This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. The harsh chill of the financial winter has hit crypto hard for the past few months, while legacy finance has largely been living in sunny Florida with the occasional bout of cold (Peloton, Netflix etc.) Yes, the stock market has corrected, but largely has avoided the slaughterhouse.Winter has arrived for some companies.In the aftermath of bad earnings reports, shares of PayPal plummeted over 26% and Meta 22% - STONKS! It looks like some of our volatility is contagious.Dan Schulman, the CEO of PayPal went on the record, saying that “five factors were at play for PayPal’s struggles: supply chain challenges, inflation, COVID-19, lack of stimulus checks, and slower e-commerce sales.” Analysts offered their own opinions, citing a new focus within the company (crypto being a part of that) along with their inability to work with other companies. It feels a bit like the pain of crypto has finally caught up to one of the big boys that tried to dance with us. Meta also found itself in the dumps, trading like a shitcoin after hours. Down 22%, Meta reported, “weaker than expected fourth-quarter results and the company’s first-quarter outlook being well below expectations.” Alongside the missed earnings, Meta cited, “inflation, supply chain issues, and Apple’s iO’s challenges.” More notable is the fact that Meta Platforms lost $10.2 billion in 2021 on its newly created Facebook Reality Labs (FRL) division, which comprises its augmented and virtual reality operations. Facebook has gone "all in" on the metaverse, with their rebrand and focus on the future. While this is not specifically blockchain related, it's a move in a similar direction as our industry, and one that sent their stock on a quick trip to visit Hades. Winding down Libra/Diem certainly didn't help either.Alphabet, Apple, and Microsoft all crushed their earnings but PayPal and Meta didn’t. Didn’t we all think that PayPal and Meta were ahead of their time? Shouldn’t this lead to outperformance rather than underperformance?I think a couple of factors are at play and I have already alluded to one above - crypto’s winter has spilled over. Both PayPal and Meta have taken huge risks doing a deep dive into crypto. While everyone else is dipping their toes, these two giants threw off the life preservers and swan dived into the cold ocean. But like with most things crypto, the vision and early commitment tends to pay off in spades. That is likely what we are seeing here. I think this is both a growing pain for evolution and the price of being a trailblazer.We all know that in crypto, it pays to be early. Time will tell, but my bet is that history will reward them for taking the risk.In This Issue:Stocks Take a NosediveBitcoin Thoughts And AnalysisThe NFT Uptrend Continues - IntoTheBlockChart RequestsFidelity Is A Bitcoin OGGrayscale Launches Crypto ETFTexan Miners Shutting Down To Help Power GridIRS Will Not Tax Unsold Staked Crypto As IncomeThe Wolf Of All Streets Podcast Ft. Payal ShahMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #428 - Stocks Take a Nosedive
The Wolf Den #428 - Stocks Take a Nosedive
The Wolf Den #428 - Stocks Take a Nosedive
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. The harsh chill of the financial winter has hit crypto hard for the past few months, while legacy finance has largely been living in sunny Florida with the occasional bout of cold (Peloton, Netflix etc.) Yes, the stock market has corrected, but largely has avoided the slaughterhouse.Winter has arrived for some companies.In the aftermath of bad earnings reports, shares of PayPal plummeted over 26% and Meta 22% - STONKS! It looks like some of our volatility is contagious.Dan Schulman, the CEO of PayPal went on the record, saying that “five factors were at play for PayPal’s struggles: supply chain challenges, inflation, COVID-19, lack of stimulus checks, and slower e-commerce sales.” Analysts offered their own opinions, citing a new focus within the company (crypto being a part of that) along with their inability to work with other companies. It feels a bit like the pain of crypto has finally caught up to one of the big boys that tried to dance with us. Meta also found itself in the dumps, trading like a shitcoin after hours. Down 22%, Meta reported, “weaker than expected fourth-quarter results and the company’s first-quarter outlook being well below expectations.” Alongside the missed earnings, Meta cited, “inflation, supply chain issues, and Apple’s iO’s challenges.” More notable is the fact that Meta Platforms lost $10.2 billion in 2021 on its newly created Facebook Reality Labs (FRL) division, which comprises its augmented and virtual reality operations. Facebook has gone "all in" on the metaverse, with their rebrand and focus on the future. While this is not specifically blockchain related, it's a move in a similar direction as our industry, and one that sent their stock on a quick trip to visit Hades. Winding down Libra/Diem certainly didn't help either.Alphabet, Apple, and Microsoft all crushed their earnings but PayPal and Meta didn’t. Didn’t we all think that PayPal and Meta were ahead of their time? Shouldn’t this lead to outperformance rather than underperformance?I think a couple of factors are at play and I have already alluded to one above - crypto’s winter has spilled over. Both PayPal and Meta have taken huge risks doing a deep dive into crypto. While everyone else is dipping their toes, these two giants threw off the life preservers and swan dived into the cold ocean. But like with most things crypto, the vision and early commitment tends to pay off in spades. That is likely what we are seeing here. I think this is both a growing pain for evolution and the price of being a trailblazer.We all know that in crypto, it pays to be early. Time will tell, but my bet is that history will reward them for taking the risk.In This Issue:Stocks Take a NosediveBitcoin Thoughts And AnalysisThe NFT Uptrend Continues - IntoTheBlockChart RequestsFidelity Is A Bitcoin OGGrayscale Launches Crypto ETFTexan Miners Shutting Down To Help Power GridIRS Will Not Tax Unsold Staked Crypto As IncomeThe Wolf Of All Streets Podcast Ft. Payal ShahMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO