Pelaton’s stock soared more than 20% on the news of partnership with Amazon to extend its product offerings.
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August 25, 2022 | Sign Up | View Online​​​​
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Business & Markets 📈
Peloton strikes a deal to sell fitness equipment and apparel on Amazon (3 min read)

Pelaton’s stock soared more than 20% on the news of partnership with Amazon to extend its product offerings. Pelation’s sales and revenue growth has been decreasing since the pandemic highs. Even after the rally today, the stock price is still down 62% year to date. Under the leadership of the new CEO Barry McCarthy, Pelation’s goal is to widen its distribution globally and reduce acquisition cost to win back customers. This is Pelaton’s first time partnering with another retailer and will likely look for similar deals with other retailers to continue extending its reach.
Nvidia Gives Weak Forecast, Signaling PC Slump May Linger (3 min read)

Nvidia’s stock price fell more than 4.7% in the extended market trading after the announcement of a weak forecast suggesting sales and demand slipping. The slowdown in sales started in June when inflation hit and along with the excessive chips ordered from supply shortage, it resulted in a pile of unsold inventory. To reduce the inventory, they are going to sell less into the market than the market is buying. Their graphic cards are still a must have for PC owners looking for the most realistic gaming experience.
Pending home sales slip 1% in July, but Realtors say market may be ‘at or close to the bottom’ (1 min read)

Recent data shows the pending home sales, a measure of signed contracts for existing homes, dropped only 1% from June to July. The sales have fallen eight of the last nine months and are 19.9% lower than the same time last year due to less affordable housing from rising mortgage rates. The decline in sales last month is lower than any of the previous months which might be an indication that the market is close to settling.
Funds & ETFs 💸
Goldman Says Hedge Funds Back Betting Big On Megacap Tech Stocks (2 min read)

Hedge funds are betting on the comeback of US megacap tech stocks and expect them to be back at levels during the beginning of pandemic. With the current uncertainty and market volatility, hedge funds have cut leverage and shifted their focus on growth and portfolio concentrations. Report shows that the average top 10 holdings are now 70% of the overall portfolio, which is the highest concentration ever seen in hedge funds since early 2020. Some of the top long positions are Inc, Microsoft Corp, Apple Inc, Nvidia Corp, and Tesla Inc.
Cheap ETFs Are Attracting a Greater Following (2 min read)

When comparing ETFs that provide a similar asset class exposure, investors are increasingly going to the cheaper option even if the difference is less than 0.1%. ETFs that track the same index were used as comparisons in this article and it shows that lower fee version attracts more asset flows. Although the differences are marginal, it plays a critical role for long term investors by compounding over time which would yield a better return in the long run.
Personal Finance 💰
Single-stock ETFs are ‘way too risky for 99% of investors,’ advisor says. What to know before adding one to your portfolio (2 min read)

Single stock ETFs offer a single stock exposure like the name suggest, but instead of holding a long position like most funds do, it leverages bets on the stock’s movement. They use swaps to magnify the daily returns of a stock and resets at the end of day. This boosted return works both ways, meaning the potential gains can be as much as losses. Because the use of derivatives and return calculations are complicated, regulators and other experts said single stock ETFs are not recommended for most investors. Day traders on the other hand, might benefit from the leverage feature of these ETFs.
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