Facebook Hits Record as Analysts See Opportunity From Shop

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Comments of the Day

27 August 2020

Video commentary for August 26th 2020

Eoin Treacy's view

A link to today's video commentary may be of interest to Subscriber's Area.

Some of the topics discussed include: technology shares surge on earnings, gold, silver and precious metal miners steady, China eases, Renminbi, Pound and Renminbi firm, bond yield rise.

Barnier Planning a Brexit Book After Four Years of Negotiations

This article by Ania Nussbaum for Bloomberg may be of interest to subscribers. Here is a section:

In his speech, Barnier also hinted that negotiations over the EU and U.K.s future relationship may stretch beyond a meeting of the blocs leaders scheduled for mid-October as the two sides struggle to reach an agreement.

“If we want to ensure the ratification of this new treaty at the end of the year, we need an agreement around Oct. 31,” Barnier said. “The clock is ticking.”

Eoin Treacy's view

Brexit appears to have lost its ability to move markets. Perhaps investors have made their peace with the idea that the UK will leave the EU without a trade deal. Its more likely that investors have concluded the border with the EU will be down the middle of the Irish Sea rather on the island of Ireland. In other words that a deal is inevitable.

Eoin's personal portfolio: last updated on August 11th

Eoin Treacy's view

One of the most commonly asked questions by subscribers is how to find details of my open traders. In an effort to make it easier I will simply repost the latest summary daily until there is a change. I'll change the title to the date of publication of new details so you will know when the information was provided.

Facebook Hits Record as Analysts See Opportunity From Shop

This article by Ryan Vlastelica for Bloomberg may be of interest. Here is a section:

Facebook analysts were positive after the social-media company added a new shopping section, called Facebook Shop, to its main app, seeing strong e-commerce growth potential.

JMP Securities (market outperform, PT $305)

There are “multiple catalysts” for Facebook, and e-commerce “can be a significant opportunity”
There is “a clear line of sight to monetizing Shop”
While advertising should remain Facebooks focus, the growth in e-commerce means Facebook “can generate greater product discovery” for small and mid-sized businesses relative to other channels

Stifel (buy, PT $290)

The accelerated roll-out of the service “suggests the benefits to growth could be evident as early as 2021,” and Facebook waiving selling fees in 2020 “could accelerate the adoption of these tools”
Over the long term, Facebooks e-commerce opportunity “should come more from increased adoption of digital ads” by small and mid-sized businesses than transaction fees

Shares up as much as 2.86%, the stock has nearly doubled off a March low, and it is trading at a record

Eoin Treacy's view

Companies like Alibaba and Tencent were quick to introduce payment platforms into their social media and ecommerce products. The impending IPO of Ant Financial represents the consumer finance crown jewel of Jack Mas empire. It is a revenue engine that was successful because it afforded Chinese consumer the opportunity to earn daily interest at rates which were significantly higher than from banks. Thats the kind of regulatory two-step Silicon Valley start-ups have been performing for years and, so far, the Chinese government has been willing to look the other way.

Email of the day on electric vehicles.

I really love your audio comments every day and I think they are very useful. Commenting on the EV mania that is on lately…I don't understand why people are so crazy about tesla enc… at the moment the batteries don't last for a long time and when an EV car catches fire, this fire is unstoppable, a safety problem where nobody ever talks about. On top of that, the power grid of older city centers are not equipped to charge an EV… so where is the point in buying one?

Eoin Treacy's view

Thank you for this email and I am delighted you are enjoying the audios. The charging question is a big one in cities. I called around yesterday to get quotes to install a charging station. They ranged from $700 to $985 before labour. The majority of US houses run on 110 volts and an EV needs 220V to charge in a timely manner. That requires an additional breaker at the fuse box and running cables to where you wish to charge the vehicle. Besides the cost, that is not an option for people who live in apartments. It would require a big expensive communal decision to install chargers in an apartment building.

Email of the day on a layman's description of nuclear batteries.

I suddenly seem to be bombarding you with communications, after years in the wilderness. Don't worry, this will only be a brief interlude, I am sure.

I just wanted to comment on the extract on "nano-diamond self-charging batteries" that you publish today.

I read Loz Blain's whole article, and it seems a very important development indeed. But in keeping with all articles on technology for the "layman", the story doesn't start at the beginning, but begins a bit down the down the road, and soon focusses on the applications alone. This applies even more to your extract.

I feel that this patronises the reader unnecessarily. The average reader should be able to understand a brief well-structured explanation that starts from the beginning. (This objection applies even more to articles on Covid-19 — but that is another story. In that case, I don't believe any politicians, or even some of their scientific advisers, have any real grasp of the subject.)

Re. the batteries, we have to start from the energy source. There are only 3 (or maybe 4) energy sources:- Radiation (sunlight), Chemical energy (in fossil fuels, wood etc.) and Nuclear energy (stored in the nuclei of all atoms, and released fRead More – Source

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