šŸØ Daily Scoop: Not That Easy | Trade Stocks

Not That Easy

By Fri, May 29, 2020

Hey Scoopers,

The reopening of the economy is proving to be harder than what investors assumed before. ā€”Ā More on that in the “Overall Market” section.

Beyond the overall market, one stock enjoyed a surge in need for security during the transition of the world to digital operations. At the same time, a social media company learned that it couldn’t have its cake and eat it too. ā€”Ā More on that in the “What’s Up?” and “What’s Down?” sections.

Oh, by the way, how much do you think the infamous U.S.-China trade war cost us? ā€”Ā 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: All three indices ended Thursday in the red zone.Ā Scroll down to the “Overall Market” section to read more.
  • Cryptocurrency:Ā Bitcoin’s priceĀ is reaching the $10,000 mark once again.

 


Urgent: To Any American Who Owns A Cell Phone

If you own a cell phone, then mobile service providers hope you never get to see this video going viral.

It was shot in downtown Denver by a multi-millionaire, who exposed sensitive truths about cell phones and 5G.

His experiment will strike a bad chord with cell phone companies, I know. But youā€™ve got to see what this man ā€œleaked,ā€ and what it means for phone users in the weeks ahead.

Click here to see this developing story

 


It’s Not That Easy.

On Thursday, the stock market wasn’t as giddy as it used to be earlier in the week. After the latest round of unemployment claims report, more than 40 million Americans are unemployed now. To add insult to injury, some workers do not want to go back to work even though the reopening has started. According to theĀ Fed’s latest Beige Report, the money they receive through unemployment claims is higher than what they used to get paid through employment. Well, it seems that the reopening wasn’t as easy as investors have imagined before.

 


Keeping The Digital World Secure

So, what happened?

Shares of Zscaler (Ticker:Ā ZS) were up more than 20% on Thursday after hours. The company offers a highly-scalable cloud-based security platform and just announced itsĀ latest quarterly earnings report. Revenue was up 40%, and billings were up 55%. The company also managed to grow its non-GAAP earnings, which is another way to say it is still not profitable using the standard accounting methodology. Having said that, the revenue growth is being propped up by a few acquisitions that have happened in the quarter. It’s a bit surprising to see a young company such as Zscaler has to rely on acquisition to grow. Regardless, investors liked the numbers they saw because it represented a faster growth rate they were expecting, and the company managed even to increase its full-year guidance. Overall, the security mitigations that most companies are adopting to make the web and their digital operations run smoothly has been a significant driver of growth for Zscaler.



Most Americans locked out ā€“ until now

Many people, maybe yourself included, believe that the American dream is dead and gone, with no chance of revival.

They will try and tell you that there are no jobs available, that there are no opportunities to make something of yourself anymore. “It’s impossible to become a self-made millionaire nowadays,” you’ll hear them say.

But that could not be further from the truth-

Shark Tank’s Robert Herjavec and I are here to explain why.

 


Can’t Have Your Cake, And Eat It Too.

So, what happened?

Shares of Twitter (Ticker:Ā TWTR) were down more than 3% on Thursday. The company’s recent “fact-check” functionally has been received with mixed reactions from high places, and has most likely led toĀ a new executive order by the President of the United StatesĀ to reduce the protections social media companies have been enjoying from being liable for their content. The new executive order opens the door for a whole slew of legal lawsuits against social media companies such as Twitter now that they are taking a stand against the content being shared by their users. In essence, the President’s point of view is that social media companies can’t have oversights over their content and also enjoy protection against lawsuits because of the content. You can’t have your cake and eat it too.

This is not going to be the last time we hear about this discussion, and it won’t be the last time it impacts social media stocks.


The Cost Of The Trade War

So what happened here?

The Water Cooler section is rather serious stuff today. A new report by the New York Fed took a stab atĀ measuring the cost of the infamous U.S.-China trade war, and the short-term costs are not hard to digest.

It’s possible that the trade war has a long-term positive impact by protecting the US companies in certain trade agreements; however, in the short-term, the impact has been disruptive.

The New York Fed estimates that the trade war-induced tariff escalations and retaliations have “reduced US investment growth by 0.3 percentage points by the end of 2019, and is expected to shave another 1.6 percentage points off of investment growth by the end of 2020.”

(Source:Ā Liberty Street Economics)

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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