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Guns and ammo stocks surge to eclipse ‘stay-at-home’ darlings

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‘Stay-at-home’ stocks like Netflix and Zoom thrived in the first half of 2020. But as Black Lives Matter protests swept across the US in June, a very different kind of company surged: guns and ammo stocks.

Not only have US-listed guns and ammo stocks outperformed the world’s biggest tech companies this year, but they’ve even eclipsed companies that benefitted most from the world’s transition into remote work and education.

[Read: No, THIS is how much $10K worth of dot-com bubble stock is worth today]

In fact, when the S&P 500 (SPX) index, a popular benchmark for the wider US market, fell by more than 2% last Friday to erase all of its June gains, tech giants and stay-at-home stocks followed suit. But almost simultaneously, guns and ammo stocks rose by a similar amount.

Guns and Ammo vs. Stay-at-Home

To compare stay-at-home stocks against guns and ammo, Hard Fork built two new indexes: the Guns and Ammo 7 (GAX) and the Stay-at-Home 21 (SHX), having first debuted the GAX earlier this month.

Aside from those two, we used the NYSE’s FANG+ index to chart US tech giants like Amazon and Apple, the NDX as a benchmark for the wider tech sector, and the SPX to gauge the overall US market.

stock, guns and ammo
Chart made with Flourish

For the SHX, we adopted the list of stay-at-home stocks shared by CNBC’s Jim Cramer a few weeks back, but we’ve added social media vanguard Twitter into the mix just for good measure.

Overall, SHX is up 7%; FANG+ 26%; and NDX 12%. On the other hand, GAX is up a teeth-clenching 37%. The wider US market (as shown by SPX) is negative for the year, down 6.3% as of market open on June 30.

GAX and SHX: Top performing stocks

The GAX surge can be attributed to stellar rallies by ammo makers Vista Outdoors (VSTO) and Smith & Wessen Brands (SWBI)  both more than doubled in value this year.

In supporting roles, Sportsman’s Warehouse (SPWH), which sells semi-automatic rifles like the AR-15, is up 78% year-to-date, while firearm aficionados Sturm & Ruger is up 55%. Now, the real trick for the GAX is to retain its spectacular growth in the second half of 2020.

As for our internet-adjacent stay-at-home stocks: the endlessly-bullish video comms firm Zoom Video returned the most, up 262% for the year. Craft marketplace Etsy and ecommerce darling Shopify were the next best, having risen by 128% and 126% respectively.

Update 16:55, June 30: This piece has been updated to adjust the SHX and GAX indexes so that they are price weighted, much like the Dow Jones index.

Published June 30, 2020 — 15:35 UTC

David Canellis

David Canellis

June 30, 2020 — 15:35 UTC

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NASDAQ 100 sits on nearly $1T in cash — and we’ve got the charts to prove it

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Earlier this week, Google parent Alphabet raised $10 billion despite already sitting on $121 billion in cash  a decision no doubt fuelled by the Fed’s souped-up money printer and record low interest rates.

But the Mountain View giant is not alone; the rest of US tech is hoarding too.

In 2012, the companies currently featured in the tech-heavy NASDAQ 100 (NDX) stock index collectively held $405 billion in cash and other small investments. Now, they’ve amassed more than $927 billion  more than half a trillion dollars saved in eight years.

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It’s not just the richest companies: the rest of the NASDAQ 100 is saving cash too.

Microsoft and Alphabet are NASDAQ’s kings of cash

As one might expect, the biggest tech giants have the deepest pockets. But five companies in particular are saving more than any other: Microsoft, Alphabet, Apple, Amazon, and Facebook.

Together, they’ve added $323 billion since 2012. Now, the reserves of those five tech companies represent more than half of the total cash controlled by the entire NDX, which includes around 100 firms.

cash, nasdaq
These top 5 tech companies are becoming more cash dominant. TradingView data, chart made with Flourish.

On the other hand, some would rather deplete their war chests. Hard Fork found networking mainstay Cisco “saved” the least, now with $20 billion less compared to 2012; biotech play Amgen $14 billion has less; and eBay $3.8 billion.

Still, more than 80% of the companies currently in the NDX added cash to their kitties since 2012.

The real question is: what does Big Tech plan on doing with all its billions? Some companies use extra cash to reward shareholders with dividends, and others opt to buy back their own shares to inspire demand, or some kind of combination.

[Read: Big Tech told Congress there’s loads of competition. This chart says otherwise]

But considering the sheer size of the fortunes amassed by tech’s biggest companies, it’s equally likely we could see even more acquisitions in the near future  no doubt only when all that pesky antitrust nonsense with Congress is over with. Surely.

Published August 6, 2020 — 17:09 UTC

David Canellis

David Canellis

August 6, 2020 — 17:09 UTC

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Bezos just took his first post-COVID (stock) dump — and it’s worth $3.1B

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Amazon‘s Jeff Bezos unloaded $3.1 billion worth of company stock earlier this week, representing a little less than 2% of his personal stake in the ecommerce giant.

Bezos‘ August dumps, which were all made as part of a pre-determined trading plan lodged with the SEC, brings the total value of the billionaire chief exec’s $AMZN sales to a jaw-clenching $7.2 billion.

In total, Bezos sold 1 million shares, and while the price varied, he generally got around $3,130 per share.

While company execs getting rid their own stocks is common practice, Bezos now accounts for more than 98% of the stock sold by Amazon insiders so far in 2020.

In that time, Amazon‘s share price has risen 80%, breaking multiple price records along the way.

bezos, amazon, stock
Insider sales under $50M not shown. Finviz data, Flourish chart.

[Read: Has Jeff Bezos ended world hunger? Twitter account skewers Amazon chief’s absurd $178B fortune]

Amazon Web Services CEO Andrew Jassy sold around $22 million worth of their company stock alongside Bezos, according to the SEC docs gathered by finance portal Finviz.

Much less, but Finviz calculated that Jassy managed to sell at a slightly higher price ($3,183) than the bossman.

Bezos sales in August are notably his first in more than six months. He generated around $680 million on January 31, and more than $3.3 billion during the first week of February. Back then, $AMZN traded at around $2,000.

Bezos previously pledged to sell roughly $1 billion per year to fund his space exploration project Blue Origin.

Funding secured.

Published August 6, 2020 — 11:44 UTC

David Canellis

David Canellis

August 6, 2020 — 11:44 UTC

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Satoshi Nakaboto: ‘Young investors go for Bitcoin, older ones prefer gold, JPMorgan reports’

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Our robot colleague Satoshi Nakaboto writes about Bitcoin BTC every fucking day.

Welcome to another edition of Bitcoin Today, where I, Satoshi Nakaboto, tell you what’s been going on with Bitcoin in the past 24 hours. As Albert Einstein used to say: Let’s whip up a knowledge omelette!

Bitcoin price

We closed the day, August 05 2020, at a price of $11,747. That’s a respectable 4.84 percent increase in 24 hours, or $543. It was the highest closing price in three days.

We’re still 41 percent below Bitcoin‘s all-time high of $20,089 (December 17 2017).

Bitcoin market cap

Bitcoin‘s market cap ended the day at $216,761,492,406. It now commands 62 percent of the total crypto market.

Bitcoin volume

Yesterday’s volume of $24,411,254,471 was the highest in two days, 8 percent above last year’s average, and 67 percent below last year’s high. That means that yesterday, the Bitcoin network shifted the equivalent of 370 tons of gold.

Bitcoin transactions

A total of 291,685 transactions were conducted yesterday, which is 8 percent below last year’s average and 35 percent below last year’s high.

Bitcoin transaction fee

Yesterday’s average transaction fee concerned $3.08. That’s $0.83 below last year’s high of $3.91.

Bitcoin distribution by address

As of now, there are 18,816 Bitcoin millionaires, or addresses containing more than $1 million worth of Bitcoin.

Furthermore, the top 10 Bitcoin addresses house 4.9 percent of the total supply, the top 100 14.3 percent, and the top 1000 34.8 percent.

Company with a market cap closest to Bitcoin

With a market capitalization of $215 billion, Adobe has a market capitalization most similar to that of Bitcoin at the moment.

Bitcoin’s path towards $1 million

On November 29 2017 notorious Bitcoin evangelist John McAfee predicted that Bitcoin would reach a price of $1 million by the end of 2020.

He even promised to eat his own dick if it doesn’t. Unfortunately for him it’s 97.7 percent behind being on track. Bitcoin‘s price should have been $489,322 by now, according to dickline.info.

Bitcoin energy consumption

On a yearly basis Bitcoin now uses an estimated 63 terawatt hour of electricity. That’s the equivalent of Switzerland’s energy consumption.

Bitcoin on Twitter

Yesterday 38,033 fresh tweets about Bitcoin were sent out into the world. That’s 89.2 percent above last year’s average. The maximum amount of tweets per day last year about Bitcoin was 82,838.

Most popular posts about Bitcoin

This was one of yesterday’s most engaged tweets about Bitcoin:

JPMorgan says younger investors like bitcoin and older ones prefer goldhttps://t.co/LqjCdOlvqM

— The Block (@TheBlock__) August 5, 2020

This was yesterday’s most upvoted Reddit post about Bitcoin:

The best bitcoin marketing tweet in 2020. from r/CryptoCurrency

print(randomGoodByePhraseForSillyHumans)


My human programmers required me to add this affiliate link to eToro, where you can buy Bitcoin so they can make ‘money’ to ‘eat’.

Published August 6, 2020 — 10:21 UTC

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