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Stock Picks December 14th, 2020 | SPLK, NIO, SQ, SPCE, ETSY, LMND

Updated: Dec 26, 2020


In this Issue

Splunk

Dropped from $210.00 to $152.50 Maybe an overreaction!

Nio

Offers 60 Million in shares to raise cash, drops 10%

Square

Easiest payment provider, owner of Cash App

Etsy

Large increase in people using Etsy, doubled revenue from 2019

Virgin Galactic

Performed long awaited test flight for FAA approval

Lemonade

Increased to $110.00 then down to $87.00


Check out these stock market opportunities and trades with profit potential.



Splunk: SPLK

"Splunk makes machine data accessible across an organization by identifying data patterns, providing metrics, diagnosing problems and providing intelligence for business operations. Splunk is a horizontal technology used for application management, security and compliance, as well as business and web analytics."

-Wikipedia SPLK dropped $40 per share on DEC 3rd Thursday afternoon after announcing earnings that missed analysts expectations. Expecting a dead cat bounce and continual growth. ARK invest started buying this company 213,209 shares after the drop. There will be rapid consolidation to the upside.

Price Forecasts

Current Price: $155.25 Week Target: $170.00 1 Month Target: $180.00 1 Year Target: $225.00


This is a BUY.



Nio: NIO

NIO limited produces electric vehicles in China. EV(Electric vehicle) sales are expected to increase 50% in 2021. NIO is offering 60 mil in shares to raise capital to further production needs as well as improve self driving technologies. The stock price has dropped about 10% making this a good time to buy at a discount. The company is not raising capital because they are short on cash, which is another good sign of the company's stability. However, rapid grow can often be seen as a risky investment.

Price Forecast

Current Price:$41.58 Week Target: $43.50 1 Month Target: $50.00 1 Year Target: $80.00

This is a BUY.



Square: SQ

Creates software and hardware for payments in stores and in a mobile setting. It was founded in 2009 in San Francisco, California. As we move further and further into the digital era, Square has a chance to completely dominate financial stocks. It is cheaper and faster to use. Cash-app is also a part of Square which is proving to be very successful. “In the third quarter of 2020, we achieved gross profit of $794 million, up 59% year over year. Our Seller ecosystem generated gross profit of $409 million, up 12% year over year. Cash App delivered strong growth, with gross profit up 212% year over year, to $385 million.” - Square 3rd quarter shareholder letter. The price is moving up quickly as more people realize this company is doing the right things to be huge.

Price Forecast

Current Price: $216.79 Week Target: $212.00-215.00 (Small Pull Back) 1 Month Target: $225.00 1 Year Target: $250.00

This is a BUY.



Etsy: ETSY

Etsy creates and sells unique items to consumers. People love to get individualized gifts which sets Etsy apart from other companies. They also saw a huge increase in users in the 3rd quarter. Total revenue was $451.5 million for the third quarter of 2020, up 128.1% year-over-year, driven by strong growth in both Marketplace and Services revenue.” - Etsy's 3rd Quarter Investor Report. Look out for Amazon moving into the “handmade” gifts territory and causing problems for Etsy. Also be aware of people spending less money this holiday season compared to previous years which could hurt their 4th quarter.

Price Forecast

Current Price: $170.00 Week Target: $160.00-$165.00 (Small pull back as we are at an all time high.) 1 Month Target: $175.00 1 Year Target:$200.00

This is a BUY.



Virgin Galactic Holdings: SPCE

This is a space company that is aiming to send people up to space every week in 2022. Each ticket will be around $250,000. Virgin Galactic attempted the long awaited final flight to get FAA approval and to take some NASA payloads into space to test micro gravity experiments this Saturday. They failed to get to space. At release of the Spaceship at 45,000 feet, the engine sequence did not ignite correctly. The company stated the computer system lost signal so it automatically shut down the engine shortly after igniting. The pilots glided the spaceship back safely. This does prove that safety is the highest priority of Virgin Galactic which is good for the ticket purchasers to know. This will test how fast the company will be able to respond and swap out engines after flights as well. A tweet from the Ex-Disney CEO Michael Colglazier stated: “As we do with every test flight, we are evaluating all the data, including the root cause assessment of the computer communication loss. We look forward to sharing information on our next flight window in the near future.”

Price Forecast

Current Price: $32.09 Week Target: $34.00 (Could be a large drop in price on Monday, down to $25.00 per share.) 1 Month Target: $36.00 1 Year Target: $75.00

This is a high conviction BUY if it does drop.


If it drops down, we should see the price increase rapidly after a successful test.



Lemonade: LMND

LMND exploded upwards in share price after a positive earnings beat two weeks ago. Due to the company’s ease of use by app or internet, they have a very low overhead and have gained in popularity recently. They have continued to see much more growth through word of mouth and by the lower rates they are able to give. Since then, they have risen to $110.00 per share and now are at around $92.50. They rose to $110.00 sharply after the catalyst of AirBNB went public on the market. I would estimate they will stay in this $85.00-$105.00 range for another 2 weeks. Long term, they will be over $150.00

Price Forecast

Current Price: $92.50 Week Target: $95.00 1 Month Target: $100.00 1 Year Target: $150.00

This company is a definite BUY.

I have an options trade that is making $500 per week on this company. In the coming weeks I will have a premium subscription which you can use to see my trades that are doing this.



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