Today is Monday, December 13, 2021.
Apple Eyes $3T Valuation
Apple (Nasdaq: AAPL) could be valued at $3 trillion in 2022 or as early as now, Wedbush lead analyst Daniel Ives wrote on Sunday, calling it a “watershed moment” for the tech company.
Details: Ives praised Apple’s growing services business as well as its products, including its iconic iPhone and new products that fit into the metaverse.
Background: Apple hit the $1 trillion mark in 2018 and then reached a $2 trillion valuation last year.
Headwinds: Even though current supply chain challenges are hurting iPhone sales, Ives predicts that demand will drive iPhone sales in early 2022.
Numbers: Shares of Apple are up 38% in 2021. In the last 30 days, the stock is up 19%.
Final Thoughts: The only other companies that are currently worth over $2 trillion are Microsoft (Nasdaq: MSFT) and Saudi Aramco (TADAWUL: 2222).
Notable Earnings Today: PHX Minerals (NYSE:: PHX), Riley Exploration Permian (NYSE: REPX), J.Jill (NYSE: JILL).
Notable IPOs Today: NewHold Investment Corp. II Class A Common Stock (Nasdaq: NHIC), ExcelFin Acquisition Corp Class A Common Stock (Nasdaq: XFIN), AltEnergy Acquisition Corp. Class A Common Stock (Nasdaq: AEAE), ESGEN Acquisition Corporation Class A Ordinary Shares (Nasdaq: ESAC), MaxLinear, Inc. Common Stock (Nasdaq: MXL).
Notable Equity Crowdfunding Campaigns Ending Today: AXA Spirits (StartEngine), Brakes To Go (StartEngine), KMX Technologies (NetCapital), WebJoint (StartEngine), IPD Products (MicroVentures).
Notable Economic Events Today: N/A
Cryptocurrency May Not Be an Inflation Hedge After All
After new data pointed to rapid inflation, some investors are beginning to consider that cryptocurrency may not be the perfect hedge that it is expected to be.
Details: The Consumer Price Index (CPI) increased 6.8% since November, the highest surge on record since 1982, according to the Bureau of Labor Statistics on Friday.
Background: Due to the nature of crypto, it has been widely assumed that it could be a safe inflation hedge for a traditional stock portfolio, similar to gold or real estate. In fact, Miller Tabak + Co’s Matt Maley told Al Jazeera on Friday that crypto is seen as a flight to safety asset for some investors.
Counterpoint: However, there’s not much proof that confirms that crypto is indeed a hedge against inflation. Since Friday's CPI number was revealed, the prices of several cryptocurrencies have decreased.
Final Thoughts: Whether or not crypto is an inflation hedge, that shouldn’t change your investment thesis. There are many reasons, beyond inflation, that someone may want to buy crypto.
Canadian Pacific Railway Nearly Completes Acquisition
Shareholders of the Canadian Pacific Railway (NYSE: CP) recently approved a deal to acquire Kansas City Southern (KSU).
Numbers: Shares of Canadian Pacific Railway are up just 5% this year - way lower than the leaders in the railroad industry.
The Good: When the deal is complete, it will result in the first railroad connecting the U.S., Canada, and Mexico.
The Bad: However, Canadian Pacific had to complete a $6.7 billion bond offering to finance the acquisition. Will the acquisition finally help Canadian Pacific’s stock price?
Final Thoughts: Canadian Pacific is expected to announce earnings in late January. At that point, we’ll get more information about the finances of the acquisition.
Trends to Watch
Withdrawal: SenseTime will halt US$768 million IPO in Hong Kong after US blacklists AI firm on human rights grounds (South China Morning Post)
Jumping Ship: Sirius Hires Top Builder of Disney+ Streaming Service (The Wall Street Journal)
Risky Business: Gigantic Corporate Debts Could Pin the Fed in an Inflation Trap (Motley Fool)
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