Portfolio Update – WEEK 09 (February 24th to March 01st)
Good morning,
Hello, how are you all?
Week in red for the portfolio, there was a break for 4 consecutive weeks in the green. The market correction last week was one of the most brutal I have ever seen. I think the bottom could be near. Don’t stress too much. This time plunged -11.78%. A result in line with the market for the portfolio this week. As soon as the hysteria is over, the markets should strongly recover. At this point, I recommend that copiers remain calm and keep a long-term view. It’s not the time to panic and sell.
In case of any doubt, you can access the FAQ of my blog: https://santiago1000.it/en/#faq
(Seeking Alpha) Stocks finished their worst week since the 2008 financial crisis, dominated by investor anxiety over the economic impact from the coronavirus epidemic. The Dow closed Friday with a 357-point loss, or -1.4%, but that actually looked like a hopeful sign after the index looked headed for another 1,000-point rout before paring losses in the closing minutes; the S&P 500 dropped -0.8%, and the Nasdaq finished flat on the day. For the week, the Dow plunged more than -12%, the S&P500 $SPY lost -11.5%, and the Nasdaq shed -10.5%. Perhaps even more remarkable was the action in the bond markets, where the benchmark 10-year Treasury note tumbled all week long before settling 17 basis points down to a fresh record low of 1.13%, while the two-year yield plunged 22 basis points to 0.88%.
Here is the detailed weekly income of the positions that make up the portfolio:
STOCKS
TTD – The Trade Desk, Inc. -4.85% (earnings reported 02-27-20)
PAYC – Paycom Software, Inc. -5.91%
EDU – New Oriental Education & Technology Group Inc. -7.20%
FB – Facebook, Inc. -8.43%
OLED – Universal Display Corporation -8.94%
MSFT – Microsoft Corporation -9.28%
GOOG – Alphabet Inc. -9.82%
AMZN – Amazon.com, Inc. -10.13
SHOP – Shopify Inc. -11.01%
SEDG – SolarEdge Technologies, Inc. -12.21%
AAPL – Apple Inc. -12.68%
MA – Mastercard Incorporated -14.56%
CDW – CDW Corporation -14.70%
LULU – Lululemon Athletica Inc. -15.04% (upcoming earnings announce on 03-24-20)
ENPH – Enphase Energy, Inc. -17.13%
RH – RH -23.28% (upcoming earnings announce on 03-27-20)
I added $AMZN this week.
Stocks/ETFs on my radar and that interest me: $TSLA, $NVDA, AMD, MELI, STNE and TLT .
Portfolio earnings reported summary
$TTD is rebounding, after it solidly beat expectations with its Q4 earnings. Quarterly total platform spend topped $1B for the first time, capping a record spend for 2019 of $3.1B. Revenues grew 34.5% for the quarter, to $215.9M (and helped drive full-year 39% growth to $661M). Net income jumped to $50.9M from $39.4M on a GAAP basis. Non-GAAP net income rose to $71.6M from $51.1M. EBITDA rose to $83.5M from $67.1M. Omnichannel solutions were a strategic focus, the company says. In channel spend highlights (full 2019 compared to 2018): Connected TV grew about 137%; Audio grew more than 185%; Mobile video grew more than 50%; Mobile in-app grew more than 67%. For Q1, it’s targeting revenue of $169M (above consensus for $160M) and EBITDA of $35M. For the full year, it’s targeting total gross spend of at least $4.24B; revenue of $863M (above an expected $860.8M); and EBITDA of $259M.
It’s still too early to judge the impact of the CoronaVirus on the global economy. However, the number of death cases has been much lower for the coronavirus than from Influenza (or the Flu). In early 2019, a publication from the Global Burden of Disease Study (GBD) estimated a range of 99 000 to 200 000 annual deaths from lower respiratory tract infections directly attributable to influenza. So far, the coronavirus has resulted in 2,458 deaths based on the most recent data available.
The current market correction is more related to panic and speculation rather than economic fundamentals. So far, there’s no evidence of a global health crisis that would cause a significant dent to the global economy.
Thanks for reading.
Best regards,
Santiago
