and Zara, combined.
If you've never heard of Shein, it's an online-only retailer, that sells affordable clothes, beauty, and lifestyle products. It was launched in 2012 and has developed an extensive network of low-cost suppliers in Southern China who help it pump out over 6 000 new items daily.
According to Pitchbook, Shein was valued at $15 billion at its last funding round in August 2020. The only way to test if this business is really worth $100 billion is for it to list on the Nasdaq. The full glare of the public market provides an accurate and real-time valuation.
Linkfest, Lap It Up
Virgin Active just bought Kauai and Nu Health food cafes. Part of the deal is for the Kauai founder to become CEO of Virgin Active - Behind the Virgin Active overhaul.
Investor behaviour plays a larger role in long-term returns than an asset manager's philosophy. A study titled "Measuring risk preferences and asset allocation decisions" uncovered some fun findings - Men are more likely to panic than women.
Signing Off
Asian markets look fine this morning. Shares in Japan are up slightly and those in India are down slightly. Markets in China are closed for the Qingming Festival holiday. This is the day when Chinese people visit ancestral tombs to sweep them.
US equity futures are very slightly lower in early trade. The Rand is trading at R14.55 to the US Dollar. Sounds like a good day to use ZAR to buy some USD and send it to your account in New York.
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