Investing General Discussion

Tesla shitting the bed hard. Absolutely in overbought territory on the back of a >100% move in the last weeks, so was due for a pullback.

Uhm...what's up with Cocoa?

Re Roku:

Cheap power processor and good OS for lightweight travel. I would be sad if I forgot it on any work trip.

New models will remember hotel authentication if you stay at same brand hotel. Niche, but it’s good tech.

SeanDoe1z1 said:

Re Roku:

Cheap power processor and good OS for lightweight travel. I would be sad if I forgot it on any work trip.

New models will remember hotel authentication if you stay at same brand hotel. Niche, but it’s good tech.

Click to expand...

They have added new verticals such as Wyze cameras etc. (not sure I see this as a big revenue generator, but who knows), but I think once they move into areas such as LATAM/APAC that they will really thrive with their low-cost hardware. However, ad revenue is what they are really making significant revenue on I believe and with the move to streaming apps, that forecast is brighter each day and they have managed to maintain good leverage over Youtube etc. to maintain healthy contracts.

They do compete with heavyweights such as Apple, Amazon and Google, but their product is way cheaper than Apple and grants access to WAY more content than all their competitors and has a better UI/UX for me and much less buggy than Amazon Fire and without the required screen mirroring of Chromecast. They're now releasing their own TVs instead of partnering with TCL etc. and buying more content for their Roku channel that is getting some pretty good content (former HBO Max content etc.). Lots of room for growth in that sector in the near and long term.

Is there something to this or BS?

Some on Wall Street are concerned that the growing popularity of 0DTEs is making U.S. stock markets more volatile and more fragile as outsize daily swings in the largest, most liquid equity indexes, like the S&P 500 , become more frequent.

Click to expand...

My pieces of confusion -

• I thought that I understood trading options did not affect share prices.
• Since introduction of 0dte M-F the market has been flatter, not more volatile, hasnt it?

Was wondering if some of you stock market regulars can explain something for me. I see ETFs and index funds being advised everywhere and I get the idea behind them. However, if these funds only invest in the top 20/50/500 stocks, does that not cause disproportionate buying pressure on these stocks compared to the rest of the market? If one stock becomes a larger % of the market index, does an ETF not cause additional flow into it, creating a snowball effect?

Lambourne said:

Was wondering if some of you stock market regulars can explain something for me. I see ETFs and index funds being advised everywhere and I get the idea behind them. However, if these funds only invest in the top 20/50/500 stocks, does that not cause disproportionate buying pressure on these stocks compared to the rest of the market? If one stock becomes a larger % of the market index, does an ETF not cause additional flow into it, creating a snowball effect?

Click to expand...

it happens and it does cause exactLy that. In fact the news of being added or removed from something like the s&p 500 can directly impact that stocks price.

cool topic to read up on but remember it’s not like they announce it then put out a market order for hundreds of millions of shares, like anything there is a process around this.

Lambourne said:

Was wondering if some of you stock market regulars can explain something for me. I see ETFs and index funds being advised everywhere and I get the idea behind them. However, if these funds only invest in the top 20/50/500 stocks, does that not cause disproportionate buying pressure on these stocks compared to the rest of the market? If one stock becomes a larger % of the market index, does an ETF not cause additional flow into it, creating a snowball effect?

Click to expand...

Absolutely. People love to say that this causes an imbalance in the market, however they're missing that as more and more money flows into index funds, it allows other market participants to take advantage of that by buying individual stocks.

But it's also why I like total market funds instead of just S&P 500 or QQQ. Those small cap equities are good to have as well, especially as the Apple's of the world keep getting bigger and bigger due to index funds.

Rates are ripping like they’re fucking stonks man.

ShakyJake said:

So, who is right? Stocks or bonds?

Click to expand...

Forgot to respond to this, but I guess it depends on if you believe the old adage about the bond market being the smart money

So we're getting close to losing all the gains of 2023.

Looking like August 2022 all over again. Question is do we go even lower. I'm guessing yes.

Boomer cuts.

07:30 [INTC] Cuts Quarterly dividend 65.8% to $0.125 from $0.36