Are Billionaire Space Cadets Bullish?
Futures are slipping early this morning as traders await Fed Chair Jerome Powell’s testimony in front of Congress.
Wall Street has its heart set on a rate cut this month, Business Insider notes, and some investors are concerned Powell will signal that the Fed plans to hold off on a cut due to last week’s strong jobs report and the lack of a “looming recession” threatening the economy.
Meanwhile, a new space race is brewing.
Instead of the former Soviet Union and the United States duking it out for space supremacy, it’s a bunch of weirdo billionaires flaunting their wealth.
While Elon Musk’s SpaceX has made actual strides with their reusable rockets, Richard Branson’s Virgin Galactic is traveling to the final frontier of space tourism: the public markets.
Branson’s space venture has opted to merge with Social Capital Hedosophia Holdings, which is listed on the NYSE under the ticker “IPOA”. For the record, Branson and Virgin Galactic haven’t said why they’re going public. But I suspect he’s looking to eventually raise capital to expand operations.
Interestingly enough, the space tourism business appears to be booming. Virgin Galactic has already sold 600 tickets for its upcoming mission to space. If you’re lucky and exorbitantly wealthy, you too can go to space!
While Elon and Richard duke it out for intergalactic supremacy, another billionaire CEO is feeling a little left out.
Facebook Inc. (NASDAQ:FB) founder and CEO Mark Zuckerberg was reportedly betrayed by his own social network denizens when an older Facebook poll categorized him as a “former innovator” along the likes of retired Microsoft founder Bill Gates.
Meanwhile, the cool kids table of current innovators were described as — you guessed it —heavy-hitters such as Elon Musk and Jeff Bezos, reports Business insider.
Originally, the poll was use in an attempt to clean up the social media site’s image. It turns out folks just don’t like a cold, dead-eyed android like Zuckerberg.
Go figure. Poor Mark Zuckerbot — betrayed by his own creation!
While I can’t be too sure, I’m guessing Zuck lost his current innovator status when he went before Congress to answer questions about Facebook’s privacy debacle. Or maybe the tipping point occurred when he awkwardly livestreamed himself repeatedly talking about smoking brisket and ribs in his backyard.
“Please be my friend”
Either way, Zuck shouldn’t lose too much sleep over the snub. Facebook shares are surging toward new 52-week highs this week as the stock flirts with $200 for the first time since last summer’s earnings meltdown.
There’s not much holding back Facebook from all-time highs. Stay long and enjoy the ride.
Speaking of billionaires, I’m sure Jeff Bezos is feeling good about this week’s Amazon.com (NASDAQ:AMZN) breakout.
Amazon shares jumped more than 2% yesterday to new 2019 highs. Investors must be getting amped for Prime Day, Amazon’s yearly shopping extravaganza set to commence next week.
Not only does your $119 annual Prime subscription get you access to free shipping on all your Amazon impulse buys, it also grants you access to a slew of Prime Day deals. Last year’s dizzying barrage of sales featured everything from camping gear to crock pots. This year, Amazon is kicking off the event with a free Prime Day Concert with Taylor Swift, which is set to stream live later today.
If Amazon continues to break records during this year’s Prime Day festivities, we could see new all-time highs posted before the end of the month. Now that’s a great deal.