Stocks Reverse Sharply on Afghanistan, Fed Concerns

Dow: -0.54% | Nasdaq: -0.64% | S&P: -0.58%

Catch Up Quick

• Discount retailers (Dollar Tree, etc) have been hit hard by prolonged supply chain disruptions → shows the danger of a highly price-sensitive customers base

• Taiwan Semiconductor Manufacturing (TSM) plans to raise prices of its most advanced chips by ~10%

• McDonald’s ran out of milkshakes as supply chain woes grip the UK

• Crypto markets fell steeply overnight session → Bitcoin fell below $47K

• Salesforce shares (CRM) rose ~3% today after the company raised its full-year earnings guidance following its acquisition of Slack (WORK)

• Apple CEO Tim Cook’s final performance-based pay package kicked in today (5M shares worth ~$750M) → the stock has surged ~1,100% since his tenure

• Morgan Stanley named Activision (ACTI) a top tech stock beyond FAANG names, citing the possibility of a ~50% rally

• >$90M in crypto was stolen after a top Japanese exchange was hacked

• Data storage and IT company Western Digital (WDC) shares surged 10% on rumors of a $20B merger with Japanese memory chipmaker Kioxia Holdings

• Forbes announced plan to go public via SPAC

• Ark Invest / Cathie Wood added >$60M worth of DraftKings (DKNG) shares

• Japan suspended 1.6M Moderna vaccine doses over contamination concerns (CNBC)

• Mad Money’s Jim Cramer called Tesla’s Cybertruck “Musk's first disaster"

• Shares of Lordstown Motors (RIDE) surged 18% today after naming a former leader of Icahn Enterprises as its new CEO

Thought of the Day

• Typically, investor attention with respect to the tech realm has been more focused towards software than hardware given high capitalization rates, low cash burn, and simultaneously high margins + growth

• However, recent reports regarding the severity of human impact on our planet provide additional fuel for emerging global economic megatrends centered around decarbonization, infrastructure modernization, supply chains optimization, etc

• Software / SaaS by itself falls very short of addressing these imminent, massively important themes

• Additionally, the tech, specifically the hardware (most tech investors’ least favorite word), needed to face some of the biggest environmental issues to date (from robotics to sensors to nano materials) is becoming more powerful and affordable than ever

• This facilitates faster time to market which in turn attracts more investment capital to fuel massive ambitions

• For example, the price of 3D printers had dropped from $20K to $200, printed circuit boards ship around the world in days (even amongst supply chains shortages) and hundreds of thousands of suppliers exist online ready to make / ship components overnight

• Additionally, with SPACs, “hard tech” companies can even access public market liquidity without proven traction or positive margins

• In short, tech investors should consider positions beyond pure software, such as ETFs focused on breakthrough hardware, robotics, autonomous vehicles and clean energy curation → $ARKQ, $LOUP, $IRBO, $DRIV, $UFO, $LRNZ

• These realms are bound to increase in importance in the long term!

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