Biden Crypto Regulation Coming
And, Roku's Supply Chain Woes.
Today is Friday, February 18, 2022.
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Biden Crypto Regulation Coming, Report Says
President Biden will likely submit an executive order next week directing government agencies to study cryptocurrencies and to develop a strategy to regulate digital assets, according to Yahoo! Finance on Thursday.
Going Digital: The order will also include a study into the creation of a Central Bank Digital Currency (CBDC), which is a digital form of a country’s fiat currency. The U.S. Federal Reserve is already looking into this.
Details: The study will also examine financial stability issues, privacy issues, digital distributed ledger technology, coordination with other governments, and measures to protect people from crypto-related risks.
The Good: Proponents say that the federal regulation of crypto is good because it will legitimize crypto and it will protect users from scams.
The Bad: Opponents say that the federal regulation of crypto is bad because it could inhibit innovation and drive down crypto prices.
Final Thoughts: Even without regulation now, crypto prices have been down this year, mirroring the broader market.
Notable Earnings Today: DraftKings (Nasdaq: DKNG), Deere & Co. (NYSE: DE), Bloomin' Brands (Nasdaq: BLMN), AdvanSix (NYSE: ASIX), Barnes Group (NYSE: B), PPL Corp. (NYSE: PPL), Arbor Realty Trust (NYSE: ABR), Balchem (Nasdaq: BCPC).
Notable IPOs Today: Blue Water Vaccines, Inc. Common Stock (Nasdaq: BWV), PowerUp Acquisition Corp. Unit (Nasdaq: PWUPU), FG Merger Corp. Unit (Nasdaq: FGMCU).
Notable Equity Crowdfunding Campaigns Ending Today: Sizigi (Wefunder), Monogram Orthopaedic (StartEngine), YEP (NetCapital), Harmony Turbines (Wefunder), Dragon Spirits Marketing (Wefunder), Cassava San Francisco (Wefunder), myEDmeds (Wefunder), SunState Laboratories (Wefunder), GapNurse (PicMii).
Notable Economic Events Today: Existing home sales (10:00 a.m. ET).
Roku Earnings Hit by Supply Chain Disruptions
Shares of Roku (Nasdaq: ROKU) dropped 22.36% in after-hours trading on Thursday after the video streaming company posted mixed earnings.
Financials: Roku reported earnings of 17 cents per share, which was better than expected. But its revenue of $865 million missed expectations.
Supply Chain: Growth rates slowed in the second half of the year, which Roku attributed to global supply chain disruptions. Certain advertiser categories were also impacted due to supply chain challenges.
Outlook: Roku expects to hit $720 million in revenue in the first quarter, which is below estimates. The company expects ongoing supply chain disruptions in the quarter.
The Good: Platform revenue grew 80% and gross profit jumped 74%.
Final Thoughts: Roku’s stock is down 68% in the past 12 months.
Treasuries in Focus Amid Conflict
Those investing in U.S. Treasuries may be concerned about the latest news from the Russia-Ukraine conflict.
Recent History: Treasury yields dropped last Friday after the White House said that there were signs of Russian escalation. The 10-year Treasury note fell to 1.92%.
Background: Usually during conflicts, Treasuries are a popular choice for investors who face a difficult future.
Final Thoughts: Last week, the 10-year Treasury yield hit 2% for the first time since 2019.
Trends to Watch
Down: Meta Platforms drops out of top 10 companies by value, with new 4% dip (Seeking Alpha)
Undercooked: Shake Shack forecasts slim sales as Omicron surge hurts (CNBC)
Positive: Goldman Offers Bright Outlook for Post-Pandemic Wall Street (The Wall Street Journal)
Expansion: SEC Report Shows Why Accredited Investor Definition Should be Adjusted to Provide Access to More Investors (Crowdfund Insider)
Falling: Bitcoin bulls scramble to defend $40,000 as the crypto market sell-off intensifies (Cointelegraph)
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