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

Catherine Wood's Disruptive Innovation ETF: Is ARKK worth buying?

ARKK ETF by Catherine Wood Catherine Wood's Disruptive Innovation ETF Warren Buffett is a stock god that everyone respected in the past, but in the past year, the female stock god Catherine Wood has become famous for the rising trend of technology stocks, and his head completely overshadows Buffett. Therefore, this time I want to talk to you in detail about the prestigious history of this female stock god. Catherine Wood founded ARK Investment in 2014 and listed the funds under her management under Exchange Traded Funds to facilitate investors to buy and sell, but the management fee is as low as some passive funds that track an index, about 0.75% per year. Ark Investment launched 4 ETFs in September and October 2014. The themes are Next Generation Internet, Automation Technology and Robots, Innovative Technology, and Genetics. Among them, Innovative Technology is currently the flagship ETF of Ark Investment and the most most popular ETF w...

4 George Soros advice to investors!

Who is George Soros? George Soros is a Hungarian-born Jewish businessman. It is one of the most influential investors in the world. In 1969, the Double Eagle Fund was established for Arnhold & S. Bleichroeder, an investment management company. In 1973, Soros and his assistant Rogers left Bleichroeder to co-found Soros Fund Management. In 1979, the well-known Quantum Fund was established and continued to make profits. In the Asian financial turmoil in 1997, George Soros sniped the Thai baht and the Hong Kong dollar, which was frightening. Learning from the experiences of successful people can benefit a lot. Here are 4 tips George Soros gave investors. First, to be successful, you must have ample free time. Most people want to be rich, but not everyone realizes the importance of free time. Many people spend a lot of time working to accumulate wealth, sleep, and forget. Set the goal to complete the work indicated by the superior, or the needs of business partners. But they hav...

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...

What is the average cost method?

Due to the recent plunge in the global market, I noticed that some people came out to promote an investment method called the fool-style stock disaster investment method. The thinking behind it is similar to other lazy investment methods, or monthly stocks/funds, just to change the saying, I will dismantle the problems behind you one by one. Let you see the risks you need to bear, first look at the logic behind this method. Its approach is this when the market drops 10%, you invest 20% of the funds to buy stock market ETFs when the market drops 20%, you invest another 20% when the market drops 30%, you invest another 20%, And so on. Until the market drops by 50%, you will put all the funds into the market, and when your average cost is equal to the market drops by 30%, you will buy all the funds in the market ETF (that is, All in). It is a kind of average cost method. The principle of this method is that, first, he believes that the maximum decline in the market is about 50%. A...

The relationship between Dow theory and the stock market!

Many technical analyses, such as morphological analysis and wave theory, use the Dow theory as the basis for the evolution of original technical analysis. Let's talk about the relationship between the Dow theory and today's stock market. Starting from the three most widely known theorems, theorems, market behavior is inclusive and digestive, market behavior follows the trend, and history will repeat itself. Among these three theorems, there are many Charles investment ideas, which can also be said to be the backbone of technical analysis. Charles' first theorem hoped that the market was originally a gathering place for hundreds of news. For example, Jun A believes that a country's civil war and unstable economy caused it to sell the shares of local companies; Jun B learned that the local companies will still have considerable profitability next year, so he bought the shares of local companies; Jun received a third different message and made an investment decision and...

Coinbase stock forecast 2025: it's first quarterly report

After the trading hours on May 13 (this Thursday), Coinbase Global (COIN) will release its first quarterly report. Take this opportunity to give us a glimpse of the prospects of the first share of cryptocurrency exchanges. Actually, on April 6, before Coinbase went public, it had already released a forecast for the first quarter of this year. The core data are as follows: Revenue in the first quarter was approximately US$1.8 billion, a year-on-year increase of 842%; before the net profit was between US$730 million and US$800 million, the median was US$765 million, a year-on-year increase of nearly 23 times! Assets on the platform are 223 billion US dollars, accounting for 11.3% of the market share of encrypted assets; 56 million verified users, and 6.1 million monthly transaction users (MTU). It is worth noting that Coinbase's net profit margin reached a terrifying 42.5% in the first quarter, and the business model of “casino” is really profitable! ...

PYPL Stock Forecast and Price Target 2021

Taking advantage of PayPal’s earnings report, let’s analyze PayPal’s latest situation and PayPal stock forecasts, especially for strong stocks like PayPal. How to buy stocks with few callbacks? PayPal issued a financial report. After the PayPal financial report came out, it rose by more than 7%, breaking a new high. PayPal's revenue First of all, let’s take a look at why PayPal has risen so well after the earnings report. PayPal’s earnings report is very dazzling. This earnings report is currently one of the strongest earnings reports in PayPal’s history. It has continuously refreshed the strongest earnings record. Let’s take a look at how good this financial report is. The number of new active users in the fourth quarter increased by 16 million, an increase of 72% over the same period a year ago. At present, PayPal’s total active users have reached 377 million. The growth of active users for the whole year of 2020 is 24%. Very beautiful user growth. Active merchants have also reac...

Gold(GLD) and crude oil(USO) plunge and lose their value?

Recently, the stock market has experienced ups and downs. During the financial crisis, gold, bonds, and even bitcoin, which have been regarded as value-preserving, have depreciated. Can't help but make many investors confused, why is it like this? gold Gold On February 24, due to the stock market crash, a large number of institutions sold gold to make up for the losses of these institutions in the stock market and to increase margin. The price of gold resumed its rise in early March and then fell to a lower level again on March 9. Many investors were confused. Should n’t gold be a hedge? Should n’t gold and the stock market rise in the opposite direction? All of this has nothing to do with the shortage of funds in the repo market. The Fed ’s bailout ceiling is far from enough, and then the Fed issued an emergency statement on March 12. "Starting on March 12, 500 billion bailouts will be provided. Tomorrow the Fed will provide another 500 billion three-month repurchase...

FinanceLinkway

Search This Blog