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Today's big stories

Palantir posted mixed earnings, and a lot more of its shares could be about to flood the market
Here are four pros and four cons of investing in Bumble after its impressive stock market debut – Read Now
The riskiest companies have been selling bonds in their droves, and investors have been happy to buy them

Code Red

What’s Going On Here?

Palantir – which provides the CIA and FDA with data analytics software – posted a suspiciously mixed earnings update on Tuesday, and it’s no secret investors weren’t impressed.

What Does This Mean?

Palantir’s government clients – which make up over half the company’s sales – have been using its tools more than ever in an effort to predict pandemic hotspots, allocate protective equipment, and distribute vaccines. But while that drove Palantir’s revenue to an expectation-beating 40% last quarter, it still wasn’t enough to offset its high costs – or to finally turn Palantir into the profitable business analysts have been waiting for (tweet this).

Why Should I Care?

The bigger picture: The future’s looking less bright.
Palantir relies on new contracts to keep its income stream flowing, and the firm’s freshly signed deals with BP and IBM should help with that this quarter. But investors – who initially sent its shares down 6% on Tuesday – might be concerned about the rest of the year: the company’s only expecting to grow its revenue 30% in 2021 – a significant step down from last year’s 47%.

For markets: Now it’s just the “lockup” to worry about.
Palantir’s share price has more than tripled since the company made its stock market debut last year, but things could be about to get more volatile. Like most firms, Palantir forced long-time shareholders to hold off selling their shares after it went public. That kept them from rushing to sell up, flooding the market, and depressing the company’s stock price. But when that “lockup” period expires later this week, 80% of the company’s shares will become eligible for trading – and that same scenario might end up playing out anyway.

You might also like: How to make your own mind up about Palantir’s numbers.

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2. Analyst Take

Are Bumble’s Shares Worth All The Buzz?

What’s Going On Here?

Bumble – whose flagship dating app only lets women make the first move – listed its shares on America’s tech-heavy Nasdaq stock exchange last week.

And just like the perfect pickup line, its timing couldn’t have been better: the company’s newly listed shares popped 64% on their Thursday debut.

Now the question is how much higher Bumble’s stock can climb.

After all, Match Group – owner of rival dating app Tinder – is up by more than 1,500% over the past five years…

So today’s Insight should really set your heart aflutter: it’s the pros and cons of investing in Bumble.

Read or listen to the Insight here

It’s not all about bitcoin, you know

These days, you’d think investing was all about the latest hot story: GameStop, Tesla, bitcoin – who knows what next.

But a balanced portfolio – like the kind you can set up with InvestEngine – is about much more than a single investment.

With InvestEngine’s portfolios, your risk will be spread across markets and investments, rather than concentrated on a few stock picks.

InvestEngine don’t charge dealing or withdrawal fees, or a fee to get started: just 0.25% a year for portfolio management, and the costs of the ETFs you invest in.

So whether you’re starting out or looking to add some balance to your investments, InvestEngine can help create a diversified portfolio that’s right for you.

Find Out More

Disclaimer: Capital at risk. Investengine (UK) Limited is Authorised and Regulated by the Financial Conduct Authority FRN [801128].

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Food, Not-So-Glorious Food

What’s Going On Here?

The world’s riskiest companies have been selling “junk bonds” in their droves this year, and investors have had one heck of an appetite for them.

What Does This Mean?

The Federal Reserve has been pouring money into the US economy to keep it ticking over, which has pushed the country’s interest rates to ultra-low levels. That’s allowed and encouraged risky companies – ones with a higher likelihood of failing to repay their loans – to sell investors so-called “junk bonds” at rates usually set out for only the safest companies.

And investors – potentially fed up of making such low returns on relatively safe bonds – seem to have been more than happy to buy them. Not just any old junk bonds, either: the riskiest of them, which this year have made up the biggest share of all junk bonds sold since 2007.

Why Should I Care?

For markets: This is essentially a bet on the economy.
Some investors are feeling uneasy about the quality of bonds that have been hitting the market: a lot of these companies, after all, still have a high chance of bankruptcy. Others seem to have more confidence that a successful vaccine rollout will work wonders: they’re essentially betting an economic rebound should see company profits – and, in turn, companies’ abilities to repay investors – rise.

The bigger picture: Junk bond investors might be onto something.
It’s easy to understand why some investors might be tempted. See, credit rating agencies – which regularly assess companies’ abilities to repay their debts – drop bonds to a lower rating if they look like they’re getting riskier. But in the long term, those that have only just been downgraded actually tend to outperform the ones already classified as risky. That might be why investors piled a record amount of money in January into an exchange-traded fund that tracks these “fallen angel” bonds.

You might also like: Why bad debt ratings offer great opportunities.

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🙋 Ask a question

💬 Quote of the day

“Remember that time is money.”

– Benjamin Franklin (one of the Founding Fathers of the United States)

Tweet this

Give your business cash a boost

Your business should work hard for you in every way, and that includes its cash reserves.

InvestEngine’s investment accounts for business owners could be just the ticket.

Here’s why: InvestEngine will build and manage a portfolio of ETFs on your behalf, giving you access to the power of investing. Regular saving accounts, meanwhile, offer little to no interest.

Right now, InvestEngine’s income portfolios offer yields of up to 4.6%.* That sounds much better than the 0.1% return you can expect elsewhere.

They’ll make sure your investments suit your risk profile too, and you can access your funds at any time.

So get started today: put your business cash to work with InvestEngine.

Find Out More

Disclaimer: Capital at risk. *Estimated & variable yield as at 31.01.21. Investengine (UK) Limited is Authorised and Regulated by the Financial Conduct Authority FRN [801128].

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🌏 Finimize Community

🛁 Bubbles, bubbles, everywhere

It’s all bubble this, bubble that these days. But you’re no bright-eyed kid with a pot of washing up liquid: you know they won’t last forever, and to make the most of them while you can. And at today’s event, you’ll find out exactly how…

🎈 Navigating a Stock Market Bubble: 1pm UK Time, February 17th
👦 The Millennial Effect: 6pm UK Time, February 17th
🎮 The Boom in eSports ETFs: 6pm UK Time, February 22nd
♻️ The Path to Carbon Neutrality: 6pm UK Time, February 23rd
🚀 Unstoppable Investing Trends: 6.30pm UK Time, February 24th
🤔 How to Diversify your Portfolio: 6pm India Time, February 24th
🌱 The Science Of Sustainable Investing: 4pm UK Time, February 25th
🙋 Investing in Women: 6pm UK Time, February 25th
🌈 Financial Planning for the LGBTQ Community: 2pm NYC Time, February 26th
💪 Q&A with Finimize CEO, Max Rofagha: 1.30pm UK Time, February 26th
🔥 The Easy-Does-It Wealth-Building Strategy: 7pm Singapore Time, February 26th
💥 The 2020s: Boom Or Bust?: 1pm UK Time, March 2nd

📚 What we're reading

This is only the start for food delivery (Fast Company)
How to create your own luck (Psyche)
The weird trick ruining the internet (Current Affairs)

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Finimize - 🤫 Palantir's in for a bumpy ride

Today's big stories

Code Red

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Are Bumble’s Shares Worth All The Buzz?

It’s not all about bitcoin, you know

Food, Not-So-Glorious Food

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Give your business cash a boost

🛁 Bubbles, bubbles, everywhere

Older messages

😷 Investors bet on coronavirus

🤘 No Disney show left unwatched

📈 This stock market is weird

💪 Hedge funds pick their top stocks

🧟‍♂️ Total comes back to life

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