Crowded Hedge Fund Positions

Economic Data Puts the EUR in Focus, with Geopolitics and COVID-19 to also Influence

Economic data puts the EUR in focus, while geopolitics and COVID-19 news and numbers will also influence on the day.

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  European Equities: Geopolitics and the Economic Calendar in Focus

  FX Empire
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  The Week Ahead – Geopolitics, Central Banks and COVID-19 in Focus

  FX Empire

Why launching astronauts to space via SpaceX's crew capsule is a big deal

The first astronaut spaceflight launch from US soil in almost a decade is ready for liftoff this Wednesday.

5 High-Growth Small Company Stocks I Bought in May

When it comes to investing in small up-and-coming businesses, picking just one or two usually won't suffice. For my latest batch of purchases in the wake of the coronavirus-fueled economic crisis, I scooped up shares of Livongo Health (NASDAQ: LVGO), Cloudflare (NYSE: NET), Fastly (NYSE: FSLY), Repay Holdings (NASDAQ: RPAY), and VectoIQ Acquisition (NASDAQ: VTIQ) (set to become Nikola). A few years ago, I purchased a tiny but up-and-coming stock called Teladoc Health, thinking that medical care delivered via an internet connection had a bright future.

Catalysts for Peloton Extend Long Past COVID-19, Says Top Analyst

During the COVID-19 pandemic, adapting to the new normal has meant finding new ways to stay active. Forced out of the gym, many consumers have turned to Peloton Interactive (PTON) and its indoor exercise equipment and platform to feel the burn. In response, the stock has been working up a sweat as well, climbing 80% higher in the last three months. Writing for Needham, five-star analyst Laura Martin has been a vocal supporter of the company throughout the public health crisis, but there’s a plot twist. What has changed in the PTON story? After hosting a fireside chat with Peloton's CFO, Jill Woodworth, the analyst tells clients that she sees the positive valuation implications extending through 2021 and beyond.  First and foremost, Martin points out the ecosystem value, or the lifetime value per customer versus customer acquisition costs (LTV/CAC), is higher than her pre-COVID estimates. PTON was able to reach 1 million subscribers three months earlier than she originally expected, which is significant as “$40/month for 3 months extra adds $120 to LTV up front, at a much higher LTV/CAC since PTON has stopped ads during COVID-19.” Not to mention churn is also on the decline, implying higher LTV. There has also been significant total addressable market (TAM) expansion thanks to COVID-19. To back up this claim, Martin cites the fact that the number of buyers under 35 years old is two times higher, the indefinite closure of gyms is driving more bike purchases and 30%-50% of new owners didn’t have any intention of buying a bike before the pandemic. In addition, stronger barriers to entry like music, PTON’s edge over its peers with respect to its installed base, structurally lower bike production costs and mobile-only paying subscribers and free trial subscribers, which are a low-cost onramp to PTON's platform, bode well for the company. While Martin acknowledges that its expensive treadmill played into investors’ fears that its TAM was only made up of wealthy consumers, COVID-19 added 40 million unemployed subscribers. This reflects a “catalyst for lower-cost bike purchases, which would materially grow PTON's actual and perceived TAM.” Martin added, “We believe investors are undervaluing structural cost savings tied to COVID-19, such as: a) near-zero marketing costs now in US and UK driving positive adjusted EBITDA during full year 2020, two years earlier than IPO projections; b) excess bike installs are moving PTON down the production cost curve faster, resulting in a higher gross margin structurally.” All of the above prompted Martin to keep a Buy recommendation and $50 price target on the stock. This target conveys her confidence in PTON’s ability to surge 9% in the next year. (To watch Martin’s track record, click here) In general, other analysts echo Martin’s sentiment. 20 Buys, 1 Hold and 1 Sell add up to a Strong Buy consensus rating. Based on the $48.23 average price target, the upside potential comes in at 5.3%. (See Peloton stock analysis on TipRanks)

These 4 Stocks Are the Real Deal

If you dismiss a company without doing the research, you can miss out on interesting businesses like these.

Prepare for the post-coronavirus-vaccine world by selling stocks that are hot today but will lose earnings momentum

Now investors should look ahead to the post-vaccine world: Sell stocks that are hot today but will experience deteriorating earnings momentum after a vaccine comes out and buy quality stocks with good balance sheets that will experience positive earnings momentum in that new era. This chart compares the Dow Jones Industrial Average ETF (DIA) to seven stocks that I am using to illustrate shifts in money flows. • Zoom Video (ZM) has been one of the biggest beneficiaries of coronavirus.

Needham: Peloton is a key beneficiary of COVID-19

On Friday, Needham analysts reiterated their buy rating — and $50 price target — on shares of Peloton following comments by the company’s CFO, Jill Woodworth. The firm’s argument was that Peloton has been a key beneficiary of COVID-19 and will continue to do so. The Final Round panel discusses.

USD/CAD Daily Forecast – Weaker Oil Puts Pressure On Canadian Dollar

USD/CAD rebounded above 1.4000 as the U.S. dollar gains ground on increased demand for safe haven assets.

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  AUD/USD Price Forecast – Australian Dollar Pulls Back

  FX Empire
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  Natural Gas Weekly Price Forecast – Natural Gas Markets Struggle at Round Figure

  FX Empire

Is China Telecom (CHA) a Great Value Stock Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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  Is DaVita HealthCare (DVA) a Great Value Stock Right Now?

  Zacks
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  PGRE or CUBE: Which Is the Better Value Stock Right Now?

  Zacks

Has Datadog (DDOG) Outpaced Other Computer and Technology Stocks This Year?

Is (DDOG) Outperforming Other Computer and Technology Stocks This Year?

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  DVA or CHE: Which Is the Better Value Stock Right Now?

  Zacks
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  Applied Genetic Technologies (AGTC) Upgraded to Strong Buy: Here's What You Should Know

  Zacks

Top Ranked Income Stocks to Buy for May 22nd

Top Ranked Income Stocks to Buy for May 22nd

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  DVA or CHE: Which Is the Better Value Stock Right Now?

  Zacks
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  Applied Genetic Technologies (AGTC) Upgraded to Strong Buy: Here's What You Should Know

  Zacks

DraftKings Stock Remains a Good Bet on a Pullback

Still a few days shy of its one-month anniversary as a public company, DraftKings (NASDAQ:DKNG) stock is rapidly becoming the toast of Wall Street.Source: Lori Butcher/Shutterstock.com Shares of the daily fantasy sports (DFS) company and sportsbook operator are up 45% since the April 24 initial public offering. Under any circumstances, that's an impressive performance, but with DraftKings, it's even more so for a couple of reasons.First, the U.S. sports scene shutdown in mid-March due to the novel coronavirus, meaning for half of that month, all of April and until NASCAR's return last week, DraftKings customers had no opportunities for DFS play and limited wagering opportunities.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSecond, the company delivered its earnings report last week and, in unicorn-esque fashion, reported a wider-than-expected loss even as revenue jumped 30% to $88.54 million. * 7 Excellent Penny Stocks Ready to RoarNot all young companies get a pass on losing money, even when revenue is rising, but broadly speaking, that's the treatment DraftKings is getting. On Monday, three analysts lifted price targets on the stock after one did so last week.Said another way, in the span of two trading days, four of the five analysts covering the stock during that time boosted price estimates on the name. Not Playing Around, But Outlook Remains StrongOn Tuesday, Goldman Sachs Stephen Grambling initiated coverage of DraftKings, throwing rain on the parade he was joining with a "neutral" rating, but his $32 price target implies upside of about 8% from the May 19 close. The analyst's quibble, albeit modest, is that current multiples adequately reflect the various opportunities in front of DraftKings and that it's going to take some time for management's goals to be realized."We believe both sports betting and iGaming are poised to see accelerated consumer adoption in response to COVID-19 and subsequent social distancing protocols across sports and gaming. However, we believe valuation is largely reflective of these unique growth opportunities at 8X management's fully-ramped earnings before interest, taxes, depreciation and amortization (EBITDA) target which we estimate could take 7+ years to achieve, leaving more limited upside."For those that don't speak analyst, I'll cut through the lingo for you: prevailing sentiment on Wall Street is that DraftKings is comparable to an internet or cloud computing stock and not directly comparable to a traditional sportsbook operator like a William Hill (OTC:WMHY). Grambling added DraftKings is worthy of closer examination on pullbacks.Whether one bets on sports or participates in DFS or not, the comparison isn't as far flung as meets the eye. Yes, DraftKings has some brick-and-mortar sportsbooks, but its bread and butter is higher margin online and mobile wagering. Hence, the internet comp.With a DFS duopoly shared with FanDuel and robust brand recognition, DraftKings benefits from customer loyalty and subsequent revenue upside, similar to the cloud model.DraftKings' technology roots are important today and beyond. By the company's own admission, it's bleeding $15 million to $20 million a month while major domestic sports are absent. Compare to that to some traditional casino operators that are saying they're burning $2 million or more a DAY while properties are closed due to Covid-19. The Bottom Line on DraftKings StockRelevant to investors is that DraftKings has multiple avenues for justifying the internet/growth stock comparisons and multiples.Two of the next big things in betting are still in their infancy, those being esports and iGaming, or online casinos. Wagering on esports is a new growth frontier in the sports betting world, one where DraftKings is already saying it sees loads of potential.As for online casinos, the coronavirus shined a light on that opportunity. As just one example, iGaming revenue in Pennsylvania - one of a small number of states currently permitting internet casinos - surged 73% month-over-month in April. DraftKings landed an iGaming permit there on May 1.Todd Shriber has been an InvestorPlace contributor since 2014. As of this writing, he has a small position in DraftKings. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post DraftKings Stock Remains a Good Bet on a Pullback appeared first on InvestorPlace.

Canadian dollar pares weekly gain as U.S.-China tensions strain risk appetite

The Canadian dollar weakened against its U.S. counterpart on Friday as rising U.S.-China tensions weighed on investor sentiment and domestic data showed a record decline in retail sales, with the loonie giving back some of the week's rally. "Risk sentiment – expressed via equity gains or losses – remains the key driving force behind the CAD," strategists at Scotiabank, including Shaun Osborne, said in a note. "While the CAD is trading closely with equity market sentiment, the rebound in crude oil prices and improvement in relative terms of trade warrant attention," the strategists said.

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  Fresh U.S.-China tensions lift dollar; euro, offshore yuan slip

  Reuters
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  Gold prices end higher amid U.S.-China tensions, but post a weekly decline

  MarketWatch

SPCE Stock May Not Fail to Launch, But It May Still Fail

Virgin Galactic (NYSE:SPCE) is a good news, bad news story. And it's important to note that the company is reporting some good news. But right now, there's some bad news too. And all of that is serving as an anchor on SPCE stock.Source: Tun Pichitanon / Shutterstock.com First the good news. Virgin Orbit, a branch of Virgin Galactic is scheduled to perform its first "orbital rocket launch" the weekend of May 23. This will be the final test of its Boeing (NYSE:BA) 747 aircraft-based system. Virgin Orbit's parent company, Virgin Galactic, intends to send paying tourists on rides at the edge of space. By contrast, Virgin Orbit is using a retired commercial jet to launch rockets which will then launch satellites into orbit.Better still, the company says it has more than a dozen launches lined up after the testing is complete. And most of those launches are from private companies.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, there's also bad news. In early May, Sir Richard Branson sold 2.6 million Virgin Galactic shares through Vieco 10, an investment company owned by Branson's Virgin Group. However, the announcement came just a few days after Virgin Galactic announced they would be selling up to 25 million shares of Virgin Galactic common stock to help shore up ventures that have been slammed by the novel coronavirus. * 7 Excellent Penny Stocks Ready to Roar Now to be clear, the sale, which is approximately $41 million, only amounts to approximately 2% of the company. And Branson's firm still owns over 112 million shares. But by the looks of SPCE stock dropping over 8% on the announcement of the sales, investors are not impressed. Virgin Galactic Is Not Making a ProfitIn February, Virgin Galactic reported a larger-than-expected EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of $55 million. Analysts surveyed by FactSet were projecting a loss of $46.9 million. That took the company's net loss for 2019 to $210.9 million.At the time, Virgin Galactic said it was expecting to be profitable by 2021. However, that was before the Covid-19 pandemic changed the entire landscape of the global economy. In its most recent earnings report on May 5, the company once again missed on both earnings and revenue. This time the company reported an EBITDA loss of $53 million. One Small Step Won't Be Large EnoughBack in February, Virgin Galactic launched an initiative called "one small step." Virgin Galactic received $1,000 refundable deposits from 400 customers who wanted to be the first tourists in space. If all of these customers pay the full cost of their ticket (reported to be $250,000), Virgin Galactic could make $100 million in revenue.But the key word in that statement is "refundable." These are not actual sales at the moment. And right now, with the economy teetering into recession, the company realizing all $100 million of those dollars seems like more of a science fiction movie than reality. Presently, Branson is making it clear that his first priority is to keep his travel businesses. That's probably the right thing for Branson's business. But it's not a reason to buy SPCE stock. SPCE Stock Continues to Have Many HurdlesYou're familiar with the saying "rob from Peter to pay Paul." But it would help if Peter was making a profit. Virgin Galactic is an enticing proposition. The promise of space travel, even if it's not quite Star Wars has a lot of appeal.I'm sure there would be an audience of well-heeled customers who have the money to spend on a once-in-a-lifetime adventure. And Virgin Orbit may have an audience for its "air launch" system. The bottom line is the company may make revenue.But space travel in itself is a hurdle. When I wrote about the company in March, I was concerned that the company had come into existence based on a reverse merger, but most of the institutional investors had long pulled out.As I see it, Virgin Galactic needs everything to go right. And that's going to be made harder when the owner needs to siphon $41 billion to help shore up other businesses.My feelings about Virgin Galactic have not changed. Show me revenue and customers before I consider SPCE stock a good investment.Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019. As of this writing, Chris Markoch did not hold a position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post SPCE Stock May Not Fail to Launch, But It May Still Fail appeared first on InvestorPlace.

New Strong Buy Stocks for May 22nd

New Strong Buy Stocks for May 22nd

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  DVA or CHE: Which Is the Better Value Stock Right Now?

  Zacks
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  Applied Genetic Technologies (AGTC) Upgraded to Strong Buy: Here's What You Should Know

  Zacks

Virgin Galactic Is a Solid Speculative Stock to Buy

Virgin Galactic (NYSE:SPCE) is one of the trickiest stocks out there right now. On the one hand, it has virtually no revenue; that makes SPCE stock difficult from an investment perspective. However, from a speculation standpoint, the entity has promise.Source: Christopher Penler / Shutterstock.com Earlier this month, the company reported its first-quarter results. Virgin Galactic reported a loss of 30 cents per share, missing estimates by 12 cents. Revenue came in at just $240,000. That missed estimates and sank significantly year-over-year.But oddly, this isn't a growth story. At least not yet. Let's dig deeper as to why this may be a worthwhile speculation play for investors.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Digging Deeper on Virgin Galactic StockWhen you think of a company with virtually no revenue and all hope, the stock is generally unattractive to most investors. But SPCE stock has a surprisingly strong balance sheet.Current assets stand tall at $536.6 million versus current liabilities of just $115.8 million. With assets almost five times larger, Virgin Galactic can easily cover its short-term obligations. Total assets of $605.5 million easily top total liabilities of $138 million too.So, while a $3.3 billion valuation seems lofty for Galactic, at least we're looking at a company with solid footing.That said, the cash burn will eventually put SPCE stock in a tough spot unless management can curb spending or generate more revenue. Currently, revenue comes from engineering services, while investors are betting on future space flights for customers.Refundable reservations climbed to more than 400 reservations. That amounts to more than $100 million in potential revenue, according to the company. Interest for flight registrations climbed by roughly 1,200, a 15% increase from the prior period.However, it's SPCE's announced partnership with NASA that got investors excited.The company is working with NASA on several health care initiatives, including solutions to help with the novel coronavirus. But this goes much deeper than that. During the conference call, management explained the partnership:"In partnering with NASA, we will help to advance the USs efforts to produce technically feasible high Mach vehicles for potential civil applications…We are also the only team designing, building and flying a crude vehicle at over Mach 3 at the edge of hypersonic flight, providing first mover advantage."This is actually pretty big news and, in my opinion, where the potential really is for SPCE stock to take off. Trading SPCE Stock Click to EnlargeSPCE stock is not a well-established company like Microsoft (NASDAQ:MSFT) or Amazon (NASDAQ:AMZN). In fact, this is very much a spec play. However, I would call it a strong candidate for speculation, not simply a high-risk bet.The worst case for Virgin Galactic stock is zero. The best case is a move back through its prior highs, putting a potential 200%-plus move in play. With that in mind, let's take a closer look at the charts.Once SPCE stock broke out over $12 in early January, it quickly raced higher. Shares topped $40 in February, then fell precipitously amid the outbreak of Covid-19. For interested buyers, they may consider waiting for slightly better prices. That is, on a dip down toward the 200-day moving average or the former $12 breakout area.Below $12 and bulls can justify cutting the position, helping to improve the risk/reward. Long above $12 (or a move back over $12 should this level break) keeps SPCE stock in play.However, until Virgin Galactic clears $20, this one may struggle to maintain upside momentum. Over the May high at $21.53 and $28 is the next upside target.Remember, SPCE stock has a high short interest near 41%. That's a lot of sellers betting on a decline. While one could argue that there's a high short interest for a reason -- and there is, truthfully -- it could also cause a painful short-squeeze if a strong rally gets going. That will force shorts to cover, adding more buyers to the mix. It's similar to what we saw earlier this year.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Kenwell held no position in any of the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Virgin Galactic Is a Solid Speculative Stock to Buy appeared first on InvestorPlace.

Retail Sales Put the Loonie and the Pound in Focus, as Geopolitical Risk Lingers

Retail sales figures will give the Pound and the Loonie direction, with the ECB minutes also in focus. Trump’s Twitter account could be the key driver, however.

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  European Equities: Geopolitics and the Economic Calendar in Focus

  FX Empire
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  The Week Ahead – Geopolitics, Central Banks and COVID-19 in Focus

  FX Empire

The Return of Sports Is Exactly What DraftKings Needed

Established in 2012, DraftKings (NASDAQ:DKNG) quickly rose to prominence, dominating the daily fantasy sports and sports betting arenas. Buoyed by favorable legislation, investors had high hopes for DraftKings stock. Unfortunately, the novel coronavirus completely cratered this narrative. Obviously, without sports, there was no point in sports betting or other derivative activities.Source: Lori Butcher/Shutterstock.com It wasn't too much of a shock, then, that DraftKings stock dropped nearly 26% in March. But in the following month, shares went ballistic, with buyers speculating on the return of sports. First, several states began gradually reopening their economies after their infection rates declined. Second, various sports leagues began discussions about a possible return.Though we're still in the early stages of the sports recovery, NASCAR provided an honest-to-goodness blueprint for how other leagues can move forward.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe festivities at Darlington Raceway in South Carolina was unlike any other event NASCAR hosted. Prior to the event, the Associated Press described it as follows:There will be no elaborate infield tailgates, inflatable pools or hundreds of American flags that fly above the campers. The grandstands will be empty gray rows, no spectators allowed.Most significantly for this sport, the race directors did not allow practice nor qualifying. Practice is especially important for NASCAR teams - or any auto racing series - as it lets engineers dial in the appropriate setup for real-time track conditions. * 7 Excellent Penny Stocks Ready to Roar Yet for fans, it didn't matter. Racing was back and it immediately bolstered the case for DraftKings stock. As you can tell by pulling up its chart, momentum has not ceased since the beginning of April.To me, DKNG is overbought at this point. However, you'll want to consider buying on the big dips. Pent-up Demand Is a Real Phenomenon for DraftKings StockIn many of my prior articles, I've discussed the role that pent-up demand will play as societies reopen and the economic machinery starts up again. Yes, Americans have suffered badly from this pandemic and the emotional and physical toll will take time to heal.Yet if I know anything, it's to never bet against America. We've endured many calamities and tragedies, including other pandemics. Each time, we've come out the other side stronger than ever. There's no reason why that wouldn't be the case this time around.Better yet, the data for pent-up demand is clear for anyone to see. For the Darlington race, it drew 6.32 million viewers, up 38% from the last race before the lockdowns. In comparison, the Daytona 500 - NASCAR's marquee event - drew seven million viewers in February. Furthermore, average viewer metrics increased conspicuously, which is something advertisers will be keying in on. And all this is net positive for DraftKings stock.It's important to recognize the context. Well before this crisis, sports analysts reported on waning interest for NASCAR. I don't find this terribly shocking considering that millennials and younger generations don't want to spend hours watching cars make (mostly) left turns. But that interest was so high for what the current generation considers a boring sport gives you an idea of what to expect when traditional powerhouse sports leagues return.And that's really what the phenomenal rise in DraftKings stock is all about. For instance, DKNG is clearly pricing in the return of baseball, which is something more up DraftKings' alley. With baseball, you have myriad opportunities. It also helps that virtually all Americans have grown up with the sport.Once it returns, the thinking is that DKNG will explode even higher. Be Smart About DKNGI'm not denying the allure of DraftKings stock. There's real substance here. At the same time, you don't want to get sucked into what the masses are doing.In April, DKNG gained over 65%. This month, we're rapidly approaching the 50% mark. As with any high-flying stock, it's time for a pullback.But when it does, this would be a golden discount. For one thing, while NASCAR's return and the likely reemergence of baseball are exciting developments, the true heavyweight - meaning football - is around the corner. I'm sure demand will be through the roof.Second, DraftKings has the opportunity to lever the new normal to its advantage. During the quarantines, eSports leagues received a sizable boost in traffic and engagement. If that trend continues, the company can organically market its eSports platform, which was also aided tremendously by favorable legislation.Ultimately, the long-term narrative for DraftKings stock is very positive. Just let it cool down a bit before taking a bite.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * Top Stock Picker Reveals His Next 1,000% Winner * America's Richest ZIP Code Holds Shocking Secret * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post The Return of Sports Is Exactly What DraftKings Needed appeared first on InvestorPlace.

Should You Buy Bilibili Stock at Its All-Time High?

China’s Gen Z darling continues to dazzle the bulls even as the COVID-19 crisis slams the broader economy.