$2.26 (1.69%) Today
52 Week High
52 Week Low
7 Days Mentions
1k to 1M challenge is off to a huge success. Here are the trades I took today $AAPL 180c 01/7 @ 2.00 > 2.65 (32%) $NVDA 310c 01/7 @ 3.45 > 4.4 (28%) $ABNB 170c 01/7 @ 2.34 > 2.37 SL triggered $AMZN 3450c 01/7 @ 11.15 > 14.95 (34%) $SQ 170c 01/07 @ 0.95 > 1.10 (15%)
$SQ $Z $SPCE $QS $BYND $FUBO $AI $SAM 🚀🚀🚀 [White's list of the top 25 short cover candidates for the start of 2020](https://www.reuters.com/markets/asia/live-markets-using-shorts-find-early-winners-2022-2021-12-29/) Why not make it difficult for the shorts to cover these
$SQ - (Chart + Option Flow + Earnings Surprise) has been setting up this Ascending Triangle since November 2020. We got out of a downtrend that started from a $294 top. With the millions of dollars bought in options, an earnings surprise will have this running so hard, your pants will drop.
The tech bubble started to pop right after $SQ changed their company name to Block and $FB changed it's company name to Meta. I'm not so sure that this was a coincidence. $FB and $SQ are starting to look like companies putting lipstick on a pig.
If you buy back in within 30 days you will trigger a wash sale. Also it is very hard to predict bottoms, so you probably shouldn’t try. Instead focus on having the right allocation. If you are wanting to sell PYPL and SQ now, you probably had too much allocated towards them in the first place. Now is the time to increase the position, not decrease.
A few years ago, after a lot of research, I determined SQ was a great investment, and I gradually accumulated 1k shares in it. Then I got nervous and decided that was too many eggs in one basket and cut it down to 200. Queue price increase of 300% or more. I made money all the way around, but I regret not sticking to my guns.
I think for short-term returns it could tell you something. For future performance, nothing, or possibly negative correlation. Look at the most hyped stocks of the last year: GME, AMC, PLTR, BB, LMND, DNKG, SQ, ARKK, SHOP. They all did well and then greatly underperformed.
EPS and revenue have been strong the last few quarters, but it's in freefall. Fintechs aren't looking so hot the last 60 days or so (see UPST and SQ). I think the type of non traditional lending that upstart does has a future, but you have to consider the clientele. These are very high risk loans to begin with and as the rates increase so does the default risk. The OP asked about puts and I wouldn't buy a put on a stock I wasn't comfortable owning/wheeling. For me to be comfortable with selling puts on upstart the strike would have to be in the neighborhood of $50. When I talk about lenders who stand to profit from rises rates I would look more for SBA lenders. Their default risk rises with rates as well but it's safer than lending to random. I'm far from an expert though so do your own DD before you invest.
I own both of these also - way too much of SQ, lol. Kept averaging down and buying on big dips. The thing to remember is that neither of these stocks had anything go seriously wrong. The PIN rumor that began the fall of PYPL proved to be fake news. Neither company had a big earnings miss, yet both had huge falls long before tech stocks in general began to fall. At the same time, V, MA, AFRM and the rest all took a dive (perhaps not as severe) but it seemed that the market believed no one would use a credit card or any form of electronic payment anymore. PYPL will come back eventually. SQ should make at least a partial comeback unless their CEO is so mesmerized by crypto that he bet the company’s future on it at the same time he changed the name. For now, I’m holding until their next earnings report to see how that goes. I agree with the others on here that trying to sell now and hope to buyback later is not a sound strategy.
Sounds like you bought these as trading positions with good upside potential. In which case, you should have set a target for the upside and a Stop Loss for the downside. If earnings can double in 5 years, do you set a 2x of the current price as your upside target? If so, what should your Stop Loss be? Down 10% perhaps? If that's your thinking, SQ is already through your Stop and you should either be cutting losses or resigning yourself to bag holding until you get the double in 5 years (or more if they fail to.meet their aggressive growth hurdles) Your choice
Are you kidding me? Have you not aeen the correction we have had in tech stocks? A bunch of previously overvalued tech stocks have all fallen to all tim lows. TDOC, NET, NIO, COIN, BYND, SQ... Even paypal... A bunch of stocks have been crashing.
NVDA is a forever hold. PYPL and SQ are undervalued IMO, but could go down further with tech stocks getting pummeled. I’m not interested in investing in ROKU. The streaming space is incredibly crowded and there’s not that much more growth to be had post-pandemic.
My best advice is to stop looking at the price movements and almost completely disregard your unrealized gains and losses. I think that for a retail investor, the best approach is to invest in quality companies with high ROE, a significant moat, a great business model, growth opportunity, consistent growth and reasonable financials - low leverage, enough cash on hand, cash flow, etc. No company will ever be perfect in all these factors and check all the boxes, but you can pick a few that have most of these strengths and a few weaknesses and check a variety of the boxes. Evaluate a business and where you think they might be headed based on their track record (note: I don't mean the history of stock price, but the track record of the business), leadership, and industry trends. Don't ignore the stock price completely, but generally, ignore the short term movements. You won't be able to consistently predict short term performance, but you might be able to pick companies that will grow in 10, 15 years. You will pick winners and losers, but just a few home-runs can greatly compensate those losers. Now, wrt to the stocks you mentioned - I'm not going to give you advice on these specific companies (though I hold SQ and have been interested in NVDA, for full disclosure), but your entry price is almost entirely irrelevant (other than tax purposes), don't decide based on that. If you think these companies at these price levels give you a better opportunity than the rest of the market, don't sell, perhaps even buy more (but ideally, keep your portfolio diversified enough). If you don't, sell. How much you've already lost doesn't change anything, what's important is what happens to the money you still have now.
In the 2000 crash cisco's P/S went from a top of 36.8 to a low of 3.9 and sits at 5.1 currently. The P/S of the other stocks NVDA: 27.7 (expensive), SQ: 3.7 and PYPL: 8.5. Even if those businesses execute as badly as cisco both except NVDA arent that overvalued atm.
>ROKU bought at $260, PYPL at $230, SQ at $180, and NVDA at $297 Your cost basis has nothing to do with whether or not you should continue holding a position. Do you think these stocks have a future? Did the fundamentals stay the same? Is the level of risk on your holdings acceptable? Are they uncorrelated? Has your time horizon stayed the same? If you answered yes to all of these then there is nothing further to consider. If anything other than the first two questions is a no then you may want to change things up but you don't have to.
Than wait to buy at $73 which is $ARKK 200 dma on the 2 year chart. You may find support there. If i look at $ARKK top 10 holdings, besides $TSLA, the only stock I find compelling is $COIN. I'd buy $PYPL over $SQ. $MSFT over $ZOOM. $EBAY over $SHOP. Any radio app even $SIRI over $SPOT. I'm prolly wrong but I could see a bounce off 200 dma.
Thanks for the reply. I've been busy with my new job last year and have not paid as much attention to the market, esp the tech companies, as I prefer to. I need to do some research on the companies you mentioned. I admit with some shame that I bought some CRM without doing any homework when I saw Nancy Pelosi bought the leaps. Do you happen to know the trigger for the price slump for SQ and ATVI? From what I recall they are still solid companies and I haven't seen SQ at the current price level for a while. >every Chinese tech stock if you’re into that Oh I still have a lot of TCEHY shares. I unloaded some when they were around 75. Who knew they would've fallen so fast right after reaching almost 100. SMH, at least I didn't buy EDU. NET is something I couldn't figure out. I think it's a great company with brilliant products and a decent moat. No idea what caused the price plunge. Never did much research on MTCH. I assume COVID is keeping people's libido in check. Thanks again!
PayPal is a mature company. Terrible service, all paypal customers hate PayPal. Supporting paypal is like a slap to fintech. Yes it’s earning a lot now, but with eBay switching to payoneer and more competition arising for its space, paypal doesn’t seem to have much growth more that’s enticing - maybe their stable coin? I’d wait for nvda to drop more if there is or wait for a really strong reversal to DCA. SQ is more of a faith stock, P/E not amazing but is a growth stock - 600$ tax on payments on cashapp will be painful.
It's all macro factors of both high valuation being crushed by fed rate hikes. But in $SQ's case also the high correlation to the crypto markets, specifically "digital gold". They released white paper on describing an "on ramp/off ramp" system for digital gold to Fiat currency a few weeks ago, and now announcing their direct engagement in the mining business for digital gold. In many ways they seem to be so focused on digital gold they will need to see digital gold succeed or fail themselves as well. In other words cash app and payment network doesn't even seem to be their focus anymore, seems like their focus is about using their existing network to get everyone on board with digital gold and possibly even mining it.
SQ is disruptor technology. They are not afraid to make bold moves in the fintech space. Young professionals are starting to dominate the workplace and start up new businesses and they overwhelming utilize fintech. The top fintech names like SQ that are willing to take risky innovative moves to stay ahead of the game will be the only ones to not only survive but thrive
SQ, COIN, NET, CRWD, MTCH, ATVI, DKNG, CRM, PLTR, SOFI, and every Chinese tech stock if you’re into that. Those are just the ones on the top of my head that I’ve been looking at. I’m sure there are many others. Some of these are probably closer to 40-50% off highs, not 60%+.
When the Fed raises rates for 2 consecutive quarters it will be the trigger for the sell off. They have already starting warned the public. Do you not think the correction or whatever you want to call has already started? Take a look at some of the big issues out there, PYPL, SQ, BIDU, BABA etc. how much are they down from the top?
Despite the cool tech, fast growth, and secular trend behind the business, I've never touched a SQ product & I like to invest in what I know. Idk if SQ is the right time to buy right now. They pulled multiple years of customer growth + average spend was buffed by generous fiscal policy with the stimulus checks, pent-up demand etc. Little worried how analysts are extrapolating those trends into a normal trend compared to the tough comps. Again good business but be mindful of that.
The idea is similar to paytm India or ant financial China, you can buy street food in SEA with barcodes. SQ is a great idea but not for NA, NA market is dominated by big players predominantly not much of small independent business to have a need such as SQ. They are never going to be successful here in NA
I see their growth while having been facing those headwinds as a reason to be buying, to me it’s when not if they get their charter. SOFI’s margin potential is much better than SQ’s as well. I like both companies, but buying more SOFI until SQ’s underlying isn’t so propped up by near marginless bitcoin trading.