Bubble Trouble

Tale of the Tape

Good afternoon and happy Tuesday, y’all!! 🤠 

All four major indices traded down by a small margin. Things could be worse. 🤷

The Nasdaq Composite led the losses, -0.68%. The S&P 500, Dow Jones, and Russell 2000 settled down ~0.5%.

Today’s hottest sector was energy. 🔥 $SPN popped 1.75%. Speaking of energy…

Torchlight Energy Resources rocketed 51% today after declaring a special preferred dividend. Check out this chart:

Lordstown Motors clawed back 9.2% after its CEO and CFO resigned yesterday.

Bulls expecting Bitcoin to power higher were wrong. $BTC.X is down 0.96% today. The crypto market is in the same boat. ⛵ We can still dream of green, right?!

Here are the closing prints: 

Here are the closing prints: 

S&P 5004,249-0.13%
Russell 20002,326-0.41%
Dow Jones34,317-0.22%

Earnings Roundup

Oracle, one of the Nasdaq’s best performers, reported some spicy gains in its Q4 earnings. 🌶️ 😍

Here are the numbers:

EPS: $1.37 vs $1.31 est
Revenue: $11.2B, +8.0% YoY

Oracle CEO Safra Catz shared:

Oracle Fusion is the world’s biggest cloud ERP business; Oracle NetSuite is the world’s second biggest cloud ERP business … The accelerating growth rates of both our applications and infrastructure cloud businesses this year drove earnings per share growth up to 21% in FY21. That is the fourth consecutive year of double-digit earnings per share growth at Oracle Corporation.

$ORCL fell 1.54% after hours.

Tax prep service H&R Block reported Q4 earnings after the bell. 🔔

Check out the stats:

EPS: $5.16 vs $5.11 est
Revenue: $3.41B, +29.3% YoY

H&R Block’s Chief Financial Officer, Tony Bowen, said:

Growth in total filings, strong performance from Wave, and proactive fiscal management resulted in a strong 2021 that exceeded our expectations … We are confident in our future, as evidenced by increasing our quarterly dividend by 4% and repurchasing 6% of our shares outstanding this fiscal year.

REITs on the Run

The global housing market is on its head — housing shortages and rising prices plague industrial economies, reminiscent of ‘08 (according to Bloomberg). 

But this isn’t stopping investors… they’re piling billions into real estate ETFs. The RSI appears strong across almost all REITs. 💪

Inflows are strong, too. The Vanguard Real Estate ETF (the world’s biggest REIT) has seen $4.22B of inflows in the last six months. That’s ~10% of all AUM in $VNQ

The iShares US Real Estate ETF (the second-biggest REIT) saw more than one billion in inflows. Global REITs and ex-US REITs have also seen stacks of fresh cash. 💰

Despite massive inflows and double-digit gains, warnings loom of a housing bubble. Is any of it cause for concern and could a bubble burst?? Time will tell… ⏳

“The Bigger, the Better”

MicroStrategy, a business intelligence software firm, is doubling down on Bitcoin. 

According to CEO Michael Saylor, “The Bigger, the Better.” And that’s why on Monday, MicroStrategy closed a $500M bond sale to increase Bitcoin storage. 🤑

MicroStrategy also announced plans to sell up to $1B in stock to buy more Bitcoin. 💰

MicroStrategy proudly owns 92,079 Bitcoin, worth roughly $4B. Saylor has always been bullish on Bitcoin— he must be proud his company now shares crypto holdings in its SEC filings. 🥺

Bitcoin: Boom or Bubble?? 

Crypto lost ~40% of its value over the last few months. Now, it’s bouncing back… slowly. 

While there are some giant banks (like Goldman Sachs) entering the crypto world, some fund managers still won’t buy it. 

Bank of America’s recent global survey claims more than four out of five fund managers think Bitcoin’s in a bubble. This survey comes as regulators warn of criminals’ attraction to digital currencies. 

Is crypto gonna boom? 💥 Or are we in a bubble?! 💭 

Microsoft Making Move$

The last few days have been busy for the folks at Microsoft. 

This weekend, the company announced over two dozen new titles at the E3 show. Some of those new titles will be day-one exclusives on Xbox Game Pass

Today, a leak exposed the tech giant’s latest move: a new Windows version aptly named Windows 11 (because 10 obviously comes after 11 🙄). Microsoft will probably unveil Windows 11 on June 24. 

In the meantime, it’s a waiting game for Windows 11 and some fun new Xbox titles. Keep an eye out!! $MSFT closed -0.59%.

Links That Don’t Suck

💿 This Floating Record Player Levitates Using Magnets

🖼️ This Year’s Doodle for Google Winners Have Been Published

💰 MacKenzie Scott Donates $2.73 Billion to 286 Organizations

🛹 The USA’s First Street Skateboarding Team Is Ready for Tokyo

📉 America’s Post-Covid-19 Shopping Spree Will Be Bumpy

🕹️ Nintendo Says Next Zelda Game Will Be Released Next Year

🌲 Lumber Prices Are Falling Fast, Turning Hoarders Into Sellers