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lamboandro
lamboandro
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2024-08-04
Yessir
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lamboandro
lamboandro
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2024-08-04
TIGER ROARS, DECADES SOAR.
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TIGER ROARS, DECADES SOAR.
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TIGER ROARS, DECADES SOAR.
lamboandro
lamboandro
·
2024-08-04
TIGER ROARS, DECADES SOAR.
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TIGER ROARS, DECADES SOAR.
Join me to discover exciting features with me on Tiger Trade & win $1,010 worth of rewards!
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TIGER ROARS, DECADES SOAR.
lamboandro
lamboandro
·
2024-08-04
TIGER ROARS, DECADES SOAR.
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TIGER ROARS, DECADES SOAR.
Join me to discover exciting features with me on Tiger Trade & win $1,010 worth of rewards!
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TIGER ROARS, DECADES SOAR.
lamboandro
lamboandro
·
2023-10-02
This article deep value
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lamboandro
lamboandro
·
2023-09-19
You cannot grab the sea
Better Growth Stock: Sea Limited vs. Grab Holdings
Which of these Southeast Asian tech giants is the better buy?
Better Growth Stock: Sea Limited vs. Grab Holdings
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lamboandro
lamboandro
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2023-08-24
Phew
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lamboandro
lamboandro
·
2022-09-21
Bull on the sea
Here's Why Sea Limited Is Suddenly Serious About Cash Flow
How will the market value this stock if its growth potential dissipates?
Here's Why Sea Limited Is Suddenly Serious About Cash Flow
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lamboandro
lamboandro
·
2022-07-07
The cliff hanger for free readers....
Growth Stocks Are Soaring as a Recession Looms Large
Investors will increasingly pivot into growth stocks that can power through an economic slowdown.The
Growth Stocks Are Soaring as a Recession Looms Large
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lamboandro
lamboandro
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2022-07-05
Everybody writing K, it should be T for Tesla
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Join me to discover exciting features with me on Tiger Trade & win $1,010 worth of rewards!","images":[],"top":1,"highlighted":1,"essential":1,"paper":2,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/334853629972712","isVote":1,"tweetType":1,"viewCount":1804,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":334853953720472,"gmtCreate":1722784751363,"gmtModify":1722822260950,"author":{"id":"3575779080875375","authorId":"3575779080875375","name":"lamboandro","avatar":"https://static.tigerbbs.com/fbddf94bce28e9d758a333a569519356","crmLevel":12,"crmLevelSwitch":1,"followedFlag":false,"authorIdStr":"3575779080875375","idStr":"3575779080875375"},"themes":[],"title":"TIGER ROARS, DECADES SOAR.","htmlText":"Find out more here:<a href=\"https://tigr.link/9wvxuO\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade & win $1,010 worth of rewards!","listText":"Find out more here:<a href=\"https://tigr.link/9wvxuO\">TIGER ROARS, DECADES SOAR.</a> Join me to discover exciting features with me on Tiger Trade & win $1,010 worth of rewards!","text":"Find out more here:TIGER ROARS, DECADES SOAR. 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height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBetter Growth Stock: Sea Limited vs. Grab Holdings\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-09-17 09:30 GMT+8 <a href=https://www.fool.com/investing/2023/09/16/better-growth-stock-sea-limited-vs-grab-holdings/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSSea’s e-commerce and gaming businesses face existential challenges.Grab continues to dominate the region’s mobility and delivery markets.One of these tech leaders has a much brighter future....</p>\n\n<a href=\"https://www.fool.com/investing/2023/09/16/better-growth-stock-sea-limited-vs-grab-holdings/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0532188223.SGD":"JPMorgan Funds - ASEAN Equity A (acc) SGD","BK4548":"巴美列捷福持仓","SG9999001135.SGD":"United ASEAN Fund SGD","SG9999014914.USD":"UNITED GLOBAL QUALITY GROWTH (USDHDG) INC","SG9999018865.SGD":"United Global Quality Growth Fd Cl Dist SGD-H","BK4551":"寇图资本持仓","IE00B19Z3581.USD":"Legg Mason ClearBridge - Value A Acc USD","LU0251143029.SGD":"Fidelity ASEAN A-SGD","SG9999014492.USD":"NIKKO AM ASEAN EQUITY \"A\" (USD) ACC","SGXZ58947870.SGD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (SGDHDG) INC","SG9999014906.USD":"大华全球优质成长基金Acc USD","SG9999014484.SGD":"Nikko AM ASEAN Equity Fund A SGD","BK4554":"元宇宙及AR概念","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","BK4022":"陆运","SG9999002414.USD":"LIONGLOBAL SINGAPORE TRUST (USD) ACC","SG9999014880.SGD":"大华全球优质成长基金Acc SGD","IE00B19Z3B42.SGD":"Legg Mason ClearBridge - Value A Acc SGD","LU1242518857.USD":"FULLERTON LUX FUNDS - ASIA ABSOLUTE ALPHA \"I\" (USD) ACC","GRAB":"Grab Holdings","LU1316542783.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD","BK4122":"互联网与直销零售","SG9999015978.USD":"利安颠覆性创新基金A","SG9999002679.SGD":"LionGlobal Singapore Balanced SGD","BK4585":"ETF&股票定投概念","SG9999004360.SGD":"Nikko AM Shenton Thrift Fund SGD","IE00B7SZLL34.SGD":"Legg Mason ClearBridge - Value A Acc SGD-H","BK4503":"景林资产持仓","SG9999013486.USD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (USD) INC A","SG9999013460.SGD":"LionGlobal Singapore Dividend Equity Fund SGD","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","BK4566":"资本集团","BK4588":"碎股","SG9999015945.SGD":"LionGlobal Disruptive Innovation Fund A SGD","BK4536":"外卖概念","SG9999013478.USD":"利安新加坡股息基金","BK4230":"旅客陆运","BK4505":"高瓴资本持仓","LU1242518931.SGD":"Fullerton Lux Funds - Asia Absolute Alpha A Acc SGD","SG9999002406.SGD":"利安新加坡信托基金","BK4535":"淡马锡持仓","SG9999006266.SGD":"MANULIFE SINGAPORE EQUITY \"A\" (SGD) ACC","SG9999015986.USD":"LIONGLOBAL DISRUPTIVE INNOVATION \"I\" (USD) ACC","SE":"Sea Ltd","SG9999017495.SGD":"UGDP UNITED GLOBAL QUALITY GROWTH \"B\" (SGD) ACC","IE0034224299.USD":"PINEBRIDGE ASIA EX JAPAN EQUITY \"A\" (USD) ACC","BK4550":"红杉资本持仓","SG9999014898.SGD":"United Global Quality Growth Fund Dis SGD"},"source_url":"https://www.fool.com/investing/2023/09/16/better-growth-stock-sea-limited-vs-grab-holdings/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2367679393","content_text":"KEY POINTSSea’s e-commerce and gaming businesses face existential challenges.Grab continues to dominate the region’s mobility and delivery markets.One of these tech leaders has a much brighter future.Sea Limited and Grab are two of the biggest tech companies in Southeast Asia. Sea owns Shopee, the largest e-commerce marketplace in Southeast Asia and Taiwan, and the video game publisher Garena. Grab, which acquired Uber Technologies' Southeast Asian business in 2018, is the region's largest mobility and delivery services provider. Both companies integrate their own digital payment services -- SeaMoney and GrabPay -- into their mobile apps.But over the past 12 months, Sea's stock price fell 38% while Grab's stock rose 14%. Let's see why the e-commerce and gaming leader underperformed the mobility leader -- and if it will remain the weaker investment for the foreseeable future.The Singapore skyline. Image source: Getty Images.Sea faces an existential crisisSea's revenue surged 101% in 2020 and 128% in 2021. Shopee's sales soared as more people shopped online throughout the pandemic, while Garena's Free Fire became the world's most downloaded battle royale game for mobile devices. But in 2022, its revenue only grew 25% as both businesses faced tough post-pandemic slowdowns.Shopee struggled with fierce competition from Alibaba's Lazada across Southeast Asia, and the macroeconomic headwinds drove it to shut down several of its overseas marketplaces in Latin America, India, and Europe. Garena's Free Fire lost a lot of its paying users as the pandemic passed, and that slowdown was exacerbated by an unexpected ban in India -- its fastest-growing market -- which lasted from February 2022 to August 2023.In 2022, Garena's bookings plunged 39%, and its revenue fell 9%. That slowdown partly offset Shopee's 18% growth in gross merchandise volume (GMV) and 42% revenue growth. Garena's slowdown forced Sea to aggressively cut costs over the past year since it previously subsidized the expansion of its unprofitable Shopee and SeaMoney divisions with Free Fire's profits.Analysts expect Sea's revenue to rise less than 4% in 2023, but they also expect it to turn profitable for the first time since its IPO. Yet reining in its spending could narrow Shopee's moat by reducing its promotions and subsidies while delaying Garena's development of new games to succeed Free Fire. Sea's stock might seem cheap at less than 2 times this year's sales, but its high-growth days are likely over, and both of its core businesses could face existential challenges. Grab's near-term prospects look brighterIn 2021, Grab's first year as a public company, its revenue rose 44% as its GMV grew 29%. In 2022, its revenue and GMV grew another 112% and 24%, respectively.That growth was driven by the robust growth of both its mobility and delivery segments, which grew their GMV by 47% and 15%, respectively, for the full year. Its financial services GMV also rose 27% as it expanded its online lending business.For 2023, Grab expects its revenue to rise 54% to 61%. It's still deeply unprofitable because it relies heavily on loss-leading incentives to gain new businesses and consumers, but it's been reducing those incentives throughout the first half of the year. As a result, it expects to narrow its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) loss from $793 million in 2022 to just $30 to $40 million in 2023.Just like Uber, economies of scale are finally kicking in at Grab, which consistently dominates the mobility and food delivery markets across Southeast Asia with its 35 million monthly transacting users (MTUs). And unlike Sea, Grab's more disciplined spending doesn't coincide with a significant slowdown in its sales growth. But looking ahead, Grab might face new regulatory headwinds in Singapore, where the Land Transport Authority (LTA) recently launched a review of the ride-hailing industry.At 6 times this year's sales, Grab's stock might seem a bit pricier than Sea's. Yet that price-to-sales ratio seems reasonable relative to its growth rates, and it doesn't face as many competitive challenges as the e-commerce and gaming leader.The better buy: GrabI once considered Sea to be a top long-term play on the economic growth of Southeast Asia, but Shopee and Garena's recent troubles are forcing me to reconsider that thesis.Meanwhile, Grab might face some near-term regulatory challenges, but it's proven that it has plenty of staying power and remains far ahead of its closest mobility and delivery competitors. Its robust revenue growth and narrowing losses also make it a more promising investment than Sea -- which desperately needs to find fresh ways to grow its sales again.","news_type":1,"symbols_score_info":{"GRAB":1,"SE":0.9}},"isVote":1,"tweetType":1,"viewCount":2252,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":212355342672096,"gmtCreate":1692877032521,"gmtModify":1692877036976,"author":{"id":"3575779080875375","authorId":"3575779080875375","name":"lamboandro","avatar":"https://static.tigerbbs.com/fbddf94bce28e9d758a333a569519356","crmLevel":12,"crmLevelSwitch":1,"followedFlag":false,"authorIdStr":"3575779080875375","idStr":"3575779080875375"},"themes":[],"htmlText":"Phew","listText":"Phew","text":"Phew","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/212355342672096","repostId":"2361606688","repostType":2,"isVote":1,"tweetType":1,"viewCount":2402,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9919882004,"gmtCreate":1663772132609,"gmtModify":1676537333550,"author":{"id":"3575779080875375","authorId":"3575779080875375","name":"lamboandro","avatar":"https://static.tigerbbs.com/fbddf94bce28e9d758a333a569519356","crmLevel":12,"crmLevelSwitch":1,"followedFlag":false,"authorIdStr":"3575779080875375","idStr":"3575779080875375"},"themes":[],"htmlText":"Bull on the sea ","listText":"Bull on the sea ","text":"Bull on the sea","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9919882004","repostId":"1126746547","repostType":2,"repost":{"id":"1126746547","kind":"news","pubTimestamp":1663738336,"share":"https://ttm.financial/m/news/1126746547?lang=&edition=fundamental","pubTime":"2022-09-21 13:32","market":"sg","language":"en","title":"Here's Why Sea Limited Is Suddenly Serious About Cash Flow","url":"https://stock-news.laohu8.com/highlight/detail?id=1126746547","media":"Motley Fool","summary":"How will the market value this stock if its growth potential dissipates?","content":"<div>\n<p>KEY POINTSSea Limited is focused on becoming self-sufficient because it can no longer rely on outside financing.Its push towards self-sufficiency includes cutting executive pay and tightening e-...</p>\n\n<a href=\"https://www.fool.com/investing/2022/09/20/why-sea-limited-suddenly-serious-about-cash-flow/\">Web Link</a>\n\n</div>\n","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Here's Why Sea Limited Is Suddenly Serious About Cash Flow</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; 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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHere's Why Sea Limited Is Suddenly Serious About Cash Flow\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-09-21 13:32 GMT+8 <a href=https://www.fool.com/investing/2022/09/20/why-sea-limited-suddenly-serious-about-cash-flow/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSSea Limited is focused on becoming self-sufficient because it can no longer rely on outside financing.Its push towards self-sufficiency includes cutting executive pay and tightening e-...</p>\n\n<a href=\"https://www.fool.com/investing/2022/09/20/why-sea-limited-suddenly-serious-about-cash-flow/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SE":"Sea Ltd"},"source_url":"https://www.fool.com/investing/2022/09/20/why-sea-limited-suddenly-serious-about-cash-flow/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1126746547","content_text":"KEY POINTSSea Limited is focused on becoming self-sufficient because it can no longer rely on outside financing.Its push towards self-sufficiency includes cutting executive pay and tightening e-commerce operations in certain countries.The stock's valuation has plummeted, but it may be warranted if its growth opportunities are reduced.E-commerce, payments, and gaming company Sea Limited is turning away from revenue growth and toward cash flow at all costs.Investors grew accustomed to mind-numbing growth figures from Sea Limited. Consider that in 2017, the company generated revenue of $414 million. In 2021, it generated revenue of nearly $10 billion -- up 24 times in just four years. And revenue through the first half of 2022 is up another impressive 44% year over year.According to Bloomberg, Sea Limited just sent a memo to employees, saying that its top goal is to become cash-flow positive as quickly as possible. And as we'll see, it's pulling out all the stops to accomplish this. Here's what investors need to know.Why Sea Limited is pivoting toward profitsIn 2017, Sea Limited primarily generated revenue from its video game platform Garena, much of that coming from Asia with a concentration in its home Singapore market. Since then, the company has expanded its revenue sources to include e-commerce (through its Shopee platform) and digital payments (through its fintech arm SeaMoney). It's expanded and grown substantially in markets like Europe and Latin America.Sea Limited is now prioritizing profits over growth because of how quickly the global financing market changed. In his memo to employees, founder and CEO Forrest Li explained, \"With investors fleeing for 'safe haven' investments, we do not anticipate being able to raise funds in the market.\"In short, Sea Limited grew and expanded rapidly. But it did so by relying heavily on cash from financing activities, as the chart below shows. And it can't keep dipping into that honey pot now that the macroeconomic environment is different.SE REVENUE (TTM) DATA BY YCHARTS.To Li's point, the cost of capital rose. The Federal Reserve raised interest rates at the fastest pace in decades, giving investors much better returns on relatively risk-free assets. They're now less willing to lend money to companies like Sea Limited without demanding a much higher rate of return. Basically, the terms for borrowing money aren't as compelling as they were.Similarly, the Federal Reserve has taken liquidity out of the system by shrinking its balance sheet. This has a side effect of causing stock valuations to drop. Sea Limited could raise funds by diluting shares as it's done in the past, but the terms are far less attractive. Sea Limited stock had ap rice-to-sales (P/S) valuation of over 30 in early 2021. Its valuation has plummeted more than 90% to a P/S ratio under 3 as of this writing -- an all-time low for the company.Sea Limited isn't the only company pivoting in light of market conditions. For example, the parent company of Snapchat, Snap, released a memo to employees earlier this month, and tech website The Verge got hold of it. Snap's CEO reportedly said: \"Our business will be valued based on our ability to generate profits. We must adapt our strategy accordingly.\"Snap is adapting to the market's preference for profitability, in part, by launching an enterprise division for its augmented-reality technology. But it's also cutting projects like its selfie drone. And as we'll see, Sea Limited is making cuts as well.What Sea Limited is giving upSea Limited's video game segment, Garena, is its profitable venture. However, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for this segment fell 55% year over year in the second quarter of 2022 to $333.6 million, in part due to its hit Free Firegame being banned in India and also a general slowdown in the video game space.However, Garena's struggles appear to be ongoing. According to a September Reuters report, about 15% of Garena's staff may have just been let go as Sea Limited pivots hard toward profits. Moreover, the same Reuters report says that Sea Limited is shutting down Shopee in Argentina altogether as well as shutting down local operations in Columbia, Chile, and Mexico -- cross-border shipments will still be allowed in those three countries. This follows Sea Limited pulling out of some European markets earlier this year.Finally, back to the Bloomberg report, management is extremely serious about cash-flow positivity. It's reportedly forgoing paychecks for executives until Sea Limited reaches self-sufficiency. This, of course, implies that the company hasn't been self-sufficient to this point, emphasizing once more that its growth was funded by financing.Lower top-line growth, lower valuationSea Limited investors should be encouraged that there's a viable path to self-sufficiency. Consider that in the first half of 2022, the company reported a negative $1.2 billion in cash from operations. But it spent $540 million on property and equipment alone, much of which is for e-commerce infrastructure. Simply curtailing spending to grow Shopee will substantially push the overall business toward breakeven.That said, Sea Limited's e-commerce segment accounted for nearly 59% of overall revenue in Q2. And its 51% year-over-year growth for this segment far exceeded the overall revenue growth of 29%. In other words, the company is cutting back on its top-line growth driver, which typically merits a cheaper valuation.Pivoting toward self-sufficiency is important and necessary for Sea Limited in the current economic environment. It also means the stock may be fairly valued in a low-growth, break-even scenario. That makes this a company I would watch from the sidelines for now. Wait and see if management can accomplish its self-sufficiency goal. And see what kind of profits it's capable of after the pivot is complete to get a better idea of the long-term opportunity.","news_type":1,"symbols_score_info":{"SE":0.9}},"isVote":1,"tweetType":1,"viewCount":1766,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9079105319,"gmtCreate":1657155318631,"gmtModify":1676535960203,"author":{"id":"3575779080875375","authorId":"3575779080875375","name":"lamboandro","avatar":"https://static.tigerbbs.com/fbddf94bce28e9d758a333a569519356","crmLevel":12,"crmLevelSwitch":1,"followedFlag":false,"authorIdStr":"3575779080875375","idStr":"3575779080875375"},"themes":[],"htmlText":"The cliff hanger for free readers....","listText":"The cliff hanger for free readers....","text":"The cliff hanger for free readers....","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9079105319","repostId":"1103023863","repostType":4,"repost":{"id":"1103023863","kind":"news","pubTimestamp":1657150083,"share":"https://ttm.financial/m/news/1103023863?lang=&edition=fundamental","pubTime":"2022-07-07 07:28","market":"us","language":"en","title":"Growth Stocks Are Soaring as a Recession Looms Large","url":"https://stock-news.laohu8.com/highlight/detail?id=1103023863","media":"investorplace","summary":"Investors will increasingly pivot into growth stocks that can power through an economic slowdown.The","content":"<div>\n<p>Investors will increasingly pivot into growth stocks that can power through an economic slowdown.The 5-year Treasury yield dropped below the 2-year yesterday for the first time this cycle.Since yields...</p>\n\n<a href=\"https://investorplace.com/hypergrowthinvesting/2022/07/growth-stocks-are-soaring-as-a-recession-looms-large/\">Web Link</a>\n\n</div>\n","source":"lsy1606302653667","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Growth Stocks Are Soaring as a Recession Looms Large</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; 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height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGrowth Stocks Are Soaring as a Recession Looms Large\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-07-07 07:28 GMT+8 <a href=https://investorplace.com/hypergrowthinvesting/2022/07/growth-stocks-are-soaring-as-a-recession-looms-large/><strong>investorplace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Investors will increasingly pivot into growth stocks that can power through an economic slowdown.The 5-year Treasury yield dropped below the 2-year yesterday for the first time this cycle.Since yields...</p>\n\n<a href=\"https://investorplace.com/hypergrowthinvesting/2022/07/growth-stocks-are-soaring-as-a-recession-looms-large/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AAPL":"苹果","AMZN":"亚马逊","NFLX":"奈飞"},"source_url":"https://investorplace.com/hypergrowthinvesting/2022/07/growth-stocks-are-soaring-as-a-recession-looms-large/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1103023863","content_text":"Investors will increasingly pivot into growth stocks that can power through an economic slowdown.The 5-year Treasury yield dropped below the 2-year yesterday for the first time this cycle.Since yields are plunging, we think this recession-driven selloff is at that critical tipping point where growth stocks start to surge.Like it or not, a recession is coming. And Wall Street is finally preparing.Yesterday, bond yields and commodity prices plunged while stocks struggled. That’s exactly what you’d expect as investors prep for a recession over the next 12 months.But guess what else happened? Investors piled into growth stocks. The signature portfolio in our Innovation Investor investment research advisory comprises the top 10 growth stocks to buy right now. And it soared more than 6% yesterday!This is also typical “recession prep” trading action.Usually, when a recession hits, investors seek growth stocks that have so much momentum, they’ll grow through the storm. Not to mention, those same growth stocks also benefit from the lower bond yields that typically accompany recessions.Therefore, yesterday’s huge move higher in growth stocks isn’t surprising.It’s also just the beginning of something much, much bigger…The reality is that the U.S. economy is spiraling into a recession. Wall Street has long neglected this. Finally, investors are waking up. Over the next six months, investors will prepare for and navigate through a recession. And they’ll increasingly pivot into growth stocks that power through an economic slowdown.Net-net — growth stocks are in the early stages of a big multi-month breakout.Recession IncomingOne of the best recession signals in the markets is a yield curve inversion.In short, the U.S. government issues a bunch of “bonds” with different maturity dates. Typically, the Treasuries with shorter maturity dates have lower yields than those with longer maturities. That indicates that investors require more return to hold a certain security for a longer period.However, when investors get nervous about a recession, they don’t want to hold short-term bonds. Their confidence in the near-term outlook for the economy is reduced. So, they sell short-term bonds and buy long-term ones instead. This pushes short yields higher and long yields lower. When this dynamic becomes extreme, long yields fall below short yields. This is called a yield curve inversion.Yield curve inversions are rare. They only happen about once a decade. But when they do happen, they’re almost always followed by a recession.Yesterday, the yield curve inverted as the 10-year Treasury yield dropped below the 2-year. Some of you may recall that this 10-2 inversion happened once before in 2022. It did. But what we haven’t seen so far in 2022 — and, indeed, haven’t seen since the months before the COVID-driven recession and before that, 2007 — is a “5-2 inversion.” That’s when the 5-year Treasury yield drops below 2-year.That happened yesterday for the first time this cycle. Such an inversion is pretty much a surefire recession indicator.In other words, the bond market is the biggest market in the world. And it’s flashing its biggest warning signal yet that a recession’s on the horizon.We’d be fools not to listen.That’s why Wall Street played “recession prep” so strongly yesterday. Yields plunged. Commodities crashed. Stocks struggled.Growth Stocks Thrive in RecessionsMany investors think that recessions kill all stocks. That’s not true. Recessions impact all stocks differently. And when it comes to growth stocks, recessions can actually be beneficial.The reasoning is two-fold.First, recessions create a scarcity of earnings growth. This pushes investors to allocate funds into the stocks that can still create strong earnings growth despite a no-growth environment. (Those are secular growth stocks).Second, recessions push bond yields lower. And when bond yields go lower, the future cash flows upon which growth stocks are valued become worth more today. (That’s because bond yields are used as a proxy for the discount rate on those cash flows).In other words, investors pile into growth stocks during recessions because they can keep growing. And they benefit from the lower yields that accompany recessions.Makes sense, right?This is more than just theory. Look at the last “real” recession the U.S. faced in 2008.During that downturn, there was a five-month stretch at the end of the market’s selloff where the S&P 500 and Dow Jones both dropped about 10%. Yet growth stocks like Amazon(Nasdaq:AMZN), Netflix(Nasdaq:NFLX) and Booking(Nasdaq:BKNG) all rose more than 50%.It was the same with the recession before that. In 2001-02, there was a year-long stretch where the stock market dropped more than 20% as the economy’s growth slowed. Yet, over that same period, growth stocks like Amazon rose nearly 150%!In every recession-driven stock market selloff, there comes a point where investors start piling into growth stocks to play defense.We think we’re at that point today.Usually, it happens when yields start to plunge. In the early 2000s, yields took a dive in mid-2001. And that’s when growth stocks started to soar as the rest of the market struggled. In 2008, yields dropped in late 2008, and growth stocks began to roar as the rest of the market slumped.Today, yields are plunging. The 10-year was 3.5% just a week ago. Now it’s at 2.8%.Yields are plunging. And as such, we think this recession-driven selloff is at that critical tipping point where growth stocks start to surge.The Final Word on Growth StocksHistory doesn’t repeat – but it does rhyme.Every time a recession hits the stock market, the cycle is simple:Recession fears emerge. Stocks and bonds drop as investors sell everything.Recession fears are confirmed, leading investors to rush into bonds for safety. Yields drop.As yields drop, growth stocks start to rise and even surge, but the rest of the market drops.The recession ends, and the whole market rebounds.Right now, we are between steps two and three. Recession fears have been all but confirmed. Investors are rushing into bonds. Yields are plunging. And growth stocks are starting to rise from the ashes.What comes next? A mega-rally in growth stocks… while the rest of the market flops.","news_type":1,"symbols_score_info":{"AAPL":0.9,"NFLX":0.9,"AMZN":0.9}},"isVote":1,"tweetType":1,"viewCount":2321,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":9070937900,"gmtCreate":1656992262800,"gmtModify":1676535929133,"author":{"id":"3575779080875375","authorId":"3575779080875375","name":"lamboandro","avatar":"https://static.tigerbbs.com/fbddf94bce28e9d758a333a569519356","crmLevel":12,"crmLevelSwitch":1,"followedFlag":false,"authorIdStr":"3575779080875375","idStr":"3575779080875375"},"themes":[],"htmlText":"Everybody writing K, it should be T for Tesla","listText":"Everybody writing K, it should be T for Tesla","text":"Everybody writing K, it should be T for Tesla","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9070937900","repostId":"2248731460","repostType":2,"isVote":1,"tweetType":1,"viewCount":2062,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"defaultTab":"posts","isTTM":true}