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

Bitcoin vs Ethereum vs Dogecoin: Which one is suitable to buy?

Bitcoin（BTC), Ethereum(ETH), and Dogecoin（DOGE） are the three most-watched cryptocurrencies. As a young investor, he has a strong mentality of pursuing returns and accepting new things. In recent years, cryptocurrencies have become the new favorites of many people. In particular, these three digital currencies have attracted the most attention: Bitcoin, Ethereum, and Dogecoin. However, not all cryptocurrencies are created equally and trying to determine which type is right for you can cause confusion. Each currency has advantages and disadvantages, and which currency you choose to invest in will depend on your situation. Investing in cryptocurrency must bear the risk First of all, you must consider whether cryptocurrencies are suitable for you because all cryptocurrencies are highly speculative and subject to great volatility. They have experienced the "currency disaster" in recent weeks, with an adjustable-rate of more than 30%. Fur...

TSMC VS Nvidia, AMD, Intel. How to choose semiconductor stocks?

The general pattern of the semiconductor industry, the overall trend and target price of TSMC in 2021, how the Nvidia(NVDA), AMD, and Intel(INTC) semiconductor stocks are laid out, what is the decisive factors, and whether there is a predictable time point, we conducted a more systematic discussion. The big picture of the semiconductor industry The semiconductor industry is cyclical. Since the second half of 2019, global semiconductors have entered a new round of the business cycle. This is very important. Only when you understand this reason can you hold stocks with peace of mind. The following analysis is based on the time dimension. In the short term, looking at one to three months now, with the outbreak of the epidemic again, the production capacity of 8-inch wafers are in short supply, the semiconductor industry chain is out of stock, wafer foundry, packaging, and testing links have seen price increases, and production capacity is in short supply. High economic situation, In ...

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...

AMD stock forecast 2025: Q2 is expected to perform strongly

Before the US stock market on July 19, US technology stocks continued their decline last Friday, and AMD's stock price also continued to fall. AMD will announce the results of the second quarter of 2021 on July 27. The market expects this performance to be strong, so this round of decline may be a great opportunity to buy the stock. financial indicator Due to the strong market demand for CPU and graphics cards in 2021, AMD’s revenue is expected to exceed the maximum value of the financial guidance. AMD’s C&G business is expected to grow the most because higher-priced AMD Ryzen and high-end AMD Radeon sales continue to increase. In terms of gross profit margin, the market expects AMD's gross profit margin in Q2 2021 will increase by 47% year-on-year. If the average selling prices of CPUs and GPUs continue to rise in Q2 of 2021, and the ASPs of CPUs and GPUs will increase in Q1 of 2021, the gross profit margin may also increase by 48%. CPU market sh...

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...

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 ...

TSM Stock Forecast and Price Target 2021

Today, I will analyze TSMC stocks in-depth with you. In the semiconductor sector, TSMC has always been my most promising stock. TSMC has just announced its results for the fourth quarter of 2020. At the same time, there are new developments in the entire chip industry recently. Therefore, today I will combine the financial report and chips. The latest developments in the industry to analyze the trend of TSMC stocks, First of all, we analyze TSMC’s fourth-quarter and full-year 2020 financial reports to see what are the key points worthy of investors’ attention. First, TSMC’s fourth-quarter revenue and profitability are very good. Compared with the outlook for Q4 in Q3, the outlook at that time was US$12.4-12.7 billion, and the actual revenue was US$12.68 billion. Actual revenue As the upper limit of the outlook, the gross profit margin outlook is 51.5%-53.5%, while the actual gross profit margin is 54%, which is better than the outlook. The operating net profit margin is expected t...

Capital Flows Tracking Weekly

Release: January 27, 2021 The weekly Capital Flows estimate the industry's total, based on the report covering more than 98% of mutual fund and ETF assets. Collect actual mutual fund net new cash flows and ETF net issuance together monthly; therefore, there is a discrepancy between these weekly estimates and monthly flows. The data from the previous few weeks reflect revisions due to data adjustments, reclassifications, and changes in the number of fund reports. Mutual fund data represents the estimated value of net new cash flows, that is, new sales minus redemptions plus net exchanges, while exchange-traded fund (ETF) data represents net issuance, that is, net issuance minus total Redemption amount. This series does not include data on mutual funds that primarily invest in other mutual funds and ETFs that primarily invest in other ETFs.

Intel, Twitter, and Snapchat stock forecast 2025: latest quarterly earnings reports

Three technology companies, Intel, Twitter, and Snapchat, released their latest quarterly earnings reports. Let's take a look at their performance and the key information revealed at the earnings conference. Intel(INTC) stock forecast 2025 Several important data on Intel's earnings report beat expectations. Among them, earnings per share were US$1.28, higher than the expected US$1.06, an increase of 12% over the same period last year; total revenue was US$18.5 billion, beating analysts’ expectations of US$17.8 billion. However, in Intel's guidance for the next quarter, the Non-GAAP gross profit margin given is only 55%, which is far lower than the market's expected 59.2%. The reason given by Intel is that it is worried that supply chain problems will limit profitability, and the expected chip manufacturing business will bring additional costs. For chip companies, the market is most concerned about gross profit margin. TSMC fell last week b...

AMZN stock forecast 2025： Amazon's main advantages

On July 6, after the US stock market opened, Amazon broke through $3,600, a record high. Amazon has been oscillating between 3000-3500 US dollars in the past year, and the stock price finally broke through. Amazon is a stock that has a high valuation from PE but is seriously undervalued by the market from the perspective of its development prospects. It is one of my favorite technology stocks. Amazon's main advantages are: 1. Amazon's current GMV is only half that of Alibaba. Looking at the current penetration rate of e-commerce in China and the future penetration rate of e-commerce in the United States, we will find that Amazon e-commerce has huge growth potential in the United States. Amazon e-commerce is far from saturated in the United States. 2. Cloud computing has unlimited potential. As the industry leader, Amazon's cloud computing can maintain a growth rate of 20%-30% for many years in the future. 3. The international ...

FinanceLinkway

Search This Blog