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Dogecoin (DOGE), the meme cryptocurrency that was started on December 6, 2013, has increased to new heights this week.

2021 has been a wild year for DOGE holders, as the crypto reached an all-time high at $0.143 per token on April 14th.

The token has increase over 104% against the dollar in the past seven days and last week grew by 82% against Bitcoin. The cryptocurrency featuring the mascot of a Shiba Inu dog has seen a whopping +1,181% gain in just the past three months.

Elon Musk has touted dogecoin and other celebs have been public DOGE fans as well. This week, the American food reality TV star Guy Fieri brought dogecoin to “Flavortown, USA” when he tweeted about the token.

“Rollin’ out to the MOON., he said in a tweet with a emoji rocket and a dogecoin hashtag. Overnight trading then saw DOGE increase by 20% during the day on April 14.

Meanwhile, in a similar move to Tesla accepting Bitcoin as payment, Mark Cuban, the owner of the Dallas Mavericks, announced that his team had been getting a lot of dogecoin sales, and that the team won’t be exchanging the tokens for Dollars anytime soon.

If his team are planning to keep dogecoin on their balance sheet, then the NBA team could be the first company to do so.

This is while the worldwide search trend for the term “DOGE” is growing rapidly.

At the time of this writing, DOGE is trading for $0.123 to $0.132 per token.

Author: Steven Sinclaire

Canada is again beating America in a Bitcoin first, as a new inverse Bitcoin fund debuted this week on the Toronto Stock Exchange.

While regulators in the U.S. are waiting on approving any ETFs that might track cryptocurrency, Horizons ETF has created a fund (using the ticker BITI) that will let investors put out short positions on Bitcoin futures, according to their announcement.

“This new ETF will give investors a way to profit if they believe Bitcoin’s price is not justified and that the cryptocurrency is overdue for a downturn., said Todd Rosenbluth, from CFRA Research.

The new fund comes as desire for a Bitcoin ETF increase in the States, with at least eight companies tossing their hat in the arena, including Galaxy Digital Holdings Ltd and Fidelity Investments. The firm that gets the first approval is likely to experience a huge demand, giving issuers the desire to press ahead with proposals regardless of ongoing regulator pushback.

Since 2013, the SEC has declined every Bitcoin ETF application, citing worries about manipulation. Meanwhile, Canadian officials have been more lenient than their U.S. counterparts by giving their approvals for Bitcoin ETFs.

The first ETF that tracks Bitcoin launched in North America under two months ago in Toronto and has already brought in $1 billion in assets.

The BetaPro Inverse Bitcoin fund will deliver up to 100% the inverse performance of an index that, “duplicates the returns made through exposure to long notional Bitcoin futures.” The fund will have a 1.45% fee.

“Buying this fund is as simple as purchasing stock, and does not force investors to open a separate cryptocurrency account., said Steve Hawkins, CEO of Horizons ETFs. “Also, BITI will allow investors to get ‘short’ exposure to Bitcoin without shorting futures or using a margin account.”

Bitcoin break the $64,000 high for the first time this week, on the day of Coinbase’s IPO.

Author: Scott Dowdy
The market has had a crazy ride, caused by the increasing yield curve and turn of investors from growth to value companies. Correctly playing your timing amid such high volatility is almost impossible. But these times also give us a great opportunity to focus on buying strong stocks at large discounts. If you have $5,000, the following three stocks are a perfect example of such companies.

1. Square

Fintech leader Square has come forward as a force to contend with in the financial industry. The company gives point-of-sale solutions, analytics, capital and other services to merchants. The company also services customers through its payment system, Cash App.

 

The seller ecosystem is a larger part of the company’s business. Despite covid harming physical retailers, the company processed payment volume totaling $103.7 billion in 2020, down y/y by 13.6%.

Square is not dependent only on smaller businesses — making the company more resistant to economic challenges. In Q4, larger sellers with volume over $0.5 million made up nearly 60% of their total seller volume.

Cash App is a smaller but faster-growing segment of Square’s operations. The peer-to-peer platform’s active users increased y/y by 50% to 36 million in late 2020.

Individuals can use the Cash App for many financial tasks including investing in Bitcoin and stocks. Square’s revenues from such Bitcoin transactions increased by a whopping 785% in fiscal 2020.

Square is selling at right over 110x forward earnings. These valuations are expensive. But Square estimates its whole market to be over $160 billion. The company has its market penetration pegged to be under 3%. Considering the company’s 2020 revenues, the market share comes to 6%. The company also had profit of $213 million in 2020. With such a huge market size, this profitable company has much more room to grow.

2. Datadog

Cloud company Datadog offers solutions to monitor IT networks, infrastructure, applications and much more — on a unified dashboard. The company has benefited from the pandemic-driven digital transformation. While it has cooled off after their lower-than-expected fiscal 2021 numbers, the company is still very much in demand.

 

In 2020, the amount of Datadog customers spending over $1 million per year increased year over year by 94%, while those spending over $100,000 also grew by 46%. The company’s dollar-based net retention rate has been 130% for fourteen quarters in a row, which also includes Q4. At the end of last quarter, 72% of its customers were using at least two of the company’s products, while 22% utilized four or more. The company’s strategy has created a sticky customer list.

Last year, their revenues popped by 66% to $603.5 million, non-GAAP income was $71.6 million, and cash flow numbered at $83 million. For fiscal 2021, the company has estimated revenues to grow by 37% to 38% and net income per share to decrease y/y by 36% to 54%. However, the decline in earnings is not that large a challenge, considering that the company is prioritizing revenue growth over short-term profits.

Trading at almost 310 times forward earnings, it is pricey. But considering the company puts its possible market around $35 billion and is already a huge player in the observability space, there is great potential for it to reach even higher.

3. Fulgent Genetics

Fulgent Genetics is a genetic technology company that has now transformed into a leading covid testing player and has great potential to increase even after covid is gone.

The company had a perfect run in 2020. Revenues went up by 1,200% to $421.7 million, while net income saw an explosion y/y from a negative $411,000 to a profit of $214.3 million.

Despite these incredible results, investors are anxious about covid testing revenues going away soon, which in turn will have a huge effect on the company’s growth. This concern is reasonable since most of the fiscal 2020 growth came from the virus testing business.

However, the future of the company’s non-COVID business — where they are using next-generation sequencing (NGS) technology to find 5,700 different genetic conditions based on certain mutations in over 18,000 genes at a cheap price– is now secure.

Fulgent’s price has already increased over 619% in the past year and over 82% in 2021. The company is now predicting a 90% y/y increase in 2021 revenues to $800 million, which is an amazing forecast after an already strong year. Given this, the company could soar again this year.

 

Author: Steven Sinclaire

Shares of Tesla increased this week, rising almost 4% at the start of the week. The gain came after a top analyst gave the company a large price increase. Jed Dorsheimer, from Canaccord Genuity now believes the car maker could increase to $1,071 within the next year.

 

After the stock reached an all-time high of right over $900, it went sharply down in February and the start of March. Has this pullback given us a buying opportunity?

The next marker

Dorsheimer increased his Tesla price marker from $419 to $1,071. The analyst also changed his rating from hold to buy.

While Tesla makes use its revenue from cars, the analyst’s stock upgrade has to do with his prediction for the company’s energy storage sector.

He sees Tesla’s energy business bringing in $8 billion annually by 2025 thanks to an “Apple-like energy product ecosystem” and “harmonized electrification.”

 

Dorsheimer believes that as the company solves its battery cell shortage, they will be well positioned to expand the business through its energy product sales. He also sees Tesla being several years ahead of its competition in energy storage technology, giving it an edge.

 

The momentum

Though Tesla’s car sales get more press, energy storage actually expanded faster in 2020 than car sales. Total energy deployments expanded by 83% in 2020.

“This increase was founded mainly by the Megapack product, our utility scale product., Tesla told investors during its Q4 update. “Powerwall demand is increasing as residential businesses continue to expand.”

Impressively, this came as production was limited. “Our energy business is supply constrained and our backlog is strong., Tesla said. But its push to increase production will help the firm boost supply “in the next three months.” Because of this, the car maker expects its energy business to increase at around the same growth rate in 2021 as it experienced in 2020.

While investors should do their own home work on Tesla, Dorsheimer’s upgrade does put focus on a very underappreciated part of its business.

 

Author: Steven Sinclaire
Over the last ten years, every critique possible has been thrown at cryptocurrency. But none is more common than the criticism that it is “a bubble.”

But this is what Bank of America’s recent survey of global fund managers found most of the respondents believe about bitcoin.

Among the poll’s 200 participants with more than $500 billion in managed assets, around 74% said the cryptocurrency is a bubble. With only 16% saying bitcoin is not a bubble and just 10% avoided the question.

On Wednesday, bitcoin traded at a record high over $64,000. Since the beginning of 2021, its value has more than doubled.

Later that same day, Coinbase (COIN) debuted its IPO in a direct listing. This was a huge event for the crypto world that should ease any doubts about crypto being here to stay or not.

Like any asset, investors can and will debate the “correct” value. And a particular reading of BofA’s survey would seem to suggest that: 74% of respondents believe the price of bitcoin is currently too high.

Banks such as JPMorgan and Goldman Sachs to financial giants like PayPal, Visa, and Square, have all deepened their push into cryptocurrencies. Coinbase joining the space of publicly-traded companies only further augments the industry’s crypto connection.

And while investing into crypto is a choice for them alone, this asset class keeps growing in importance. Regardless of how many top investors believe the price is a bubble.

Author: Scott Dowdy

An exchange-traded fund using artificial intelligence has correctly predicted Tesla stock moves, and recently made more portfolio selections.

The fund called the Qraft AI-Enhanced U.S. Large Cap Momentum ETF, going under the symbol AMOM,
on the NYSE.

The fund has given returns of 9% in 2021 and 79% in 2020. AMOM is a managed portfolio steered by AI which tracks 50 stocks and re-calibrates its holdings every month. It is based on a strategy of momentum, with the AI picking stocks to capitalize on market trends. The AI scans the market and uses its power to analyze patterns that reveal market momentum.

One of the fund’s achievements has been getting the price of Tesla’s stock right. The fund sold its shares right before the stock declined by 14% until it went even further down by 10% later on.

The AI behind AMOM has now made more recommendations to redirect the fund’s money at the end of March, including changing its holdings and adding new stocks.

Target
TGT,
+0.38%
was its largest addition. The retail company was up 3% this month, with the stock +15% so far this year. The AI might have picked up this due to its rotation into value stocks, in line with its inclusion of Walmart as its second-largest holding in March. Shares in Walmart have increased by over 7% since the AI selected it.

ServiceNow
NOW was another add, coming in after Target. Shares in the cloud software company have already increased near 10% this month, in a rebound that puts the stock higher by 4% this year.

Right behind Service Now in terms of portfolio size is Autodesk forming 2.16% of the fund’s portfolio. Shares in the software company are 6% higher since the start of the month.

Monster Beverage was another selection for April, included in the AMOM portfolio with a weight of right below 2%. The drink company’s is higher 5% in April and almost 6% this year.

The final stock that the AI liked for April was another stalwart: O’Reilly Auto Parts with a 1.8% allocation. Shares in the auto retailer are selling for only 1% higher since the start of the month, up 13% since 2021 started — so there could be higher gains on the way if the AI is right.

Author: Steven Sinclaire

Bitcoin has spiked to a new record high of over $63,000 on Tuesday, as crypto fans awaited the highly-anticipated debut of crypto-exchange Coinbase.

The price of bitcoin went up to $63,729.5 on Tuesday. It was last selling right under $63,000. Ether, the second most popular cryptocurrency after bitcoin, also had a new record high, reaching $2,317.

Coinbase is going public today through a direct listing that might put the company’s value at $100 billion — a figure that is greater than the company that owns the New York Stock Exchange.

Crypto investors are celebrating the company’s debut as a huge milestone for the crypto world after years of skepticism from mainstream investors and regulators.

“This is a really important event for the industry., Marcus Swanepoel, CEO of crypto platform Luno, said to CNBC. “It will increase the transparency and trust in our industry.”

Author: Blake Ambrose

There are already almost 100 stocks with values of over $300 million that more than doubled in 2021. And while it might be a challenge for most to hold on to those gains, let’s take a look at some stocks that could be just getting started. In fact, these three stocks could soon double yet again in 2021.

1. Upstart

Loaning money to people with below average credit scores has normally been a disaster, but it’s also a market that Upstart is overturning by using AI to make better bets in this lending niche. The company saw its revenue increase by 42% last year, and it’s about to get even better.

Its managers are calling for revenue to increase 115% this year. Their purchase of Prodigy Software should be finalized in June and the company will expand its reach into the auto loan market, which is ready for an AI-fueled competitor. More data means the tech company will get even smarter.

The stock is not cheap after almost tripling recently. Analysts doubled their predictions after March’s report, but we still believe Upstart will trade for over 200x this year’s predicted earnings. These multiples are not normal in the financial markets. But with the stock already 30% below its March top, it’s a good opportunity to buy a company that is about to slam on the accelerator.

2. Funko

Your collection of Funko bobbleheads and vinyl figures is not a passing fad. Shares of the stock have doubled this year on its surprising financial turnaround and its choice to capitalize on a hot craze.

 

Funko was producing double-digit annual revenue growth for four years before covid shrank the demand for its licensed collectibles. Revenue lowered by 18% for all of 2020, but analysts were not expecting sales growth to be positive during the holidays. The $226.5 million it reported in addition to the fourth quarter was only a 6% y/y increase, but Wall Street pros were awaiting a 8% decline. Weak international sales were accompanied by a whopping 18% increase in the U.S. market. Funko’s quarterly profit of $0.24 per share also went past the $0.14 that analysts were predicting.

Funko then announced a deal to buy a controlling stake in TokenHead, a leading platform for showing and tracking non-fungible tokens. Their TokenWave app has over 100,000 daily customers stopping by to see their list of 10 million blockchain-backed tokens. For all these reasons, the company is now in a perfect spot to be a major player in digital collectibles.

3. AMC Entertainment

AMC is a company most investors connect with a fading industry. Even before covid, folks were staying away from movie theaters. AMC revenue was stagnant in 2019, and that was as the company gained market share as domestic sales declined 5% that year.

The pandemic has hit AMC hard, and the long-term outlook is dodgy. Consumers and studios have embraced digital content, and neither group has the patience for traditional releases where content is only shown on the big screen for a couple of months before leaving.

However, we have seen theater crowds spike in foreign markets. With 99% of AMC theaters now open, studios are ready to release hot movies that they have postponed until now. With events already eliminating the competition, AMC will have a big summer this year as people start to rediscover social settings.

 

AMC, Upstart and Funko have more than doubled in 2021. But the data and trends are there for this to possibly happen again before 2022 hits.

 

Author: Steven Sinclaire

A top crypto exchange has warned that governments might soon restrict the use of bitcoin and other cryptocurrencies.

Officials — including Treasury Secretary Janet Yellen and European Central Bank President Christine Lagarde — have raised alarms about bitcoin being used for terrorist financing among other illegal activities.

“I believe there could be a crackdown., Jesse Powell, the current CEO of Kraken, told CNBC during an interview. Cryptocurrencies have increased in value, with bitcoin reaching a record high of more than $61,000. The world’s top digital coin was last trading at near $60,105.

Kraken is the fourth largest crypto exchange in terms of volume. The firm is reportedly discussing going public through a direct listing, like Coinbase.

The firm’s CEO thinks the uncertainty surrounding crypto won’t go away soon. A recent money laundering law proposed by the U.S. would force people who hold their crypto in a private wallet to have identity checks for transactions over $3,000.

 

“I hope that regulators do not take too narrow a view about this., Powell said. “Other nations, China especially, are looking at crypto very seriously with a very long-term view.”

Kraken’s CEO then went on to say the U.S. was “shortsighted” and was “susceptible” to the pressures of big banks that could lose if Bitcoin succeeds.

“It could be too late., he added. “Maybe at this point, trying to ban it would only make it more attractive. It would certainly make it seem that the government sees it as a better currency to their own.“

Author: Scott Dowdy

Microsoft revealed on Monday it would purchase AI and speech technology company Nuance Communications Inc for around $16 billion, as it increases its solutions for the healthcare industry.

The acquisition comes after the two firms partnered in 2019 to automate administrative work. It shows Microsoft’s goal of extending its push into an industry where digital transformation has not yet picked up. Healthcare companies have invested more into technology to help health services.

“This brings our technology straight into the patient and doctor loop, which is vital to all healthcare delivery. The purchase will also increase our leadership in nationwide enterprise AI and biometric security., Microsoft CEO Satya Nadella told investors on a call.

Microsoft’s offer of $56 a share is a 22.86% premium over Nuance’s end price on Friday. The shares increased by 16% on Monday.

Nuance is known for aiding speech technology and helping to start Apple’s Siri virtual assistant. Once giving voice recognition technologies across industries, the company now specializes on enterprise and healthcare AI after selling a number of less profitable sections of its business.

The company revealed it serves 77% of American hospitals, giving smart solutions including medical transcription, speech recognition and medical imaging.

“Nuance’s position will connect healthcare customers into Microsoft’s Azure Cloud and intelligent services., Forrester analyst J.P. Gownder said Monday.

With a presence in 28 countries, the Massachusetts-based firm had $1.5 billion in revenue in 2020, with two thirds coming from the healthcare industry.

This deal comes after Microsoft’s $7.5 billion purchase of gaming giant ZeniMax Media, and reports that Microsoft was discussing buying messaging platform Discord.

Once done, the deal will be Microsoft’s second-largest purchase, after its $26.2 billion LinkedIn buy in 2016.

Author: Blake Ambrose

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