What’s Happening This Week
Last week the Federal Reserve unveiled its anticipated plan to begin tapering its monthly bond purchases and indicated it would remain patient about raising interest rates. Typically, when we hear about rising rates, it has a negative impact on high-growth tech. We didn’t see that this time around and the Nasdaq even rose 162 points that day. That is good news for us with more tech earnings on deck. We have Fintech leader PayPal Holdings Inc. (PYPL), digital ad giant The Trade Desk Inc. (TTD), crypto provider Coinbase Global Inc. (COIN), and many others.
Sofi Gears Up for Earnings 💰
SoFi Technologies Inc. (SOFI) has had a strong reversal and since we first spoke about them in May, the stock is up over 35% beating the S&P 500 by over 3x. Everyone will be listening to its earnings this week in anticipation of its bank charter approval, and if that goes through, SoFi could continue to be a long-term winner.
Playing the Chip Shortage 💻
The news has not shied away from discussing the chip shortage and you can see it on the main page of the WSJ at least once a week. Just recently we saw Nintendo and Elon Musk’s Starlink talk about the struggle to get chips. We recently talked about our one company to bypass the chip shortage and it continues to perform above and beyond the market with its third-quarter earnings topping analyst estimates and getting upgrades across the board.
Playing SPAC Momentum 📈
SPACs have recently seen a resurgence thanks to several strong IPOs. Just look at the recent announcement by Digital World Acquisition Corp. (DWAC) that they were merging with Trump Media. It sent the stock up over 800% in mere days. And now, Shah Gilani is bringing quality names to the table. In fact, he recently shared a company bringing their fourth successful SPAC to market and it is currently trading at a discount to PAR value, which minimizes the risk to invest. The best way to take part in the SPAC resurgence is by clicking here.
What We Are Watching
As we have seen the last two weeks, big tech has shown us that it can still grow at a staggering pace even after growing to trillion-dollar market caps. This week we are looking to put on a trade for one of our favorite mega-caps, so stay tuned for Tuesday’s Strategic Tech Investor.
Cheers and good investing,
The Strategic Tech Investor Team