🔥Weekly Portfolio Update 19.04.21🔥
Weekly Performance, Key Events in The Portfolio, What to Read This Week and More!
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📮Portfolio Weekly Performance Report
◆ Key Events in The Portfolio
Nvidia Debuts First Supercomputing CPU
Nvidia ($NVDA) had soared 10.50% from a week ago after announcing the debut of Grace, its first central processing unit, or CPU which is specifically targeted for facilities like data centers and supercomputers. Nvidia plans to launch Grace as early as 2023. After its success throughout the years in powering PC gaming, cryptocurrency mining and a whole range of high-performance, GPU-intensive applications with the current graphics card lineup, the new Grace chip will be one of the company’s first attempts in powering high-performance computing (HPC) which is an area where Intel had largely been dominating for the most part. On its investor day on Monday, Nvidia also announced that its fiscal first-quarter revenue is tracking above the previous target it provided.
TSMC Narrowly Beat Wall Street's Target
Taiwan Semiconductor Manufacturing ($TSM), the world's largest contract chipmaker, also better known as TSMC, had posted its first-quarter earnings on Thursday that narrowly beat Wall Street's target. The chipmaker earned 96 cents per share in the March quarter which is slightly above the analyst estimate of 95 cents per share. Its earnings rose 28% on a year-over-year basis. However, its sales guidance for the second quarter was a bit light due to weaker smartphone chip sales than usual for the season. That explains why we are seeing a 3.22% drop in the stock price from a week ago, as shown in the weekly performance report above.
“Moving into second quarter 2021, we expect our revenue to be flattish, as HPC-related demand will continue to grow, offset by smartphone seasonality," - Chief Financial Officer Wendell Huang.
FDA Approved Bristol Myers Squibb's Opdivo As Gastric-Cancer Treatment
Bristol Myers Squibb ($BMY) had soared 4.55% from a week ago after Opdivo, one of its immunotherapy lineup, had been approved by FDA to be used as an injection combined with chemotherapy to treat patients with advanced or metastatic gastric cancer, gastroesophageal junction cancer, and esophageal adenocarcinoma. The approval was based on a Phase 3 trial. After posted stronger-than-expected fourth-quarter earnings back in February and boosted its full-year profit forecast, some may say that the company is currently undervalued considering there are 50 other compounds in development the company currently has in its pipeline, a large number of which had great potentials in getting approval in the near future.
“As demonstrated in the … trial, Opdivo is the first and only immunotherapy combined with chemotherapy to deliver superior overall survival versus chemotherapy alone in first-line metastatic gastric cancer, gastroesophageal junction cancer, and esophageal adenocarcinoma.” - Adam Lenkowsky, general manager of oncology
GM to Build Battery-Cell Plant in Tennessee
General Motors ($GM) had announced that, along with its Korea-based joint-venture partner LG Chem Ltd., they plan to invest $2.3 billion to construct a second battery-cell plant in Tennessee, which sound similar to Tesla’s Giga Factory, in order to support the company’s efforts to expand its electric-vehicles portfolio. While GM has committed to spending about $27 billion between 2021 and 2025 to launch 30 EV models both domestic and internationally, and aimed to replace 100% of its vehicle lineup with EVs by 2035, battery supply is going to be critical for its success. That being said, the market had shown little response to the news, possibly due to the concern of capital spending being a long term issue, and also the fact that little is known about the size of the battery-cell plant and its strategy in sourcing its battery as of now.
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📖 Recap of the week
China’s economy hits record week
The Dow Jones Industrial Average and the S&P 500 had closed at record highs on Friday as China released remarkable growth figures which led investors to believe in a surging post-pandemic recovery. In China, gross domestic product (GDP) jumped a record 18.3% in the first quarter. The swift recovery of the economy is largely due to the containment of coronavirus cases and the frenzy of industrial production, coupled with increased household consumptions. Economists expect the expansion of the economy to moderate as manufacturing and consumer spending return to normal.
Coinbase’s IPO Took Off
Coinbase’s IPO had closed at $328.28 per share after direct-listing on the Nasdaq last Wednesday. Coinbase is one of the most popular cryptocurrency exchange in the US which basically enables investors and traders to buy and sell Bitcoin, Ethereum and many other cryptocurrencies on the platform. There are currently $223 billion in crypto assets stored on its platform through the end of Q1 2021 which is basically 11.3% of all cryptocurrencies in existence as of today, this shows how big of a deal Coinbase’s IPO is to many crypto traders out there which explains its hype among investors, some analysts had even gone as far as giving a strong buy rating to today’s seemingly sky-high valuation. Ark Innovation ETF, the fund of star manager Cathie Wood have even added about $352 million worth of shares in Coinbase over two days. Coinbase will certainly remain as the new highly-hyped stock in the stock market from now on.
Start of Earnings Season
Today we had seen Coca-cola ($KO) releasing its expectation-beating Q1 2021 earnings report. The company had reported adjusted EPS of 55 cents (vs 50 cents expected) and revenue of $9.02 billion (vs $8.68 billion expected) which sent the shares of the company surging more than 1% in premarket trading.
“We are encouraged by improvements in our business, especially in markets where vaccine availability is increasing and economies are opening up, and we remain confident in our full year guidance,” CEO James Quincey
On Wednesday April 21st, Verizon Communications Inc. ($VZ) will release its first-quarter 2021 earnings before the opening bell. Analysts don’t expect much change when Verizon reports first-quarter earnings, though some think it might even go down further. The consensus earnings estimate is for earnings of $1.29 and revenue of $32.47 billion. This is a company that is taking more risk than ever to transition into a potential growth company as the 5G era opens.
Read more here to know which other companies are reporting this week.
🐦 Tweets to start the week
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Best, HaoNing