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Whoo márquez bounce-back strong three things i want to talk about in today’s video one is the markets and why they kind of went up today second thing is i want to point out a bunch of stocks that went up a big amount today and then lastly we’re gonna talk about one stock that did not go up and this stock has been one of the hottest stocks in the entire stock market
And it actually dropped around 4% today i wanted to talk about that stock and why that one went down so first off here the markets just will have an absolutely amazing day so the dow was up nearly 3% up around 669 points sp 500 up around 2.7 2% and the nasdaq had a very strong day up over 3% today and that was despite facebook kind of holding things back a bit as
You see the headline there the dow closes up more than 650 points as trade tensions ease so this is kind of what i was talking to you guys about a few videos ago which is like everybody freaks out about something and then it kind of comes down like i drew this is a this is a perfect chart that kind of illustrates almost every situation in the stock market you’re
Just kind of going along and everything’s normal and then also there’s a spike in volatility number he’s like hey what the heck is that well what’s going on over here he look over here there’s something that what is this and then like oh my gosh this is this is potentially going to take down the whole market and they’re like in total freakout mode and the market
Drops huge right and then also you know the a few days go by and then everybody starts kind of like chilling out and then you know everybody’s kind of like oh that’s no biggie and then like a month or two later like people completely forget about whatever it is they were freaking out about all these fund managers whatever was a hot subject at that time everybody
Just kind of like conveniently forgets it and we move on and it’s just back to normal market conditions and this always happens in stock market it’s consistent it’s gonna continue to happen something you know six months from now twelve months from now a year from now ten years from now it’s always gonna be something out there that also comes out of nowhere everybody
Freaks out over and usually it’s not going to be much unless it’s a type of situation where the whole economy’s going down or something like that but all these little things all the politician said that all this happened it’s all gonna come and go guys that’s just that’s just how the markets is that’s just how they are guys and it’s nothing going to change there
So now let’s look at some of these stocks that absolutely did amazing we’re gonna look at one stock that did not do good and why that stock did not do good so apple up a 4.75% very strong day for apple here goldman sachs was up around 4% ebay up over 3% we had google mcdougal up over a 30% today we had lowe’s home improvement stores up 6.6% today very strong day
So if you were a buyer and friday there’s a good chance you made a lot of money today john deere was up about 3.6 percent a line which makes invisible braces and things like that they were up over 4% ruko which is a stock i definitely don’t like for the long term that one was up around 8% today we had under armour even up over five and a half percent today we
Had nvidia with a very strong comeback here so up around 5% up at 11 dollars and fifty one sentence today we had groupon up about three and a half percent qualcomm up 4.6 percent amazon was up around 4 percent today up $60 a share today on amazon very nice their alibaba was up over 5% today very nice day out of alibaba skyworks solutions over up around three and
A half percent there then we have shake shack up three percent caterpillar up three percent and netflix with a very strong day here up over six almost six and a half percent up nearly $20 a share so you see a lot of stocks especially a lot of popular stocks were up huge the one that kind of lagged the market was a definitely facebook today was kind of that ongoing
Cambridge analytical situation that i talked about last week that’s kind of you know holding back the stock here and it probably will continue to hold it back at least in the short term long term i don’t think it’s gonna have a major effect on the company but short term is definitely like you know a worry out there so the stock that did not fly high today is shopify
Okay shopify stock did not have a very good day to day actually went down around 4% in a day that the markets you know had an amazing day and basically short short seller andrew left jab shopify business saying is based on the exchange of personal information collected by facebook and sold to shopify entrepreneurs rocked to the core of its business model facebook
Has no choice but to take away shopify’s punchbowl the this guy wrote the short seller of the stock he also said left has a frequent is a frequent critic of shopify telling clients in october that the company was dirtier than herbalife that is a big statement they’re dirtier than herbalife guys that’s what he’s saying so if you don’t understand exactly how shopify
Is you know kind of you know shopify is a platform where let’s say i want to sell something to somebody i can create a very easy shopify store which i can sell products are okay now what a lot of people do what a lot of people do with shopify is it is to a certain extent intertwine with facebook because what a lot of people will do is they’ll set up their shopify
Store okay they set it up around whatever it is they set up around and then they will run facebook ads based upon things you’ve liked and whatnot maybe even places you live things like that but a lot of times it’s it’s things you’ve liked okay so let’s say you’ve liked on dogs and you’ve liked i don’t know the what do you call it with like diet like dog shelters
And things like that like obviously you’re really into dogs like you went out of your way to like a dog page and like you like dog shelters and things like that so what somebody could do is take a simple shopify store and they can make shirts have shirts made out of china that are custom but they all say like i love dogs okay i love dogs and what they’re gonna end
Up doing they’re gonna run ads to people that have like dogs and i’ve liked like dog shelters and things like that and are really into dogs right they’re gonna run ads against them and some of those people guess what they’re gonna do they’re gonna see that shirt in there like i love dogs let me get up i love dogs shirt i know it sounds corny but a lot of people
Do it right and you can go category by category and people will buy things off of that okay just because you know it’s something that relates to them you guys aren’t sure you have gotten facebook ads before you know when you’re scrolling down facebook that says something and it says it’s like your name there or it says like one of those shirts it’s like oh so corny
It’s like calm down i’m irish or something like that and conveniently you’ve put in your profile before that you’re irish or it says calm down i’m french or whatever and conveniently you put in your profile that you’re french how does it magically know that well obviously the date is there you’ve put that data in there people are run out ads against you because you
Like certain things or you’ve said certain things about yourself or maybe you live in baltimore maryland or something and guess what all some of the things comes up you know it’s like a keychain that says i love baltimore maryland or baltimore maryland is my life or whatever it is guys that’s what they’ll do and that’s what a lot that’s how a lot of people are so
Shopify stores make money they’ll run ads on facebook based upon data you’ve input it and then they run ads on it and hopefully they make money and get more sales than than what they’re spending on advertising so if there was a situation where facebook ever had a poll away all its data i don’t know if that could really happen i don’t know if that could really happen
The short seller might just be trying to put fear out there because that’s facebook’s business modeling and could there be maybe some regulation around that maybe but i’m not sure if if facebook’s gonna be in a situation where they’re just not allowed to you know sell anybody’s data or things like that like that’s what you sign up to do in things like that there
So i’m not convinced that’s gonna happen we’ll see what happens as time goes on there but i’m not convinced that you know they’re gonna shut down facebook and in terms of all they’re not going to allow any data you know to be sold and things like that like that’s facebook’s business model that’s been their facebook business model and if you’re gonna shut down that
Then you’re gonna severely hurt if not kill any you know social media company out there if not all them which is a huge industry that’s growing and providing a lot of jobs out there and a lot of high-paying jobs i don’t think the government really wants to do that maybe they want to put in some safeguards but to kill industries like that i don’t they don’t wanna do
That and imagine the the the tax revenue these these companies are producing for the us government do you think they really want to shut down you know a facebook and you know snapchat and and twitter and all the other future ones that are gonna come down the road i’m not convinced of that guys and then we can make an argument well you know at what level do you stop
Well what level do you stop at that point you know can no one tell anybody’s data ever and then that’s a whole different argument so i’m not sure this short seller might just be trying to get fear out there in the shopify stock but obviously shopify stock is a high-flyer right now and if you can put enough fear out there into a stock you can get this to drop in a
Major because it has a very very big you and look at the p/e ratios on shopify it’s ridiculous guys they have you know huge valuation on that company now and so we’ll see how that one turns out but anyways let me know what you guys think about what happened in the markets today and all that good stuff i would love to hear from you guys anyways my courses are linked
Down there my stock market membership group is linked down there in the description check that out if you want thank you for watching and have a great day
Transcribed from video
STOCKS COME BACK STRONG By Financial Education