(KRON) – KRON4 financial expert Rob Black talks the Wall Street sell-off, Target stock plummeting and parallels between the crypto decline and the dot com bubble.
Loser: Sell-off on Wall Street gains steam
Stocks fell after another a major retailer warned of rising cost pressures, confirming the fears over inflation that have sent major benchmarks to big losses so far this year.
Federal Reserve Chair Jerome Powell says THE Fed will keep hiking interest rates until it curtails inflation.
Netflix cut more roles, on top of laying off 150 people yesterday.
Amazon just announced a new $60 Fire 7 tablet.
Facebook held its NASDAQ debut 10 years ago, on May 18, 2012. It remains the largest tech IPO for a U.S. company and third biggest across all sectors, behind only Visa and General Motors.
Loser: Target Drops 25% after earnings
Target stock is plummeting after the retailer reported earnings well below analysts’ forecasts. Target faced unexpectedly high costs that are now hitting and lowering their profit margins,.
It wasn’t just the past quarter that was challenging: supply chain and transportation pressures have also weighed on profits.
WalMart also delivered mixed results. WalMart typically serves a lower-income shopper than Target
The last government stimulus checks went out more than a year ago, and they have been most sorely missed by lower-income Americans, who are now also contending with higher prices.
Target is brilliantly managed, sophisticated and has enough resources to have known that there would be higher costs.
Loser: Is Bitcoin popping like a bubble?
In January 2000, E-Trade wasted $2 million on a commercial featuring a monkey riding a rocket to the height of the stock market.
Cryptocurrency has already had many of these moments.
Bitcoin and other cryptocurrencies remained under pressure but were off their worst lows from last week’s dramatic selloff in digital assets.
The selloff in digital assets last week was exacerbated by the collapse of two of the 10 largest cryptos, the stablecoin TerraUSD, and an associated token called Luna. Luna has lost almost 100% of its value.
The price of Bitcoin was mostly unchanged over the past 24 hours, at just under $30,000.
Should we have seen this coming?
When Matt Damon said “fortune favors the brave” in a Crypto.com commercial in October 2021 it actually was near the top, because Bitcoin peaked at $69,000 a few weeks later.
Dogecoin surged more than 10,000% to become the fourth most-valuable cryptocurrency, ahead of Elon Musk hosting “Saturday Night Live.”
In September, Tom Brady and Gisele Bündchen appeared in a $20 million campaign for crypto exchange FTX where they called people in their contacts — everyone from a surgeon to a dog-walker — to convince them to start investing on the platform.
LeBron James and Larry David told us in commercials that you didn’t start investing in crypto, you’d be dismissing something as genius as the invention of the wheel.