I hope that everyone had a great holiday. Investors are wrestling with the uncertain impact of the Omicron variant and what it means for the global economy. On top of that, rising rates divided the market with the Dow climbing and the Nasdaq falling. We would not be a buyer ahead of most tech earnings and are only buying into strength. Broadcom reports earnings on the 9th and if they report a beat like Marvell Technology Inc. (MRVL) did last week, the semiconductor market could be in for a good quarter. Core inflation numbers are also being reported on Friday with a consensus estimate of 4.9%, which could push pressure on the Fed to raise interest rates. If that is the case, it will be key to focus on tech stocks with strong growth stories and profits.
You really can’t blame the executives at security firm ADT Inc. for wanting to jump into one of the hottest tech-related sectors around, solar power.
And the timing of its November 9 decision to purchase privately-held Sunpro Solar for about $825 million came at a particularly good time.
ADT made the move just six weeks after the trade group the Solar Energy Industries Association (SEIA) reported a whopping 45% yearly increase in total solar power for the second quarter, the last period for full data.
I believe this proves what I have been saying about the Zero Carbon Economy – it’s an unstoppable force with massive investment potential, and solar is set to play a big role in it all.
But that doesn’t mean that I see ADT and Sunpro as the best way to play it.
If you had any doubt about the economic potential of the “zero-carbon” economy, consider the case of Saudi Arabia.
I say that because, at a production rate of 10 million gallons per day, the nation ranks as the world’s second-largest oil producer, just a bit behind Russia.
Put another way, one of out every 10 barrels of oil consumed in the world each day comes from Saudi Arabia.
And yet the oil-rich kingdom recently announced its targeting “net-zero” carbon emissions in its own country by 2060 as part of the effort to lessen climate changes.
I believe there’s a lot more going on here than a PR campaign by a leading fossil fuel producer. With nations around the world looking to reduce their carbon footprints, the market for renewable energy will be worth more than $1.9 trillion by 2030, says Allied Market Research.
One could hardly be blamed for looking at the market these days and feeling a little bit uneasy about how to invest. Supply chains are strained, concerns about inflation are widespread, and people are quitting their jobs in record numbers.
But the thing is, tech is still the best place to make money investing. The NASDAQ, with its focus on technology and life sciences, has been seriously outperforming the S&P 500.
The tricky part is that the biggest names in the sector, the FAANG companies, are not the ones leading the way this time, and smaller-cap companies can make for choppy trading, since they don’t have the strength or presence in the market to pass on inflation-driven costs.
All of these factors combined can lead to no small amount of uncertainty, but that doesn’t mean it isn’t possible to approach the market carefully, control for risks, and maximize your chances.
People looking to the classic FAANG companies to lead the tech sector might be disappointed, but I want to make it clear that tech is still the place to be when looking for opportunities in the market. The tech-centric Nasdaq is leaving the broader S&P 500 in the dust in terms of gains. Now, things for small-cap companies can be a bit uncertain in light of concerns about inflation. They don’t have the market power that larger companies do, and so they can’t pass costs on to customers as easily. That being said, some of them have still won big. In addition, there are a few more companies with strong prospects that I have my eye on.
When he wondered whether or not he should sell some of his stock options before they expire this quarter, Elon Musk, CEO of Tesla Inc., sought an answer from the most powerful communications platform on Earth.
That’s right, Musk polled his more than 60 million followers on Twitter.
After the poll showed a clear 58% to 42% of Musk’s followers favored selling, shares of Tesla fell 5% on November 8.
But while the media was focused on Tesla’s action, they ignored a much larger story.
The fact is, despite its popularity, and despite dramatic episodes like this one, Twitter remains a lousy investment. It’s been dead money all year. By contrast, the S&P 500 is up more than 25%.
That’s why today I want to show you a backend way to gain from Twitter’s huge user base as well as the entire social media sector.
It’s finally time for Thanksgiving and that means a short trading week, turkey, and Black Friday. We are going to see some of the biggest shopping days of the year, and we will be watching to see if people are buying in-store or keeping their shopping to the internet. Big deals online will surely help some of our favorite e-commerce stocks like Shopify Inc. (SHOP).
Major tech earnings continue for another week and this time we have two companies that could tell us a lot about where tech is headed. First up is Nvidia Corp. (NVDA) on Wednesday, which is already up over 100% this year and then Applied Materials Inc. (AMAT) on Thursday, which could give us more insight into semiconductor supply issues. Given we are still in a shortage, Applied Materials could see a boost in orders. As the manufacturer of equipment to make semiconductors, this one could surprise us to the upside.