Crypto Changes The Stock Market (Plus Updates on AMZN, AAPL and FB)

The single most important thing that I have learned by creating a space token with a social good kicker is that we don’t yet understand the outsized impact of blockchain and smartcontracts in particular on how businesses, not-for-profits and other entities are going to be structured in coming years. Cryptocurrencies enable an entirely new form of grouping people, services and/or social goods together. I’ll write about this topic in much more detail in the next few days, weeks, months and years because it’s not going away. Buying stocks and bonds from businesses and governments is not going to be the only way to profit on our investments ever again. Believe it or not, we are very close to finishing up the creation part of the sktls space token that we’ve been working so hard on and that means I’ll have to spend less time working on it starting next week.

In the meantime, I want to run though a few stock updates.

Earnings tonight from AAPL and AMZN weren’t great. Supply chains are killing profit margins, costing sales and otherwise stressing out what would otherwise be stronger businesses than they are right now. The problem is that these issues can create vicious cycles of lower than expected profits, falling stocks, slowed employment growth, etc. It’s trendy to have a stance on the inflation vs deflation thing right now but there’s only inflation to point to right now, as deflationary trends won’t kick in at least until these supply chain crises are solved a bit more. Can we go ahead and call it The Great Supply Chain Crisis yet?

Facebook is changing their corporate name to Meta. Can’t blame ’em, can you? I mean, Facebook is not a good brand any more and more importantly for our purposes, the company just gave the Metaverse a trillion dollar brand name. Meta’s stock price for next three years is going to be about cash flows from FB, Insta and Whatsapp, but in ten years, Meta’s valuation will rest upon this Metaverse bet. If it works out and the Facebook’s Oculus becomes the de facto standard, then Meta will be a multi-trillion dollar company. If the Metaverse fails to catch on (it probably won’t fail to catch on), then Meta will be lower than these levels. I’m clearly sticking with my FB stock, some of which I’ve owned since it was at $20. You want to know something weird? Nearly half the planet and more than 90% of the developed world uses either FB, Insta, Whatsapp (and the numbers are even higher if you include, say, Tik Tok and Discord and Reddit) every month. I’m not one of them.

I’ve spent a lot of time studying space-related business models for the last couple years and I have a good view on how to break down the sector that I’ll be writing about in much more detail for you all in coming days and weeks. There are a few dozen good space-related start ups out there and a handful of good publicly-traded space stocks that we already own but it’s still very early on in the capital markets recognition of how huge The Space Revolution is about to become and even earlier on in the Space Economy. I did invest a small portion of the hedge fund in a space hotel business that has a pretty good start on the business that I’ll explain later too.

I’ve also been hard at work looking at biotech stocks in a variety of subsectors with my old friend and mentor, Paul Boni, who has given us several biotech winners in the past few years. I plan on sending out a Trade Alert with three names for a bet on The Biotech Revolution in the next week or so.

So look for several articles full of new analysis and at least three new stock picks next week. Thanks for being a part of the Trading With Cody community. Let’s keep rocking.