Jun 6, 20212 min
Hi friends,
Markets continue to rise during the short week. Here's where indexes closed on the past Friday:
Dow Jones 30: 34,756.39 (0.66%, year-to-date: 13.56%)
S&P 500: 4,229.89 (0.61%, year-to-date: 12.61%)
Nasdaq: 13,814.49 (0.48%, year-to-date: 7.19%)
AMC gymnastics
AMC fluctuated this week, reaching as high a positive change as +100% and as severe a loss as -34% within the range of the last 4-day trading days, demonstrating the definition of a meme stock. Meaning that it's a stock that completely ignores fundamental analysis and has transformed into a hype-based slot machine.
The Stimulus (part 2)
With Monday just around the corner, president Biden and Senator Capito will be syncing up over passing the U.S. stimulus bill. This is a bipartisan effort to find a middle ground in providing financial aid to Americans while lower new spending. Stay tuned in, although I wouldn't be surprised if this gets kicked down the road since there's "no deadline". Can't we all just get along?
Latest on cybersecurity
With the recent attack on Colonial Pipeline, U.S. officials are tackling issues which could affect American infrastructure once again in the future. Biden looks to put pressure on Putin in June 16th to discuss how Russia could do a better job in managing hacks whose origin is that of Russia. Here's a tip: actually invest in good cybersecurity subject matter experts...or just technology in general within our infrastructure. The fact that I have to wait in line for the DMV for any reason at all is ridiculous.
Looking back: Visa (V)
Visa's been running sideways for quite some time until the last quarter; there seems to be some consolidation to its stock prices in the last quarter. We need to take a look at its fundamentals to track its progress on but before that, let's dig into recent news related to Visa:
Acquisition of YellowPepper, a payment streamlining service, in 2020
Increase of consumer spending, likely from stimulus payments and the slow return to normalcy from the pandemic
Number of processed transactions has increased in the first half of 2021
Annual Top-Line Revenue:
2016: $15.08B
2017: $18.36B
2018: $20.61B
2019: $22.98B
2020: $21.85B
Last 4 Earnings Result (from most recent):
Beat
Beat
Beat
Beat
Historical Stock Returns:
3-month: 6.07%
1-year: 15.31%
5-year: 186.64%
Next earnings is not until mid July so there's some room left until the next checkpoint. In case you're wondering, the first quarter of 2021's top line revenue falls under q4 of the last year, which is common for payment services due to end-of-year consumer spending.
Who competes with V?
Visa competes with other payment titans such as American Express (AXP) and Mastercard (MA)
Discord Launched!
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If you're a paid subscriber, remember to check in on positions in the wheel in your dashboard or in the course pages! Until next time!
- Call to Leap Team
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