When Target warned its profits would disappoint investors, shares plummeted nearly 10%. But then the stock recovered most of the way, ending the day down less than 3%. What happened and why—and what does it tell us about equity valuations more broadly?
Inflation is a deeply emotional, even primal, topic for many. A destroyer of political careers and the catalyst for riots and wars, out-of-control inflation is dangerous, so it’s not surprising that it stirs up heated debate. But if we want to understand markets and what is causing inflation, we need to be levelheaded and acknowledge one fact: there’s no one single cause for inflation. So, what are the factors behind spiraling prices?
How are sell-side analysts paid, what is their role, and why are they important? Or are they? To understand their role, Zolio takes a look at sell-side responses to the recent preliminary announcement from Snap Inc. to show how these analysts function in the broader financial world.
The stablecoin Terra and cryptocurrency Luna has gone to zero in value, leaving billions in losses from speculators. Was this a bad cryptocurrency, or does it show a fundamental flaw in blockchain-fueled crypto? To answer that question, we need to examine what went wrong here. Fortunately, it’s not that hard to figure out.
Just two years ago, stocks were recording massive losses in a day, with 5% declines in indices becoming a regular thing. Now those big losses are back, and even the youngest investors can remember times this tough. What’s going on—is this the same fear-driven panic, or is something different? To answer that question, we need to dig a bit into fundamental analysis, macroeconomics, and behavior finance.
Always a lightning rod for attention, Elon Musk’s acquisition of Twitter has caused a storm of controversy, debate, and disagreement. Now some are suggesting Musk won’t buy the company, will pay a billion dollar fine, and is using the entire furor for some other end. But Twitter’s board of directors is still working on the sale as if it’s going to happen. And there’s a good reason why—but the reason may not be what you think it is.