HOW TO BUY AIRBNB STOCK – IPO IN 2017?

Airbnb stockIndividual investors are still unable to buy Airbnb stock because the company remains private, with no plans to go public in the immediate future. It is thought that it will be 2017 at the earliest and perhaps even 2018 before Airbnb decides to have its IPO. Currently the company is valued in the $30 billion range after its most recent fundraising effort raised $850 million. That money will help it avoid having to IPO as it now has plenty of cash to continue to operate and expand on its own.

Why Doesn’t Airbnb Have An IPO Sooner?

There are many reasons why companies have IPO’s but the main one is to gain access to more money (capital) so that they can grow and properly build out their businesses. Without the influx of capital that an IPO gives them, many company just can’t grow and survive. Another less important reason is to monetarily reward all the early investors and employees. IPO’s are the big payday that can result from all the risk (time and money) that those initial investors put into the business.

But a problem with going public is that a company then faces tremendous pressure and scrutiny from stockholders and Wall Street to perform optimally at every juncture. This desire to be free of that Wall Street pressure is why some companies avoid IPO’s for as long as possible, if they have enough cash on hand to survive on their own. It appears Airbnb is in that exact situation, choosing instead to privately raise ample funding and operate exactly as it sees fit for the foreseeable future.

To Buy Stock You Need An Online Discount Broker Account

The one thing any investor needs if they want to buy stocks is an online discount broker account. If Airbnb does go public in 2017 or later, anyone with money in such an account will be able to buy Airbnb stock. The choices available when researching online brokers boils down to about 15 of them that have reliable track records. You can find Barron’s latest 2016 rankings here to get the names of some that you might want to research.

All these brokers charge fees of between $4.95 and $10 per trade and more or less all of them offer the same basic services. It should take you about 15 minutes to sign up with any of them and you will need a Social Security Number as they are required to report your gains and losses to the IRS. After opening an account, your next step will be to fund the account which means to put money in it. This can be done in a variety of ways that will be outlined on each website.

After successfully funding your account, you will be able to buy any stock that is listed on an American exchange but not ones that are on foreign exchanges. Airbnb stock will most certainly be listed on an American exchange and be available for purchase the first day it starts trading.

Hurdles For Airbnb’s Business And Its IPO

Airbnb’s IPO, no matter when the company ultimately decides to have it, will most likely be very popular. As of mid 2016, investors are unable to buy stock in any such company that operates a “sharing” type business. Uber, Lyft, Didi Chuxing, WeWork, and others that have similar business models all remain private. Add to that the fact that there is currently no other company that rivals Airbnb it in a meaningful way and you have the makings of a very hyped IPO, when it finally does happen.

However, there are significant hurdles that the company must overcome before it can IPO and become a good buy for stock investors. Airbnb continues to face legal challenges from a variety of local governments, city regulators, and government legislators around the world. Whenever a company like Airbnb significantly challenges an existing industry (in this case the hotel industry), there is bound to be a lot of push back. It is likely that Airbnb will face many more of these legal battles in the future months and years, the outcome of which is unknown.

Additionally, different countries and cities within those countries may have different rules and regulations that will impact the Airbnb’s ability to do business. Again, this is a brand new take on an old and established industry and how Airbnb will negotiate all the potholes will help determine its IPO timeline. Anyone wishing to buy Airbnb stock will have to be patient until they can do so and even then, determine whether they think Airbnb’s business model is one that will be profitable and able to stand the test of time.

HOW TO BUY MAGIC LEAP STOCK IF IT HAS AN IPO

Magic Leap Magic Leap finds itself in the news frequently now that virtual reality units are starting to ship and interest is starting to grow. Investors are curious about how to buy Magic Leap stock as the company is one of the most interesting in the VR/AR space, combining virtual reality and augmented reality into something it calls “mixed reality”. But the company, despite deals with Disney, Google, Legendary Entertainment, Qualcomm, Lucasfilm, and others remains private at this time and there is no news of any IPO.

It is estimated that Magic Leap’s valuation tops $4.5 billion after raising $1.4 billion from various investors. The company is located in Florida which is about as far away from Silicon Valley as you can get and the company is reportedly getting job growth incentives to remain there.

How To Buy Magic Leap Stock

While no immediate plans to go public are in the works, it is only a matter of time before Magic Leap has an IPO (or is bought by another company). In order to invest in the company right now, you have to be a big time investor with deep connections which means ordinary people can’t get in on the ground floor. You will have to wait until the company debuts on one of the American stock exchanges and starts trading stocks that first day before you can invest.

To buy stock in Magic Leap or any other publicly traded company, you will need to have money in an online broker account. Once you have that, the buying and selling process is simple and can be done in seconds. Online discount brokers charge between $4.95 and $10 per trade and there are a dozen or so reliable ones to choose from including E*Trade, Optionshouse, Merrill Edge, TD Ameritrade, Charles Schwab, TradeKing, and Scottrade. Your money will be safe with any of those as they have all been around more than 10 years.

It is important to note that opening a broker account is easy but you must continue with the process and deposit money in your new account in order to buy stocks. While you wait for Magic Leap to IPO, you might get started investing by picking another stock or two that you would like to invest in so that you can begin the process of building up your portfolio. Investors should strive to own a variety of stocks so that all their money isn’t dependent on the fortunes of just one company.

Is Magic Leap’s Mixed Reality Real?

With the backing of so many big name companies, it seems like Magic Leap is developing something in the VR/AR space that could have a lot of applications in the coming years. It has coined the term “mixed reality” and the hopes for the technology is high. And yet, it must be noted that as of August 2016 there is still little real public proof of anything other than a handful of YouTube videos. As we all know, videos can make things look much better than they are and so there have been some doubts in the technology community that Magic Leap’s product will be as great as it is reported to be.

Magic Leap is a very secretive company which may or may not mean anything in terms of whether they have a real product or not. After all, Apple is also secretive and for very good reasons….it doesn’t want competitors to copy what it is developing. Magic Leap may not be revealing more than the absolute minimum for much the same reason.

Will Magic Leap Go Public Or Get Bought First?

Its possible you may never get a chance to buy Magic Leap stock as the company could get bought out before it can IPO. With a valuation of $4.5 billion, it is still small enough for Microsoft, Sony, Apple, Google, or some other big company that has VR/AR aspirations to buy it for its technology. Just like Instagram was bought by Facebook and YouTube was bought by Google before either had a chance to IPO, Magic Leap might be bought out before the public has a chance to invest in it.

With Facebook’s Oculus Rift and HTC’s Vive already being released in 2016 and Microsoft’s HoloLens release imminent, it is clear that virtual reality and augmented reality are no longer technologies of the future. Magic Leap sits squarely in the middle of those two and seems to be a company that could be a takeover target. If it doesn’t get bought first, a Magic Leap IPO would happen in 2017 at the earliest and more likely 2018 and beyond.

Stock Market Week Of August 15 – August 19

This week is options expiration week. Seasonally, the week starts out strong but then pulls back before options expiration. Generally, we can expect a weak rally Monday through Wednesday, followed by a bearish Thursday and Friday.

Monday:

Monday begins the expiration week. We have bad news coming out of Japan and good news coming out of China. But seasonality shows that this Monday typically moves up slightly, as investors buy in expectations of Friday’s options expiration.

Tuesday:

TJX reports. The company is strong fundamentally, but the technicals show that a top might be in. Notice the most recent candlestick: an inverted hammer.

An inverted hammer candlestick typically implies that the strength of the bulls has been exhausted. Short covering ends, and investors take their profits here. This spurs a pullback, which could be good if you have a bullish outlook on the earnings report.

Wednesday:

PLCE. TGT, LOW, and CSCO all report earnings today.

Thursday:

Most eyes are on WMT and the stock is unpredictable after earnings and therefore not a good earnings play, unless you are a gambler.

Friday:

Friday tends to be seasonally volatile as a result of options expiration. Historically, this Friday is a bullish one, with the market rising 1% to 2%. With the following week likely to be bullish, at least at the beginning, Friday is a good opportunity to take long positions and cover your shorts.

Stock Market Week Of August 8 – August 12

August is seasonally a weak month, especially in the beginning.

However, in mid-August, things can pick up. The market becomes a bit more bullish and we get the holy “summer rally,” which isn’t that great. Anyway, expect this week to be lackluster but do prepare to open some long positions at the end of the week: at Thursday’s close or Friday’s open.

We have a number of interesting earnings trades coming up. Here’s the preview for the week, day-by-day:

Monday:

For earnings we have RAX, COH, and INCY.
INCY is an interesting one because of how overpriced it is. The stock is up 30% since last earnings’ report, and analysts have high expectations. However, if INCY misses, it will fall hard. RAX shows a similar pattern, while COH is rather boring in its earnings movements.

Tuesday:

KORS, another retail stock, reports on Tuesday. KORS almost always beats on earnings. The question is whether the stock will respond to an earnings beat – here, future guidance is of the utmost importance.

Wednesday:

Absolutely nothing interesting today…

Thursday:

This day is seasonally a bearish day. Thursday close is a good entry point if you’re looking for a bullish rebound. It’s also a good day to simply daytrade downward. As for earnings, we have NVDA and JWN. Nordstrom is one of those stocks analysts simply do not grasp. So many times have analysts been wrong on the EPS predictions, usually being overly optimistic.

Friday:

No interesting earnings plays, but Friday is bullish day, seasonally. This a good day to daytrade in a bullish direction or to open a bullish position for the next week, which is also seasonally bullish.

Stock Market Week Of August 1 – August 5

Monday:

The first day of the month is often the most bullish day of the month, but not so for August! The seasonality here, however, diverges for small caps vs. large caps.

Large caps are typically down, while small caps are up. August can be the worst month for the large caps, on both the Dow and the SPY. So if you were looking for an opportunity to take a bearish position, August 1 is a good entry point. You can use a short position on DIA or SPY as a simple hedge that can protect you against a market correction or crash.

Tuesday:

Earnings on Tuesday: FIT, PFE, CVS, PG, and EA. Be careful here, as guidance with Fitbit is way more important than an earnings beat.

Wednesday:

Earnings from DDD, SQ, and TSLA but Tesla is the one everyone will be watching. The analysts are notoriously bad at predicting TSLA’s beat/miss and how the stock acts afterward. The company has missed the last three quarters. On Monday TSLA officially announced its merger with SCTY and this could override the impact of an earning beat or miss.

Thursday:

Earnings from PCLN and LNKD highlight the earnings for today. Earnings season is winding down and most of the big names investors are interested in have already reported by now.

Friday:

CTRP, CTSH, and JD are reporting. Overall, do not expect much bullish action this week. The market will likely move sideways or slightly downward and this makes earnings trades, theta trades, and sideways trades good options.

Stock Market Week Of July 25 – July 29

It’s FOMC week and in addition to that, some of the biggest stocks on the market are reporting their earnings this week. Needless to say, these next five days should be crazy and highly volatile.

Monday:

While Monday is a very bullish day for the market seasonally, it might be rough going this time. Investors are expecting many of the earnings reports to underwhelm and thus the market may have trouble. Three of the biggest on Monday are GILD, TXN, and LVS.

For Gilead, sales are declining and the market seems to be ignoring any headwinds. Everyone in the market is bullish into GILD’s earnings, thinking that it can redeem itself from last quarter. The expected EPS is the same as last quarter’s, implying that exactly nothing has changed over the past 3 months. But the company’s Hep C and HIV med sales have fallen and are not exactly as great of revenue sources as Wall Street makes them sound (e.g., 8 weeks of use and you’re done – in contrast, other companies run their meds for six months). Sales in both Europe and Japan are down. There is also competition as a downward price pressure.

Tuesday and Wednesday:

Tuesday and Wednesday could see further declines if some of the big companies issue weaker forward guidance with their earnings. These include UA, TWTR, AAPL, MCD, CAT, FB, GRPN, WFM, and KO as well as lots of smaller companies.

Thursday:

The FOMC meeting concludes. Interest rates will probably not be hiked and this could cause a short rally in the market. If that happens, gold will likely fall. Earnings for Thursday include some more big names: AMZN, F, BIDU, GOOGL & GOOG, MA, EXPE.

Friday:

We might have a lackluster end to the week. Investors could start reducing their positions on Friday as we move into August. August is one of the worst months to be long in the stock market and one of the only months in which the first day isn’t strongly bullish. Company earnings on Friday include: XOM, CVX, MRK, UPS, SAVE.

 

Stock Market Week Of July 18 – July 22

Overall, the week after July expiration tends to be quite volatile. Seasonally, we can expect swings of 3% to 4%. Most of the time, this week is more bullish than bearish, though.

We’ve hit all-time highs in the S&P 500, and many are expecting a rally. We might get a rally but it will probably be weak and short-lived. Summer rallies are not good long opportunities and should be played carefully. Because of the week’s heightened volatility, it predisposes itself to volatility trades.

Monday:

Don’t expect much action on Monday. BAC reports earnings before the market opens while NFLX, YHOO, EMC and IBM all report after the markets close.

Tuesday:

Tuesday will likely mimic Monday in movements. MSFT reports on earnings and after the market closes is a good time to open bull positions for up gap exposure, as Wednesday seasonally produces several up gaps.

Wednesday:

Crude inventories will be reported on Wednesday. Inventories should be down and the day will likely be bullish for this reason.

Thursday:

A long list of economic data, from unemployment stats and gas storage to home sales and manufacturing numbers, will be released on Thursday. Most will likely be interpreted as bad news, pushing the market downward after a bullish Wednesday. For this reason, profit taking on any short-term long positions before Wednesday’s close might be advised and open those short positions you’ve been eying.

Some big names are reporting on Thursday including V, AMD, SBUX, T, and CMG.

Friday:

Friday should show little volume and not much movement. GE, AAL, and HON are reporting,

Final word:

This week will be a volatile week and is rather hard to predict an overall direction. It will be good for earnings and gap trading, not so good for momentum or mean reversion trades.

YOU CAN’T BUY NIANTIC STOCK

Niantic stock12/20/2016 Updated News: it is being reported that Niantic has an Apple Watch app that is in development but delayed from its previously announced end of the year release date. The Apple Watch could be a perfect way for Pokemon Go players to play the game as it is such a mobile experience. There is also a rumor that Niantic is making its own wearable hardware product that will be announced early next year. 

Before the smash success of Pokemon Go, Niantic was a small company that no one had heard of before. But suddenly there are investors scrambling to find out how to buy Niantic stock and they will be disappointed to find they can’t as it is not on any stock exchange because it is a private company.

Niantic was spun from Google (Alphabet) in 2015 and is a software development company that is responsible for the development of Pokemon Go. While everyone is trying to buy Nintendo stock, it only has a piece of the pie as the profits will be shared with the other investors responsible for making and backing the game. Nintendo, Google and The Pokemon Company have all invested in this new game up to $30 million and stand to be the major winners along with Niantic.

Will Niantic Ever IPO?

Whether Niantic will ever be big enough and important enough to have an IPO is something that is impossible to know as Pokemon Go is its first big hit and the company is still very small. Creating a second and third hit is something that is very hard to do and you can look at the Angry Birds franchise as evidence of that. So it may never be possible to buy Niantic stock and it certainly won’t be anytime soon.

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Your best bet is to find other public companies that are in position to profit from the game and this new augmented reality phenomenon we are seeing today.

What Stocks Will Be Pokemon Go Winners?

You can buy Nintendo stock but it has shot through the roof and now looks expensive so that might not be a good choice. Besides, many of those investors that have bought NTDOY in the last week probably don’t understand that Nintendo is getting only a small percentage of the profits.

You can’t buy The Pokemon Company stock either because that company is private as well.

You can buy Google stock because they have a piece of the Pokemon pie as well as taking 30% from every in-app purchase made in the game. Right now with it’s popularity being so high, that 30% is likely millions of dollars a day. But Google is such a big company that something like Pokemon isn’t going to materially boost the bottom line.

Likewise, Apple also takes 30% from in-app Pokemon purchases and is making millions a day from the game. But just like Google, it is unlikely that “small” amount of money is going to excite shareholders at all and will not boost the stock price in any meaningful fashion.

So, the bottom line is unfortunately, you can’t buy Niantic stock or Pokemon stock and all the other players are too big or their stocks are already overvalued. Like anything in the stock market, jumping on the Nintendo bandwagon on day one was the best way to make money for those that were prescient enough to see how this Pokemon craze would play out.

Stock Market Week Of July 11 – July 15

Overall, it’s looking like this could be a bullish week. With the market near its 52-week highs, we might see new all-time highs before the week is done.

Monday:

We begin July’s options expiration week. Monday is typically bullish. In the past couple decades, this Monday has shown strength in the Dow and NASDAQ 75% of the time. Other than seasonality, there is nothing special here.

Tuesday:

The bullishness tends to continue through Tuesday. Again, nothing really special here; no interesting earnings or economic data. A boring start to a generally bullish week, overall.

Wednesday:

Crude inventories come out. It’s likely we will see negative numbers, as we have for the past two weeks. Wednesday will likely be the most bullish day of the week, so take your long positions earlier if you’re planning on adding positions.

In addition, YUM, CXI, and KMI are reporting earnings.

Thursday:

Thursday gives us news on natural gas, jobless claims, and the US PPI. We should see Wednesday’s bullishness continued into Thursday. In addition, we have several big companies reporting their earnings:
JPM, DAL, BLK.

If we are going to hit new highs this week, it’s going to be Thursday, most likely.

Friday:

Options expiration. This is a seasonally bearish day for stocks. In the past we’ve seen losses of up to 5% on this day.

The probability that the market will be down on Friday is 60%. If you have any bearish positions to open, do so on Thursday close. I wouldn’t hold current bearish positions all the way to Friday, as the Wednesday and Thursday gains could hurt you – close Monday or Tuesday and then reopen Thursday evening.

More economic data will come out Friday, including US CPI, US IPI, US CCP, and retail sales. Its possible that much of this news will show the economy in a bad light. As for earnings reports, this is going to be one for banks. We have WFC, C, PNC, and USB reporting. Also reporting is MRVL.

Stocks: Week Of July 5 Through July 8

Tuesday:

The stock market opens after a 3-day weekend. Stock options should be very cheap at market open because of a volatility crush. Today is a good day to day trade volatility or open volatility positions. Volatility should surge and investors and funds take Q3 positions. You can expect the market to be mostly down. Still, today is a good day to open new bullish positions.

Wednesday:

FOMC minutes will be released. They should point out a dovish Fed, which is bullish for the market. Still, today starts the worst season for the NAQDAQ, so if you have any tech laggards, you might think of selling them.

In earnings, we have WBA and GBX releasing their reports.

Thursday:

A few important economic stats come out today, including gas storage, crude inventory, unemployment claims, and nonfarm payrolls. Thursday should be bullish overall. Reporting today is PEP, WDFC, PSMT, CUDA, and HELE.

Friday:

The week closes with more stats on unemployment, payrolls, and weekly earnings. We could see a bullish Friday with little volume. Friday’s close is a good time to open a long-term bullish trade on DIA or SPY stocks (or the ETFS), as it begins their best month of this quarter.