Jan.06 -- President Trump supporters take the steps of the closed U.S. Capitol. Hundreds pushed past police barriers and the complex had to be shut down.
Jan.06 -- President Trump supporters take the steps of the closed U.S. Capitol. Hundreds pushed past police barriers and the complex had to be shut down.
Apple has been an American success story several times over with the Mac, iPod, iPhone and other inventions. But is Apple stock a buy now? Here's what its stock chart and earnings show.
The dynamic that has seemingly contributed to a short squeeze in the stock of videogame retailer GameStop Corp. also appears to be affecting shares in a host of other heavily shorted companies.
(Bloomberg) -- Mark Cuban has one major piece of advice for day traders: Do your homework.To the billionaire investor, there are more concerning things about the financial markets -- including risks in derivatives and foreign exchange -- than a horde of nascent stock pickers rushing into names such as GameStop Corp. after reading about them on a Reddit message board. While it’s risky, losing money sometimes is part of the game, he said.“At the end of the day, get long and get loud has been the narrative to move stocks for generations,” Cuban said in an email interview. “Now that tool is available to small traders and can be empowering for them.”Cuban, a serial entrepreneur and owner of the Dallas Mavericks basketball team, has both owned stocks and shorted them over the years. He says he wouldn’t buy any of the stocks that are part of the current frenzy -- “just not my thing” -- and advises newbies to do their homework.“That’s part of the learning experience,” Cuban said of the risk. “It’s a whole lot less dangerous than forex trading that gets promoted all day every day.”The rally in GameStop and other stocks has lifted them to heights that many professional investors see as unimaginable, and now it’s drawing attention from regulators. The U.S. Securities Exchange and Commission said it’s “actively monitoring” volatility in options and equity markets. Senator Elizabeth Warren called for the SEC to take a look at the market, criticizing hedge funds for using equity trading as their personal casino.Cuban said regulators should be monitoring for whether the rally in certain stocks is a pump-and-dump scheme.“Otherwise how is this any different from an investment bank putting out a call to clients with a price target and calling it a strong buy?” he wrote.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Update: Robinhood has made public note of the changes, stating that "in light of recent volatility" it is "restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK." The company added that it has "raised margin requirements for certain securities." Robinhood, the popular consumer trading application, has restricted its users from making some popular investments and wagers, public reports indicate.
(Bloomberg) -- For once, Main Street is beating Wall Street.In a matter of weeks, two hedge-fund legends -- Steve Cohen and Dan Sundheim -- have suffered bruising losses as amateur traders banded together to take on some of the world’s most sophisticated investors. In Cohen’s case, he and Ken Griffin ended up rushing to the aid of a third, Gabe Plotkin, whose firm was getting beaten down.Driven by the frenzied trading in GameStop Corp. and other stocks that hedge funds have bet against, the losses suffered over the past few days would rank among the worst in some of these money managers’ storied careers. Cohen’s Point72 Asset Management declined 10% to 15% so far this month, while Sundheim’s D1 Capital Partners, one of last year’s top-performing funds, is down about 20%. Melvin Capital, Plotkin’s firm, had lost 30% through Friday.It’s a humbling turnaround for the hedge fund titans, who in 2020 staged a comeback by pouncing on the wild markets caused by the Covid-19 pandemic. But that crisis helped push thousands if not millions of retail traders into the U.S. stock market, creating a new force that for now the professionals seem powerless to combat.And it’s not just the big names: Jack Woodruff’s $2.8 billion Candlestick Capital has fallen 10 to 15% in January on its short wagers, while the $3.5 billion Maplelane Capital lost about 33% through Tuesday in part because of a short position on GameStop, according to investors.The hedge funds’ assailants are a collection of traders using Reddit’s wallstreetbets thread to coordinate their attacks, which seem to be focused on stocks known for being held short by hedge funds. The most prominent is GameStop, the beleaguered brick-and-mortar retailer that’s soared more than 1,700% this month, but other targets include AMC Entertainment Holdings Inc. and Bed Bath & Beyond Inc.The pain is likely spreading across the hedge fund industry, with rumors swirling among traders of heavy losses at multiple firms. The Goldman Sachs Hedge Industry VIP ETF, which tracks hedge funds’ most-popular stocks, tumbled 4.3% on Wednesday for its worst day since September.Fund managers covered their money-losing short sales while trimming bullish bets for a fourth straight session Tuesday. Over that stretch, their total outflows from the market reached the highest level since October 2014, data compiled by Goldman’s prime-brokerage unit show.D1, which was founded in 2018 and had about $20 billion in assets at the start of the year, is buffeted to some degree from the attacks because private companies account for roughly a third of its holdings, and the firm has been reducing its exposure, according to people familiar with the matter. The fund is closed to new investments and has no plans to open for additional capital, one of the people said, asking not to be named because such decisions are confidential.D1’s loss, described by people briefed on the situation, contrasts with a 60% gain for Sundheim, 43, during last year’s pandemic turmoil.Melvin on Monday took an unheard-of cash infusion from its peers, receiving $2 billion from Griffin, his partners and the hedge funds he runs at Citadel, and $750 million from his former boss, Cohen.“The social media posts about Melvin Capital going bankrupt are categorically false,” a representative said. “Melvin Capital is focused on generating high-quality, risk-adjusted returns for our investors, and we are appreciative of their support.”Until this year, Plotkin, 42, had one of the best track records among hedge fund stock pickers. He’d worked for Cohen for eight years and had been one of his biggest money makers before leaving to form Melvin. He’s posted an annualized return of 30% since opening, ending last year up more than 50%, according to an investor.Representatives for Point72, D1, Maplelane, and Candlestick all declined to comment.The struggles at some of the biggest hedge funds may have contributed to Wednesday’s 2.6% drop in the S&P 500, its worst decline since October. One theory behind the decline is that funds are selling long bets to get the cash they need to cover their shorts.Cohen, 64, is perhaps the best-known victim of this year’s turmoil so far. The new owner of the New York Mets, whose fund gained 16% in 2020, has become a national figure after beating competition from Jennifer Lopez and Alex Rodriguez to buy the ball club.Late Tuesday, Cohen broke his usual habit of only tweeting about the Mets. “Hey stock jockeys keep bringing it,” he wrote on the social media platform.(Updates with Candlestick Capital in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Highly shorted stocks are being targeted by some investors trying to force people who have bet the prices will fall into covering. Watch Dillard’s and AMC Entertainment.
Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk expressed his disappointment with Discord after the platform took down WallStreetBets from its platform. What Happened: “Even Discord has gone corpo ...,” the world’s richest person said in a tweet late Wednesday. Discord had taken down WallStreetBets earlier in the evening, saying the community continued to allow hateful and discriminatory content despite repeated warnings. The company said the action didn’t have any relation to WallStreetBets’ role in the surge of GameStop Corp.’s (NYSE: GME) stock. WallStreetBets moderators described the Discord action as “pretty unethical.” “I am not impressed with them destroying our community instead of stepping in with the wrench we may have needed to fix things, especially after we got over 1,000 server boosts,” one of the group moderators said. The community also went briefly private on Reddit as it looked to ramp up moderation and avoid a similar fate on the platform as Discord. “We've got so many comments and submissions that we can't possibly even read them all, let alone act on them as moderators,” u/zjz, a community moderato, added. Why It Matters: Musk had earlier touted support for the WallStreetBets community on Tuesday evening, sending the stock soaring further. Gamestonk!! https://t.co/RZtkDzAewJ — Elon Musk (@elonmusk) January 26, 2021 GameStop, BlackBerry Ltd. (NYSE: BB), Nokia Oyj (NYSE: NOK), AMC Entertainment Holdings Inc (NYSE: AMC) and other stocks seeing the short-squeeze interest of the Reddit community tanked in the after-hours session Wednesday after Discord’s action. Price Action: GameStop traded 16% lower at $292 after a 134.84% surge during the regular session. BlackBerry tanked 9.8% at $22.6 after a 32.6% spike during regular hours. Nokia traded 9.5% lower at $5.93 after a 38.5% surge during the regular session. AMC shares tanked 26.6% after a 301.21% surge during the regular session. Photo courtesy: Forbes via Wikimedia See more from BenzingaClick here for options trades from BenzingaDeFi Cryptocurrencies Refuse To Take A Backseat Amid GameStop Mania, Hit All-Time HighWhy Scaramucci Sees GameStop Rally As A Positive Backdrop For Bitcoin© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
At least one major brokerage house is starting to respond to a frenetic surge in the price of shares of companies that has been attributed to rabid buying by individual investors on social-media platforms.
GameStop catches the attention of lawmakers and regulators, Apple and Facebook post record quarters, but Tesla has a miss, Powell says vaccine rollout will be a “struggle,” and other news to start your day.
(Bloomberg) -- Reddit investors have discovered silver, with everything from silver miners, silver ETFs and the actual price of the physical metal itself soaring on Thursday.Spot silver soared as much as 6.8%, the biggest jump since August. IShares Silver Trust, the biggest exchange-traded instrument backed by the metal, rose as much as 7.2%, the biggest intraday gain since August.“The GameStop/AMC/Reddit mania is spilling over to silver and gold is getting a lift. The economic data this morning have become a moot point,” Bob Haberkorn, senior market strategist at RJO Futures said by phone. “This isn’t predicated on any global events, it’s just people on a message board putting all their guns towards the precious metals markets.”First Majestic Silver Corp., which was cited as a short-squeeze target, soared as much as 39% in New York on Thursday amid a frenzy of retail trading fueled by Internet chat rooms.Options markets were bid up in the frenzy, with brokers seeing wide bid/ask spreads on the ETF and Comex contracts.Investors are looking at buying silver options for far-out months, according to Haberkorn. “You see some incredible price increases in options that normally wouldn’t be worth anything at this point,” he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Robinhood, the online trading application, is preventing users from making new purchases of several stocks, including GameStop Corp. GME, which have surged in value in recent weeks even as professional investors continue to hold large short positions in those securities, the company said in a blog post Thursday.
With the global EV business, dominated by the likes of Tesla Inc, growing at an explosive pace, a flurry of EV makers are rushing to tap the red-hot initial public offering (IPO) market. Other prominent players in the sector such as Fisker Inc and Nikola Corp also went public through mergers with so-called special purpose acquisition companies (SPACs) last year. Faraday and Property Solutions said on Thursday the deal, supported by a private investment of $775 million, is expected to fetch Faraday Future $1 billion in gross proceeds.
Top news and what to watch in the markets on Thursday, January 28, 2021.
Shares of Nokia Corp. shot higher in very volatile and active trading Wednesday, enough for the Finland-based networking company to comment on the activity.
You’re prattling on about your $8,000 roof repair, but is your financial planner really listening…or stewing over the thing you said two minutes ago. According to Jacki Purcell ,...
Apple posted record Q1 earnings on the strength of iPhone sales.
After GameStop stock became red hot and a mainstream news story, thanks to a Reddit investing community, brokerage Robinhood pulled the plug on buying, infuriating users.
Short squeezes will remain a big story in the financial-news media until heavily shorted stocks that have been pushed up by individual investors connected through social media come crashing back to earth. The biggest “winners” during this craze have been GameStop, up 1,745% for 2021 through Jan. 27, and AMC Entertainment, which has popped a more modest 839%.
Tesla just released its latest earnings report, and the results indicate that Elon Musk's bets on energy storage and solar are beginning to pay off. The storage business was the star of the company's power plays in the fourth quarter, with quarterly year-on-year growth approaching 200%. For the first time, our total battery deployments surpassed 3 GWh in a single year, which is an 83% increase compared to the prior year.
For investors seeking a strong dividend player, there are some market segments that are known for their high-yield dividends, making them logical places to start looking for reliable payers. The hydrocarbon sector, oil and gas production and mainstreaming, is one of these. The sector deals in a products that’s essential – our world runs on oil and its by-products. And while overhead for energy companies is high, they still have a market for their deliverables, leading to a ready cash flow – which can be used, among other things, to pay the dividends. All of this has investment firm Raymond James looking to the roster oil and gas midstream companies for dividend stocks with growth potential. "We anticipate the [midstream] group will add around ~1 turn to its average EV/EBITDA multiple this year. This equates to a ~20-25% move in equity value," Raymond James analyst Justin Jenkins noted. Jenkins outlined a series of points leading to a midstream recovery in 2021, which include the shift from ‘lockdown’ to ‘reopen’ policies; a general boost on the way for commodities, as the economy picks up; a political point, that some of DC’s more traditional centrists are unlikely to vote in favor of anti-oil, Green New Deal policies; and finally, with stock values relatively low, the dividend yields are high. A look into the TipRanks database reveals two midstream companies that have come to Raymond James’ attention – for all of the points noted above. These are stocks with a specific set of clear attributes: a dividend yield of 7% or higher and Buy ratings. MPLX LP (MPLX) MPLX, which spun off of Marathon Petroleum eight years ago as a separate midstream entity, acquires, owns, and operates a series of midstream assets, including pipelines, terminals, refineries, and river shipping. MPLX’s main areas of operations are in the northern Rocky Mountains, and in the Midwest and stretching south to the Gulf of Mexico coast. Revenue reports through the ‘corona year’ of 2020 show the value potential of oil and gas midstreaming. The company reported $2.18 billion at the top line in Q1, $1.99 billion in Q2, and $2.16 billion in Q3; earnings turned negative in Q1, but were positive in both subsequent quarters. The Q3 report also showed $1.2 billion in net cash generated, more than enough to cover the company’s dividend distribution. MPLX pays out 68.75 cents per common share quarterly, or $2.75 annualized, which gives the dividend a high yield of 11.9%. The company has a diversified set of midstream operations, and strong cash generation, factors leading Raymond James' Justin Jenkins to upgrade his stance on MPLX from Neutral to Outperform (i.e. Buy). His price target, at $28, implies a 22% one-year upside for the shares. (To watch Jenkins’ track record, click here) Backing his stance, Jenkins writes, “Given the number of 'boxes' that the story for MPLX can check, it's no surprise that it's been a debate stock. With exposure to inflecting G&P trends, an expected refining/refined product volume recovery, the story hits many operational boxes - while also straddling several financial debates… We also think solid 2020 financial results should give longer-term confidence…” Turning now to the rest of the Street, it appears that other analysts are generally on the same page. With 6 Buys and 2 Holds assigned in the last three months, the consensus rating comes in as a Strong Buy. In addition, the $26.71 average price target puts the upside at ~17%. (See MPLX stock analysis on TipRanks) DCP Midstream Partners (DCP) Based in Denver, Colorado, the next stock is one of the country’s largest natural gas midstream operators. DCP controls a network of gas pipelines, hubs, storage facilities, and plants stretching between the Rocky Mountain, Midcontinent, and Permian Basin production areas and the Gulf Coast of Texas and Louisiana. The company also operates in the Antrim gas region of Michigan. In the most recent reported quarter – 3Q20 – DCP gathered and processed 4.5 billion cubic feet of gas per day, along with 375 thousand barrels of natural gas liquids. The company also reported $268 million in net cash generated, of which $130 million was free cash flow. The company reduced its debt load by $156 million in the quarter, and showed a 17% reduction in operating costs year-over-year. All of this allowed DCP to maintain its dividend at 39 cents per share. Early in the corona crisis, the company had to cut back that payment – but only once. The recently declared 4Q20 dividend is the fourth in a row at 39 cents per common share. The annualized rate of $1.56 gives a respectable yield of 7.8%. This is another stock that gets an upgrade from Raymond James. Analyst James Weston bumps this stock up from Neutral to Outperform (i.e. Buy), while setting a $24 target price to imply 20% growth on the one-year time horizon. “[We] expect DCP to post yet another solid quarter on sequential improvements in NGL prices, NGL market volatility, and positive upstream trends… we are not capitalizing current propane prices and anticipate a solid, but more normalized pricing regime over the next 12-18 months. In our view, this will create a beneficial operating environment for DCP cash flows that is not currently reflected in Street estimates,” Weston noted. All in all, the Moderate Buy analyst consensus rating on DCP is based on 7 recent reviews, breaking down 4 to 3 Buy versus Hold. Shares are priced at $19.58 and the average target of $23 suggests an upside of ~15% from that level. (See DCP stock analysis on TipRanks) To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.