Investment

BUY ALERT: Investment Firms Are Buying. Are You? – The Motley Fool Canada

Published

4 years ago

February 15, 2021

Fools familiar with my writing will know that there are so few companies that I am extremely bullish on. Among the TSX-listed companies, there is no company, in my opinion, that shines brighter than Shopify (TSX:SHOP)(NYSE:SHOP). It has grown to become the nation’s largest company by market cap and an internationally renowned e-commerce enabler.

In November, Shopify announced that its merchants sold a total of US$5.1 billion over the Black Friday-Cyber Monday weekend. This was accompanied by increasing e-commerce traffic and a second wave of global lockdowns due to the COVID-19 pandemic. With all of those tailwinds driving consumers to online shopping, I alerted investors of an amazing buying opportunity. I proceeded to write about Shopify in December and January, doubling down on my call and investing capital myself.

What has happened since?

One of the most watched investment firms today, is ARK Invest. Led by Cathie Wood, retail investors have been watching her every move after her successful bullish calls on Tesla, Square, and so many more disruptive companies. From Monday to Thursday last week, ARK Invest bought more than 93,000 shares of Shopify.

As of September 30, 2020, ARK Invest reported owning 188 shares of the company in their 13F filing. This totaled to a position size of about $200,000. Shopify was trading around $1,800 for most of last week. If we take an average cost basis of $1700 per share, then ARK Invest would have paid more than $158 million to build that position.

As I write this article, ARK Invest disclosed owning about 675,000 shares between its portfolios. That means the firm added nearly 15% of that position in a span of four days last week. With Shopify’s earning call scheduled for late this week, one can assume ARK Invest also believes the company is set to blow expectations out of the water. Until the start of the month, Shopify had been trading flat since early July. It seems like institutional investors are getting ready to go to the moon. Have you bought shares yet?

Get in on this top tech stock before it skyrockets as well

As a bonus, I’ll reiterate another stock that I am very bullish on. Docebo (TSX:DCBO)(NASDAQ:DCBO) provides a cloud-based, AI-powered eLearning platform for enterprises. In 2020, businesses around the world including Facebook, Twitter, and Shopify moved to remote settings. This means many businesses will have to adapt their training programs to accommodate the new work settings.

Docebo already claimed Walmart, Appian, and Thomson Reuters as customers before the pandemic. It also boasted a vital Salesforce integration that allows businesses to streamline entire departments. In addition to that strong base, Docebo announced a multi-year partnership with Amazon to power its AWS Training and Certification offerings. To close out the year, the company hosted its American IPO by listing on the Nasdaq.

The stock has netted about a flat return since the start of December. This means investors have had about two-and-a-half months to load up on shares. While I can’t say the company will skyrocket tomorrow, this is a very obvious pick that will make investors very wealthy in the coming years.

Would you like another bonus stock pick? Here is one company that investors are comparing to an early Shopify. Don’t miss this great opportunity.

This Tiny TSX Stock Could Be the Next Shopify

One little-known Canadian IPO has doubled in value in a matter of months, and renowned Canadian stock picker Iain Butler sees a potential millionaire-maker in waiting…
Because he thinks this fast-growing company looks a lot like Shopify, a stock Iain officially recommended 3 years ago – before it skyrocketed by 1,211%!
Iain and his team just published a detailed report on this tiny TSX stock. Find out how you can access the NEXT Shopify today!

Click here to discover how!

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Fool contributor Jed Lloren owns shares of Appian, Docebo Inc., Shopify, and Tesla. David Gardner owns shares of Amazon, Facebook, and Tesla. Tom Gardner owns shares of Appian, Facebook, Salesforce.com, Shopify, Square, Tesla, and Twitter. The Motley Fool owns shares of and recommends Amazon, Appian, Facebook, Salesforce.com, Shopify, Shopify, Square, Tesla, and Twitter and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon.

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Economy

S&P/TSX composite down more than 200 points, U.S. stock markets also fall

Published

1 week ago

September 6, 2024

Anne Joseph

TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.

The S&P/TSX composite index was down 239.24 points at 22,749.04.

In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.

The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.

The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.

The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.

This report by The Canadian Press was first published Sept. 6, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Economy

S&P/TSX composite up more than 150 points, U.S. stock markets also higher

Published

2 weeks ago

August 29, 2024

Anne Joseph

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.

The S&P/TSX composite index was up 171.41 points at 23,298.39.

In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.

The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.

The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.

The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.

This report by The Canadian Press was first published Aug. 29, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

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Investment

Crypto Market Bloodbath Amid Broader Economic Concerns

Published

1 month ago

August 5, 2024

Harry Miller

The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.

The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.

Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.

The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.

Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.

Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.

Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.

Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.

The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.