In the past 12 months, the financials sector was the second-top performing sector (58% return), behind the energy sector (90% return). But last week, strong earnings reports from the US’ biggest banks signal one thing to investors: Banks are returning to their stable, predictable selves. Back like it never left (Almost) everything is going right…
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Rivian’s IPO: Overly dependent on Amazon with an expensive valuation
Breakups are messy, and Rivian hopes to never feel the pain. The much-hyped electric vehicle (EV) maker, which may be a little too dependent on Amazon, recently filed to go public. It’s seeking an $80B valuation, a massive number for a company with zero sales. Driving out of stealth mode Global EV demand is slowly…
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Ford invests big in electric vehicles to take on upstarts
America’s biggest automakers were left for dead as Tesla dominated the electric vehicle (EV) market. But one in particular is rising from the dead. Ford is doubling down on its EV commitment by investing $7b towards three new battery factories and an electric truck plant – the largest investment in its 118-year history. A long…
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Bank stocks in focus with rising yields and interest rate hikes in sight
No one is more excited at the prospect of banks recovering than bank robbers. In 2020, shrinking profits had the banking sector’s stock prices trailing the broader market – but last week’s Fed meeting might give banks the boost they need to catch up. Banks are loanly Banks had a rough 2020 with profit hits…
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Problems pile up at Facebook but its stock tells a different story
Facebook – users don’t trust it, news coverage on it is mostly negative, yet its stock keeps soaring. This time though, with Apple’s latest privacy updates, Facebook is not getting off so easy. Ignorance isn’t always bliss This week, the WSJ released the “Facebook Files”, adding to Facebook’s already long list of alleged misconduct: User…
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SoFi the fintech giant disrupting the banking industry
SoFi, the fintech giant is going through a transformation investors dream of. The student loan company turned financial super app shot up 11% yesterday after receiving a buy rating from Jefferies analyst John Hecht. SoFi is one of the many companies disrupting the age-old banking industry — one that’s been way too comfortable for centuries….
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Debt problems at Chinese real estate firm, Evergrande, puts entire market at risk
A collapse of epic proportions is in the making, but the question on everyone’s mind is: could this be another 2008 moment? Evergrande, China’s largest property developer, is $300b in debt and on the verge of bankruptcy. Over $100m in interest is owed over the next few days, and banks are not expecting repayment –…
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Angi, the “Uber of home services”, shows signs of a turnaround
If our renovation skills are as good as our cooking skills, Angi, the “Uber for home services” may be in luck. The company has been an interesting story for many years yet its stock returns have been a disappointment. But with new product iterations, management team, and name, the company may finally be turning it…
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Solar stocks stands to benefit from Biden’s emission targets and policies
Solar stocks. Very nice. Solar outlook. Great Success. Last week, Biden’s administration released a study showing solar’s potential to produce 40% of the country’s energy by 2035 – building the case for further investment into the sector. Shining in the right direction The US installed ~15 gigawatts (GW) of solar power capacity last year –…
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The rise of open source software and the stocks powering the industry
Investors, get ready for the revolution — and the multi-billion dollar companies it’s creating. The open source software revolution was once just a dream, but Red Hat blazed the trail for the industry when it was acquired by IBM for $34b in 2019. The rise of open source software Developers are revolting against large software…
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