Biden Crypto Regulation Coming
Photo by Kanchanara / Unsplash

Biden Crypto Regulation Coming

And, Roku's Supply Chain Woes.

Steven Lerner
Steven Lerner

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

Photo by Glenn Carstens-Peters / Unsplash

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.

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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