Google’s Mojo
By Tue, Aug 11, 2020
Hey Scoopers,
The Dow continued its winning streak into the new week. — More on that in the “Overall Market” section.
Beyond the overall market, the COVID-19 pandemic has fueled a new appreciation for car ownership, and the trend pushed one car-related stock up, and another one down in one day. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, it seems Google is losing its mojo. — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
Market Recap
- U.S. markets: The stock market indices started the new week in disagreement about the direction. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price reaching for the $12,000 mark, and its surge is supported by the nod of approval from MicroStrategy (Ticker: MSTR) who is investing up to $250 million of its cash in Bitcoin to protect the company against possible inflation in the coming months and quarters.
The Elephant in the (5G) Room
Now is a time when it pays to heed timeless financial wisdom.
John Templeton, one of the world’s greatest investors, once said, “To buy when others are despondently selling and to sell when others are avidly buying requires the greatest of fortitude and pays the greatest ultimate rewards.”
The Dow Continued Its Victory
The Dow continues its market leadership into the new week, and in a somewhat rare occurrence, at least with the recent standards, it was the Nasdaq that ended the day in the red. The Dow has the airlines’ stocks to thank for its growth.
A New Consumer Trend
So, what happened?
Shares of CarParts.com (Ticker: PRTS) were up by almost 23% on Monday. As the name suggests, the company has an online platform that allows users to buy car parts. On Monday, CarParts.com announced its latest quarterly earnings report. The company impressed investors by growing revenue and turning profitable. One of the impacts of the COVID-19 pandemic is a surge in car ownership, away from public transportation. Combine that with the shift to eCommerce, and it’s not hard to see why investors are celebrating CarParts.com. It seems as the global pandemic continues, new consumer trends reveal themselves.
Bold 5G prediction
5G Prediction for 2020: Michael Robinson has an enviable track record… He called social media “the next big thing” when Facebook stock was just $22 (it’s now over $225)… he picked Bitcoin in 2013… and he recommended cannabis stocks in 2016. Today, he’s issuing his biggest prediction yet. If you’re thinking about investing in 5G, you’ll want to hear this.
A Surprising Drop
So, what happened?
Shares of CarGurus (Ticker: CARG) were down by almost 7% on Monday. The price drop is surprising for two reasons:
- In the “What’s Up?” section, we talked about how COVID-19 has pushed people away from public transportation and toward car ownership,
- A few financial analysts just maintained their “Buy” rating for CARG.
Perhaps, CARG is now a watchlist-worthy stock for investors who believe the future of car-shopping is online.
Google Losing Its Mojo
So what happened?
Once upon a time, Google reigned supreme in the land of online advertising, but not anymore. Investment analyst, Nicholas Grous, tweeted a few eye-opening statistics sharing how Google is losing its leadership.
(Source: Twitter)
What’s Google going to do, is a question every Alphabet (Ticker: GOOG / GOOGL) investor should answer.
Have you bought a house since the start of the pandemic? Let us know what drove your decision? Our email address is members@tradestocks.com. Send us a few lines.
Disclosure: Authors of this Scoop own shares of Alphabet (Ticker: GOOG / GOOGL).
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
