Wall Street when stocks miss earnings by $0.01…
Q2 earnings season is upon us and it is not looking pretty.
Despite financial markets attempting to make a rallying cry, businesses themselves are underperforming expectations and institutional investors aren’t very pleased.
The truth is, very little has changed in the global economy as inflation remains high and interest rates increase at a more aggressive pace.
The longer this profit squeeze endures, the more difficult it is for businesses to grow and for investors to make returns on their investments.
While it is tempting to follow the reactions of Wall Street, stick to your guns and trust that your investments will endure in the long run.
Short-term fear presents many favorable opportunities for the savvy investor.
Here is how major indexes performed this week:
Fresh from Edge
Artificial intelligence is taking over the world
Artificial intelligence is truly a fascinating sector with incredible potential.
While it is becoming more commonly adopted every day, many questions remain about how A.I. will shape our modern civilization and what our world will look like 10, 20 years from now.
Here are a few stats that might paint a clear picture of where we are headed:
🚀 A.I. could add as much as $15.7 trillion to the global economy while boosting local GDPs by an additional 26%.
🩻 Heightened Demand from Healthcare led to a 150% Surge in AI Market Growth during 2020.
🌱 The global A.I. market is projected to grow from $384.7 billion in 2022 to $1.39 trillion in 2029.
If you haven’t checked out our recent newsletter on the A.I. industry, click the link for an industry breakdown, plus 5 small-cap picks poised to profit in this space.
TOP NEWS
Tesla has “weak hands” with 75% BTC stake sell-off
Its been a tough stretch for Tesla (TSLA) recently as earnings took a hit for a multitude of reasons.
With factories being closed due to Covid lockdowns in China, and supply-chain constraints significantly elevating the cost of raw materials, Elon was forced to make a brash decision and liquidate the majority of their Bitcoin holdings.
💎 In total, they converted $936 million of crypto into fiat.
😭 The average Bitcoin sale price for Tesla was $28,888, approx. a 9% discount from the purchase price.
🚗 Tesla reported a net profit of $2.26 billion, down 32% for the quarter, with vehicle sales down 18%.
🙌 According to Michael Batnick, there is a 42.069% chance that you bought Bitcoin from Tesla in the last 3 months.
Have you bought Bitcoin in the last 3 months?
Here is what our IG community had to say 👈🔥
FaZe Clan goes public through SPAC
For every gamer out there dreaming of making it big, FaZe achieved the improbable by becoming the first gaming-content creator company to be publicly traded.
From quick scopes to Call of Duty clips, FaZe has made it to the big leagues and is looking to drive its brand to the next level.
📈 Beginning in 2010 as YouTube content creators, they now have a combined following of over 500 million.
🔫 In 2021, FaZe Clan generated revenues of $50 million, and an EBITDA loss of $19 million, but is forecasting revenues of $90 million in 2022,
👾 Forbes ranked them as the fourth-most-valuable esports company, with the creator economy global market size valued at over $13 billion.
🔔 FaZe Clan (FAZE) went public at $725 million and is down 3.70% since opening day.
Are you bullish on FaZe Clan (FAZE)?
The Pelosi portfolio is unmatched
US Government Speaker of the House Nancy Pelosi, and family, are winners once again with a big bet on Nvidia and the semiconductor sector.
While it is being debated whether government officials and their families should be allowed to invest in individual stocks, one thing is certain, the Pelosi crew is making bank on their investments.
🤑 In June, Paul Pelosi, husband to Nancy, exercised 200 call options (20,000 shares) of Nvidia worth between $1 million and $5 million
🤔 This comes ahead of a vote on legislation that would produce a $52 billion boost to domestic semiconductor manufacturing.
❌ After receiving backlash in late 2021 surrounding government trading, Pelosi pushed back arguing that, “We are a free-market economy, […] they should be able to participate in that.”
💰 Nvidia’s (NVDA) stock is down 41.11% YTD, but is up 5.86% in the past month.
Here is how other chip manufacturers performed YTD:
- Intel (INTC): -23.88%
- AMD (AMD): -38.78%
- Valens Semiconductor (VLN): -53.90%
- Rockley Photonics (RKLY): -52.64%
Is now the right time to invest in the semiconductor industry?
DID YOU KNOW?
The stock market lost almost 90% of its value between 1929 and 1933
The stock market is down bad these days, but it could be worse.
Here are five facts about the Great Depression that paint how wild this period was:
🏚 Approx. 11,000 banks failed during the Great Depression, leaving many with no savings.
🤐 Zippers became widely used because buttons became too expensive.
📉 Around 300,000 companies went out of business.
🎵 The biggest hit song of 1932 was “Brother, Can You Spare a Dime?” by Bing Crosby.
🤯 In 1929, unemployment was around 3%. In 1933, it was 25%, with 1 out of every 4 people out of work.
What was the most valuable publicly traded company available in 1929?