Dogecoin’s $80 billion valuation now makes it bigger than these 10 well-known companies

General Motors headquarters Detroit

Dogecoin, a meme-inspired cryptocurrency that was started as a joke in 2013, is now worth $80 billion after a gravity-defying year-to-date rally of more than 13,000%, based off of Wednesday afternoon prices.

The rally in Dogecoin was initially sparked by a series of tweets from Elon Musk earlier this year, as well as from Snoop Dogg, Gene Simmons, and Guy Fieri. An overall increase in demand for crypto among investors following bitcoin’s surge to more than $60,000 and the direct listing of crypto-exchange platform Coinbase likely also helped support the continued rally in dogecoin.

Now, traders are bidding up Dogecoin even higher, potentially in anticipation of Musk’s hosting of Saturday Night Live this weekend. Even some congressman have gotten in on the dogecoin craze, with house member Mark Green disclosing that he purchased the cryptocurrency earlier last month.

Dogecoin differs from bitcoin in that there is no hard limit on the total supply of coins. Bitcoin has a fixed supply of about 21 million coins, of which not all have been mined yet. Dogecoin on the other hand has more than 129 billion coins outstanding, with 5 billion in new coins hitting the supply every year.

Even the founder of dogecoin, Billy Markus, can’t make sense of the surge in the coin he started as a joke. Markus told The Wall Street Journal in February, “The idea of dogecoin being worth 8 cents is the same as GameStop being worth $325, it doesn’t make sense.”

Markus sold all of his dogecoins in 2015 and used the proceeds to purchase a Honda Civic, as even he couldn’t foresee the outsized influence a shiba dog would have on people’s investment decisions.

Dogecoin’s unlimited supply and the bewilderment of its founder hasn’t stopped investors from piling into the meme token, making it now more valuable than these 10 well-known companies, based off of Wednesday afternoon prices.

1. Nio

Ticker: NIO
Market Cap: $60.8 billion

NIO EP9 electric car is displayed at its store in Beijing

2. Colgate-Palmolive

Ticker: CL
Market Cap: $$68.0 billion

colgate-palmolive

3. Moderna

Ticker: MRNA
Market Cap: $68.2 billion

Moderna IPO.JPG
Noubar Afeyan at the Moderna IPO.

4. Activision Blizzard

Ticker: ATVI
Market Cap: $$69.4 billion

Activision

5. Norfolk Southern

Ticker: NSC
Market Cap: $$72.4 billion

Coal trains approach Norfolk Southern's Williamson rail yard in Williamson, West Virginia at the border of Pike County, Kentucky May 13, 2015. REUTERS/Valerie Volcovici
Coal trains approach Norfolk Southern’s Williamson rail yard in Williamson, West Virginia

6. Dell Technologies

Ticker: DELL
Market Cap: $75.0 billion

Dell CEO Michael Dell
Dell CEO Michael Dell

7. Sherwin-Williams

Ticker: SHW
Market Cap: $75.8 billion

Sherwin-Williams

8. Duke Energy

Ticker: DUK
Market Cap: $76.6 billion

A Duke Energy wind farm is pictured in Notrees, Texas
A Duke Energy wind farm in Texas

9. CSX Corporation

Ticker: CSX
Market Cap: $77.3 billion

csx trains

10. General Motors

Ticker: GM
Market Cap: $78.8 billion

2024 GMC Hummer EV SUV.
2024 GMC Hummer EV SUV.

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These 4 stocks related to the lumber industry are soaring as prices for the commodity doubled in 2021

Lumber
  • A double in lumber prices so far in 2021 has helped push up the stock prices of companies involved in the production of wood.
  • The commodity has seen a surging price as demand for homes continues to increase, and as supply constraints continue.
  • These 4 stocks have seen strong rallies so far in 2021 as prices for lumber soar.
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Lumber prices have doubled so far in 2021 and are up 250% since last spring as the commodity gets squeezed on both the demand side and the supply side.

A consistent rise in demand for homes, combined with tightening supply of the commodity due to timber constraints in Canadian forests has led to the commodity surging to a record $1,500 per thousand board feet this week.

The surge in prices has added on average $36,000 to the costs of building an average single family home, according to the National Association of Homebuilders. But that’s not denting demand for new homes, with median housing sale prices hitting records throughout the pandemic and into 2021.

And an aging millennial population that is transitioning to mortgage debt from student loan debt will likely help sustain demand for new homes in the years ahead.

This all sets up a favorable backdrop for companies that manage forests for timber, operate sawmills, and produce home building products out of wood.

These are the 4 lumber-related stocks that have seen strong rallies so far in 2021 as prices for lumber soar.

4. Weyerhauser

Ticker: WY
Market Cap: $30 billion
YTD Performance: 17%

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3. West Fraser Timber Co.

Ticker: WFG
Market Cap: $9.4 billion
YTD Performance: 23%

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2. Boise Cascade

Ticker: BCC
Market Cap: $2.8 billion
YTD Performance: 44%

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1. UFP Industries

Ticker: UFPI
Market Cap: $5.4 billion
YTD Performance: 56%

ufpi chart.JPG
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8 different areas have taken turns leading the latest bull market in stocks – and that diversity is part of what makes the climb so sustainable, says one Wall Street chief strategist

trader nyse floor yell shout aggressive
  • The bull market in stocks is not being driven by one dominant sector, according to a Thursday note from Leuthold Group’s James Paulsen.
  • “It looks like a self-sustaining bull” as the rally in stocks rotates to different areas of the market, Paulsen said.
  • These are the 8 sectors that are driving a healthy bull market rally in the stock market, according to the note.
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A common saying on Wall Street is “sector rotation is the lifeblood of a bull market,” and Leuthold Group’s chief investment strategist James Paulsen seems to agree.

In a Thursday note, Paulsen highlighted the eight sectors that are driving a healthy rally in stocks since the March 2020 pandemic low, creating “a self-sustaining bull.”

Those areas of the market that have helped drive upside in the stock market while not consistently driving the action include: value, growth, cyclical, price momentum, high quality, small cap, emerging markets, and high beta, according to Paulsen.

“Although each of these has had its day in the sun, no single investment attribute has persistently dominated since the bull market began after the March 23, 2020 bear market low,” Paulsen explained.

While growth, quality, and momentum drove the bull market in its early days last year, leadership in the stock market has more recently been taken over by cyclicals, value and small caps.

“The stock market hasn’t yet been monopolized like past bull markets,” Paulsen said, pointing to examples like energy in the 1970s, technology in the 1990s, and financials in the early 2000s. Instead, the market has trended higher, regardless of which area of the market is leading at any particular time, which is a healthy characteristic of market uptrends.

The only sectors that have failed to lead the market higher in this bull cycle are defensives, like utilities and consumer staples.

“Not surprisingly, ‘playing defense’ in this Bull has proven to be a chronic loser,” Paulsen said.

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Nio reverses losses, jumps 6% after record 1st-quarter deliveries outweigh chip-supply shortages

NIO EP9 electric car is displayed at its store in Beijing
NIO EP9 electric car is displayed at its store in Beijing

  • Nio reversed its early-morning losses and jumped as much as 6% on Friday after its record first-quarter earnings was overwhelmed by chip supply shortages.
  • Nio saw its first-quarter revenue grow 481% to $1.2 billion, handily beating analyst estimates.
  • “The supply chain is still facing significant challenges due to the semiconductor shortage,” Nio’s CEO said.
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The ongoing global computer chip shortage that has impacted automakers across the globe is also hurting Nio, according to the company’s first-quarter earnings report.

Nio initially fell as much as 4% in Friday trades after its first-quarter earnings beat was overshadowed by the potential slowdown in car production due to a lack of semiconductor supply. But those losses were ultimately reversed, with investors brushing aside chip supply concerns and bidding shares of Nio higher by as much as 6%.

“The overall demand for our products continues to be quite strong, but the supply chain is still facing significant challenges due to the semiconductor shortage,” Nio CEO William Li said.

Nio was already forced to lower its delivery guidance and temporarily halt production last month due to the lack of supply of semiconductors.

The supply shortage has been top of mind for investors this past week, with Apple CEO Tim Cook telling investors it was forced to delay iMac and iPad production and Tesla CEO Elon Musk telling investors the electric vehicle maker has had “insane difficulties” with its supply chain over the last quarter. Ford also said it expects a significant hit to production due to the supply shortage.

First-quarter revenue for Nio hit a record $1.2 billion, handily beating analyst estimates by $160 million and representing year-over-year growth of 481% as demand for electric vehicles in China soars. The company delivered 20,060 vehicles in the quarter, representing a 423% increase year-over-year and a sequential increase of 16%.

The China-based EV manufacturer expects to deliver 21,000-22,000 vehicles in the second quarter, representing year-over-year growth of more than 100%.

Nio isn’t the only car company experiencing a surge in demand from Chinese consumers. Tesla CEO Elon Musk believes China will represent the company’s biggest market in the future, as it continues to scale production in the country.

nio chart.JPG
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UFC parent Endeavor pops 19% in IPO debut, adds Elon Musk to board

UFC Fight Night Frankie Edgar

Endeavor Group surged as much as 19% on Thursday in its IPO debut, hitting an intra-day high of $28.47.

The parent company of UFC and the William Morris talent agency raised $511 million in the IPO, selling 21.3 million shares at a valuation of about $10 billion. Endeavor Group priced its IPO at $24 per share.

The holding company saw a slow down in business amid the pandemic, as it heavily depends on live entertainment. Revenue declined 24% to $3.5 billion in 2020, according to Endeavor’s S-1 filed with the SEC last month.

In anticipation of going public, Endeavor Group added Tesla CEO Elon Musk to its board of directors.

But David Trainer, CEO of New Constructs is cautioning investors about Endeavor Groups “nosebleed” valuation in an investment note on Wednesday.

“No matter how many Elon Musks it adds to its board, Endeavor’s expected valuation of $10 billion is in nosebleed territory,” Trainer said, adding that the company’s lack of profits doesn’t justify such a high valuation. Endeavor posted net losses of more than half a billion dollars in both 2019 and 2020.

Endeavor trades under the ticker symbol “EDR” on the New York Stock Exchange.

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Bitcoin bottomed after a textbook 20% selloff, and a new uptrend is likely underway, Fundstrat’s Tom Lee says

Tom Lee

Bitcoin’s recent sell-off looks to have found support and a new uptrend is “likely underway,” Fundstrat’s Tom Lee said in a note on Wednesday.

The most valuable cryptocurrency sold off more than 20% in recent weeks after topping out just below $65,000 amid the Coinbase IPO. Bitcoin broke below $50,000, which represents a key psychological level for investors, but has since recovered and is trading near $55,000 as of Wednesday afternoon.

Now, bitcoin has found support near $47,000, which coincided with a “9” count buy signal generated by the DeMark indicator. This counter-trend indicator, created by Tom DeMark, helps measure price exhaustion in securities.

Traders should look for bitcoin to move above $62,000 to affirm that the sell-off is over, according to Lee.

“If this [$47,000] holds, and is likely, given this was a level prior to the last ‘sell countdown,’ bitcoin going to rally,” Lee said.

A potential target bitcoin could rally too is $69,000, representing potential upside of 25% from current levels, according to technical analyst Katie Stockton of Fairlead Strategies.

Read more: Goldman Sachs names 19 crypto-exposed stocks that have piggybacked on bitcoin’s surge to achieve returns that have nearly quadrupled the S&P 500

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JPMorgan is calling the top for SPACs – and says declining day-trader interest is to blame

Stock Market Bubble

The SPAC boom that defined market euphoria in 2020 and continued into 2021 has officially peaked, according to a Wednesday note from JPMorgan.

Since February, performance in SPAC stocks has materially underperformed the S&P 500, and new deal activity with SPACs has plummeted in April following a strong start to the year.

The Defiance Next Gen SPAC Derived ETF is down 25% from its February peak, and is down 9% year-to-date.

The decline in SPAC activity has been driven by a decline in retail traders pouring money into the new deals, as well as increased regulatory scrutiny from the SEC, according to JPMorgan.

The bank highlighted that SPAC reverse mergers “come and go in waves” as they tend to exhibit boom and bust cycles.

“The boom [is] typically driven by momentum and imitation by sponsors, investors, and target companies looking to take advantage of strong equity market demand conditions, and the bust [is] typically triggered by the emergence of poor quality players, strong levels of dilution for shareholders, waning hype by retail investors and regulatory concerns,” JPMorgan explained.

So far this year, more than 308 SPAC IPOs have raised $100 billion in proceeds, according to data from SPACInsider. In 2020, 248 SPAC IPOs raised $83 billion in proceeds. More SPAC deals were raised in the first quarter of 2021 than all of 2020.

“The acceleration in SPAC activity in Q1 was so strong that was more reminiscent of a peak especially when combined with the emergence of poor quality players and regulatory scrutiny during the first quarter,” JPMorgan said.

New SPAC offerings in April have been almost non-existent, with last week marking the first week with zero new SPAC debuts for the first time since March 2020.

Read more: SPAC short-sellers have taken home $500 million in 30 days. These are the 10 most profitable blank-check companies to bet against right now.

jpmorgan spac.JPG
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These 10 companies have reaped the biggest capital gains over the past year – and Biden’s tax plan could send them tumbling, Goldman says

worried trader
  • President Biden’s proposed hike in the capital gains tax rate could hurt high-flying stocks, according to Goldman Sachs.
  • “High-momentum ‘winners’ that had delivered the largest gains to investors ahead of the rate hike have usually lagged,” Goldman said.
  • The 10 stocks listed below have generated eye-popping capital gains over the past year and could suffer if Biden’s tax plan is enacted.
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A proposed capital-gains tax hike by President Joe Biden is nothing the stock market can’t handle, according to a Friday note from Goldman Sachs’ David Kostin.

But some stocks would be more susceptible to losses than others if the proposed tax hike to 39.6% for those making more than $1 million went into effect, according to the note.

“High-momentum ‘winners’ that had delivered the largest gains to investors ahead of the rate hike have usually lagged,” Kostin explained. Over the last few years, stocks within the technology and consumer discretionary sectors have been that largest source of capital gains, meaning those sectors might lag if the tax hike is approved.

These are the ten S&P 500 companies that have delivered substantial capital gains over the past year and would likely lag the broader market if Biden’s capital gains tax hike is enacted, according to Goldman Sachs.

10. Generac

Ticker: GNRC
1-Year Return: 233%

gnrc.JPG

9. Etsy

Ticker: ETSY
1-Year Return: 235%

etsyy.JPG

8. Tapestry

Ticker: TPR
1-Year Return: 237%

tapestry.JPG

7. Enphase Energy

Ticker: ENPH
1-Year Return: 321%

enphh.JPG

6. Freeport-McMoRan

Ticker: FCX
1-Year Return: 355%

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5. Gap

Ticker: GPS
1-Year Return: 368%

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4. Tesla

Ticker: TSLA
1-Year Return: 392%

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3. Caesars

Ticker: CZR
1-Year Return: 527%

czr ccc.JPG

2. L Brands

Ticker: LB
1-Year Return: 548%

lbrand.JPG

1. Penn National

Ticker: PENN
1-Year Return: 575%

pennn.JPG
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Bitcoin’s free-fall below $50,000 has it testing a new technical threshold that could signal even more weakness ahead

Bitcoin crash
  • Bitcoin’s decline below $50,000 has the cryptocurrency testing a new technical support level that could signal more weakness ahead.
  • The 100-day moving average at $49,500 will be closely monitored by technical analysts after the 50-day moving average failed to hold as support.
  • Bitcoin could ultimately find support at $42,000, representing a 15% decline from current levels.
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Bitcoin’s weakening momentum has helped contribute to a swift 24% decline from its record high of nearly $65,000 over the past week, and more downside could be ahead if key technical levels fail to hold as support.

The first sign of trouble for bitcoin was a consecutive daily close below its 50-day moving average on Wednesday, which technical analyst Katie Stockton of Fairlead Strategies said was a key line in the sand for the cryptocurrency.

Moving averages are a lagging trend-following indicator that technical analysts use to smooth out price movements and help identify the direction of the trend in place.

Traders often view the the 50-day moving average, which is the average daily closing price of a security over its previous 50 trading sessions, as a short-term moving average that often represents areas of support or resistance.

Now, bitcoin is struggling to hold support at its 100-day moving average, another closely watched moving average that often helps identify areas of support and resistance in the short-term. The weakness was exacerbated on Thursday following reports that the Biden administration is eyeing an increase in the capital gains tax.

The 100-day moving average currently sits at $49,500. Bitcoin briefly fell below that level on Friday to $47,500, but has since recovered and is trading at $49,560. Consecutive daily closes below the 100-day moving average would set bitcoin up for more weakness ahead, and with bitcoin’s RSI still above 30, it has yet to reach levels considered oversold by traders.

According to Stockton, the current weakness could lead to bitcoin finding support at $42,000, which would represent an additional decline of 15% from current levels and a total drawdown of 35% from its record high.

That potential decline would not be out of the ordinary for bitcoin, which has historically experienced significant corrections amid a broader long-term uptrend. And despite the current weakness in bitcoin, Stockton believes bitcoin can ultimately hit $69,000.

“The pullback does not negate the breakout, but it suggests that its targeted level [$69,000] may take longer to achieve,” Stockton said, adding that despite the short-term pullback, bitcoin’s long-term momentum “remains strong.”

Read more: The investing chief of crypto asset manager Arca shares the 3 themes and 10 tokens he’s betting on – and explains how to execute his special-situations investing strategy in digital assets

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Nikola jumps 24% as board member Jeffrey Ubben defends the EV maker following scandal-induced 90% collapse

FILE PHOTO: Jeffrey Ubben, Founder & CEO at ValueAct Capital, speaks on the Reuters Newsmaker event "The Future of Shareholder Activism" in Manhattan, New York, U.S., February 22, 2017.  REUTERS/Andrew Kelly
Jeffrey Ubben, Founder & CEO at ValueAct Capital, speaks on the Reuters Newsmaker event “The Future of Shareholder Activism” in Manhattan, New York, U.S.

  • Nikola surged as much as 24% on Thursday after board member Jeff Ubben defended the company on CNBC.
  • Scandals at Nikola over the past year have led to a 90% decline in the stock price since its peak at about $94.
  • Ubben said Nikola has its head down and is working towards its goals of launching an electric semi-truck.
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Nikola soared as much as 24% on Thursday after its board member Jeffrey Ubben defended the electric vehicle company in an interview with CNBC’s David Faber.

Ubben told CNBC’s David Faber that despite the controversy over its founder and former chairman and ceo Trevor Milton, the company had its head down and is working towards achieving its goals.

That scandal includes the company rolling a prototype truck down a hill in a promotional video, which led to General Motors pulling the plug on its planned $2 billion equity investment in the company.

Shares of Nikola have fallen as much as 90% since its peak at $93.99 last June. But Ubben said the company is on target with its timeline of launching its electric semi-truck sometime between 2022 and 2023.

Ubben is managing partner of Inclusive Capital Partners. Ubben owns 4.8% of Nikola, according to SEC filings.

Nikola did seem to make some progress on Thursday, as it announced a collaboration with TravelCenters of America to install hydrogen fueling stations at two locations in California. The hydrogen fueling stations are expected by be commercially operational by the first quarter of 2023, and will serve as a potential roadmap for developing nationwide hydrogen fueling infrastructure with TravelCenters in the future.

Comments from Ubben, who has sold Nikola shares in the past, come about one week before a sizable lock-up period expires for company insiders. In November, Nikola’s board members, executive officers, and their affiliates voluntarily agreed to extend their original lock-up provisions through April 30, 2021.

The lock-up expiration will allow 136.7 million Nikola shares to be sold, roughly doubling its current share float of 144 million shares.

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