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The 7investing Podcast

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Sep 27, 2022 • 32min

Predicting Market Downturns with YCharts' Connor Kitko

Most of us don't need any more reminders that 2022 has been a rough year for us as investors. But more intriguingly, would it have been possible to see the downturn? For years, researchers and analysts have looked to predictive indicators as a way to foresee broader market selloffs in advance. While the market does often exhibit cyclical behavior, it's hard to say that history perfectly repeats itself. Each economic cycle is unique, making it difficult to compare apples-to-apples to those before it. However, perhaps there are indeed a few warning flags that investors could benefit from tracking. And those are exactly what we went hunting for in today's 7investing podcast. In today's show, 7investing CEO Simon Erickson speaks with YCharts Director of Product Marketing Connor Kitko. YCharts recently published a white paper entitled Which Leading Indicators Best Predict Market Declines? In it, Connor takes a closer look at seven indicators that have been used to predict stock market selloffs: S&P 500's P/E Ratio S&P 500's cyclically-adjusted P/E Ratio S&P 500's Earnings Growth "Tobin's Q" Score 10-2 Year Yield Spread 10 Year - 3 Month Yield Spread The "Buffett Indicator" In the conversation, Simon asks Connor to describe each of the seven indicators and to comment on their relative accuracy. The two also discuss where the stock market currently stands with regard to each indicator, and what takeaways investors should know about the market's status quo. 7investing and YCharts have a partnership, which offers new subscribers a 20% discount. To set up your free initial trial with YCharts and to use our promotional 7investing rate, please visit this link. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education: https://www.7investing.com Join the 7investing Community Forum: https://discord.gg/6YvazDf9sw Start a free YCharts trial: https://ycharts.com/store/start_trial_register?utm_source=7Investing&utm_medium=blog&utm_campaign=2022+7Investing Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Sep 22, 2022 • 34min

What's Up With Upstart?

Upstart Holdings (Nasdaq: UPST) has given investors quite a wild ride during these past two years. The consumer loan tech platform went public in December 2020 at $20 per share and immediately skyrocketed twenty-fold to $400 per share within its very first year in the public markets! Yet concerns about how lending might be impacted by a challenging macroeconomic environment have sent shares back down to Earth. Now selling at $21, Upstart is right back to where it traded during its initial IPO. Yet ignoring its volatile stock price, Upstart the business is making solid progress. It's ingesting more data with each new loan it approves, which it uses to continually refine its AI algorithms and improve its accuracy. Its two-sided network -- serving both borrowing consumers and lending banks -- is expanding as it signs on new partners each month. So where does that leave things for investors? Is Upstart a short-term, unloved stock that is attached to a long-term, outperforming business? Or are there flaws with Upstart's decision-making process that could lead to even larger problems down the road? In today's 7investing podcast, 7investing lead advisors Anirban Mahanti and Simon Erickson take a closer look at what's up with Upstart. The two dive deep into the business, how it's deriving its revenue, and why its innovative approach is gaining popularity with banking partners. They also discuss what Upstart's 41% short interest means, and what its expansion into the auto and mortgage markets could mean for investors. Anirban and Simon recorded this episode of the 7investing Podcast in front of a live audience on Thursday, September 15th. If you would like to attend future live recordings of our podcast, we invite you to sign up for free on our new 7investing Events page. Publicly-traded companies mentioned in this interview include Upstart Holdings. 7investing’s advisors or its guests may have positions in the companies mentioned. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education: https://www.7investing.com Join the 7investing Community Forum: https://discord.gg/6YvazDf9sw Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Sep 20, 2022 • 23min

SNAP and the Fragile State of Digital Advertising

Snap, Inc (NYSE: SNAP) has been snapping lately. And we don't mean that in the good way of making music with your fingers -- but rather that it's showing serious signs of breaking as a business. Snap reported slowing growth and disappointing guidance in its recent third quarter report, which prompted a rather significant restructuring of the entire company. CEO Evan Spiegel announced Snap would be laying off 20% of its workforce and sunsetting several of its growth initiatives in order to prioritize free cash flow generation. Among the programs that are getting cut is its 'Snap Originals content', its 'Pixy' flying camera, and its 'Minis & Games' entertainment. The question that's now facing investors is whether these problems are company-specific. Is this an issue with Snap having a bloated internal structure? Or is it an indication of more serious problems brewing in the digital advertising industry? In today's 7investing podcast, 7investing lead advisors Anirban Mahanti and Simon Erickson dig into Snap's recent woes. They take a closer look at its underperforming programs, its leadership decisions, and its stock-based compensation -- while also discussing external factors that are impacting the tech industry. They also discuss whether Snap's 75% year-to-date in 2022 is an opportunity or a falling-knife for investors. Anirban and Simon recorded this episode of the 7investing podcast live. If you would like to attend future live recordings of our podcast -- including our upcoming discussion on September 21st about Big Tech embracing custom chips -- you can sign up for free at our new 7investing Events page. Publicly-traded companies mentioned in this interview include Alphabet, Amazon, Microsoft, and Snap, Inc. 7investing’s advisors or its guests may have positions in the companies mentioned. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education: https://www.7investing.com Join the 7investing Community Forum: https://discord.gg/6YvazDf9sw Start a free YCharts trial: https://ycharts.com/store/start_trial_register?utm_source=7Investing&utm_medium=blog&utm_campaign=2022+7Investing Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Sep 15, 2022 • 1h 3min

How Brick-and-Mortar Retailers Are Doing in a Post-COVID World

Retailers felt the pinch from myriad directions this year, from inflation taking a bite out of consumer wallets and supply chain constraints to rapidly changing consumer spending habits. Many stocks have taken a hit through this turmoil, even as they've navigated these tricky waters reasonably well. Joining 7investing lead advisor Matthew Cochrane to discuss how some of the largest and best operators are doing in the retail space is Daniel Kline, managing editor of The Street. Cochrane and Kline discuss the state of the American consumer from a high-level view before diving deeper and taking a closer look at Walmart (NYSE:WMT), Target (NYSE:TGT), Five Below (NASDAQ:FIVE), and Dollar General (NYSE:DG). Though all four of these retailers have a history of outperforming the S&P 500, only Dollar General has given shareholders a positive return over the past year. Has the market left behind these former darlings, or should shareholders hold on to these companies as they attempt to right the ship? Kline gives his answers, believing these companies' management teams have made the best of a bad situation, even as they've made unforced errors along the way. At the end of the interview, Cochrane asks Kline seven questions in lightning round-fashion that touches on ESPN, Starbucks' new CEO, a dying big box retailer, how cruises are looking to differentiate themselves in a post-COVID world, and the movie industry. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education: https://www.7investing.com Join the 7investing Community Forum: https://discord.gg/6YvazDf9sw Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Sep 13, 2022 • 35min

7investing and CryptoEQ in September 2022: Ethereum's Merge, Reddit Has NFTs, and Blackrock & Coinbase Strike a Deal

7investing and CryptoEQ recently announced a partnership, to help investors get a better consolidated view of the opportunities in both equities and in cryptocurrencies. 7investing provides its top seven stock market recommendations every month, while CryptoEQ provides its top-rated cryptocurrencies. The two companies are now joining forces and publishing a monthly Collision Course conversation, where they discuss important recent developments and the impact they'll have on both equities and crypto. This month, our teams dive into Ethereum's upcoming merge, which will convert it from using a Proof of Work mechanism to one that is based upon Proof of Stake. This change appears to have broad-based support from the cryptocurrency investing community, though because the mining will require significantly less computation it might reduce the future demand for processors sold by NVIDIA (Nasdaq: NVDA) and others that have traditionally been used for that mining. The teams also checked in on Biden's executive order on cryptocurrencies from March of this year. A closer look reveals that the White House could potentially have an option to ban Bitcoin mining altogether within the country. While this is unlikely (the US has actually been quite supportive of the evolution of its cryptocurrency industry), it's important for investors to keep an eye on regulatory developments that are impacting this space. Reddit is now allowing collectible avatars to be purchased on its site and then sold using the OpenSea NFT marketplace. We believe this is a "markety" story, though it also shows how crypto is being embraced by websites who generate significant traffic volumes. And finally, the teams discussed discussed the recent partnership between Coinbase (Nasdaq: COIN) and Blackrock (NYSE: BLK), which is enabling institutions and wealth managers to branch out into cryptocurrency assets as a risk mitigation or portfolio management strategy. We've made this month's Collision Course conversation free for everyone! We always publish each of our video conversations -- and also the complete transcripts --  for 7investing subscribers as monthly Advisor Updates. CryptoEQ publishes a written recap of the conversations in their monthly subscriber email newsletter, which you can subscribe for using this link. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education: https://www.7investing.com Join the 7investing Community Forum: https://discord.gg/6YvazDf9sw Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Aug 30, 2022 • 31min

The Third Biologic Revolution with Vaxxinity CEO Mei Mei Hu

There's big money to be make in drug development. But is that necessarily a good thing?   Pharmaceutical companies capitalize on years of R&D work with exclusive patents. Approved drugs typically commercialize in developed markets that can support higher pricing through mature insurance reimbursement networks.   Yet serious diseases don't only occur in the developed world. Billions of people in developing economics need treatments as well. And they're often not able to afford the hundreds of thousands of dollars it costs for innovative approaches such as CRISPR gene editing or CAR-T gene therapy.   There's currently an unmet market need for treating serious chronic conditions like Alzheimer's Disease in a way that isn't prohibitively expensive. And sometimes, it's worth veering from the herd and thinking about big problems in an entirely new way.   In today's 7investing podcast, 7investing lead advisors Simon Erickson and Dana Abramovitz chat with Mei Mei Hu, the co-founder and CEO of Vaxxinity (Nasdaq: VAXX). Vaxxinity is using a disruptive synthetic peptide platform to provide cheaper, safer, more convenient, and more effective medicines for chronic diseases like Alzheimer's and Parkinson's Disease. It is also developing a late-stage vaccines for the prevention of COVID.   In the conversation, Mei Mei describes how Vaxxinity's technology is "turning the human body into its own drug factory" to avoid the excessive costs and immune response issues of traditional monoclonal antibodies. She discusses their unique approach to clinical trials, the progress their making in their programs, and what it's like to be the CEO of a newly-public company.   Publicly-traded companies mentioned in this interview include United Biomedical and Vaxxinity. 7investing’s advisors or its guests may have positions in the companies mentioned. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education: https://www.7investing.com Join the 7investing Community Forum: https://discord.gg/6YvazDf9sw Start a free YCharts trial: https://ycharts.com/store/start_trial_register?utm_source=7Investing&utm_medium=blog&utm_campaign=2022+7Investing Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Aug 23, 2022 • 1h 47min

Wreck or Rebound with Anirban Mahanti, Matthew Cochrane, and Alex Morris - Part 2

Earlier this summer, 7investing lead advisors Anirban Mahanti and Matthew Cochrane were joined by Alex Morris, the creator of the TSOH Investment Research Service, to look at seven former market darlings that had fallen from their heights to determine whether these companies were permanently wrecked or due for a rebound. While the market has rallied from its lows, the S&P 500 index is still in a correction, down 11% from its all-time high. The Nasdaq Composite has fared worse, and is in bear market territory, down more than 20% from its peak. Given the state of the market and number of macro issues facing the economy, Cochrane, Mahanti, and Morris once again team up to look at seven stocks that are still down significantly from their all-time highs. With help from our friends at Ycharts, the seven companies that the trio looks at this time around are: Airbnb (NASDAQ:ABNB) Cloudflare (NYSE:NET) Meta Platforms (NASDAQ:META) Comcast (NASDAQ:CMCSA) Shopify (NYSE:SHOP) Twilio (NYSE:TWLO) Walt Disney (NYSE:DIS) Watch or listen now to see how these companies fared under scrutiny. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education: https://www.7investing.com Join the 7investing Community Forum: https://discord.gg/6YvazDf9sw Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Aug 18, 2022 • 51min

Who's Winning in Digital Advertising With Brad Freeman

For much of the past decade, digital advertising has been dominated by two companies: Google and Facebook. These two titans each had billions of users that allowed them to command the vast majority share of a market that was approaching nearly half a trillion dollars globally. Yet these two thoroughbreds have both now changed names (now Alphabet (Nasdaq: GOOGL) and Meta Platforms (Nasdaq: META)) and are expanding into new opportunities (cloud computing and the Metaverse). As the digital ad market matures, it's giving new entrants an opportunity to introduce innovative new solutions. Perhaps these 'walled gardens' aren't as high as they used to be, and that gives an opportunity for investors to profit from the industry's changes. In today's 7investing podcast, 7investing CEO Simon Erickson chats with Brad Freeman about the changes taking place in digital advertising. Brad is a huge fan of The Trade Desk (Nasdaq: TTD), who is capitalizing on the market's shift to a more privacy-centric and open internet. The two also discuss why changes in technology have negatively impacted Snap(NYSE: SNAP) and ROKU (Nasdaq: ROKU), and why larger publishers like Netflix (Nasdaq: NFLX) and Disney(NYSE: DIS) are suddenly becoming interested in ad-supported subscriptions. In the second segment, Brad also shares his thoughts on Upstart Holdings (Nasdaq: UPST) and SOFI Holdings (Nasdaq: SOFI). These are two financial services companies who have been negatively impacted by the short-term macro, but are developing innovative platforms that might break late as the race marches onward. Publicly-traded companies mentioned in this interview include Alphabet, Apple, Disney, Meta Platforms, Netflix, ROKU, Snap, SOFI Holdings, The Trade Desk, and Upstart Holdings. 7investing’s advisors or its guests may have positions in the companies mentioned. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education: https://www.7investing.com Join the 7investing Community Forum: https://discord.gg/6YvazDf9sw Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Aug 16, 2022 • 20min

Weathering the Storm with ProcureAM's Andrew Chanin

From floods in Kentucky to fires in California to hurricanes in Texas, there's never a shortage of natural disasters wreaking havoc on our country. Over the past 42 years, the US government has spent $2.2 trillion in total to support the relief efforts of natural disasters. However, due to the economic toll that disasters take on the regions affected, that amount is likely far too little. And rather than just spending in response to weather-related events that have already happened, there is a more focused effort on proactive spending, to ensure power and resources are available in the case of a future disaster. In May, the White House issued a statement that it could spend an additional $25 billion to $128 billion each year on Federally-funded relief efforts that would minimize the disruption to the population and the economy. Anyone who's been through a FEMA-declared disaster area knows how serious these problems can be. There needs to be support for the companies who are there to help. Yet interestingly, there has never been a way to invest in a basket of these disaster-relief companies. Shouldn't there be a fund that supports these businesses? Now, there is. In today's 7investing podcast, 7investing CEO Simon Erickson chats with Andrew Chanin, the co-founder and CEO of Procure Asset Management. Procure AM has created the Disaster Recovery Strategy ETF. With ticker "FEMA", it is the world's first disaster-relief themed ETF. In the conversation, Andrew describes what led him to create the fund and how it is different than existing climate change funds. He looks for companies under contract with government organizations. Publicly-traded companies mentioned in this interview include Clean Harbors, Generac Holdings, Home Depot, Lowe's, Maxar and Tetra Tech. 7investing’s advisors or its guests may have positions in the companies mentioned. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education: https://www.7investing.com Join the 7investing Community Forum: https://discord.gg/6YvazDf9sw Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing
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Aug 11, 2022 • 43min

Tesla’s Past, Present and Future With Farzad Mesbahi

In this podcast, 7investing Lead Advisor Anirban Mahanti sits down with entrepreneur, electric vehicle (EV) enthusiast, and former Tesla (NASDAQ: TSLA) employee Farzad Mesbahi. Farzad graduated with a degree in Mathematics and Statistics in 2009 and began his professional career with Phillips Pet Food & Supplies. But perhaps most relevant to our conversation was Farzad’s employment with Tesla between 2017 and 2021. At Tesla, Farzad helped ramp the company’s parts distribution network in the US and overseas. An investor in Tesla since 2012, Farzad had the opportunity to see how Tesla works from the inside and realize how fast the business moves. During the conversation with Anirban, Farzad remarked how 4+ years at Tesla felt like 10 to 12 years of life, highlighting the intense breakneck pace of the company. In this conversation, Farzad outlines his investment thesis, highlights what mainstream media and general investors might be missing when they think about EV adoption, and then discusses some of the challenges that could possibly trip the company. This conversation is a must listen for those interested in the EV industry, the future of automobiles, and Tesla. Welcome to 7investing. We are here to empower you to invest in your future! We publish our 7 best ideas in the stock market to our subscribers for just $49 per month or $399 per year. Start your journey toward's financial independence: https://www.7investing.com/subscribe Stop by our website to level-up your investing education: https://www.7investing.com Join the 7investing Community Forum: https://discord.gg/6YvazDf9sw Start a free YCharts trial: https://ycharts.com/store/start_trial_register?utm_source=7Investing&utm_medium=blog&utm_campaign=2022+7Investing Follow us: ► https://www.facebook.com/7investing ► https://twitter.com/7investing ► https://instagram.com/7investing

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