It’s a softer start to the week, with stocks leaning south and a slide for China and Hong Kong stocks amid a tech crackdown. Bitcoin headed the other way, thanks in part to an Amazon.com ad asking for help.
Our call of the day comes from Cathie Wood, founder of ARK Invest, whose flagship ARK Innovation publicly traded fund, ARKK,
has had a rugged July due to market volatility. But Wood, who has not been without criticism, redoubled the strength of his fund: disruptive technologies and innovative business models and their importance in a portfolio.
In the first of a series of interviews published Monday in Real Vision, Wood focused on the shortcomings of Wall Street, which she says needs more specific technology analysis. He highlighted his approach to Tesla as an example.
Wood’s base case calls for the electric vehicle giant’s shares to hit $ 3,000, which is considered “insane,” given that the shares are closer to $ 700, he said.
“We think the reason there is such a huge inefficiency in the valuation of Tesla is the short-term time horizon of the analysts and the misguided analysts who follow it,” said Wood, who explained that Tesla is a multifaceted technology company. , but that is covered by Wall Street. self-analysts.
“Tesla is a technology company, but it is not just a technology company,” he said, pointing to energy storage, robotics, artificial intelligence and software as a service. “So we have three analysts building the Tesla model,” he said.
How big is your overall disruptive and innovative overview? He said the market capitalization in transformative innovation-focused public equity markets was about $ 7 trillion in 2019, then doubled in 2020 to $ 14 trillion.
“And we believe that that figure will rise to more than $ 75 trillion over the next five to 10 years and it will probably represent … more than all the appreciation in the stock markets because … the flip side of disruptive innovation is destruction. creative, which is why today’s traditional benchmarks are increasingly populated by cheap value traps for a reason because they are going to be disrupted or destroyed, ”Wood said.
It will be “critically important to get the innovation right and I don’t think traditional research departments are set up to do that at this point,” the fund manager said. You can see the first part of his interview. here.
Big tech problems in China and Bitcoin disappear
and Hong Kong HSI,
Stocks were hit, led by tech names, after Beijing announced a review of the tech education sector. EDU shares, New Oriental Education & Technology Group, listed in the US.
they were among those affected.
China also ordered tech conglomerate Tencent 700,
to end exclusive contracts with music copyright holders: Tencent Music TME shares listed in the US,
they are sinking.
China also blames the United States for the stalemate in relations between the two at the beginning of the high-level bilateral talks.
it increased over the weekend and is around $ 38,000. Some point to an Amazon job listing for a digital currency and blockchain product leader, leading some to speculate that the e-commerce giant could start accepting cryptocurrencies. Bitcoin has been boosted recently by positive comments from Tesla CEO Elon Musk, Twitter TWTR,
ARK CEO Jack Dorsey and Cathie Wood.
Participation of the defense group Lockheed Martin LMT,
decline after earnings fall short, while shares of toy maker Hasbro HAVE,
is rising after a big win. Tesla is coming after the bell.
In the agreement of news, diagnostics, life sciences and the food company PerkinElmer PKI,
it is buying BioLegend, life sciences research and discovery company in a $ 5.25 billion cash and stock deal. PerkinElmer shares are falling.
Shares of Lucid Motors will be listed on Nasdaq on Monday after the electric car group’s merger with a blank check company was approved on Friday.
The Dow DJIA,
S&P 500 SPX,
and Nasdaq Composite COMP,
they are softer to start the week. Oil CL.1,
it is slightly lower, while the yield on the 10-year note is down 1 basis point to 1.27%.
On the front of COVID-19, op drop in delta-fed cases in the UK it is raising some hope that an end to the escalation of infections is in sight elsewhere.
“The UK saw a relentless parabolic spike in cases. This lasted 45 days. And even without any mitigation measures, UK cases have been declining for the last week, ”Thomas Lee, founder of Fundstrat Global Advisors, told clients in a note. “If the US follows the UK model, daily cases in the US could peak in the next 12 days.”
Not everyone agrees with this point of view. A recent study predicts that US cases fed by the Delta Vraiant will increase during the summer and fall, peaking in mid-October.
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