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Today's big stories

Walmart announced plans to launch a fintech startup
You might want to sell Tesla’s shares pronto if the pre-dotcom bubble period is anything to go by – Read Now
Investors are expecting US companies to report a 9% drop in earnings last quarter

Mart-Up

What’s Going On Here?

Walmart pulled on a hoody and started using the word “ideate” earlier in the week, because the retailer announced it’s launching its very own fintech startup.

What Does This Mean?

Walmart has struck up a partnership with Ribbit Capital – the venture capital firm behind fintech all-stars Robinhood, Affirm, and Credit Karma – to roll out some new, as-yet-unspecified fintech products. Then again, this isn’t entirely new ground for the retail giant, which already offers a variety of financial services like credit and debit cards. In fact, that might be why it’s edging into the space: it already has a treasure trove of data on how its millions of customers manage their money.

Why Should I Care?

The bigger picture: Bank to the future.
Walmart’s been expanding beyond its retail business for a while now: it’s ventured into both the health and insurance markets, as well as teamed up with Microsoft to bid on social media giant TikTok. The retailer’s fintech flirtation, more specifically, comes after new US regulations made it easier for non-banks to get into the lending business. It might not be the only company limbering up to give traditional banks a run for their money, either: Big Tech reportedly has its eye on the sector too.

Zooming out: Tech, tech, tech, boom.
Fintech isn’t just big in America: online payments firm Checkout.com has just been crowned Europe’s most valuable private company. It was valued at $15 billion in its latest financing round – almost three times as much as it was worth seven months ago. The firm – together with America’s Stripe and the Netherlands’ Adyen – dominates a digital payments industry that’s been booming amid the recent online shopping craze. And you might be able to benefit from its astronomic rise soon too: the company has said it’s eventually planning to list on the stock market.

You might also like: How to buy into the next big thing.

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2. Analyst Take

Is Tesla Running On Empty?

What’s Going On Here?

It’s no secret that Tesla’s stock price has had a remarkable run, rising by nearly 700% over the past year.

That makes the carmaker worth around $800 billion, even though the combined value of General Motors and Ford – which produce ten times as many vehicles – is only $100 billion.

But after another volatile trading day saw Tesla shares fall almost 8%, it’s worth recognizing parallels with the infamous dotcom bubble.

Microsoft and Amazon’s share prices, after all, peaked at the end of the ‘90s after doubling and tripling in the previous 12 months respectively.

And to repeat, Tesla’s just smashed that by climbing eightfold.

So today, you can take a closer look at what happened to those companies and their investors back then – and find out why it doesn’t bode well for Tesla’s stock.

Read or listen to the Insight here

🚀 Get ready for lift-off

Buckle up: 2021’s expected to be a landmark year for UK IPOs.

That comes hot on the heels of a blockbuster year for listings in America – with the likes of Airbnb and DoorDash hitting the stock market in spectacular fashion.

But companies don’t always include retail investors like you, leaving the majority of shares to be scooped up by large institutions.

So it’s nice to know that with PrimaryBid, you’ll be able to benefit from the companies that really take off.

PrimaryBid gives you access alongside institutional investors from launch – which means you can get in on this year’s biggest opportunities at the very same time and price.

Join PrimaryBid

Capital at risk.

PrimaryBid Limited is a limited company registered in England and Wales (No. 08092575) with its registered office at 21 Albemarle Street, London W1S 4BS.
PrimaryBid Limited is authorised and regulated by the Financial Conduct Authority (FRN 779021).

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Here We Go Again

What’s Going On Here?

US companies are about to start reporting on how they performed last quarter, and investors might find the situation pretty familiar...

What Does This Mean?

Analysts are expecting American companies to reveal a 9% fall in average profits compared to the same time the year before. That would make it the third-biggest quarterly drop in the last ten years – trailing only behind the first and second quarters of 2020.

But here’s the thing: analysts previously argued that profits in the third quarter of 2020 would collapse by 21% on average. And in reality, they only slipped by 6%. So while a 9% drop might not sound ideal, the experts’ outlook could’ve been a lot bleaker – and as recently as a couple of months ago, it was.

Why Should I Care?

For markets: Sorry, not sorry.
There are three sectors in particular where company earnings are expected to see a bump: consumer staples and healthcare companies – whose products and services are invaluable come rain or shine – and tech firms, which have benefited from pandemic-driven trends. If only the energy sector were in the same boat: a slew of new stay-at-home orders wrecked demand for oil all over again, and it’s expected to show on its companies’ bottom lines.

The bigger picture: Stay positive.
At least analysts are feeling pretty chipper about 2021: they reckon US company earnings will grow by 22% on average this year – the biggest jump in a decade (tweet this). And given that they’re expected to have fallen by around 13% in 2020, companies should on average recoup their losses by the end of this year. As for which of them will boost earnings the most: analysts are backing this year’s hardest-hit companies – think industrials and, yep, energy companies – to come out on top.

You might also like: The secret to profiting from earnings updates.

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💬 Quote of the day

“I will permit no man to narrow and degrade my soul by making me hate him.”

– Booker T. Washington (an American educator, author, and adviser to multiple US presidents)

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📚 What we're reading

Fancy a digital US road trip? (Atlas Obscura)
The machines are coming, and they’re a promising investment (Knightscope)*
You might’ve missed alien contact (Space)
Excessively loud cars explained, finally (Vice)

*We hope this sponsored content appeases our robot overlords.

🌍 Finimize Community

💪 Speak to the head honcho

You’re the reason we do what we do, so every month our CEO is going to host an event where he hears directly from you. It’s your chance to get the inside scoop, the skinny, the lowdown, the buzz from the man behind the mission – and to let him know what we’re missing. It’ll be on the last Friday of every month, starting on the 29th: see you there?

📈 The Stock Market in a Post-Brexit Economy: 6pm UK Time, January 20th
🤖 The Opportunity for Autonomous Tech: 1pm New York Time, January 27th
🤠 Live Q&A with Finimize CEO & Founder, Max Rofagha: 1.30pm UK Time, January 29th
🚀 Future of Fintech in Latin America: 6pm UK Time, February 2nd

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Finimize - ✌️ #startuplife

Today's big stories

Mart-Up

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Is Tesla Running On Empty?

🚀 Get ready for lift-off

Here We Go Again

What’s Going On Here?

What Does This Mean?

Why Should I Care?

🥂 Live the landlord dream

💪 Speak to the head honcho

Older messages

😭 Intel finally admits defeat

📱 Everyone wants an iPhone

🇺🇸 America gets a reality check

💀 They're coming for you, Amazon

🍾 New year, new something?

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