Panic Subsides, Bezos Flies into Space, and Nvidia Splits Stock

21 июл. 2021 г.

If yesterday the stock markets poured in for no particular reason, today they also grew in general without any special reason. In the sense that nothing fundamentally new in the news background happened. This is the specificity of price dynamics, behind which is not fair value, but human sentiments.

The main event of yesterday from the point of view of the hype in the news background was the successful flight into space of the main rich man of the planet, Jeff Bezos. After that and Branson's flight last week, the era of space tourism can be considered officially kicked off. The capacity of this new market is measured in hundreds of billions of dollars (trillions by some estimates). So, Blue Origin and Virgin Galactic look like very promising shopping destinations. Especially when you consider that after Branson's flight, Virgin Galactic's share price lost about 50%. Just in case, we recall that private investment in space is still available exclusively through Branson's company.

Another important event for the US stock market was the split of Nvidia shares. Stocks split 4 to 1. The motivation is typical: to make stocks more accessible to small investors. The antagonistic approach is the refusal of splitting in order to cut off all kinds of incompetent subjects from participation in the capital. The most prominent adherents of this approach are Warren Buffett and his Berkshire Hathaway. One share of the company is now worth about 420K.

The reporting season in the US continues. The top event of yesterday was the publication of NetFlix results. They cannot be called breakthroughs: the profit came out even slightly worse than market expectations. The number of subscribers was formally higher than expected, but in reality 1.5 million is the weakest result for the company in recent years.