Hello and welcome to Insider Investing. I’m Joe Ciolli, and I’ll be shepherding you through what to expect in markets in the coming weeks, while also featuring some of Insider’s best work on the subject.
Regular readers may notice that this newsletter has moved from its previous slot early in the week to Sunday afternoon. This will be the new publication time, so please do continue to enjoy!
Have thoughts on the newsletter? Just want to talk markets? Feel free to drop me a line at jciolli@insider.com or on Twitter @JoeCiolli.
Your weekly outlook
All eyes will be on corporate earnings this coming week, with Apple, Facebook, Tesla, and Amazon set to report. Given the massive weighting of these stocks in major indexes, it’s not an exaggeration to say their quarterly results – and, perhaps more importantly, their forward outlooks – will dictate the entire market’s direction.
The question is the same for these tech titans: Will they be able to keep delivering (and forecasting) stronger-than-expected profit growth? It’s something they’ve been able to do for years, even as estimates have gotten more ambitious. With their valuations sitting at all-time peaks across every imaginable measure, these tech titans are especially vulnerable to any disappointment.
But if the latest earnings report for mega-cap tech stalwart Netflix – which handily blew past estimates for subscriber growth – is any indication, investors may not have much to worry about. In a post-pandemic world where the products and services provided by these companies are still attracting major demand, there’s seemingly endless profit-growth opportunity.
And as it pertains to Tesla specifically, just ask the legions of scorched short-sellers what it’s like to bet against Elon Musk. They lost roughly $39 billion in 2020 as Tesla’s stock soared 743%. Will the company’s earnings give them reason to start shorting again? Tune in Wednesday to find out.
Michael Saylor is the chief executive officer of business intelligence and software firm MicroStrategy, which has plowed more than $1 billion of its funds into bitcoin.
All of the five active ETFs run by Cathie Wood’s ARK Invest returned more than 100% in 2020. This strong performance helped the firm rake in over $20 billion last year and bring its total assets under management to $50 billion, according to Morningstar and Bloomberg data.
Mutual fund manager Darren Chervitz has delivered returns of 32% a year for five years, investing in the market’s smallest stocks. Along the way, he’s become an expert in picking biotech stocks.
Join Insider on Wednesday, February 3 at 2:30 p.m. ET as Insider’s chief finance correspondent Dakin Campbell moderates a panel featuring Kim Posnett, Goldman Sachs partner and Internet investment banking chief, Greg Rodgers, a Latham & Watkins LLP attorney and direct-listings expert, and Mitchell Green, a venture capitalist at Lead Edge Capital who backed Uber, Spotify, Asana, and Alibaba.
These IPO experts will discuss what you can expect for the year ahead and how the recent changes have dramatically altered the calculus for startup entrepreneurs. They will also take reader questions.
