Oh No, Twitter!
By Fri, Oct 16, 2020
Hey Scoopers,
An upward crawl throughout the day wasn’t enough to push the market indices into the green zone as the jobless claims moved in the wrong direction. — More on that in the “Overall Market” section.
Beyond the overall market, the home redesign craze pushed one stock to move upward. In contrast, financial analysts’ downgrade of an online digital ad platform stock worried investors enough to drag it downward. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, Thursday’s site-wide shutdown shook Twitter junkies’ lives for a few scary hours. — 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 the day in the red for one more day. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price still hovered around the $11,500 level.
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.”
Jobless Claims Didn’t Help
Despite an upward crawl throughout the day, the drop at the beginning of the day was large enough for all three indices to wrap Thursday in the red. The stimulus package hasn’t made much progress. That could be one reason for the initial market drop. The fact that the latest number of jobless claims hit a new record high since mid-August didn’t help the market either.
The Home Redesign Craze Continued
So, what happened?
Shares of Sleep Number Corp (Ticker: SNBR) were up by more than 10% on Thursday. The company announced an impressive quarterly earnings report. All the metrics that matter to investors moved upward in the quarter. The work-from-home trend is forcing people to rethink their homes, and bedroom redesigns are on top of people’s minds too. Despite the early store-closure, the company is very well-positioned to benefit from the new home redesign craze.
32X bigger than 5G?
5G and “AI” are all the rage…
But here’s what you likely don’t know:
The world’s best investors are lining up behind an explosive new technology that could trump them all. Warren Buffett calls it “ingenious.”
Nothing To Worry About
So, what happened?
Shares of The Trade Desk Inc (Ticker: TTD) were down by more than 8% on Thursday. The stock price drop came after a stock downgrade by KeyBanc Capital Markets. The decline is nothing to worry about since the stock has already rallied from $420 per share in early September to more than $600 in early October. The rally was due to the resurrection of advertising spending by businesses in the U.S. Companies have resumed spending their marketing dollars on online ads beyond what anyone could have predicted, which meant a stellar rally for Trade Desk earlier this month, despite the decline on Thursday.
Oh No, Twitter Was Down
So what happened?
Late in the afternoon on Thursday, Twitter (Ticker: TWTR) junkies’ lives were shaken up as the social media platform announced a site-wide shutdown. Was it a cyber attack? Was it related to the election? No one knows.
Whatever it was, judging by the comments and responses to the company’s announcement, it seems the shutdown shook Twitter junkies for a few hours as they lost their purpose in life and couldn’t find anything else to do in the absence of their usual virtual banter.
If you have any questions, or suggestions let us know by emailing us at members@tradestocks.com. We look forward to hearing from you.
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
