Apple, Vipshop, Coinbase and others

Before the doorbell rings, check out the companies that are making the headlines:

Apple (AAPL) – The company is again approaching $ 3 trillion in market value and must hit $ 182.86 per share to hit this milestone. Regardless, Apple is closing its 12 New York stores due to the spread of the Omicron variant of Covid-19 for indoor traffic. Apple gained 0.3% in the run-up to the market launch.

VIPshop stocks (VIPS) – The China-based e-commerce firm’s shares fell 2.4% early after lowering its revenue forecast for the current quarter. Vipshop cited its “latest view on market and operating conditions” without being specific, but a Jefferies report said warmer weather and a surge in Covid-19 cases likely drove consumer demand down.

RR Donnelley (RRD) – RR Donnelley lost 1.6% in premarket trading after the business communication and marketing services company announced an intervention in its technical systems. Donnelley said it is being investigated and is unaware that customer data has been compromised.

Coinbase (COIN) – The cryptocurrency exchange operator’s shares fell 2.2% in the premarket as Bitcoin price fell, putting the stock at risk of breaking a four-day earnings streak that rose 17.7% over that period .

Extreme networks (EXTR) – The cloud computing company’s stock rose 3.6% ahead of its launch after Needham raised its price target from $ 16 to $ 18.50 per share. The stock closed at $ 16.03 on Monday.

Howard Hughes (HHC) – The real estate firm has reportedly agreed to sell a controlling stake in Chicago’s Bank of America Tower for more than $ 1 billion to the private equity firm Oak Hill Advisors, according to a report by Dow Jones, with citing sources familiar to the business.

Nvidia (NVDA) – The graphics chipmaker’s shares rose 1.2% in the premarket after rising for the past 4 days in a row, helping the iShares Semiconductor ETF (SOXX) to a record high in Monday trading. modern micro devices (AMD) – also a key factor in propelling the SOXX higher – added 1% in pre-trading. Chip inventories have increased due to supply shortages and strong demand, which has resulted in higher prices for chips.

Purchase Disney, Coinbase forward of earnings this week, merchants say

Coinbases This week’s earnings report could be crucial to the stock, says a trader.

Although the shares of the cryptocurrency trading platform have fallen from their market price, “that negativity has been washed away,” Blue Line Capital founder and president Bill Baruch told CNBC “Trading nation” on Friday.

“I think their user growth will exceed the verified users of 60 million, and I think that will be some kind of benchmark that they will continue to feed on. They are also paid for with the trading activity. I think that’s it will pick up “even if like large crypto assets Bitcoin or ether Fight, he said.

That bodes well for Coinbase’s second-quarter report scheduled for Tuesday afternoon, said Baruch, who owns Bitcoin and Ethereum.

“There’s good trendline support it’s coming off and it’s broken out of a resistance wedge,” he said. “I think this thing can go up to 290-300 and I think the revenue should be positive and the forecast should be good.”

Coinbase shares ended Friday at $ 258.26, up about 1%. They rose another 3.8% to $ 268 in Monday’s pre-trading session. A rise to $ 290 or $ 300 would be a 12-16% increase from Friday’s closing price.

Disney’s The earnings report for the third quarter should also be noted, said Gina Sanchez, founder and CEO of Chantico Global, in the same interview.

“This is a company that has made an all-time home run with Disney +, especially during the pandemic, but which has been completely overshadowed by the $ 4.5 billion loss in revenue it suffered from the closure of the parks and their studios” , said Sanchez, also chief market strategist at Lido Advisors.

“But look … this is coming back,” said Sanchez. “They’ll get that park revenue back, and in the meantime, Disney + is a much more lucrative way for Disney to bring new content to market so they can keep more of it.”

Disney is due to report on Thursday afternoon. The stock closed less than half of 1% higher on Friday, but lost some of its momentum in pre-market trading on Monday.

Disclosure: Baruch owns Bitcoin and Ethereum. Lido Advisors owns shares of Disney.

Disclaimer of liability

How a lot cash ought to I spend on Coinbase inventory? Monetary advisers provide steering to younger buyers

It is invested with “play money” and then played with fire.

As a Coinbase, the Cryptocurrency exchange, goes public on Wednesday, financial advisors want you to remember the difference.

As the number of retail investors grows, there is a growing attraction to find and benefit from the next new thing.

Enter Coinbase, a platform with 56 million verified users that enables buying and selling of Crytpocurrencies like Bitcoin
BTCUSD, + 2.21%
and etherthat seem to keep increasing in value.

An obvious investment considering the expert’s assumption that cryptocurrency plays a role “Turning point” Law?

Not necessarily. Do this with caution, say financial advisers.

Experts say it is has always been risky investing in companies the way they go public.

For example, with no track record, stock prices can be speculative Retail investors who believe they understand the brand may not appreciate it as much as institutional investors do.

Mix that with the cryptocurrency now volatilityand consider the skepticism of some who say Coinbase’s valuation is “Ridiculously high.” That number ranges from $ 50 billion to $ 150 billion, and even bullish experts say the stock is “not for the faint of heart.”

(A Coinbase spokeswoman declined to comment ahead of the IPO.)

The idea is to invest in an IPO with a small portion of the money that you may lose. The question is how much? Here are a few different answers.

The numbers game

A common refrain is to use between 5% and 10% of investable wealth for speculative investments or stocks. Others say the amount you are okay with shouldn’t be more than 1% of an investor portfolio, if that’s not an overly plain word.

Ron Guay of Rivermark Wealth Management in Sunnyvale, Calif., Urges clients to limit their “play money” to 10% – and that’s the same rule he follows himself.

“The less your net worth, the smaller the percentage of the game money you should lose.”

– Theresa Morrison, founding partner at Beckett Collective in Tucson, Arizona.

Daniel Johnson from RE | Focus Financial Planning of Winston Salem, NC says it’s all for people who put money into the companies they care about because the investment often affects companies they know and understand.

But he’s also everything for diversification. Keeping your investment in a company below 5% is a good bet, he said.

However, according to Theresa Morrison, founding partner of the Beckett Collective in Tucson, Arizona, not all of them fit the same numbers.

“If you don’t want to lose your ‘play money’ then don’t play,” she said. The money could be 1% to 2% of the assets invested, she said.

“The less your net worth, the smaller the percentage of the game money you should lose,” she said. “Conversely, the more flushes you have, the more percent of the game money you can allocate, but only up to a point.”

The no-numbers approach

Ahead of Coinbase’s direct listing, Chris Struckhoff, founder of Lionheart Capital Management in Orange County, Calif., Said he had spoken to a few customers looking to buy Coinbase stock.

“You have those dollar signs in your eyes,” he said.

These people view Coinbase stocks as rocket fuel to help them meet their financial goals, but “as with anything, the faster you try to go, the more likely you’ll trip yourself,” he said.

Struckhoff does not ask its customers to buy the stock or to wait. He’s contemplating the idea of ​​playing money without using fixed numbers. He does this by thinking backwards with customers.

You start out by remembering a person’s financial goals – a house, a boat, a nest egg, or something else. Then they look at the financial leeway that someone has to devote to something like a Coinbase piece.

What about buying cryptocurrency?

Given the surge in cryptocurrencies like Bitcoin and Ethereum
ETHUSD, + 3.61%,
Some say it’s worth going straight to the source and buying virtual currency instead. But again they say not to go overboard.

“You can either look for gold (your own crypto) or sell shovels (your own Coinbase share).”

– Graciano Rubio, of Infinity Financial Planning in Los Banos, California.

For example, Vrishin Subramaniam, the founder of CapitalWe, a financial planning firm focused on millennial and younger investors, recommends investing between 2% and 5% of net assets in cryptocurrency.

If anyone is looking to buy into Coinbase, Subramaniam recommends putting that investment in the 5% cryptocurrency investment basket. Going forward, “we can increase this allocation for listed securities after a few quarters once we have more information in the public domain,” he said.

“Since Coinbase and other platforms have made it convenient to own cryptocurrency, I think the best way to get the word out about cryptocurrency is through direct cryptocurrency ownership,” said Graciano Rubio of Infinity Financial Planning in Los Banos, California.

There is a metaphor for the moment that includes the mid-19th century California gold rush. “You can either look for gold (your own crypto) or sell shovels (your own Coinbase share). They each have unique risks and benefits, but both can be a successful strategy for capitalizing on cryptocurrency, ”he said.