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Market Moves Yesterday
S&P 500 @ 5,537.02 ( ⬆️ 0.51%)
Nasdaq Composite @ 18,188.30 ( ⬆️ 0.88%)
Bitcoin @ $54,100.10 ( ⬇️ 5.97%)
Hey Scoopers,
Happy Friday! Are you ready for an exciting newsletter?
👉 Amazon’s big milestone
👉 What next for the e-commerce giant?
👉 Bitcoin outflows top $220 million
So, let’s go 🚀
Market Wrap 📉
S&P 500 futures are ticking higher at the time of writing as all eyes are on today’s jobs report. Traders are gearing up for the widely monitored labor data due this morning.
Economists forecast nonfarm payroll data additions at 200,000 in June, while the unemployment rate is expected to hold steady at 4%. Hourly wages are forecast to climb 3.9% year over year and 0.3% from May.
Recent reports point to an economy-wide softening, which could eventually lead to interest rate cuts in the next 12 months.
On Wednesday, ADP figures showed private payroll growth was lower than estimates in June, while weekly jobless claims were higher than forecast. Moreover, a reading of the service sector unexpectedly indicated a contraction.
Trending Stocks 🔥
Paramount Global- The media and entertainment stock popped 6.9% on news that Skydance Media reached a preliminary merger deal with Paramount’s controlling shareholder.
Tesla - The EV stock jumped 6.5%, bringing its week-to-date gains to 25%. The rally came after it posted better-than-expected Q2 deliveries. Wedbush also hiked its 12-month target price on Tesla to $300 from $275.
MGM Resorts - Shares of the casino operator rose 2.2% after BTIG initiated coverage with a buy rating and a price target of $52, above the current trading price of $43.28.
The Rise and Rise of Amazon
Amazon was founded 30 years ago by 30-year-old Jeff Bezos. Back in 1994, less than 11 million U.S. households had modem-enabled PCs. However, the country’s online user growth was forecast to expand exponentially in the following years.
Today, valued at more than $2 trillion, Amazon is among the largest companies in the world. Since its IPO in 1997, Amazon stock has returned over 200,000% to shareholders.
So, a $100 investment in AMZN stock soon after it went public would be worth more than $200,000 today.
Amazon is the largest e-commerce platform globally and the largest player in the public cloud infrastructure market. With a thriving ad business, Amazon also operates the third-biggest digital ad platform in the world.
With $85 billion in cash and $58 billion in debt, the tech giant has enough room to reinvest in growth and target accretive acquisitions.
In recent years, Amazon has focused on improving profit margins to tide over an uncertain macroeconomy. For instance, the company has improved its free cash flow to $50 billion in the last 12 months, compared to a cash outflow of $3.3 billion in the year-ago period.
Amazon is part of multiple growth markets and is positioned to outpace the S&P 500 going forward.
Analysts tracking Amazon expect it to end 2028 with adjusted earnings per share of $10. So, if the stock is priced at 35x forward earnings, AMZN stock should trade at $350, higher than the current trading price of $198.
Bitcoin Prices Pull Back
Bitcoin seems to be facing heavy selling pressure, with Mt.Gox moving billions worth of BTC to another wallet address.
BTC prices have fallen nearly 30% from all-time highs as Mt. Gox will begin its payout to creditors starting this month.
Crypto Liquidations Chart 2024
Source: Coinglass
Last month, Mt.Gox announced it would begin distributing $9 billion worth of funds in Bitcoin, Bitcoin Cash, and fiat currency to creditors in early July.
The crypto market saw more than $665 million in liquidations in the last 24 hours. Around $220 million worth of BTC was liquidated followed by Ethereum at $143.3 million.
ETH prices have also fallen over 25% in the last month.
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Chart of The Day
Over the years, Amazon has acquired multiple companies across sectors ranging from healthcare to entertainment, diversifying its revenue base.
In the last three decades, it has acquired or invested in roughly 150 different companies.
Three years back, Amazon announced plans to acquire MGM Studios for $8.45 billion.
Back in 2017, it paid close to $14 billion to purchase Whole Foods, providing Amazon with brick-and-mortar space to sell flagship devices such as the Echo Dot.
Meme of the Day
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.