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Analysts Predicts The Next Trillion-Dollar Stock — It’s Very Surprising

By The Breadwinner

There is no question that Nvidia has been among the market’s top performers in past years. Over the last three years, the stock has more than tripled — and that is not only a recent phenomenon. During the most recent five and 10-year time frames, the stock has went up by 1,280% and 5,110%.

So the question is, can Nvidia continue this winning streak or is the boat already gone? The truth is, I believe Nvidia can reach beyond a trillion-dollar value by 2025. Here’s why.

Gaming and cloud

Nvidia’s dominance in gaming is incredible. The company has a 81% share of the GPU market and is the product chosen by hardcore gamers.

In its fiscal 2022 Q1, Nvidia spent $1.15 billion — over 20% of its overall revenue and 31% of its gross profit — on more R&D. The firm is that serious about keeping its tech advantage.

Nvidia’s financial numbers reveal its strategy is good. The company gave a record gaming revenue of $2.76 billion from Q1, up 106% y/y.

Gaming is 49% of Nvidia’s current revenue.

While this is the largest sector of Nvidia’s business, the company’s cloud segment is quickly catching up. The GPU’s power is in parallel processing — which allows it to run lots of complex computations at the same time. This works really well in routing information through data center at fast speeds.

Nvidia’s numbers tell the results. The company brought in record data center revenue of $2.05 billion in Q1, up 79% y/y, and accounting for 36% of its overall sales.

Other growth triggers

The one-two of cloud and gaming is reason enough to buy Nvidia stock, but the company has other things going on. Autonomous driving being one technology that needs processing done very quickly.

While its auto sector is currently only 4% of the company’s revenue, a breakthrough in self-driving tech might be a major trigger to push Nvidia to the next level.

Current value — $480 billion

There are no guarantees that Nvidia will reach the golden $1 trillion value. With a current cap of only $480 billion (as of this writing) this semiconductor company is at the halfway point for now.

But Nvidia has all the right ingredients to seize its place as one of the most valuable companies in the world. I believe it is only a matter of time.

Author: Steven Sinclaire

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How This 13yo Girl Makes $322 Per Month In Real Estate

By Ken McElroy

Author: Ken McElroy

Source: YouTube: This 13-year-old Girl Makes $322 A MONTH with Real Estate!

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2 Cheap Stocks That Meme Investors Are Totally Overlooking

By The Breadwinner

AMC Entertainment is among the year’s top meme stocks, but it could be a bit short on future opportunities for fresh growth. Between the heavily negative affects of covid on its income and over $11 billion accumulated debt, the company does not seem like it has a lot of room to reimagine itself, either.

Investors looking at stocks to fuel their portfolio’s expansion will probably be wise to look elsewhere. Thankfully, there are some good profitable stocks in the cannabis sector that fit that bill and will outperform AMC through the upcoming years. Let’s take a look at two of these

1. Planet 13 Holdings

Planet 13 Holdings is special due to it having something no other cannabis business has: a superstore close to the tourist-swamped Strip in Las Vegas. Back in 2019, this one spot was driving around 9% of the company’s revenue for the whole state. And even with all the negative influence from the pandemic, the company still got a quarterly revenue boost of 41.8% y/y in Q1.

Also, Planet 13 is expanding its business at a fast pace. Since June 24, the company started its first new store that is not inside Las Vegas, located in California. That will be a huge increase to its revenue, since it will be the third store. Over the upcoming five years, it is planning to open eight or more new locations.

Thus, it is reasonable to predict that Planet 13 will grow in size numerous times before this decade ends. Which is something that AMC certainly can’t do.

2. Jushi Holdings

Jushi Holdings is having a good moment. The market is catching on to its revenue increasing as a result of fast scaling of its whole business.

In 2020, Jushi’s overall revenue went up to 689.6% from 2019, raking in $80.8 million in income. Then, in the initial three months of 2021, it made $41.7 million. With growth like this, the company can easily double or triple its sales by 2022, and it is hard to find any other cannabis company that can make money that quickly.

Author: Scott Dowdy

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2 Growth Stocks Bringing Technology To a “Traditional” Industry

By The Breadwinner

Banking is a strict industry. Money is given to borrowers through an assessment of their cash income and their assets, with the bank bringing in interest rates determined by the quality of the position — and these facts have not changed that much.

But there are two stocks are are bringing fresh technology and innovation to the industry and they are worth a look for anyone wanting to own growing stocks in the sector.

1. Upstart

Upstart is a completely digital loan platform that allows its borrowers to get money through its platform, and then gives the loan to its banking partners. It also gives a programming interface to banks, allowing their systems to integrate with Upstart’s credit decision tech. AI is at the firm’s core, and the numbers speak for themselves: Upstart says its model gives 173% more approvals with the same loss rate as normal banks.

The technology calculates on over 1,000 data points, including metrics such as the borrower’s education level and their job history.

The company is profitable, which is a rare thing for a young tech company operating in a complex industry. The negative is that investors are handing over a good sized premium for the stock given what we know.

With a $9 billion value at recent prices, the company sells for 15 times projected revenue, but if the firm keeps growing at its current speed, it might begin to look very cheap for investors who have a five- to 10-year outlook. Analysts anticipate Upstart will bring in $800 million in revenue next year, and that would greatly shrink its price-to-sales multiple.

2. Paysafe

Paysafe had its IPO in late March through a deal with Foley Trasimene Acquisition, an SPAC. It is a payments company located in the U.K. that does much of its work outside of the United States, but with the rapidly increasing online gambling, that could be changing soon.

Paysafe owns Skrill, a digital wallet that recently went into crypto, and Neteller, which is a company that moves money between customers and merchants. Skrill recently announced their partnership with crypto heavyweight Coinbase, which is giving a white-label turn key solution to Skrill that allows its customer to purchase different cryptos.

The stock recently was priced at a $7.7 billion value, or 5 times sales, but it is also down by more than 40% since its high, so some investor exuberance has gone down. It could make for a good opportunity, given Paysafe expects the United States iGaming industry to expand to $47 billion by 2025, which is a 55% growth rate.

The company is well positioned to capture some of this growth, especially through their new partnership with Australian firm PointsBet Holdings — a $2.5 billion bookmaker that has a new focus on the large U.S. betting sector. Paysafe is moving its expertise in the global gambling industry to the U.S., and the timing could not be any better.

Author: Blake Ambrose

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This Hot Tech IPO Happens Today — And Normal People Can Buy It Here

By The Breadwinner

Robinhood’s IPO is different than others.

A handful of firms last year watched their share price boosted up as they debuted in the public market. Last year, as one example, Airbnb (ABNB) came from an IPO value of $68 to reach $146 as its stock started trading.

Buying shares of an IPO and getting the initial “pop” sounds great, but normal investors usually cannot buy in (they are normally reserved for large institutional investors and the wealthy). Regular people have to wait until the shares start selling on the market – and if you want the pop, it could be too late.

In a weird move, however, the stock app called Robinhood is giving a third of its IPO to its customers; Robinhood has 17.7 million people who routinely use the app.

Robinhood stock is anticipated to start trading Thursday with the ticker HOOD, and the firm believes it will be valued at more than $30 billion with shares of almost $40 each.

IPO pops are not always so loved because a large one means the firm might not have sold the shares at the correct price — but they attract a lot of press. Especially these days: In 2020, the market had the biggest average IPO initial pop in years. Since this, it has cooled, but the average initial increase is still more than 20%.

It gives a powerful marketing tool for Robinhood to sell its shares to its own customers, who can then take advantage of a pop if it happens, though it’s not completely guaranteed it will.

But why would they want to pre-sell to their customers in the first place?

Robinhood says its goal is to democratize the stock market – to give normal investors better access to markets and for a cheaper price. As such, giving something that is rarely given to regular people (IPO shares) is in line with that philosophy.

What’s more, the move is a smart one because if you’re a Robinhood customer, you might now think twice about leaving the app for a competitor. Owning Robinhood shares could make a lot more loyal Robinhood customers.

Author: Scott Dowdy

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Analyst: Bitcoin Is Heading To This Jaw-Dropping Figure

By The Breadwinner

Folks who have been in the cryptocurrency game for a while might be used to this type of stuff by now.

Crashes of 50% are not unheard of in the world of crypto. You cannot expect these digital assets to act like blue-chip stocks. They are not something to rely on for an upcoming retirement for example.

If you can deal with the volatility, though, then the upside possibility is powerful. Keeping Bitcoin through the pullbacks has, so far, been a profitable strategy in the long-run.

Still, your resolve and patience might be tested time and again.

That is why it’s worthwhile to re-think your crypto holdings and decide what motivates you to keep your position.

Looking at the Bitcoin Price

Bitcoin began 2021 just under $30,000, but investors were soon to go through a roller-coaster ride.

The Bitcoin price lowered, but then suddenly spiked towards $60,000 in Feb. Then we saw more value volatility and another shakeout, followed by yet another huge rally.

Bitcoin then topped at $64,863.10 in April. At that time, the price was actually double its ytd number.

I have said it before, and here it is again. If you chase after vertical moves, you might get severely hurt.

People who buy Bitcoin over $60,000 might have regretted it as the price went down during the next few months.

In July, BTC briefly went under $30,000 but then came back to hit $34,000. This might represent a great discount or a dangerous knife, depending upon which perspective you have.

My point is that investing when others are capitulating is a good strategy to have.

The Bitcoin price will move around a lot. That is how it goes in this world of crypto, as volatility is to be anticipated.

It is up to the investor to decide if the price pullbacks are good opportunities to buy or not.

But looking at Bitcoin’s history of downfalls and comebacks – and in light of Elon Musk’s current attitude to Bitcoin – a return to $60,000 looks to be in the works.

Author: Blake Ambrose

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2 Safe Stocks That Are Growing Like Startups

By The Breadwinner

Despite interest being at record lows, banks are finding ways to bring in record profits — and financial stocks are some of the best stocks this year because of this. Usually, banks are loved by larger investors for their safer status and benefits and steady money streams, but this year many of these gems have given growth stock like returns.

For example, both of these companies just gave their second-quarter earnings reports and their numbers suggest there is a lot of growth left.

1. Ally Financial

Analysts believed Ally will generate $1.46 in eps for their second quarter, but the firm crushed that number by giving $2.33 — a 59% win and its highest on record quarterly number. It was fueled by a record 3.5 million vehicle originations and 81% y/y growth in home originations, which is the firm’s fast-growing move into the mortgage sector.

Ally kept its spot as America’s number 1 all-digital bank, with its 49th quarter of growing its customer base, getting 19% compounded growth since the year of 2010.

The company also managed to expand its book value by 15% y/y to $38.80, which means its stock is selling at only 1.2 times tangible book value as of its close on Monday. A price-to-book ratio near to 1 is normally thought to be cheap for a bank expanding at Ally’s rate.

The 25% boost to the fiscal ’21 share buyback could be the largest sweetener for stock buyers. Now marked at $2 billion, that is more than 10% of the overall shares at this price. Also, the company has unveiled a 32% increase in its dividend, getting to $0.25 a share for the next quarter.

2. Western Alliance Bancorporation

Western Alliance is a bank specializing in lending to small-to-mid businesses — which makes up 68% of its overall loan portfolio — and the company has a smaller but quickly growing consumer book. On this consumer side, it has placed a big wager on mortgages with its purchase of AmeriHome, done in April. It is the third-biggest mortgage buyer in the United States, and is expected to give more growth for the company.

Analysts were predicting $1.96 in Q2 eps, but the company brought in a 16% surprise at $2.29. The beat was fueled by the bank’s consumer sector, where growth far outdid commercial loans — leveraging the on-fire housing market.

The company also expanded its book value by 18% y/y to $32.86. That puts it at 2.9 times tangible book value compared to Monday’s numbers. Even though it is on the high mark, as the benefits from the recent acquisition keep flowing, it might lead to a good uptick in book value in the next quarters.

Analysts believe Western Alliance will give $8.08 in full-year eps in 2021, representing a 60% growth compared to the 2020 numbers. If the company continues this pace, especially with opportunities given by AmeriHome, it means there could be a lot more earnings beats in the future.

Author: Scott Dowdy

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Amazon Responds To Crypto Rumors

By The Breadwinner

Bitcoin fell under $37,000 after just briefly going past $40,000 after Amazon.com Inc.’s denial that it posted a job listing for a digital currency executive as a part of a plan to accept a token for payment.

Earlier on Monday, the job posting from Amazon sought an executive to create the company’s “digital currency strategy” caused questions among analysts about whether the move might lead to Amazon accepting Bitcoin as payment.

Shortly before 4 p.m. however, an Amazon spokesperson denied that the company will be accepting Bitcoin for payments this year. The announcement caused its price to fall down to $37,598.

Bitcoin has now fallen by as much as 3.5% and was selling for around $36,620. Rival coins including Litecoin and Ether also lowered.

Investors rushing to cover their bearish investments had drove the earlier uptick that pushed the coin at one point higher by 17% this Monday to $40,545, its highest point since June 15. Over $950 million of crypto shorts were liquidated this Monday, the highest since May 19, according to Bybt.com.

“Shorts were mounting as we were going down, assuming we were thinking of a minimum of $25,000, which was anticipated across the board,” said Vijay Ayyar, with crypto exchange Luno. “But then we saw heavy accumulation around $29,000 which caught many of those shorts and then led to the spring higher.”

Bitcoin’s current value volatility is one part of a wider multi-wave move after hitting a record back in April, Ayyar said. The price might rebound to as high as $45,000 in the short-term before another possible decrease to finish the correction, he said.

“We are still watching the correction happen,” he added.

Meanwhile, Bloomberg reported a United States probe into Tether is researching whether or not executives behind it committed bank fraud. Ether was lower by as much as 5%, reversing its Monday advance before an upgrade was due on Aug. 4 that will lower the number of outstanding tokens by destroying a number of them every time it is used to drive transactions on the world’s top blockchain.

Author: Steven Sinclaire

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2 Warren Buffet Stocks To Buy Now (If You Hurry)

By The Breadwinner

If you have ever wondered why Wall Street gives such close focus to a 90yo investor who believes in holding positions in top businesses for a long time, look at Warren Buffett’s record and you will see why.

Buffett has led his investment company to an average ROI of 20% after taking over the company in 1965.

As the summer continues, the following two Warren Buffett stocks are standing out as really great buys.

Amazon

Amazon is top dog when it comes to online shopping. This year, the firm’s marketplace is anticipated to control around $0.40 of every $1 spent online in this country.

But what you might not understand about Amazon is that it is overwhelmingly dominant in its second industry, as well. Amazon Web Services (AWS for short) raked in 32% of global cloud spending in Q1.

Cloud infrastructure is still new and early in its expansion, and it is a much higher margin sector for Amazon when compared to retail. Thus, AWS will send Amazon’s cash flow to the moon as it expands into a greater percentage of total sales.

For the previous 11 years, investors have routinely valued Amazon with a multiple of up to 37 times its cash flow. If this stays intact, a tripling of its stock is a possibility by mid-decade.

Bristol Myers Squibb

Bristol Myers Squibb is a special company because of its organic growth possibility and astute dealmaking.

The company, along with Pfizer, co-developed the top oral anticoagulant, called Eliquis, which is on pace for over $10 billion in total sales this year. There is also cancer immunotherapy Opdivo, which is getting looked at in dozens of continuing clinical trials. Opdivo is already raking in around $7 billion yearly, and could go higher with more label expansion opportunities. With everything added up, eight therapies are in line for at least $1.2 billion in sales in 2021, based on extrapolated Q1 totals.

In a world where premiums are increases, it seems unjust that a firm so profitable might be valued at just 8.5 times Wall Street’s estimated earnings for next year.

Author: Scott Dowdy