Technology, Capital Markets, Corporate Governance, Leadership, Entrepreneurship
Tag: equity markets
Snowflake and Tesla are the poster children for irrational valuations and outsized CEO compensation packages. Investors - or more accurately "speculators" - value Analytics company Snowflake (tkr: SNOW) at 183x Revenue. That's right, not 183x depressed earnings. 183x revenue. ($110 billion Market Value on approximately $600 million of Revenue). Speculators value Snowflake 9x more than … Continue reading Nosebleed Technology Stock Valuations & CEO Compensation
The ICE BofAML Bond Volatility Index (MOVE) began its march higher on October 1st and has not looked back. There has been an inverse relationship between MOVE and the Russell 2000 Index this year which suggests more equity market volatility is around the corner. https://soundcloud.com/ceorater
Robinhood and other Fintech firms are using Social Media-based principles and tools such as "gamification" software to drive customer growth and usage. Legacy Asset Managers are taking the M&A route. Order Flow Revenue or "Pay-to-Play Revenue" is the revenue that Asset Managers generate from directing equity and options order flow to various trade execution firms … Continue reading Two Different Approaches To Growth: Fintech vs. Legacy Asset Managers
Equity funds continue to experience fund outflows as taxable bond funds enjoy fund inflows. (see table & chart below). A modicum of sanity has crept into the equity markets insofar as Technology names are concerned. High multiple growth names that were driven primarily by speculation and momentum have finally started to pull back over the … Continue reading Equities Continue to Experience Fund Outflows as Technology Stocks Slide
Volkswagen AG would provide Tesla with a large scale unit base (approximately 11 million vehicles sold in 2019 compared to 370,000 Tesla vehicles sold) that Tesla could leverage in part to accelerate technology development by 1.) deploying Tesla's technology across VW's much larger fleet and 2.) utilizing VW's cash flow to fund technology development. Tesla … Continue reading Tesla Should Acquire Volkswagen
It is going to take several years for the U.S. economy to recover back to 2019 levels. 2019 is a low bar in our view as that economy - much like the present one - was debt-fueled, deficit-ridden and plagued by artificially low interest rates. These factors in the aggregate have stymied sustainable, real economic … Continue reading Markets Are Poised To Grind Lower
Corporate debt is at a record $10.5 trillion (chart 1). Yet as a percentage of U.S. corporate equity market values, debt is a small percentage relative to previous years (chart 2). Thank the Fed for boosting equity valuations. Smart, heavily-levered companies used the opportunity presented over the past few weeks to capitalize on inflated equity … Continue reading It May Not Be Too Late To Issue Equity
Robinhood (pvt.), Fidelity (pvt.), Schwab (tkr: SCHW), SoFi (pvt.) and Square (tkr: SQ) each have fractional share investment offerings. Fractional shares enable investors to purchase one U.S. Dollar's worth of a given equity ($5 in Schwab's case), rather than a full single share. For example, investors may purchase $1 worth of Amazon (tkr: AMZN) rather … Continue reading The Rise of Fractional Share Trading
The Fed's behavior in recent months has been something out of a horror movie. The low interest rate, expansionary monetary policies introduced by former Fed Chair Bernanke and continued by former Fed Chair Yellen have dramatically accelerated under current Fed Chair Powell. Bernanke dealt in $Billions, Chairman Powell prefers $Trillions. Click any of the charts … Continue reading The Forever Bubble-Blowing Fed
This is a stock picker's market. The table seems to be set for a return to active management. It seems the equity markets have traded in synchronicity over the past number of weeks during the COVID outbreak. There has been little differentiation between individual Technology stocks on the way down and on up days. This … Continue reading The Return of Actively-Managed Funds
