Today is Tuesday, October 5, 2021.
Zuckerberg Loses $6 Billion As Facebook Suffers
Facebook (Nasdaq: FB) had a really bad Monday, capped off with a 4.89% decrease in its stock price, the worst trading day for the social media giant in 2021.
Mark Zuckerberg lost $6 billion in net worth on Monday, according to Bloomberg.
Background: Over the weekend, Facebook received a double dose of bad publicity. A whistleblower in a 60 Minutes interview and an investigation by the Wall Street Journal revealed many issues with the company, including problems with the impact of its platform on teenage girls and how misinformation can be spread across Facebook.
Glitches: To add insult to injury, Facebook and Instagram were down most of Monday due to a reported server issue.
Widespread Impact: Facebook had such a bad day that it dragged on other tech names, including social media companies. Shares of Twitter (NYSE: TWTR), Snapchat (NYSE: SNAP), and Pinterest (NYSE: PINS) were all down by over 5% Monday.
Final Thoughts: Despite the selloff, several investors are still bullish on Facebook. After all, Facebook has become a major advertising player and the company is still innovating.
Notable Earnings Today: Pepsi (Nasdaq: PEP), Saratoga Investment (NYSE: SAR).
Notable IPOs Today: Crixus BH3 Acquisition Company Units (Nasdaq: BHACU), Mount Rainier Acquisition Corp. Unit (Nasdaq: RNERU), Harbor Custom Development, Inc. Warrant (Nasdaq: HCDIZ)
Notable Equity Crowdfunding Campaigns Ending Today: GroGuru (StartEngine), Flat Out of Heels (StartEngine), Whooshh Innovations (StartEngine), American Provenance (Republic).
Notable Economic Events Today: Trade Balance (8:30 a.m ET), Markit Composite PMI (9:45 a.m. ET), ISM Non-Manufacturing PMI (10:00 a.m. ET).
Looking Beyond Amazon Stock
While shares of Amazon (Nasdaq: AMZN) are up 279% in the past 5 years, it’s only up 0.1% in 2021.
What are some Amazon competitors that investors should look at?
Bid for it: eBay (Nasdaq: EBAY) is an interesting alternative. It competes in the online marketplace like a third-party seller of goods, similar to Amazon. Investing in eBay is easier because it is a lower stock price, and the shares are up 35% this year. It is also a value stock.
Look At China: Alibaba (NYSE: BABA) is considered to be the Amazon of China because it is also an e-commerce giant. It might be tough to invest in China-based companies given the recent economic conditions, but Alibaba is an intriguing option. It is a value stock that is down 36% this year, which is a good opportunity to buy the dip.
Across the Web: Of course, there are several popular e-commerce stocks that compete against Amazon. One popular choice is Wayfair (NYSE: W), which is up 1.28% in 2021.
Final Thoughts: Yes, Amazon is a giant and popular choice for investors. But there are also interesting competitors to hold as well.
How Axie Infinity Became the Hottest New Altcoin
Axie Infinity’s digital coin, known as AXS, is now a new favorite for investors looking for the next big cryptocurrency.
Numbers: In the past week, Axie’s price is up from $65 to $135. In fact, Axie was worth only $0.53 at the start of the year.
Background: Launched in 2018, Axie Infinity is a game played on blockchain where users can earn crypto called Axie. Each Axie is also a non-fungible token (NFT).
Recent Development: The price of Axie increased after the team behind the game announced last week that it was distributing $60 million worth of its coins to early adopters.
Bigger Picture: Axie is popular is because it is capitalizing on two big trends: the gamification of currency and the rise of NFTs.
Final Thoughts: In order for the price of Axie to continue to rise, more people have to play the game. If fewer people play the game, then the price could drop.
Trends to Watch
You’re Oil I Need: Crude Oil Soars; WTI Hits 7-Year High as OPEC+ Sticks to Plan (Investing.com)
Black Friday Comes Early: Amazon is starting Black Friday deals early. Like, now (CNN)
Tax Advantage: Financial Advisers Pitch Bitcoin to Investors to Offset Portfolio Losses (Wall Street Journal)
Driving the Price up: Volvo announces $2.9 billion IPO as it looks to fund shift to electric cars and catch up with Tesla (Fortune)
Drop: SoFi Technologies stock dips after offering $1.1B of convertible notes (Seeking Alpha)
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