Today is Tuesday, September 14, 2021
Fake Walmart Press Release May Prompt Regulatory Response
A press release Monday morning on a trusted newswire announcing that Walmart (NYSE: WMT) would start accepting cryptocurrency Litecoin as payment was later revealed to be a hoax.
Reality Check: After a verified Litecoin account tweeted the announcement, a spokesperson from Walmart quickly clarified that the announcement was not real.
Duped: While most seasoned crypto investors were savvy enough to know that something was fishy about the press release, several mainstream media outlets ran the story without fact-checking it.
Numbers: The price of Litecoin shot up as much as 33% before the story was revealed to be fake. Walmart’s stock also popped a bit as well. It appears that this stunt might be a pump-and-dump scheme.
Bigger Picture: This instance of price manipulation might force the Feds to step in to provide regulation. The debate around crypto regulations has been going on for some time.
Final Thoughts: This is not the first time there has been a scam in the crypto space. Monday’s fake news release showed how easy a hoax can occur. It also shows why fact-checking is so crucial.
Notable Earnings Today: America First Multifamily Investors (Nasdaq: ATAX), Core & Main (NYSE: CNM), Ibex (Nasdaq: IBEX), European Wax Center (Nasdaq: EWCZ).
Notable IPOs Today: Endurance Acquisition Corp. Unit (Nasdaq: ENDCU), Pacifico Acquisition Corp. Units (Nasdaq: PAFOU), Sportradar Group AG Class A Ordinary Shares (Nasdaq: SRAD).
Notable Equity Crowdfunding Campaigns Ending Today: Vitamin Kandie (Honeycomb), Leaf Club (Wefunder).
Notable Economic Events Today: Consumer Price Index (8:30 a.m. ET).
Revenue Shortcomings Sink Oracle Stock
Shares of Oracle (NYSE: ORCL) dropped nearly 2% in after-hours trading Monday after the software company posted mixed earnings.
The Good: Earnings per share in the quarter reached $1.03, better than the projection of $0.97. Guidance for the upcoming fiscal year was also strong.
The Bad: Oracle reported revenue of $9.73 billion, short of the projection of $9.75 billion. And while the company’s cloud business grew, it did not keep up with competitors.
Numbers: Oracle’s share price is near an all-time high. It is up 39% in 2021, but down 2% during the last month.
Final Thoughts: It is clear that Oracle is not the most loved legacy tech company. While revenue is up year-over-year, its competitors are growing faster. Oracle needs to catch up.
Buy Now, Pay Later Alternative Investments
Several leading financial companies on Wall Street now offer services in Buy Now, Pay Later (or BNPL, which is when consumers can split purchases up into future payments).
In addition to these stocks, investors can also look at the private markets to get exposure to BNPL.
Equity Crowdfunding: In May, U.K. financial app Curve raised nearly £10 million on the equity crowdfunding platform Crowdcube. The company is beginning to trial a BNPL product known as Curve Credit.
Real Estate: In Australia, property tech platform Bricklet implements a BNPL method to allow users to purchase a piece of an investment property.
Bigger Picture: Stocks are a great way to invest in BNPL companies, but there are some benefits for investing a small part of a portfolio into alternatives.
Final Thoughts: When will there be more BNPL providers that enter crowdfunding platforms for investors?
Trends to Watch
Happy Holidays: Mastercard: U.S. holiday sales to rise 7.4% this year (Chain Store Age)
Roar Like a Lion: MoneyLion launches crypto investing ahead of planned SPAC deal (CNBC)
Oil You Ever Need: Oil rises to six-week high as U.S. supply concerns dominate (Reuters)
Oh Snap: The Goldman Sachs Group Initiates Coverage on Snap (MarketBeat)
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