Cryptocurrencies have once again piqued the interest of some retail investors, as the likes of Bitcoin and Ethereum have reached new all-time highs.

And this time it could be fair dinkum. There are reports institutional investors have finally started buying up electronic currencies.

Bitcoin has quadrupled in price in the past 12 months, making it one of the best-performing assets over the COVID-19 period.

But to many share investors, they remain a bit of a mystery. 

How does one acquire them? How do you store them safely? How liquid are they?

Buying shares in cryptocurrency

One idea floated for many years is the concept of a cryptocurrency-based exchange traded fund (EFT).

This would allow the convenience of just purchasing shares to gain exposure to the wild fortunes of the cryptocurrency world.

Kraken managing director Jonathon Miller said such a product would also have implications for authorities.

“Comments from institutional crypto fund managers such as Digital Asset Capital Management’s Richard Galvin stress the benefits crypto-ETFs would bring for regulators – mainly due to transactions then flowing through traditional brokers, which regulators are familiar with,” he said.

“ETFs have proven an incredibly popular investment vehicle, and their ability to minimise volatility by spreading risk across a given industry or asset class on paper would make it appealing in the hyper-volatile world of cryptocurrencies.”

While in the US there are investment vehicles like Grayscale Bitcoin Trust (Btc) (OTCMKTS: GBTC) that act like a crypto-ETF, nothing has yet appeared in Australia.

So will we finally see a cryptocurrency ETF debut on the ASX in 2021?

“On balance, we think crypto ETFs on the ASX this year are unlikely,” said Miller.

Incoming US Treasury secretary Janet Yellen has indicated that cryptocurrencies must be kept in check because of concerns that they’re used for money laundering.

“Many nations will look to the [US Securities and Exchange Commission] for leadership, and it has a strong incentive not to rock the boat right now,” Miller said.

“We will get there in the end, but it will be the growing understanding of cryptocurrency amongst progressive institutional investors that will make it happen.”

Alternatives to an ASX-listed cryptocurrency ETF

If you have a share trading account that can access US markets, Australians wanting to dabble in cryptocurrencies do have some options.

The Motley Fool US’ Rick Munarriz last month listed 3 ways he’s dipped his toe in the water:

1. Buy shares in Grayscale Bitcoin Trust
2. Buy shares in MicroStrategy Incorporated (NASDAQ: MSTR)
3. Take the plunge and buy cryptocurrencies directly

MicroStrategy is a business intelligence software maker that’s been in decline the past 6 years. But it’s been making headlines over that time by buying up lots of Bitcoin.

“MicroStrategy has purchased an additional 29,646 bitcoins for US$650 million at an average price of US$21,925 per #bitcoin and now #hodl an aggregate of 70,470 bitcoins purchased for US$1.125 billion at an average price of US$15,964 per bitcoin,” said chief executive Michael Saylor last month on Twitter.

According to Munarriz, that US$1.125 billion is now worth US$1.9 billion for the company.

More reading

• Zip and Vulcan were among the most traded ASX shares last week
• Here’s why the Crowd Media (ASX:CM8) share price is plunging 14% today
• Here are the US shares ASX investors are buying
• Why the Genetic Signatures (ASX:GSS) share price is edging higher
• Here’s why the AMA (ASX:AMA) share price is crashing lower today

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Will we see a cryptocurrency ETF on the ASX this year? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2YeRPEG

Australia’s leading investment platform provider CommSec has released data on the most traded ASX shares on its platform from last week.

Here’s the data:

Zip Co Ltd (ASX: Z1P)

Zip was the most heavily traded share last week and attributable to a massive 5% of total trades on the CommSec platform. But despite the Zip share price surging 29% higher for the week following its second quarter update, only 52% of these trades came from the buy side. Zip reported a significant increase in transaction value thanks largely to its US business.

Vulcan Energy Resources Ltd (ASX: VUL)

This clean lithium developer’s shares were in demand with investors last week. So much so, they were attributable for 2.8% of total trades on the CommSec platform. Approximately two-thirds of these trades came from buyers. These investors will be pleased to have seen the Vulcan share price continue its ascent. At the end of last week, its shares were up 164% in 2021 thanks to its very promising pre-feasibility study.

Strategic Elements Ltd (ASX: SOR)

Also popular with investors last week was Strategic Elements. It is an investment and development company with a focus on brain-inspired (neuromorphic) computing hardware. Approximately 2.3% of trades on CommSec involved its shares last week, with 63% coming from buyers. They appear excited by its Nanocube Memory structure, which is aiming to combine computing and memory in one place in a way similar to how biological neurons operate.

Lithium Australia NL (ASX: LIT)

This lithium miner was heavily traded last week and accounted for 1.4% of trades on CommSec. 68% of the trades came from buyers, who will have been delighted to see the Lithium Australia share price rocket 61% higher over the five days. This followed news that Lithium Australia has entered into an acquisition and joint venture agreement with Galan Lithium Ltd (ASX: GLN).

Pilbara Minerals Ltd (ASX: PLS)

Finally, another lithium miner makes the top five this week after accounting for 1.4% of trades on the platform. Once again, the buying was strong, with 68% of trades coming from the buy side. Unfortunately for these buyers, though, is that the Pilbara Minerals share price dropped lower during the week.

More reading

• Why Booktopia, Nitro, Reliance, & Vulcan shares are charging higher
• Why the Vulcan (ASX:VUL) share price is storming 12% higher today
• 2 ASX growth shares to buy in February
• Leading brokers name 3 ASX shares to sell today
• These ASX 200 shares are on fire in 2021

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Zip and Vulcan were among the most traded ASX shares last week appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3onRKca

Crowd Media Ltd (ASX: CM8) shares are are plunging today following a shock change to the company’s leadership team. At the time of writing, the Crowd Media share price is down a sizeable 13.8% to 5 cents.

While most of the ASX market is trending lower, Crowd Media is one of the many companies leading the downfall.

What’s driving the Crowd Media share price lower?

The Crowd Media share price is falling after the company announced the shock retirement of its CEO, Mr Domenic Carosa.

According to its release, Crowd Media advised that Mr Carosa tendered his resignation to the board in order to spend more time on his recently Canadian-listed company, Banxa Holdings Inc.

Crowd Media revealed that by mutual agreement, Mr Carosa will leave the company on 31 March 2021.

During the transition period, Mr Carosa will serve as a non-executive director and provide consulting on an as-needed basis. This will include assisting with the development of the company’s Horizon 2 and Horizon 3 projects.

Crowd Media chair Mr Steven Schapera and director Mr Robert Quandt will take over the reins, moving into interim executive roles. The company stated it will now begin the search to find a replacement CEO for Mr Carosa. Mr Carosa maintains a 6% holding of Crowd Media shares.

What did management say?

Mr Schapera praised Mr Carosa on his efforts to turn the company around. He said:

Domenic has demonstrated honesty, integrity, and true grit during his time at Crowd. Under his leadership he now hands over a stable ship, a stronger balance sheet, and – most importantly – a company that now has the capability to translate the most recent advances in AI research into innovations that will reshape the way consumers think about e-commerce experiences and move us closer to our $1B target.

Retiring CEO Mr Carosa commented:

This has been a very hard decision for me to take after so many years as CEO, but the time feels right for me to hand over the role to someone else so that I can focus on my fintech opportunity. My interests are aligned with Crowd via my shareholding and Directorship and I have confidence in our Chairman Steven Schapera and the team and will continue to assist in any way I can.

Crowd Media share price snapshot

Despite today’s drop, the Crowd Media share price has performed well over the last twelve months, increasing by 150%.

Crowd Media shares hit an all-time low of 1 cent back in March, before gradually increasing along a wobbly path. Travelling on ups and downs until October, the company’s shares shot up to reach a multi-year high of 10 cents in November 2020.

Based on the current Crowd Media share price, the company commands a market capitalisation of around $31 million.

More reading

• Here are the US shares ASX investors are buying
• Why the Genetic Signatures (ASX:GSS) share price is edging higher
• Here’s why the AMA (ASX:AMA) share price is crashing lower today
• The Renergen (ASX:RLT) share price is soaring 24% higher today. Here’s why
• Why the Damstra (ASX:DTC) share price is racing higher today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Crowd Media (ASX:CM8) share price is plunging 14% today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3sXlZu5

Most weeks, the Commonwealth Bank of Australia (ASX: CBA) CommSec brokering platform tells us the shares, both ASX and international, that have been the most popular with its Aussie customers.

Since CommSec is one of the largest online brokers in the country, this data can be a useful indicator of general investing trends in the Aussie market, and what investors shave been chasing.

So here are the top 10 United States shares CommSec customers were buying last week. This week’s data covers 18-22 January. 

Most traded US shares on the ASX

1. Tesla Inc (NASDAQ: TSLA) – representing 4.5% of total trades with a 77%/23% buy-to-sell ratio.
2. Nio Inc (NYSE: NIO) – representing 3.2% of total trades with an 80%/20% buy-to-sell ratio.
3. Apple Inc (NASDAQ: AAPL) – representing 2.7% of total trades with a 71%/29% buy-to-sell ratio.
4. Nova Royalty Corp (OTCMKTS: NOVRF) – representing 1.9% of total trades with a 100%/0% buy-to-sell ratio.
5. ARK Genomic Revolution ETF (BATS: ARKG) – representing 1.4% of total trades with a 94%/6% buy-to-sell ratio.
6. BioNano Genomics Inc (NASDAQ: BNGO)
7. Churchill Capital Corp IV(NYSE: CCIV)
8. ARK Innovation ETF (NYSE: ARKK)
9. Microsoft Corporation (NASDAQ: MSFT)
10. Social Capital Hedosophia Holdings Corp V (NYSE: IPOE)

What can we learn from these trades?

Another interesting week of statistics to dissect here. First up though, and (at risk of sounding like a broken record) Tesla and Nio once again show their dominance of investor sentiment this week. Although the concentration of these 2 companies in the overall trend has fallen from last week (where Tesla represented 7.3% of all trades), it is still a force to be reckoned with.

The fact that both companies have hit new all-time highs in the past month clearly isn’t hurting either.

Apple and the ARK Invest exchange-traded funds (ETFs) are also continuing to prove resilient. Interestingly though, the proportion of investors selling Apple is inching higher, up to 29% from last week’s 25%.

But this week, we have a few debutants as well. Nova Royalty can be described as something of a penny stock, especially given its status as an ‘over the counter’ share. Even so, it’s found its way onto the list this week. This company has experienced some extreme volatility over the past week, which might explain why Aussie investors have taken note.

Social Capital is another new entrant this week. This company is a SPAC (special purpose acquisition company) vehicle affiliated with the famous American investor Chamath Palihapitiya. This gentleman has a series of SPACs in this space, all with a corresponding number and letter.

This one is ‘V’ (or 5), hence the ‘E’ on the ticker. Yes, IPOA, IPOB, IPOC and IPOD also exist. According to our Fool colleagues over in the ‘States, this SPAC is set to merge with a fintech company called SoFi Finance. Clearly, ASX investors are rather enchanted with this proposition.

More reading

• 3 reasons to sell a share
• 5 things to watch on the ASX 200 on Wednesday
• Will the blue sweep boost Tesla? Don’t count on it
• These 2 Nasdaq Giants Are at All-Time Record Highs — and They’re Not Slowing Down
• Amazon’s ad business will dominate the 2020s

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple, Microsoft, and Tesla. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here are the US shares ASX investors are buying appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3a64Yp9

The Genetic Signatures Ltd (ASX: GSS) share price is edging higher today. This comes after the company announced that it received CE-IVD registration for its 3base EasyScreen sexually transmitted infection (STI) Genital Pathogen Detection Kit.

CE-IVD refers to an approved CE Marking from the European Union for an in vitro diagnostic (IVD) device. This allows the product to be commercially sold within Europe.

What’s driving the Genetic Signatures share price higher

The Genetic Signatures share price is back positive territory as investors jump on the company’s latest news. Originally, the company’s shares were sliding lower on the back of overall weak market sentiment.

According to its release, Genetic Signatures advised its STI test kit will be marketed towards Europe and the United Kingdom. This follows the recent granting of the CE-IND mark on the 3base EasyScreen detection device.

The company noted that its product can identify 10 of the most common STI’s on the one device.

It’s estimated that around 1 million STI’s are contracted daily world wide, having a detrimental effect on sexual and reproductive health. Four of the most common infections (Chlamydia, Gonorrhoea, Syphilis, and Trichomoniasis) account for over 376 million cases each year.

Genetic Signatures stated that the addressable market opportunity for Chlamydia and Gonorrhoea alone is worth US$420 million per annum. This number is predicted to grow at a rate of 7% every year, reflecting a lucrative sector.

What did the CEO say?

Genetic Signatures CEO, Mr. John Melki, hailed the favourable outcome, saying:

This is the 5th 3base EasyScreen Detection Kit to attain CE-IVD registration, a significant achievement as we continue to execute on our global expansion strategy. Sexually transmitted infections (STI’s) are a large and growing problem globally, and we are pleased to be able to provide a high throughput and accurate diagnostic solution to improve patient outcomes.

Our Company continues to work on new products and enhancing current product offerings even while we meet the substantial demand for our EasyScreen SARS-CoV-2 Detection Kits.

About the Genetic Signatures share price

Over the past 12 months, the Genetic Signature share price has doubled in value, gaining 104% for investors.

The company’s shares hit a low of 90 cents in March after COVID-19 sent economic shockwaves across the world. In the following months, the Genetic Signatures share price rose to an all-time high of $2.94 in July.

More reading

• Why the Genetic Signatures (ASX:GSS) share price surged 6% higher today

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Genetic Signatures (ASX:GSS) share price is edging higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3iNYLSu

The AMA Group Ltd (ASX: AMA) share price has been among the worst performers on the All Ordinaries index on Wednesday.

The smash repair company’s shares crashed as much as 25.5% lower to 55 cents at one stage today.

The AMA share price has recovered a touch since then but is still down a sizeable 15% to 63.2 cents.

Why is the AMA share price crashing lower?

Investors have been selling AMA’s shares on Wednesday following the release of an announcement by the company’s board this morning in relation to its Chief Executive Officer and Executive Director, Mr Andrew Hopkins.

According to the release, in late September, the AMA board received a protected disclosure from an individual employed by the company. Allegations have been made, but no details have been provided on what they consist of.

On receipt of these allegations, the company engaged specialist advisory firm McGrath Nicol to undertake an independent forensic investigation. This forensic investigation has recently been completed.

Yesterday evening (26 January 2021), the company’s Chief Executive Officer, Mr Hopkins, made an urgent application to the Federal Court of Australia alleging that he is being oppressed as a minority shareholder.

Following this application, the Court made a temporary order that AMA may not dismiss Mr Hopkins from his employment prior to a further hearing. The date of this hearing is yet to be finalised but is expected to be fixed for some time next week.

The AMA board advised that the company is defending the legal proceedings and will not be able to comment further on the matter as it is before the Courts.

Trading update

In addition to the above, the AMA board took this opportunity to provide an update on how the company is performing.

The release explains that the company’s three core business units continue to “rebound well from the disruptions associated with the COVID-19 Pandemic under the capable leadership of the respective division heads.”

AMA will provide a full update on its performance with the release of its first half results next month.

More reading

• ASX 200 drops 1.4%

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the AMA (ASX:AMA) share price is crashing lower today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3iOSq9v

The Renergen Limited (ASX: RLT) share price is on a tear today, up 24.58% at $1.50 in early afternoon trading.

The All Ordinaries Index (ASX: XAO), meanwhile, is heading the other way, down 0.8% at time of writing.

Why is the Renergen share price shooting higher?

The emerging helium and natural gas company’s share price is soaring today following an update on its phase 2 Virginia Gas Project.

Located in Free State, South Africa, the Virginia Gas Project contains one of the richest helium concentrations recorded around the world, with readings of up to 12%.

The company reported it has contracted with 3 companies for the engineering studies of the project.

Saipem SpA was granted the front-end engineering design (FEED) contract to develop the liquid natural gas and liquid helium processing facilities. EPCM Holdings – currently constructing Renergen’s Phase 1 gas gathering pipeline – was awarded the FEED contract to develop Renergen’s Phase 2 gas gathering pipeline. And Sproule has been contracted to evaluate and certify the reserves.

Renergen reported that these 3 contracts will finalise the feasibility studies for the Virginia Gas Project’s phase 2 development. It expects this to be complete in the second quarter 2021, after which the board will take its financial investment decision.

Commenting on the contract awards, CEO Stefano Marani said:

This is a significant step forward in the planning of Phase 2, as it not only defines the total capital expenditure required but will clearly help define the project’s financial parameters.

Working with organisations like Saipem, EPCM and Sproule brings a wealth of knowledge, experience and technical capability to the overall project, which we believe will be of great benefit to our stakeholders and the long-term value of the Virginia Gas Project.

EPCM managing director Tom Cowan added:

EPCM looks forward to our continued partnership with Renergen to further develop the Virginia Gas Project. Having been involved since the very early stages of the development, we are proud of the progress thus far and are optimistic for what is to come from Phase 2.

Renergen share price snapshot

Following on today’s gains, the Renergen share price is up 37% so far in 2021. That compares to a 1.5% gain from the All Ords.

Though still down from its February 2020 peaks, the Renergen share price is up more than 34% over the past 12 months.

More reading

• Why the Damstra (ASX:DTC) share price is racing higher today
• Amazon Prime membership is growing at a record pace
• The AWN Holdings (ASX:AWN) share price is up 36% today. Here’s why
• Why Beach, Fortescue, Iluka, & Temple & Webster shares are dropping lower
• Chamath Palihapitiya jumps on the GameStop bandwagon

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Renergen (ASX:RLT) share price is soaring 24% higher today. Here’s why appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/39liuWP

The market may be tumbling lower on Wednesday, but that hasn’t stopped the Damstra Holdings Ltd (ASX: DTC) share price from charging higher.

At one stage today the integrated workplace management solutions provider’s shares were up over 8% to $1.57.

The Damstra share price has since given back some of these gains but remains 4% higher at $1.51 at the time of writing.

Why is the Damstra share price racing higher?

Investors have been buying Damstra’s shares today following the release of its second quarter update.

According to the release, for the three months ending 31 December, Damstra delivered a record quarter for revenue and cash receipts. Management believes this validates its recent acquisitions.

Unaudited revenue for the quarter came in at $6.9 million, representing growth of 33% on the previous quarter. Whereas operating cash receipts came in at $7.4 million for the quarter, up 59% on the prior corresponding period.

In respect to earnings, Damstra recorded earnings before interest, tax, depreciation and amortisation (EBITDA) (excluding other income) of $1.4 million for the quarter. Management notes that this demonstrates the positive impact of increased scale and the successful extraction of acquisition synergies.

It also pointed out that its EBITDA margin (excluding other income) for the quarter was 21%, which it feels validates and proves the attractive unit economics of its business model.

Key drivers of its growth during the quarter were a 49% jump in user numbers to 623,000, the doubling of its client numbers to 670, and its low churn level of <0.5%.

Another positive is that Damstra has achieved $5.2 million of synergies from recent acquisitions, which was higher than its original target of $4 million. Though, management isn’t resting on its laurels and is busy assessing if further synergies can be extracted.

Management commentary

Damstra’s CEO, Christian Damstra, was pleased with the company’s performance in the second quarter.

He said: “We are seeing growth accelerating in the second quarter and we expect our revenue run rate to increase in the remaining months of FY21. The Q2 performance was pleasing despite cycling off a comparable period in which there were strong contributions from Newmont and NBN contracts and the delayed conclusion of a small number of promising new client engagements.”

“We are especially pleased with our operating cash flow and EBITDA considering we have just completed the Vault transaction, and this demonstrates how quickly we have integrated the business into Damstra from both a product and people perspective. It also reflects the advantages of the greater scale that these acquisitions have provided,” he added.

Damstra expects to release its half year results on 26 February 2021.

More reading

• 4 growing small cap ASX shares to watch
• 2 buy-rated small cap ASX shares for your watchlist
• 2 exciting small cap ASX shares growing fast
• 2 exciting ASX mid cap tech shares to buy in 2021

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Damstra Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Damstra Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Damstra (ASX:DTC) share price is racing higher today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3oq3E5s

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

With more people doing their shopping online these days, it’s no surprise that Amazon.com Inc (NASDAQ: AMZN) Prime membership continues to climb, even in the highly saturated United States market. As of the end of 2020, 142 million domestic consumers had access to a Prime membership, according to Consumer Intelligence Research Partners.

What’s surprising about the numbers is just how fast Amazon added Prime memberships last quarter. “After several quarters of slower growth, consumers joined Prime at a rate last seen more than four years ago,” said CIRP co-founder Josh Lowitz. For the full year, Amazon added 30 million Prime members. What’s more, more people are signing up for the full-year membership instead of the monthly option.

A big reversal in the trend

The 2020 holiday season saw a reversal of a pattern that Amazon had experienced for several years. After it introduced its monthly Prime membership option in December 2016, the e-commerce powerhouse typically saw an influx of monthly memberships around the holiday season. After those shoppers got the benefit of free shipping on all their gifts, many would drop their memberships early in the following year.

But in the fourth quarter of 2020, more people signed up for its annual plan. The share of Prime members paying annually grew to 53% as of the end of the year from 49% three months earlier.

One reason for that shift may have been Amazon’s decision to hold Prime Day in October, kicking off an extended holiday shopping period. Consumers faced with choice between subscribing for October, November, and December, or just getting the full-year membership may have decided that for $80 more, the 12-month option was the better deal. If Amazon’s internal data supports that thesis, the company may adopt strategies designed to extend the holiday shopping season into October in future years, which would also help it prevent its logistics network from getting overloaded by surges closer to the holidays.

Amazon will have a huge 2021

The long-term commitment to Prime from Amazon shoppers bodes well for its continued revenue growth in 2021.

For one, the new sign-ups should produce elevated growth in subscription revenue for Amazon throughout the full year. While Amazon has multiple subscription services, Prime is its biggest. Subscription services’ revenue growth accelerated in each of the last two quarters, but growth was still slower than in 2019.

Additionally, Prime members spend more on Amazon than non-members. And that fact has held true throughout the years as the number of members has ballooned. This indicates that it’s not just that people who are already frequent Amazon shoppers decide to sign up for Prime, but rather that being a Prime member makes people more likely to do more of their shopping on Amazon. In fact, the gap between average member and non-member spending has widened over the years.

Prime members are also more likely to begin their online product searches on Amazon versus other websites. According to a Civic Science survey conducted last spring, 74% of Prime members start their searches on Amazon.com versus just 29% for non-members. The recent influx of new Prime members should ensure Amazon’s sales grow faster than the rest of the e-commerce industry in 2021. Analysts at eMarketer expect e-commerce sales to grow another 14% this year after a huge spike in growth in 2020.

Prime members also bolster Amazon’s advertising business. All of those product searches provide it with more opportunities to display its lucrative marketplace ads. Additionally, Prime members are more likely to use other Amazon devices like Fire TV, which is a big source of video display advertising for the company.

There are a lot of ways for Amazon to capitalize on growing Prime memberships. Considering the huge influx of new members last quarter and the shift from monthly sign-ups to full-year commitments, this FAANG stock should see strong revenue growth in 2021.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Better buy: Amazon.com vs. Google
• Amazon’s ad business will dominate the 2020s
• Does Netflix have a competitive advantage?
• Why Tesla (NASDAQ:TSLA) shares were last year’s worst short bet
• Why Amazon.com stock just popped

Adam Levy owns shares of Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Amazon Prime membership is growing at a record pace appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/3pz0X2I

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Social Capital co-founder and CEO, Chamath Palihapitiya, has made a name for himself identifying excellent high-growth companies and taking them public using special purpose acquisition companies (SPACs).

Now, the noted investor is looking to profit from the recent gyrations of GameStop (NYSE: GME) stock. In a post on Twitter (NYSE: TWTR) Tuesday, Palihapitiya said:

“Lots of [GameStop] talk, soooooo …. We bought Feb $115 calls on [GameStop] this morning. Let’s gooooooo!!!!!!!!” 

Buying calls is an options strategy investors can use when they believe a stock will rise.

Palihapitiya’s position suggests that he believes the stock could gain as much as 50% from Monday’s close — and do it in less than a month.

The post was a follow up to one on Monday in which Palihapitiya said:

“Tell me what to buy tomorrow and if you convince me I’ll throw a few 100ks at it to start. Ride or die.”

GameStop has been a battleground stock in recent weeks. Shares were selling for as little as $17.25 earlier this month, but several catalysts conspired to send them soaring.

News broke on January 11 that activist investor and Chewy (NYSE: CHWY) co-founder, Ryan Cohen. and two of his associates had gained seats on GameStop’s board.

Cohen’s firm, RC Ventures, had amassed a 13% stake in GameStop last year, making it the company’s second-largest shareholder. Cohen’s success with online retailer, Chewy, has given investors hope that he could help steer GameStop toward similar e-commerce results. 

The drama took another turn late last week when a tug-of-war broke out between noted short-seller Citron Research and a group of investors on the subreddit r/WallStreetBets. Citron Editor, Andrew Left, eventually threw in the towel on Friday as the short squeeze that the online group had sparked continued.

GameStop has gained more than 375% so far this year and was recently trading above $100 as investors bet on a turnaround for the company. Palihapitiya has now joined the fray.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Here’s why the Sezzle (ASX:SZL) share price is up over 5% today

Danny Vena has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Twitter. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Chewy, Inc. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Chamath Palihapitiya jumps on the GameStop bandwagon appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/3a2lnL8