List of stocks to buy for June 16 - 22, 2021
Will the Fed or inflation or Friday pull down the S&P 500?
The List June 16, 2021
See historical performance
It’s likely to be a bumpy week
The week started out green and then pulled back Tuesday with most of the stocks that I follow closely being down. This was just ahead of a Federal Reserve meeting on Wednesday and an expected choppy day Friday the 18th, a ‘quad witching’, when futures & options expire on the same day. This has led to pullbacks in the S&P 500 in the past.
This week let’s start with a look at some of the alternative trades that have been in focus recently:
Commodities into oil or gold
Semiconductors still finding growth
Bitcoin via Square & MicroStrategy
Commodities into oil or gold
With so many traders afraid of inflation going to the moon, commodities have become a crowded trade. In the video above and the 2 below, they discuss both the reasons why as well as pushing an oil trade for the second half of the year.
CNBC: Virtus Investment Partners’ Joe Terranova on oil and gold
CNBC: Rising oil prices makes life difficult for Fed Chair Jerome Powell
Semis are trying to catch NVDA
Nvidia (NVDA) has been on a tear recently ahead of a 4:1 stock split and has been going up in almost a straight line from ~$600 to $711 as of close yesterday.
The traders on CNBC seem to be aligned that many other semiconductor companies can continue to post gains over the coming weeks & months, especially if you compare their valuation multiples to Nvidia. One way to play this is via the popular ETF SMH.
CNBC: Semiconductor space has ‘plenty of room to run,’ says trader
Or if you prefer to buy individual names, here’s a specific case for Marvell (MRVL). I have no position but based on the video’s commentary that the stock has fun up ~30% recently, it seems logical to buy slowly or wait for a pullback before getting in.
CNBC: Fast Pitch: Why you should buy Marvell
Is Bitcoin pulling some dollars from the traditional inflation hedges?
Speaking of inflation and alternative trades, it’s becoming more common to include crypto (usually Bitcoin) in a diversified portfolio. A couple of ways that you can get exposure without buying on a crypto exchange or overpaying in an ETF is by buying MicroStrategy (MSTR) or Square (SQ).
The CEO’s of both companies are championing Bitcoin publicly. Square is paving the way for more user adoption while MicroStrategy is paving the way for companies to buy & hold Bitcoin on their balance sheets.
Square CEO, Jack Dorsey on bitcoin: ‘I don’t think there is anything more important in my lifetime to work on’
MicroStrategy CEO, Michael Saylor on the company’s bitcoin future
Is Unity’s stock price waking up?
One of the names on the list is Unity (U) which has pulled back hard from the mid 150’s and has been trading just below $100 since May. Over the past few weeks it has slowlystarted to grow again so it might be worth another look.
In the video below, they show some pretty crazy stats for Unity as a game development platform.
5B downloads/month of games built with Unity
71% of the top 1000 mobile games built with Unity
50% of mobile, PC & console games made with Unity
Here’s the interview with the CEO, which also includes a question about Microsoft (MSFT) trying to become the ‘Netflix of games’ via their new subscription service. Not a bad company to own either.
CNBC: Unity Software CEO John Riccitiello on the gaming ecosystem
Netflix has a store. A Shopify store.
Netflix.shop (NFLX) has launched, which is somewhat interesting as a concept and could lead to additional sales for the streaming giant. That’s cool and all. But what jumped out at me was that the Netflix store was powered by Shopify (SHOP).
This is pretty impressive for Shopify, actually. One of the most tech-savvy and capable global organizations decided to use Shopify instead of building their own or partnering with someone else. It’s good for Shopify’s brand but it’s also a massive validation that their tech & platform is solid. I own Shopify (it’s my best and luckiest investment so far) but this makes me even more bullish on them.
Shopify president announcement on Twitter (thanks to Plant for sharing it)
Another reason to love Shopify: Stripe
Stripe, the payments provider, is probably going to have an absolute monster IPO sometime in the near future. And Shopify’s (SHOP) stock jumped this week as it looks like they will be a beneficiary of the Stripe IPO due to their ownership stake.
Fool: Why Shopify Stock Popped Today
A different e-commerce player to consider: Global-e
This company is new to me and they also partner with Shopify (among others) and have some pretty solid growth numbers. The company is called Global-e (GLBE), founded in Israel, and they specialize in cross-border e-commerce, a difficult problem for many brands & consumers outside of the US. I don’t have a position yet but am considering it.
Read more about Global-e on this Twitter thread (Thanks to Puru for sharing it)
An update on the XPO Logistics spinoff
Back in March, I wrote about a spinoff from XPO to create a new e-commerce logistics company GXO. It looks like this is finally happening soon. The spinoff should unlock some value for investors so it might be a good time to get in if you want to get shares ahead of time. I have no position.
Fool: XPO Logistics’ Spin-Off Is Almost Ready To Go
Another logistics spinoff happened with JD.com (JD) recently as well, although they are primarily a direct-to-consumer e-commerce company that just so happens also to be great at logistics. So it’s not exactly the same. I do have a position in JD.
CNBC: Gains for JD Logistics fizzle in Hong Kong IPO, after surging as much as 18% earlier
Draftkings is down on a short seller report
Hidenburg Research recently released a very negative report on Draftkings (DKNG) causing the stock price to fall sharply. Take the report with a grain of salt since typically short sellers benefit financially from the stock price falling after publishing negative reports.
Hindenburg’s report thread on Twitter
I can’t say for sure how valid the report is but I will probably wait & see if the accusations take hold or escalate somehow. If it doesn’t impact their current business growth and they continue to sign high-level partnership deals, then it might not have a lasting impact.
CNBC: Video on Twitter about Draftkings report
And Cathie Wood’s Ark Invest seems unfazed by the report, buying $42 million worth of shares on the same day.
Benzinga: Cathie Wood Loads Up $42M In DraftKings As Shares Drop On Short-Seller Report
That’s all for this week. Thanks to reader TD for making it to the end.
-B
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