The Breadwinner


Nvidia shares boosted this Thursday, increasing Wednesday’s gains after a Citigroup analyst named Atif Malik increased his price target on the company after their 4-for-1 split.

Malik raised his one-year target on the company to $223 from $180 and maintained his buy rating on the shares after the 4-to-1 split which happened this week during what he says is recovering demand for Nvidia’s products, despite the previous pullback.

Specifically, Malik stated in a research note to his clients that he sees any crypto linked or gaming linked pullback in the second part of 2021 as an opportunity to buy as Nvidia prepares to launch its next generation of GPUs in 2022, and its new Grace CPU in 2023.

In May, Nvidia unveiled its plans to do a 4-for-1 stock split to allow more people to buy shares. The split went into effect this week.

Analysts have praised Nvidia since their Q1 results, which came in even better than expected during strong hyperscale data center demand, which included a demand for its GPU products for both video games and mining crypto.

Even before this, analysts were bragging over Nvidia’s performance given the huge demand for its gaming products, which surged during the pandemic and stay-at-home orders that increased demand for in-home entertainment such as video games, made worse by the global chip shortage that boosted the demand, along with prices, for the chips used within the cards themselves.

Jim Cramer is bullish on Nvidia, and has been for some time, not just because the company’s long-term prospects but also due to its strategy to buy Arm Holdings, a British company that designs CPUs that are used in cellphones, tablets and PCs and Macs, which will boost its already good sales pipeline that has been linked to demand from crypto miners.

For its fiscal Q2 which ends in July, Nvidia anticipates revenue of $6.3 billion, higher than FactSet’s estimates of $5.47 billion, fueled by gains among all its segments, led by cryptocurrency, data center, and video games.

At last count, shares of Nvidia were higher by 0.76% at $195.58. The stock is higher by 2.77% in the previous month and over 48% since the beginning of the year.

Author: Scott Dowdy

When it comes to the stock market, winners tend to keep winning. When a stock is on fire, there are usually great reasons why this is the case, so focusing on companies that are doing great and have already given great gains is one way to build your wealth. With this in mind, here are two companies whose prices have doubled over the previous couple of years and still seem well-stationed to double again.


Before the pandemic, Etsy has had already made itself the premier purveyor of custom products, as well as craft vintage goods. On its platform, buyers can get an endless assortment of one-of-a-kind things. Demand for their offerings accelerated last year and is showing no sign of slowing down.

Etsy has a scale no other handmade goods market can match. It sells 92 million unique products from 4.7 million sellers and over 90 million buyers. Gross merchandise sales grew by 132% y/y in the first quarter this year. This helped push revenue up by 142%, while its profits increased over 11-fold.

The company is keeping and even growing its gains from 2020. Management took note during the first-quarter earnings call that the company was “focused on pushing frequency” and found “buyer triggers.” As one example, management stressed its update tab, “It is very encouraging that now 13% of app visits include a look at the updates tab, and 27% of these visits have buyers clicking on one or greater listings that we have in updates.” This helps show the work that Etsy is doing to continue to attract and increase sales.


When it comes to GPUs, no company can get near NVIDIA. It created the processing chips that allow computers and consoles to produce lifelike imagery in video games, and it is the top dog in the sector with a 81% share as of Q1 of 2021. NVIDIA’s gaming sector sales increased 106% y/y in its fiscal 2022 first quarter. That alone should be reason to buy the stock.

But NVIDIA’s biggest profit source might not be the gaming industry soon. Its cutting-edge hardware and software have become the industry standard in numerous accelerating technologies, including data centers and close, and AI. The company’s data center sales, which are being fueled by all of those important trends, increased 79% in the most recent period, and there is still a long runway for growth ahead.

Author: Scott Dowdy

Social Security receivers are in line to get the largest cost-of-living raise in almost four decades, driven by a returning economy that is causing the biggest boost in inflation in years.

The Senior Citizens League, a group that centers on topics related to older Americans, says they estimate the change could be as much as 6.1%, given the June inflation numbers, which revealed that consumer prices in the month went up 5.4% from the year before, the fastest y/y increase since 2008.

The annual S.S. change is found given the CPI for Urban Wage and Clerical Workers, or also called the CPI-W.

Should Social Security receivers get a 6.1% boost to their monthly income in 2022, it would mean the biggest annual change since 1983, when they got a 7.4% bump. The Senior Citizens League said they expected the COLA for next year to be possibly 5.3% given the data from May.

“This is inflation on steroids, mostly caused by energy prices,” Mary Johnson, a Social Security researcher for the group, previously stated.

In 2021, recipients got one of the lowest COLA boosts, with a raise of only 1.3%, or around an extra $20 per month.

The estimated figure might still be going to change, and ultimately depends on the economy’s performance over the future months and if the Fed raises rates to fight inflation.

Chairman Jerome Powell hinted last week while speaking on Capitol Hill that central bank officials are not discussing pumping the brakes at any time in the near future, informing lawmakers that America’s economy is some “ways off” from where it must be for the Fed to start unwinding its monetary policies established during the pandemic.

The SS Administration will give the final change percentage in October.

Since 2000, benefits have lost around 30% of their purchasing power because of inadequate changes that underestimate inflation and increasing health care costs, as reported by the Senior Citizens League.

The group has urged Congress to accept legislation that would link the adjustment to inflation indexes for seniors, like the CPI for the Elderly, also known as the CPI-E. That index directly tracks the spending of people aged 62 and above.

Author: Scott Dowdy

Bitcoin and other cryptos recovered this Wednesday after a short sell-off, with the world’s top digital cryptocurrency reaching back over $30,000.

The price of bitcoin went as high as $32,765 this Wednesday, according to the website Coin Metrics, and last sold at 31,641, around 6% higher on the day. Smaller cryptos ether and XRP also returned with around 6% each.

The crypto market witnessed greater selling this week on Tuesday, with bitcoin declining under $30,000 for the first time since June 22nd.

The decrease came after news that the NJ A.G. gave a cease-and-desist message to crypto lending company BlockFi, ordering them to stop giving interest-bearing accounts.

The cause for the move higher Wednesday was not immediately clear. Cryptocurrencies usually have severe price swings. Bitcoin, for example, went higher to an all-time high of nearly $65,000 in the month of April before splitting in value in the months after.

The price of ether increased around 1.5% in the afternoon after Elon Musk says he has some of the cryptocurrency, in addition to bitcoin and dogecoin, during the online event called “The B Word.”

Vijay Ayyar, leader of Asia-Pacific at crypto exchange Luno, said Wednesday’s rise was possibly a “dead cat bounce,” where an asset momentarily recovers from a prolonged decrease before sliding more.

Unless bitcoin can get higher than $32,000-$33,000, Ayyar says he expects more downside, with the top crypto possibly going as low as $24,000.

“We witnessed broad market rallies last night as well, and I believe crypto is only playing off of that,” Ayyar said.

“In general, there are many macro factors pushing down on risk-on assets right now — inflation, Covid, and with cryptocurrency we have worries like more regulatory oversight.”

Cryptocurrencies have been going down during an increasing crackdown on the technology and industry from regulators.

In China, authorities have tried to remove cryptomining, the technique that processes transactions and creates new coins. Binance, the world’s top crypto exchange, is coming under more pressure from regulators in Italy, the U.K. and elsewhere.

Author: Blake Ambrose

In the quest to alter cannabis laws in the country, the House has not been much of an issue. The challenge has always been the U.S. Senate.

Last week, however, Senate Majority Leader Chuck Schumer announced his proposed law to decriminalize marijuana and make it legal at the federal level that he wishes to bring to the Senate.

With the possibility of complete federal cannabis legalization on the way, is it time to buy up a lot of marijuana stocks?

Possible winners

As you may expect, there are many winners if marijuana is made legal at the federal level in this country Canadian cannabis producers have long wanted to go into the huge American market. But they can’t do this and still list their shares on top United States stock exchanges while cannabis stays illegal.

If this roadblock is overcome, Canopy Growth is a stand out as an especially good beneficiary. Canopy already has an option to buy U.S. cannabis company Acreage Holdings. It also has a big partner (and biggest shareholder) based in the States — Constellation Brands. Canopy might be the first to move into the American market if Senator Schumer’s bill succeeds.

Also don’t overlook the opportunities for the companies that are already operating in the country, though. Cresco Labs, for example, is ranked as one of the best valued multistate cannabis companies. One reason why its stock is cheap when compared to Canadian pot stocks is they can’t list their shares on a top U.S. stock exchange.

It’s a similar issue for Trulieve Cannabis, one of the largest cannabis operators in the united states. If Trulieve were priced the same price-to-sales ratio that Canopy Growth is at, its cap would bet at $10.3 billion — a lot more than its current number of $6 billion.

Don’t jump in just yet

With so much uncertainty in the U.S. Senate, investors probably should not load up just yet. That does not mean, however, that there are not stocks that you should take a hard look at.

One cannabis stock that looks like a good choice regardless of what happens in D.C. is Cresco Labs. They company is expanding in its core areas. It has also gone into new states, including the huge market of Florida and Ohio.

Author: Steven Sinclaire

The market has been coming back to new heights in the past weeks, even with coronavirus persisting in news coverage and politics, and the economy not being fully recovered, and stimulus payments still helping to prop things up.

All this means a bigger risk that as we get back to normal, the market might experience a correction. If I owned the following two stocks, I would be considering selling them ASAP. Both of these companies’ share prices have doubled in one year, going way past the S&P 500 and its 35% boost.

But with increased price and the possibility of a crash coming in, they get riskier as every day passes.

1. Moderna

Moderna has went up by 250% in one year, and for good reason — its covid vaccine got emergency use authorization from the FDA last year. The company thinks it will generate over $18 billion in revenue from the vaccine this year, and its bottom line will finally be shaded black — in 2020 it lost a total of $747 million, triple its numbers in 2017.

Things are looking good for Moderna, especially since rival Pfizer is seeking FDA approval for a third dose of its vaccine. If Pfizer does this successfully, it’s very possible Moderna will follow suit, which might bring in even more cash for the company.

But even with the vaccine success, Moderna’s future looks like a question mark to me, and while its forward p/e ratio of 11 seems cheap, that might quickly change post-COVID. Even on a forward basis, the stock is selling over 6 times revenue — Pfizer is 3. Although Moderna seems to be doing well at the moment, its stock is too expensive to withstand a possible correction.

2. fuboTV

Streaming company fuboTV is not profitable, nor does its profitability look to be getting close. But that has not stopped investors from jumping onboard, pushing shares higher by 160% in 12 months. Its subscriber count as of March reached 590,000 — a y/y increase of 105%. And the company might continue attracting more customers thanks to plans to create a sportsbook before the end of 2021.

However, while fuboTV is growing, my issue is that its approach could be too aggressive in reaching for revenue. In its recent results, for the time frame ending March 31, revenue of $120 million was not anywhere close enough to cover its $185 million in expenses. Of particular concern is that fuboTV has had subscriber-related expenses of $113 million — over the $107 million it got from its subscription revenue.

Without healthy margins to support the company’s continued growth, the problem for investors is that fuboTV’s numbers might not get better as it grows, which could mean an inevitable need to bring in more cash — diluting the current shareholders. For all these reasons, if we have a crash, fuboTV’s stock could fall quickly.

Author: Steven Sinclaire

Bitcoin was on the path to end on Tuesday under $30,000 per coin for the first time in 2021.

Bitcoin, the top cryptocurrency by market cap., decreased by as much up to 4.6% to $29,393 per coin. It has not ended under $30,000 since December 31.

“The latest fast sell-off in the cryptocurrency sector is seeing giants like Bitcoin and Ethereum hitting vital support levels that are turning more fragile,” said Nicholas Cawley, who is an analyst at DailyFX. “The lack of a return over the previous three weeks means that traders are no longer wanting to ‘buy the dip.’”

Tuesday’s decrease comes one day after a broad downfall in risky assets and as the current Treasury Secretary, Janet Yellen, has called on officials to create a legal framework for regulating stablecoins, which are supported by a reserve asset such as the U.S. dollars. Stablecoins give holders the privacy of crypto and the stability of fiat money.

Bitcoin’s value had spent the previous two months going between $30,000 and $40,000 after China in May caused a selloff after urging a crackdown on cryptocurrency mining.

The price of bitcoin had gone up by as much as 116% in 2021, hitting a top at $63,503 in April, as a number of United States companies, including Tesla and MicroStrategy, started investing in the crypto as a strategy to diversify their holdings.

Analysts state that bitcoin’s bear run still has the ability to go lower.

J.P. Morgan researchers said last month that the cryptocurrency’s share of the overall crypto market would have to go back over 50% before they get more comfortable and believe the selloff is over.

Tuesday’s selling pushed bitcoin’s market cap down to $555.6 billion, or around 46% of the total $1.2 trillion crypto sector.

Bitcoin’s market cap hit a high over over $1.1 trillion back in April, or 70% of the total crypto space.

This comes at a time when more alternative cryptocurrencies are making news and getting support, such as Dogecoin as alternatives to Bitcoin, along with its number one competitor, Ethereum.

Author: Steven Sinclaire

Chinese-owned widely popular app TikTok has changed its policy to block all financial products and services, including preventing influencers from supporting cryptocurrency.

The firm says the change is targeted at preventing the increasing abuse of the platform to commit scams and other dishonest actions that might infringe upon someone’s privacy.

But it has come only weeks after the CCP cracked down on crypto-mining over their alleged “climate concerns,” forcing miners to move out of China. TikTok’s new policy will harm legitimate financial companies, which won’t be able to take advantage of influencers for promotion.

Without the ability to pay for advertising or influencers, cryptocurrency’s time on TikTok could be over. However, their ad policy, which lets financial services advertise to those older than 18, stays unchanged.

TikTok changed their policy about cryptocurrency

In their new policy, the company says under the title that “Globally Prohibited Industries” that all content promoting financial products are not allowed, including credit cards, loans, trading platforms, forex trading, cryptocurrency and so on.

Many crypto-centered companies use influencers on the TikTok platform, which is known as “Fintok” advisors, to increase their reach. Sometimes this leads to some of them delivering unregulated and misleading financial advice about putting money into assets such as Bitcoin and Dogecoin to young investors who wish to grow their funds quickly without any understanding of crypto.

Google follows

Just like TikTok, even Google took a hard stance on scammy ads on its platform. A few weeks back, Google UK had said that from Sept. the company will request that financial services companies prove their identities to reduce the scam advertisements on the platform.

Meanwhile, the CCP has increased their crackdown on crypto with authorities recently blocking the trading in highly volatile coins in the Anhui province to get the power consumption lowered to a manageable level. The action effectively started in late May, starting with large mining hubs like Inner Mongolia, Sichuan, and Xinjiang, which led to a massive decrease in the crypto market. Before the crackdown, China had made up around 70 per cent of total Bitcoin production.

Author: Scott Dowdy

Growth stocks are in general going through a volatile time this year. Many growth stocks also benefited from the stay-at-home pandemic trend. Now that economies are restarting, the attention of investors is changing to stocks that could gain as consumers start traveling again.

That does not totally explain why these two growing stocks have catapulted down by over 20% this year, but it does start to reveal the story. Nevertheless, each of these stocks has good long-term possibility that have improved. Let’s look at why you should think about each one of these down-trodden growth stocks.


Skillz is a gaming system on a large growth trajectory. It is unique because it gives players the chance to place bets on the games they are playing. The wager ability makes them more interesting than other games. The outcome of the game has the benefit of winning prize money.

Importantly, it takes Skillz far less money to get customers than the money it gets from them. Indeed, from 2018 to 2020, lifetime customer value went higher than the expense of getting them by 3.8 times. That gives room for Skillz to use more money to acquire new customers to power its profits. More players leads to more developers being interested in allowing their games to be compatible with the platform.

Penn National Gaming 

Penn National Gaming was hit hard during the covid pandemic when it had to close down its land-based casinos. It is coming back after reopening and revenue is almost back to 2019 numbers. And Penn is not exposed to the convention market in the same way Las Vegas casinos are, so there will be no long-term damage from lowered travel.

The online sportsbook is just only now getting started, with 400,000 total players. Compare that to its competitor, DraftKings, which has signed up almost 1.5 million monthly players. Given that Penn has the increased advantage of land-based casinos to bring in online players, it might surpass DraftKings over time. And so it is a much better bet for investors who want growth, and want it for cheap.

Author: Scott Dowdy

In June, the CPI increased year over year by 5.4%, the biggest increase since Aug. 2008. As inflation pressures start showing more durable than previously expected, market volatility might spike in the short term.

With the Fed highlighting its support for the economy by keeping low-interest rates in its most recent monetary policy to Congress, a small pullback caused by the inflation report might prove to be an opportunity for smart investors.

If you have $5,000 and you want to invest, and don’t need the money for bills, then the following stocks can make you richer in what is left of 2021 and beyond.

1. Cloudflare

Cloudflare is a top edge-based content delivery network company and a cybersecurity firm. The demand for their edge computing and security services are rising due to the greater adoption of cloud-based architectures.

The company’s total addressable market (TAM) is thought to expand from $72 billion last year to $100 billion going into 2024. The company’s freemium strategy has proven to be very successful. Cloudflare gives its CDN services to users and businesses for free and only charges if they want to upgrade to get premium features.

Since 2016, the company has managed to grow its revenue every year by around 50%. Their dollar-based net retention was 123% in Q1, which implies the same customers spent 21% more than the previous quarter. This metric shows the success of the company’s freemium-and-upgrade model.

2. CrowdStrike

CrowdStrike Holdings has benefited greatly from greater demand from cybersecurity services due to covid-accelerated digitization programs. Most of the changes in workforce behavior will continue even in the post-covid era.

With its real-time protection called CrowdStrike Falcon and a software-as-a-service (SaaS) model, the company is well-positioned to get a large share of the global cybersecurity market. In turn, the market is estimated to expand from $217.9 billion this year to $345.4 billion going into 2026. Indexing over 6 trillion events every week, CrowdStrike Falcon is getting even more effective due to better network effects.

CrowdStrike reported a 74% y/y increase in annual recurring revenue (ARR) to $1.19 billion. And they have been quite successful in getting new customers, as shown by the 82% y/y increase in customer subscriptions to 11,420 at the close of Q1. They are also guiding for a 54% y/y jump in fiscal 2022 revenue.

Author: Steven Sinclaire

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