Stretch (STRC), the perpetual preferred equity issued by Strategy (MSTR), the world’s largest corporate bitcoin holder, reclaimed its $100 par value during Wednesday’s U.S. session for the first time since mid-January.
What’s particularly amusing is that, despite already being a rather substantial concern – boasting some $187 billion in sales over the last twelve months – Nvidia continues to grow at a pace that leaves competitors like Advanced Micro Devices and Broadcom trailing in its wake, looking rather like a pair of bewildered penguins. It’s all rather sporting, really.
They want you to believe this is a rational investment. They want you to look at the fourth-quarter numbers – 18% revenue growth, a ROARING 31% jump in earnings per share – and nod sagely. Fine. The numbers are there. But numbers don’t tell you about the feeling in the air. It’s electric, man. It’s the kind of reckless optimism that precedes a spectacular crash. Or, maybe, just maybe, a genuine leap forward. I’ve seen enough booms and busts to know the difference is often measured in milliseconds.
“Accumulation continues,” he intoned, his voice echoing through the halls of finance like a ghost in a poorly lit government office. The markets, ever the nervous Nellies, took this as both a balm and a warning-a reminder that the firm’s fate is now as inextricably tied to Bitcoin as a Gogol protagonist is to their absurd predicament.
The logic is simple. People need roofs over their heads, businesses need places to, well, be. So, these REITs own the buildings. Long-term tenants. Predictable income. It’s almost…boring. Which, in the investment world, is apparently a good thing. I’m learning. Slowly. I’ve made a list, naturally. A list of things I need to remember, and a separate list of things I’ve probably already forgotten. It’s a system.
Microsoft, however, has lately experienced a slight diminution in its standing – a circumstance which, whilst causing a degree of consternation amongst the more excitable investors, presents a more discerning eye with an opportunity. The stock, having retreated some twenty percent from its recent peak, finds itself in a position not dissimilar to a young lady of good fortune, temporarily overlooked in the season’s arrangements. The cause, it is said, lies in anxieties surrounding OpenAI, in which Microsoft holds a considerable stake and maintains a close, if somewhat complicated, partnership.
UnitedHealth Group (UNH +2.08%) operates, let’s say, a vast logistical undertaking. They manage the health of a nation, a task akin to herding cats while simultaneously auditing a bank. Alongside this, they’ve established Optum, a platform for pharmacy benefits, data analysis, and direct patient care. A sensible diversification, one might think. However, the company anticipates losing up to 2.8 million members, a rather significant attrition, due to – shall we say – a necessary recalibration of pricing. It seems raising rates, while logically sound, isn’t always popular. A lesson for all aspiring monopolists.
Back in twenty-twenty, when doors slammed shut and the world huddled indoors, Teladoc seemed a lifeline. It wasn’t just a company; it was a necessity. Like a traveling doctor in a time of plague, it offered connection when connection was all but forbidden. It rose, yes, a good two-hundred and twenty-four percent, a surge that drew in folks hoping for a piece of the future. Twenty-six-three a share… a high-water mark quickly swallowed by the returning tide.
There is a temptation, a seductive ease, in chasing the new, the glittering promise of the unproven. But true value, I suspect, often resides in the foundations, in those entities that have already weathered storms, even as they prepare for the next. To seek both, then – the volatile hope and the established strength – is not mere diversification, but a recognition of the inherent duality of human endeavor. A desperate gamble, perhaps, but what isn’t?
It’s not that Zillow is doing badly, exactly. Quite the opposite. Their fourth-quarter revenue rose a respectable 18% to $654 million. Their rental business is booming – up 45% – which is perhaps not entirely surprising. People, it turns out, still require shelter. And mortgages, too, are doing nicely, increasing 39%. It’s all very…robust. The CEO and CFO, Jeremy Wacksman and Jeremy Hofmann (a remarkable concentration of Jeremys, wouldn’t you say?), cheerfully informed shareholders that more and more people are turning to Zillow to help them navigate the often-perilous journey of moving. It’s a comforting thought, that a website can offer guidance in such a life-altering undertaking.