Facebook Stock Hits New High: What’s Next …
Facebook (Nasdaq: FB) just hit its all-time high.
In today’s Market Talk we show you what’s next for the exciting future of this company.
The bellwether signal that this bull market is even stronger than it was at the beginning of the year …
And Paul’s bread-and-butter strategy for pulling triple-digit gains out of the market year in and year out. Watch today’s Market Talk for all this and more:
MARKET TALK MAY 25, 2020
I’ll begin with the latest economic overview, my innovation story of the week and the latest developments in America 2.0. Let’s begin.
As this line chart shows, the index for newly public companies has just surged to a record versus the Russell 3000. Bloomberg is reporting “shares of IPOs are showing unprecedented strength. The Renaissance IPO Index recently closed at the highest level since 2009, its inception date, relative to the Russell 3000 Index.”
Renaissance Macro Research LLC wrote in a recent tweet that few things represent the market zeitgeist more than the IPO market. That’s great to see that activity in the IPO market.
DEPLOYING VIRTUAL REALITY IN THE WORKPLACE
TechRadar has a bold headline today. Remote workers are rejoicing because Facebook’s enterprise virtual reality platform is here. They also report that “Facebook has announced that Oculus for Business, its enterprise-focused virtual reality platform, is now out of beta testing and available for all businesses to purchase.”
It launched last year and the platform is designed to support companies looking to deploy virtual reality in the workplace. During beta testing, select companies trialed Oculus for Business as a means of enhancing training programs and bolstering activity and supporting distributed workforces.
The Silicon Valley giant believes the adoption of enterprise VR is set to skyrocket in the coming years. It claims to be working hard to meet the swell and demand to help more companies harness the power of VR.
In the blog post, Facebook also gestures toward the figure that IDC shows that there will be a 92% increase in commercial headset shipments. They predict that 70% growth will happen this year. Worldwide spending on commercial VR is expected to hit $7.1 billion, up from $4.5 billion in 2019.
HOME-BUYING DEMAND SURGES
Finally, in our America 2.0 update, Redfin is reporting that home-buying demand is higher than before the pandemic. Home-buying demand is now 16.5% above pre-coronavirus levels on a seasonally adjusted basis. It is being driven by record-low mortgage rates. Inventory for homes for sale can’t keep pace for demand.
A Redfin agent in Nashville, Tennessee says that he is showing a lot of houses but not selling as many as he could because the houses are sold before he can even have the offer written. 45% of the homes under contract ending the week of May 17 were on the market less than two weeks.
The migration from expensive metro areas to smaller cities and towns appears to be picking up steam as buyers hunt for more space and lower prices. A Virginia agent said people who are considering a move two or three years down the line are pulling the trigger now.
Touring homes with 3D walkthroughs is becoming significantly more popular. Also, home prices are rising as low inventory constrains the number of homes for sale. Lastly, Redfin announced about 350 of roughly 1,000 employees furloughed are back to work as the home-buying demand continues its recovery.
That’s some pretty incredible news overall. Home buying, as we have been telling them, is leading America’s greatest recovery. Technology and the megatrends are also very much a part of it. Facebook is part of our Profits Unlimited portfolio and it has soared already from where we originally put it in.
I saw they have now sold $100 million in the last quarter of Oculus Quest apps or software, which is phenomenal. We’ve been telling people that there’s been no sign of a slowdown in real estate. Even folks on our team are talking about real estate.
AMERICA’S GREATEST RECOVERY IS UNFOLDING
In other words, the underlying assumptions of growth that were in place before all of this began are still there. In fact, in many cases, it’s accelerated. There’s more pent-up demand. There’s more desire to act on all those things people were looking to do.
This is why I believe by the third and fourth quarter this year we are going to start to see extraordinary numbers come out for our economy, real estate and the implementation of America 2.0 technologies.
There’s generally this feeling that we have turned a corner, not just on the crisis, but on so many things that our country has been dealing with for 20 years: a lack of income growth, lack of mobility, lack of opportunity. This crisis has catalyzed so much change all at once.
People have thrown off the shackles. If they were planning to move, they’re going to move. If they were planning to buy a house, they might buy a house. We would tell you to stop listening to all the folks in the mainstream media that are full of gloom, full of doom and completely bearish.
They’re completely pessimistic and negative. These include big figures like Ray Dalio and Stan Druckenmiller and all these people who go on all these channels. I’m guessing they are short. In other words, they are betting on the stock market going down.
I can tell you that when you see someone go out there and talk about something, you will never find a journalist who will ask them what their position is and ask them, “Are you talking your book?” I can tell you that these folks, in our judgment, are wrong. We believe the best is actually ahead.
Our markets are set up phenomenally. I am bullish, optimistic, positive, as I say on Twitter again and again and again. America 2.0, the scenario we have laid out for you, is unfolding perfectly. America’s greatest recovery is unfolding. I believe the best way to get in on it is a service we have been running for nearly three years.
Editor, Profits Unlimited
I’ve been investing for more than 25 years. I started my career on Wall Street in 1991 as an assistant portfolio manager at Bankers Trust. I quickly advanced to prominent positions at Deutsche Bank and ING, managing multimillion-dollar accounts. In 2006, the owners of a $6 billion firm named Kinetics Asset Management recruited me to manage their hedge fund.