September 2020: Week 1
Edition #009 - Data recap of last week's big moves inside the Tech ETF landscape. See what to keep an eye on for the week ahead.
Thanks to all the new subscribers who have joined over the last week, during a time which we saw some retracement in the market. Over the next few weeks it will be interesting to see if this become more of a longer term reversal.
One thing to remember is that for the most calculations are based on the opening price of the stock/ETF at the start of the period, and the closing of the end of the period.
Anyway, let’s jump right into it…
Weekly Changes:
Out of 114 Tech ETFs analysed, the average and vast majority of ETFs had a negative week last week, losing on average 3.37%.
The S&P 500 fared slightly better with a modest drop of 2.21%.
The leaders of this the week were the Inverse and Levered ETFs; those that rise when the market falls at a 2-3x rate of the market declines.
4/5 top ETFs were inverse and levered, returning 1.7-11.8% throughout the week. The top performing regular ETF was $GAMR (Wedbush ETFMG Video Game Tech ETF) in 5th spot, returning just 0.55% through the week. $PRNT (3D Printing ETF) a passive index ETF listed through ARK, was the only other ETF in positive territory (albeit barely at 0.08% for the week).
The top stocks from these ETFs included retail company GameStop which continued their strong August rally, in part thanks to $CHWY’s (Chewy) co-founder investing up to a 9% stake in the company. GameStop will report Q2 earnings, this Wednesday the 9th of September.
From GameStop’s Q1 release,
“Comparable Store Sales Declined 17% Excluding Stores Closed Due to COVID-19 with Majority of Locations Limited to Curbside Pickup
First Quarter E-commerce Sales Increased 519%; Increased over 1,000% During the Six Weeks Following Store Closures Due to COVID-19”. The stock dropped after releasing those earnings figures on June 9th, but have since rallied 50%.
At $7.65, the stock is still up around 25% YTD.
As expected, the bottom 5 performing stocks all performed worse than last weeks worst performing stock, $ETSY which dropped 10% . $MOMO a China based Social Networking company, dropped 26% after reporting earnings, as
“Q2 revenue totaled $547.5M, missing estimates by $1.27M. Non-GAAP EPS was $0.43, $0.01 above consensus.
MAUs on Momo apps totaled 111.5M, down from the 113.5M in last year's quarter.
Total paying users of live video service and value-added service were 12.8M, up from 11.8M.”
After a very strong start to the year $WCLD had another tough week, just managing to fall slightly less than XWEB, while 3 Bull Levered ETFs had more significant drops. Albeit, $TECL has led the pack for the last two weeks.
Year-To-Date:
Of the 107 ETFs which have been around YTD, the average return sits at 19.9% (down from 24.6% last week, bu above the 19% from the week before). The S&P 500 also took steps back from its last 5 positive weeks and ended the week at 6.66% YTD returns.
The top 5 constituents were almost the same compared to last week.
$ARKW, $ARKK, $CWEB and $FNGS all held their positions.
After $WCLD’s tough week they dropped to 7th position, with $HERO holding onto 6th spot.
$MCRB continues to hold the top spot from these 5 ETFs.
$ZM (Zoom) had a huge week, gaining 23% through the week, although was up as much as 56% directly after earnings where they reported:
Quarterly revenue of $663.5 million is up almost nine-fold from the same period two years ago.
Net income in the period of $185.7 million is more than triple its earnings from the last six quarters combined.
Free cash flow increased 22-fold in the quarter to $373.4 million
Customers producing $100,000 or more in annual revenue more than doubled from a year earlier to 988.
After a tough week, $MOMO dropped further down on the losing end.
As always, hope this issue gives you a better footing to start the week off on. With a couple of tech companies reporting this week, including $WORK (Slack) on Tuesday, and the tough end to last week, this week should be another interesting week to say the least.
Thanks again for reading,
Stuart