SQ, TDOC, VRTX: Cathie Wood is optimistic about doubling stocks

When Cathie Wood buys stocks, investors will follow her to buy, which seems to be the latest trend in the investment world.

In the popular saying, following Cathie Wood, there is money to be made. Even some time ago due to the rise in U.S. Treasury yields, technology stocks plummeted, and ARK funds suffered a frantic sell-off. Wood is still as stable as a mountain, and he issued a statement saying that everything was as early as we expected and was better than we expected. Technology stocks are a good time to buy bottoms and increase positions. Today, I will analyze Cathie Wood's heavy holdings from the company's fundamentals and future market prospects. Can it double in the long run?

Square (ranked first in ARKK's innovative technology ETF)

The financial technology giant Square is a revolutionary stock in the financial industry, breaking the traditional payment industry. Square is known for its seller ecosystem, which provides small businesses with point-of-sale solutions and analytical tools. In return, Square collects merchant fees as revenue from the gross payment volume (Gross Payment Volume, GPV) of the network. Between 2012 and 2019, this GPV soared from US$6.5 billion to US$106.2 billion. Although GPV may decline in 2020 due to the epidemic, the compound annual growth rate from 2012 to 2019 is 49%, indicating that it will return to its previous level in 2021.

It is worth noting that the Square seller ecosystem has been very effective in attracting larger merchants in recent years. Merchants with an average annual GPV of at least US$125,000 in the third quarter of 2020 accounted for 61% of the total GPV. Because this is a merchant fee-driven business, so more large companies use the platform to make Square make more money. Cash App had more than 36 million active users in the fourth quarter, an increase of 50% over the same period last year. Square is also gradually increasing the features available on the Cash App, making it more and more popular for individuals to conduct a wide range of financial transactions.

Of course, Square's peer-to-peer payment platform Cash App provides the largest amount of business. As millennials promote more digital payment methods, the monthly active user base of Cash App has surged (7 million at the end of 2017 and 30 million by mid-2020). Cash App provides Square with a variety of income collection methods, including payment transfer fees, merchant fees, investment, and bitcoin exchange fees. Cash App should become the main driver of the company's gross profit in 2021.

Overall, Square is a value growth stock. The company's current market value is about 103 billion US dollars, which is equivalent to 196 times PE and 7.8 times PS.

Square achieved initial success by providing payment processing services for small and medium businesses. Over time, the company expanded its products and services to include point-of-sale software, e-commerce platforms, payroll services, business debit cards, etc. Starting this month, Square now also operates a federally chartered bank. This opened the door for Square to provide small business loans to its customers.

The current transition from cash to digital payment is still in its infancy. Square is expected to grow through its sellers and Cash App ecosystem, and in the process will bring substantial benefits to investors.

Teladoc Health (Leader in Telemedicine)

Due to the epidemic, the development of telemedicine has made real progress in 2020. Teladoc Health is one of the biggest winners. Its stock price soared by nearly 140%.

However, so far, TDOC is still in the early stages of telemedicine. According to data, after the epidemic is over, the annual telemedicine market in the United States will grow to about 250 billion US dollars. If the international market is added, this number will be even greater, and TDOC will be less than 30 billion US dollars. There is still enough space.

TDOC should be the biggest beneficiary among them. Although Amazon announced plans to launch Amazon Care telemedicine services to its American employees this summer. Amazon also intends to provide the service to other companies later in 2021 to participate in the competition in the telemedicine market. But Mu Ji disagrees, thinking that Amazon will not pose a threat to TDOC. Continue to increase TDOC.

Sister Mu believes that TDOC is the global leader in virtual care. So far, more than 40% of Fortune 500 companies use TDOC's services, and it provides more comprehensive products than its competitors. The most important thing is that the growth prospects of TDOC are very broad, and the development space of telemedicine is large enough. Coupled with TDOC's acquisition of Livongo Health, which operates a digital health platform that can help individuals manage chronic diseases, which creates a huge cross-selling opportunity.

Vertex Pharmaceuticals

ARK Genomic Revolution ETF ranked sixth

Vertex Pharmaceuticals (VRTX) is currently the strongest performer among all the top stocks of Wood's ETF. Large biotech companies do not have any competitors in their core markets. Vertex's four approved cystic fibrosis drugs are the only drugs that treat the underlying cause of genetic diseases.

Vertex also uses its expertise to target other rare genetic diseases. It expects to report the key results of a Phase 2 study evaluating VX-864 in the treatment of liver disease alpha-1 antitrypsin deficiency in the next few months. The company's product line also includes candidates for rare blood diseases β thalassemia and sickle cell disease and rare kidney disease focal segmental glomerulosclerosis.

And Vertex has the potential to change conventional treatment methods, and this treatment has just entered Phase 1/2 research. If the cell therapy VX-880 succeeds in clinical trials, it may be able to enable type 1 diabetes patients to live independently of insulin.

Vertex has a cash reserve of 6.6 billion U.S. dollars and plans to use it to recruit mid- and late-stage candidates to further strengthen its product line. In the next few years, this biotech stock will continue to be a big winner. In the long run, both financial technology and telemedicine are closely related to people’s lives. These are the general trends in which people’s living habits are being reshaped and the new trends in future technological development. These general trends may be in the next few decades. In the span, change the global social, economic, and political landscape. It is believed that investors will continue to benefit from these changes and generate high returns.

Comments

The signal that the stock market has peaked?

the stock market Although I know how to judge when the bear market is over and when I should buy at the bottom, I still don't know how to judge the selling at the top. I'm afraid I don't know when to leave the market after buying stocks in the future. If you have also tried to avoid the crash, stock market crash, and even bear market, or always hold stocks at these times. These four tricks are based on my experience in the stock market for more than 10 years. They help me hold cash early before many market declines, so I suggest that you must see the end. It is likely to help you invest in stocks. Raise to another level. Because knowing how to go is more important than knowing how to buy, and knowing how to go is an important factor in determining how much you can earn or lose. The first trick, everyone needs to learn to identify the Distribution Day. As the name implies, the shipping day is a day of huge selling pressure. On that day, it may be that large account...

Will the Great Depression make a comeback?

the Great Depression On March 21, 2020, the United States already had initial unemployment data. Exceeding market expectations, the number of applicants reached 3.28 million, a record high. The current unemployment situation in the United States. Before March 7, employment in the United States was not affected by the epidemic. In the week of March 7, the number of people applying for unemployment benefits for the first time in the United States was 211,000, a decrease of 4,000 compared to the previous week. It is still healthy. This shows that the United States is in a good employment track range. The actual data began to fluctuate, that is, the data for the week of March 14, the number of people applying for relief reached 282,000, a slight increase. On March 21, the number of people applying for unemployment benefits soared to a record high this week. 1.7 million people have far exceeded expectations, and market expectations are about 1.5 to 1.7 million people. It can be said...

NIO stock forecast 2025: Core technologies

In terms of new forces in car manufacturing, industry participants have entered the fast lane in areas such as new product releases and intelligent driving. With the "general trend" of the popularization of electric vehicles, you will catch up. For NIO, which is the first to deploy the electric vehicle industry, whether ET7 can take the industry pioneer into the "overtaking lane" and continue to be at the forefront of the industry. Examining NIO's strategic measures is an effective way to try to find answers. Way, especially in the context of the “general trend” of electric vehicles. NIO's Core technologies: 1. At present and for a period of time, the price, performance iteration, and supply of batteries and core raw materials will be the core factors that determine the popularization of pure electric vehicles, and determine a series of trends in the market and participants. Lithium is an indispensable and important element of power batteries. The comme...

Safe-haven assets（GLD） are flowing into the market?

On March 9, 2020, the US Dow Jones Index plunged more than 2,000 points, the U.S. stock market crashed, the investment market was full of fear, and market funds flowed into those safe-haven assets? With the spread of the epidemic, the market's risk aversion has continued to increase, and the stock market has continued to fall. As an investor, to reduce investment risks, you must buy safe-haven assets, reduce the purchase or sale of assets in the stock market, and avoid a sharp decline in the stock market, which will cause serious losses. When market risks continue to increase, investors will continue to buy safe-haven assets. Investors should pay attention to the following several safe-haven assets and use them as safe-havens. Dow Jones Index The first safe-haven asset is gold. Gold（GLD）, as a traditional anti-inflation commodity, has always been the preferred safe-haven asset for investors. GLD The second safe-haven asset is the Japanese yen. Because the Japanese y...

Can Apple（AAPL） icar end the dominance of Tesla（TSLA）?

Beginning in 2014, Apple started a plan for electric vehicles developed by "Project Titan". In the Apple electric car project, in the past few years, internal conflicts, leadership issues, and other issues have affected the entire project. The rumors in 2016 even hinted that Apple had shelved plans for the car, but Apple has overcome the development difficulties and still plans to develop consumers Car, The Apple car project has changed the leadership many times, and hundreds of employees have been laid off during the development process. In the past few years, there have been rumors that Apple has shifted its focus to autonomous driving software instead of just a car. In June 2017, Apple CEO Tim Cook publicly talked about Apple’s work on autonomous driving software, which rarely confirmed Apple’s development work, because Apple usually does not share the details it is studying, but when it comes to cars When it comes to software, due to legal restrictions, it has to apply fo...

NFLX stock forecast 2025: plummeted 22% after the earnings report.

Time to talk about Netflix, which plummeted 22% after the earnings report. First of all, Netflix's financial report this time does have its thunderous place, but part of the reason for the 22% drop in one breath is because the market sentiment has been very bad recently. At this time, the financial report thunderous will be punished more than usual. It is a wake-up call for companies that are about to report financial reports in the future, so we try to hold the stocks in the hands of companies with relatively stable historical financial reports and try to balance our positions as much as possible, to reduce the risk of financial report storms. After all, this quarter In a more dangerous period, back to the point. Let's take a look at Netflix's financial report this time. In the fourth quarter of 2021, Netflix's EPS was $1.33, exceeding analysts' estimates of $0.82, and revenue was just in line with expectations, with $7.71 billion, an increase of 16% year-on-year...

Will China's economy recover as the epidemic is under control?

During the Chinese Spring Festival, novel coronavirus broke out in Wuhan, and the Chinese stock market was hit hard. Subsequently, the Chinese government quickly took strict measures to block Wuhan, a city with a population of tens of thousands of people, to prevent the further spread of the epidemic, and to take corresponding epidemic prevention measures in other cities. When the worst of the epidemic had already occurred, the Chinese stock market quickly rebounded. As the number of infections continues to decline, China's Shanghai Composite Index is expected to rise further. Sars Period Looking back on similar events in the past, the SARS epidemic in 2003, the stock market also made a short-term decline, and then the SARS epidemic was brought under control, the stock market immediately went up for a long time. According to past historical data, the impact of the novel coronavirus epidemic on the stock market may be short-lived. China Fund Capital Flow Howeve...

FNKO VS PLBY: Which NFT stock is more attractive for investment?

The market for NFT stocks is recently booming, and investors have begun to show strong interest in NFT stocks. NFT is a digital asset created using blockchain encryption technology, such as works of art, music or video, etc. Each NFT has a unique digital signature to determine its unique attributes, making it difficult for NFTs to exchange with each other. NFT provides a unique way for content creators to earn income by paying copyright fees or selling their artworks directly to consumers. According to data provided by Forbes Advisor, since November 2017, nearly $174 million has been used for NFT transactions. On May 12, Eastern Time, eBay (EBAY.US) added NFT to its online shopping mall product list. Funko (FNKO.US) and PLBY Group (PLBY.US) recently had the most popular NFT concept stocks, which stock is more attractive for investment? Let's look at what Wall Street analysts think of these two stocks. Funko is a pop culture consumer goods company who...

Bear market coming, gold(GLD) assets become essential

The economic data of the global economic powers have been deteriorating, entering the bear market stage of the economy, and people have become more cautious when choosing asset investment. We should choose investment products with a low correlation coefficient with economic performance and investment products suitable for the current economic cycle. Investors should pay more attention to foreign exchange and commodity markets so that they can add value to your assets. Among many assets, anti-inflation commodities such as gold have become essential assets. Take gold as an example. For many years, gold has been regarded as an anti-inflation commodity by international capital markets and has been regarded as an important asset hedging tool by investors. There is also a saying, "The world bought gold during turbulent times." From basic political theory, we know that gold is not currency, and the currency is naturally gold and silver. Although gold has withdrawn from ...

Palantir stock forecast 2025: What kind of company is PLTR?

PLTR introduced today may be the most controversial company in the current market, not one of them. As a stock, he is the faith stock of many retail investors. Those who believe in it generally believe that its stock price can double at least ten times in the future. Catherine Wood, the president of the ARK Fund, nicknamed "the light of retail investors," continues to buy the stock, which is also highly sought after on the WSB forum; on the contrary, most analysts on Wall Street are not optimistic about its development. The average target price at the end of 2021 is still 10% lower than the current stock price. As a company, its revenue is growing steadily and rapidly, with an annual growth rate of about 30% per year. However, the company has never achieved profitability in the past 20 years since its establishment. As a high-tech enterprise, the company is full of various genius ideas and the top talents in the industry, but they are mostly engaged i...

FinanceLinkway

Search This Blog