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Mastercard’s CEO has detailed the company’s plans to create services around stablecoins, cryptocurrencies, and central bank digital currencies (CBDCs). “We want to have a role across all of these … It’s obviously an energetic space around digital currencies,” he said.

Payments giant Mastercard gave an update about its crypto plans during the firm’s recent earnings call. CEO Michael Miebach reported that his company wants to play a role in all three possible crypto areas. In addition to cryptos like bitcoin, Mastercard also wants to work with private sector stablecoins, and central bank digital currencies. He said:

“We want to have a role across all of these … It’s obviously an energetic space around digital currencies … This is a new relevant technology. As a multi-rail company, we must be in this space because people are seeking answers.”

For cryptocurrency, Miebach said: “We are making it easier for crypto wallets to connect to our network seamlessly through a pilot with Circle, Paxos and Evolve Bank & Trust, which makes the conversion of cryptocurrency into fiat easier.” The executive said: “Separately, we are partnering with Consensys, a company providing Ethereum software engineering, to accelerate the creation of crypto applications and services to our clients.”

On crypto investing, the CEO said:

“Clearly, people are investing in it. They don’t want to sell these investments, and we are going to make this as simple as possible. So we get all these partnerships.”

In terms of stablecoins, the CEO said that Mastercard is “working with private sector companies as well as regulators on policy surrounding private sector stablecoins because this issue about regulatory compliance is not yet resolved.”

Miebach then restated what he said during Mastercard’s recent Q1 earnings call that the company was “getting set to technologically allow our network to have these stablecoins as settlement options given they meet all three of our selected criteria, which is regulation compliance, consumer safeguards and stability.”

In terms of central bank digital currencies, the CEO said that a growing amount of central banks are researching CBDCs, including the Bank of England and the European Central Bank (ECB).

Author: Steven Sinclaire

Not every stock experienced a hot July. Some growth companies saw their shares take a step or two back last month. So opportunity is knocking if you know where to look.

Shares of Pinterest and Coinbase Global lowered last month. They are now trading between 35% and 47% under their 2021 highs. Let’s go over why I believe these are two stocks with good chances to getting back on track this month.

Pinterest

One of July’s biggest losers was Pinterest, losing over a quarter of its value back in July. The biggest decline came on the final day of trading for the month, as Pinterest’s stock went down 18% after it revealed disappointing financial numbers.

Revenue was well higher than expectations, but the market was hit by a 5% y/y decline and a 7% quarter-over-quarter lowering in U.S. users. Pinterest was an early winner during the lockdowns, as folks went to the image-centered social platform for recipes, home decoration tips, and other crafty ideas. It’s only logical for its customers to be distracted with real-world hobbies and responsibilities as we get past COVID-19. The 7% dip was something that even shocked bears.

The good news is that revenue is increasing because average revenue per customer in the U.S. has more than doubled over the previous year. With some unfortunate signals that we are not entirely over covid-19, we could see a one-two boost where Pinterest usage rises again with the company’s better monetization in place.

Coinbase

Coinbase Global held up much better in July than Pinterest did — down only 7% — but the company also shed almost half of its top IPO value after reaching the market previously this year. The top cryptocurrency exchange goes into August almost 45% under its April high.

Whether you believe digital currencies will go up or down in the next weeks or months, it’s a fair bet that volatility will be seen. Coinbase benefits from trading volume. Falling crypto prices will naturally harm overall demand, but this was a firm that started the year with an 845% surge in revenue on explosive profitability. Growth will decline, naturally, but Coinbase should keep appreciating at a headier clip than crypto prices are.

Author: Blake Ambrose

When it comes to choosing stocks to keep for the long term, it is wise to focus on the underlying business. 

To win your investment dollars, a corporation should be able to show a strong history of growth, have a durable competitive moat, and have lots of tailwinds that can help you be sure it will keep bringing in prosperity.

And regardless of which path the economy takes as the United States looks ahead, there are some companies that are well-positioned to take advantage of almost anything that can happen in the future — which is why the following two stocks are great candidates to have in your investment portfolio for the next ten years or so.

Facebook

Facebook is an important social media website, Gen Xers, as well as baby boomers — even if they do not all favor the same types of programs. The company also owns Instagram and WhatsApp, and it is an advertising behemoth. Its dominance in the digital ad sector should keep going in the foreseeable future as no other social media website comes meet its reach and scope.

The company has impressive figures too. Q2 revenue has 56% higher than the same time frame last year, while profit more than doubled, reaching $12.4 billion. Net income increased by 101% y/y to $10.4 billion. Daily and monthly user counts were also up by 6.9% and 7.2%, respectively.

Shopify

The pandemic has caused many business owners to increase their retail operations online, and Shopify gives a platform that allows this transition to be convenient and seamless. The company gives entrepreneurs and larger enterprises the digital tools they need to build and grow their businesses, earning a piece of their transactions in exchange.

With consumer spending increasing, Shopify has reported strong growth over and over again. In their Q2, the company’s revenue went up by 57% y/y/ to $1.1 billion. As more companies joined its platform, subscription revenue boosted by 70% year over year. Recurring monthly revenue and gross merchandise value also kept going up, increasing by 67% and 40%, respectively.

Author: Scott Dowdy

The price of the crypto Ethereum has hit $2,600, a value not seen since back in June, when the crypto was still lowering from its all-time record high of $4,357 in May.

But now the number two cryptocurrency is coming back. Ethereum’s value is higher by 5.59% over the past 24 hours and as much as 21.77% this week.

The overall value of Ethereum is now reported to be $304 billion, second only to Bitcoin’s market cap of $779 billion. The global crypto cap now is marked at $1.70 trillion, a 1% increase since yesterday.

Some of Ethereum’s price rise could be connected to a major upgrade which is happening August 5, the London hard fork. London will put forward EIP-1559, a piece of computer code that burns some of the ETH previously portioned to go to Ethereum’s gas-using miners.

Ethereum’s boost has been helped by finance decentralization, a group of non-custodial lending and trading measures into which traders have stashed $71.5 billion into.

Meanwhile, Bitcoin

Bitcoin’s price tag is $41,522 per coin, up only 0.26% since yesterday. But it has come back by 21.2% this week, reaching highs of nearly $42,000. The rise comes after two bearish months after the market crashed back in May.

Joshua Lim, leader of derivatives over at Genesis Global Trading, has said that Bitcoin’s boosting this week comes regardless of news about a Democrat-led infrastructure bill that has a hidden cryptocurrency tax and regulatory actions to harm exchanges and stablecoins, and the Chinese mining ban and movement. The market has discounted this bad news, he said.

On Friday, Bitcoin options contracts totaled $1.5 billion expired, allowing bulls to get a large discount thanks to the recovery. Lim said that might have helped the price rise.

When Bitcoin rises, the rest of the crypto market usually goes up too. Almost all the top 10 cryptos have been green since yesterday. Polkadot, the number nine crypto, has increased by 11% in one night and 30% over the previous week. The one exception is the meme-coin Dogecoin, the number eight cryptocurrency, which is lower by 0.7% today.

Author: Blake Ambrose

Tesla beat analysts’ numbers when it gave earnings this week, reporting a profit of $1.1 billion and setting a record for deliveries in the quarter. But one analyst has said that the EV company might have much more room to grow.

Deutsche Bank Auto Tech Analyst Emmanuel Rosner has said that Tesla was relentless in its drive to lower the costs of its products and to give cutting-edge battery tech.

“We truly believe this is about their lower cost. This is about their superior battery tech, and it seems like there is some more to come next year,” Rosner said this week.

Tesla’s adjusted EPS, $1.45, more than tripled in the second quarters versus the same time frame last year and easily went higher than analysts’ expectations of $0.97. Overall revenue was reported to be $11.96 billion, breaking expectations of $11.30 billion too.

Tesla has gone through production woes as of late, somewhat because of the semiconductor shortages going on globally and issues with battery production. However, new focus given to helping productive capabilities might help increase the EV maker’s production in the long term, Rosner said.

“Tesla has done a wonderful job in Q2 in a very, very demanding supply chain climate to actually create as much as they possibly can, almost maxing out capacity utilization,” Rosner stated. “This has probably been among the hardest quarters, from a supply chain viewpoint, especially when it comes to semiconductors.”

Rosner also said that the CEO Elon Musk reported during the earnings call this week that Tesla is “certainly preparing for a possible doubling of production in 2022.”

Curiously, Musk also announced that he might skip future earnings calls in the future, leading to questions about his future involvement with the company.

“He framed his decision to no longer to be on earnings call as being about an efficient use of time,” Rosner said. “I do not believe this is something which is around the corner… Long-term, yeah absolutely, the fact that the company might do ok without his day-to-day work would actually be a good thing for the company.”

Author: Blake Ambrose

57,000 Bitcoin has left exchanges in one day as demand returns and the crypto reaches the upper end of its multi-month trading move.

Bitcoin (BTC) reached a $40,000 resistance flip this Thursday as on-chain data showed large withdrawals from some exchanges.

Data revealed BTC/USD rose to challenge the upper side of its trading range yet again on Thursday.

The couple had seen a fallback after first getting to multi-week highs numbered at $40,600 on Bitstamp previously in the week.

Hitting a bottom of $38,800, Bitcoin then went back to the $40,000 level, with that number still to be flipped to being support at the time of this writing.

As concerns over the energy of this week’s return, data from Thursday nonetheless shows a genuine demand for Bitcoin at great prices.

Shared by CryptoQuant and Bybt, the data seems to show the biggest one-day outflow in one year. A total of 57,000 Bitcoin left exchanges in only one day.

With that, exchange balances went back to levels last witnessed in May, right before a big price correction after BTC started reversing from its all-time record high of $64,500.

Looking for solid support

Despite this demand, market investors stayed convinced about the need for a higher low construction on Bitcoin/USD before any greater levels could go down.

“I believe the market needs to decrease to put in a HL before going up,” popular Twitter trader Pentoshi said.

“To put it easy. I have been bullish from 29.6k but today to me the signals need to go down for higher low.”

Exactly how deep that higher low might be could be anywhere from $36,000 to $32,500, some have predicted.

Order book data from top exchange Binance, meanwhile, has showed a narrowing range for spot price, with sellers and buyers reaching on $40,000 from either side.

This comes at a time when cryptocurrencies are coming under greater attack from regulators in the U.S. for its supposed link to criminals and cybercrime.

Author: Steven Sinclaire

There is no question that Nvidia has been among the market’s top performers in past years. Over the last three years, the stock has more than tripled — and that is not only a recent phenomenon. During the most recent five and 10-year time frames, the stock has went up by 1,280% and 5,110%.

So the question is, can Nvidia continue this winning streak or is the boat already gone? The truth is, I believe Nvidia can reach beyond a trillion-dollar value by 2025. Here’s why.

Gaming and cloud

Nvidia’s dominance in gaming is incredible. The company has a 81% share of the GPU market and is the product chosen by hardcore gamers.

In its fiscal 2022 Q1, Nvidia spent $1.15 billion — over 20% of its overall revenue and 31% of its gross profit — on more R&D. The firm is that serious about keeping its tech advantage.

Nvidia’s financial numbers reveal its strategy is good. The company gave a record gaming revenue of $2.76 billion from Q1, up 106% y/y.

Gaming is 49% of Nvidia’s current revenue.

While this is the largest sector of Nvidia’s business, the company’s cloud segment is quickly catching up. The GPU’s power is in parallel processing — which allows it to run lots of complex computations at the same time. This works really well in routing information through data center at fast speeds.

Nvidia’s numbers tell the results. The company brought in record data center revenue of $2.05 billion in Q1, up 79% y/y, and accounting for 36% of its overall sales.

Other growth triggers

The one-two of cloud and gaming is reason enough to buy Nvidia stock, but the company has other things going on. Autonomous driving being one technology that needs processing done very quickly.

While its auto sector is currently only 4% of the company’s revenue, a breakthrough in self-driving tech might be a major trigger to push Nvidia to the next level.

Current value — $480 billion

There are no guarantees that Nvidia will reach the golden $1 trillion value. With a current cap of only $480 billion (as of this writing) this semiconductor company is at the halfway point for now.

But Nvidia has all the right ingredients to seize its place as one of the most valuable companies in the world. I believe it is only a matter of time.

Author: Steven Sinclaire

AMC Entertainment is among the year’s top meme stocks, but it could be a bit short on future opportunities for fresh growth. Between the heavily negative affects of covid on its income and over $11 billion accumulated debt, the company does not seem like it has a lot of room to reimagine itself, either.

Investors looking at stocks to fuel their portfolio’s expansion will probably be wise to look elsewhere. Thankfully, there are some good profitable stocks in the cannabis sector that fit that bill and will outperform AMC through the upcoming years. Let’s take a look at two of these

1. Planet 13 Holdings

Planet 13 Holdings is special due to it having something no other cannabis business has: a superstore close to the tourist-swamped Strip in Las Vegas. Back in 2019, this one spot was driving around 9% of the company’s revenue for the whole state. And even with all the negative influence from the pandemic, the company still got a quarterly revenue boost of 41.8% y/y in Q1.

Also, Planet 13 is expanding its business at a fast pace. Since June 24, the company started its first new store that is not inside Las Vegas, located in California. That will be a huge increase to its revenue, since it will be the third store. Over the upcoming five years, it is planning to open eight or more new locations.

Thus, it is reasonable to predict that Planet 13 will grow in size numerous times before this decade ends. Which is something that AMC certainly can’t do.

2. Jushi Holdings

Jushi Holdings is having a good moment. The market is catching on to its revenue increasing as a result of fast scaling of its whole business.

In 2020, Jushi’s overall revenue went up to 689.6% from 2019, raking in $80.8 million in income. Then, in the initial three months of 2021, it made $41.7 million. With growth like this, the company can easily double or triple its sales by 2022, and it is hard to find any other cannabis company that can make money that quickly.

Author: Scott Dowdy

Banking is a strict industry. Money is given to borrowers through an assessment of their cash income and their assets, with the bank bringing in interest rates determined by the quality of the position — and these facts have not changed that much.

But there are two stocks are are bringing fresh technology and innovation to the industry and they are worth a look for anyone wanting to own growing stocks in the sector.

1. Upstart

Upstart is a completely digital loan platform that allows its borrowers to get money through its platform, and then gives the loan to its banking partners. It also gives a programming interface to banks, allowing their systems to integrate with Upstart’s credit decision tech. AI is at the firm’s core, and the numbers speak for themselves: Upstart says its model gives 173% more approvals with the same loss rate as normal banks.

The technology calculates on over 1,000 data points, including metrics such as the borrower’s education level and their job history.

The company is profitable, which is a rare thing for a young tech company operating in a complex industry. The negative is that investors are handing over a good sized premium for the stock given what we know.

With a $9 billion value at recent prices, the company sells for 15 times projected revenue, but if the firm keeps growing at its current speed, it might begin to look very cheap for investors who have a five- to 10-year outlook. Analysts anticipate Upstart will bring in $800 million in revenue next year, and that would greatly shrink its price-to-sales multiple.

2. Paysafe

Paysafe had its IPO in late March through a deal with Foley Trasimene Acquisition, an SPAC. It is a payments company located in the U.K. that does much of its work outside of the United States, but with the rapidly increasing online gambling, that could be changing soon.

Paysafe owns Skrill, a digital wallet that recently went into crypto, and Neteller, which is a company that moves money between customers and merchants. Skrill recently announced their partnership with crypto heavyweight Coinbase, which is giving a white-label turn key solution to Skrill that allows its customer to purchase different cryptos.

The stock recently was priced at a $7.7 billion value, or 5 times sales, but it is also down by more than 40% since its high, so some investor exuberance has gone down. It could make for a good opportunity, given Paysafe expects the United States iGaming industry to expand to $47 billion by 2025, which is a 55% growth rate.

The company is well positioned to capture some of this growth, especially through their new partnership with Australian firm PointsBet Holdings — a $2.5 billion bookmaker that has a new focus on the large U.S. betting sector. Paysafe is moving its expertise in the global gambling industry to the U.S., and the timing could not be any better.

Author: Blake Ambrose

Robinhood’s IPO is different than others.

A handful of firms last year watched their share price boosted up as they debuted in the public market. Last year, as one example, Airbnb (ABNB) came from an IPO value of $68 to reach $146 as its stock started trading.

Buying shares of an IPO and getting the initial “pop” sounds great, but normal investors usually cannot buy in (they are normally reserved for large institutional investors and the wealthy). Regular people have to wait until the shares start selling on the market – and if you want the pop, it could be too late.

In a weird move, however, the stock app called Robinhood is giving a third of its IPO to its customers; Robinhood has 17.7 million people who routinely use the app.

Robinhood stock is anticipated to start trading Thursday with the ticker HOOD, and the firm believes it will be valued at more than $30 billion with shares of almost $40 each.

IPO pops are not always so loved because a large one means the firm might not have sold the shares at the correct price — but they attract a lot of press. Especially these days: In 2020, the market had the biggest average IPO initial pop in years. Since this, it has cooled, but the average initial increase is still more than 20%.

It gives a powerful marketing tool for Robinhood to sell its shares to its own customers, who can then take advantage of a pop if it happens, though it’s not completely guaranteed it will.

But why would they want to pre-sell to their customers in the first place?

Robinhood says its goal is to democratize the stock market – to give normal investors better access to markets and for a cheaper price. As such, giving something that is rarely given to regular people (IPO shares) is in line with that philosophy.

What’s more, the move is a smart one because if you’re a Robinhood customer, you might now think twice about leaving the app for a competitor. Owning Robinhood shares could make a lot more loyal Robinhood customers.

Author: Scott Dowdy

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