August 26, 2020
May the (Sales) Force be with you
It’s been a hell of a couple days for shareholders of Salesforce (NYSE: CRM). Following joining the Dow Jones Industrial Average yesterday, the company traded up a whopping 25% after reporting earnings today.
While EPS was more than double the expectation, the real number everyone was looking at is the company’s market share of cloud based services; as of now, it is larger than the share of Microsoft, SAP, Oracle, and Adobe combined.
While current share price puts the company at a pretty crazy earnings multiple, it is by no mean out of the ordinary for its sectors--some analysts are still saying that even now, it is undervalued.
Unlimited Gains
For four days in a row, the S&P 500 has pushed new highs while the NASDAQ has been ripping for five straight days.
While it feels like the fun will never end, the story is always the same--dark clouds gathering on the horizon and doom and gloom being preached by more conservative investors.
With the vaccine on the horizon, is it possible world events catch up with the forward looking markets before we see a correction.
An Apple A Day
Apple is trucking nicely along. The stock is up more than 10% since announcing earnings at the beginning of this month.
The stock has been gaining hype as investors eagerly await for the 4:1 stock split this friday after close. A few bullish firms have set target prices at $600 per share by then but realistically, JP Morgan believes it will hit a $530 mark.
SPAC Slapped
A favorite strategy of Analyst’s over at EVO is to pick out SPACs, or special purpose acquisition companies. But what does that really even mean?
When a company wants to enter the stock market, it will traditionally initiate an “IPO,” or initial public offering. This lets investors by slicing of the company before they hit the market and trading begins.
Alternatively, a SPAC, a publicly traded company loaded with cash, can merge with or acquire a private company, allowing them to enter the market with a pile of money and shares already available to the public. When these deals are completed, they can be a huge boon to SPAC shareholders, assuming you got in on the right selections.
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