September 2020: Week 2
Edition #010 - Data recap of last week's big moves inside the Tech ETF landscape. See what to keep an eye on for the week ahead.
In last weeks email I commented how “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”, based on this most recent weeks results, it looks like there is some stability and a potential move back upwards with the Dow Futures up 259pts as of writing this.
Anyway, let’s jump right into it…
Weekly Changes:
Out of 114 Tech ETFs analysed, the average Tech ETFs just managed to have a positive week last week, gaining on average 0.15%.
The S&P 500 fared slightly worse with a modest drop of 0.79%.
The leaders of this the week include some familiar names that we’ve seen over the last 10 weeks of FinLister; 3/5 top ETFs were all actively managed ARK funds.
Additionally, 1 passive ARK fund $PRNT (3D Printing ETF) also saw its second week in a row in the top 5.
The top stock of the week from this cohort was $WKHS (Workhorse Group) which is an American manufacturing company based in Cincinnati, Ohio, currently focused on manufacturing electrically powered delivery and utility vehicles. Finishing the week at $23.69/share has the company valued at $2.5b USD.
This comes amidst a turbulent for the controversial new EV company, $NKLA (Nikola Corporation) whose stock rose from $35 to $53 after releasing news of a partnership with $GM (General Motors) which
General Motors to receive $2 billion equity stake in Nikola in exchange for certain in-kind contributions
General Motors to engineer, validate, homologate and build the Nikola Badger for both the battery electric vehicle and fuel cell electric vehicle variants as part of the in-kind services
The full press release can be viewed here.
Days later however, short seller Hindenburg Research published a damning memo on the deal and company titled: Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America. in which the firm outlines why they “believe Nikola is an intricate fraud built on dozens of lies over the course of its Founder and Executive Chairman Trevor Milton’s career.” which helped bring the stock back down to $32/share, around a $12b market cap (half of $F (Ford), which had $155.9b in 2019 revenue).
On the bottom end of things we saw a mixed bag between some levered inverse ETFs and other thematics with $TPAY and $ISRA in the bottom 5.
$TPAY saw 5 stocks drop greater than 5% through the week, and is currently ranked 76/114 Tech ETFs based on YTD returns.
Year-To-Date:
Of the 107 ETFs which have been around YTD, the average return sits at 16.38% (down from 19.9% last week, bu above the 24.6% from the week before). The S&P 500 ended the week lower at 4.02% YTD returns.
The top 5 constituents saw a slight shake up compared to last week.
$ARKW and $ARKK stayed in the top 2 spots.
$FNGS moved up from 4th to 3rd
$CWEB dropped from 3rd to 6th
$HERO moved from 6th to 4th
and $OGIG held its 5th spot.
Inside the top 5 stocks from these ETFs, $MCRB (Seres Therapeutics Inc) had a positive week to finish back at $25.50 and a $2.25b market cap.
$ZM (Zoom) also traded up albeit is still down from its post earnings release high.
And $TSLA saw a modest drop to $372 USD and a $347b market cap.
On the losing end $LC (Lending Club) extended its YTD losses and has not been able to recover since March as the peer-to-peer lending space is threatened.
As always, hope this issue gives you a better footing to start the week off on.
In news for this coming week, a new saas hot stock, $SNOW (Snowflake) is set to IPO on Wednesday the 16th; somewhere around a $24b market cap. It’s definitely one to keep an eye on given the strength of the May/June IPO's and recent market sell-off, investors may be looking to go hard on this one…including Buffett who is looking at putting $570m into the stock.
Other Tech IPO’s slated for this week are:
$FROG (JFROG) on Wednesday
$SUMO (Sumo Logic) on Thursday
$U (Unity Software) on Friday
Thanks again for reading,
Stuart
Nice write up on the past week. A lot going on in the tech world and you sum it up very good.