Another month of 2021 is coming to an end. Let’s have a look at the events that took place this February and evaluate the market state on some of the assets that showed strong price changes.
At the beginning of the month the company reported earnings that exceeded expectations, with net sales of $125.5B and $14.09 EPS. However, the news that Jeff Bezos, the founder of the company, will be stepping down as Amazon’s CEO in the third quarter of the year, as well as the overall continuously positive trend in 2020 affected the stock’s performance. Amazon dipped to the current $3158 per share.
Having made a decision to diversify and maximize returns on the funds, not required to maintain adequate operating liquidity, Tesla invested $1.50 billion in Bitcoin. The company is planning to further invest in other digital assets and even accept them as payment for services in the future.
Tesla’s stock price began a downward movement and fell as much as 10% after questions regarding the company’s growth prospects with other automakers (for instance, Jaguar) entering the electric vehicles market. Investors note that Bitcoin’s losses (~11%) may also contribute to this pullback. Currently the stock is traded at $742.
Since the beginning of the pandemic, the demand for online streaming services has soared. Discovery has gained as much as 60% since the beginning of the year, when the company announced the launch of Discovery Plus, a streaming platform that is expected to expand its work to 25 countries within a year.
Bitcoin continued its January’s upward momentum and reached a level over $58,000, rapidly growing after Tesla’s announcement. The cryptocurrency remains a hot topic for investors, who anticipate that the price could reach $100,000 by the end of the year or, perhaps, even earlier.
After a 11% dip in price, with Bitcoin falling to a $44,800 level, a quick recovery followed, bringing BTC back to over $50,000 in less than 24 hours.
Despite a weaker dollar and rising US yields, gold has yet to see significant growth. With the global economy in full recovery, it seems only a matter of time before U.S. yields begin to rise again. Meanwhile, Gold is dropping lower, trading at $1779 per ounce.
In February, oil reached the highest levels since the beginning of 2020. A growing confidence in an economic recovery and a growing demand for oil are pushing crude oil levels even higher, as it seems, with Crude Oil WTI at $63 and Brent at $66.
While past performance is not an indicator of future price changes, both analysts and investors are trying to estimate the possibilities for these assets. What are your picks this February? Share your thoughts in the comments below.
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
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