Crypto Market Gains Surge Amid Tech IPO Optimism
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The market appears to be showing signs of recovery despite pandemic turmoil. With vaccination efforts now being rolled out for frontline workers and vulnerable people, there is a light at the end of what is still, undeniably, a very long tunnel, but a light nonetheless. Alongside this, the crypto market gains surge has attracted significant attention. Tech companies and stocks were some of the highest-performing throughout the pandemic, especially those related to remote work, dating, and online shopping.
Many of the tech stories that began in 2020 will continue to unfold throughout 2021. Below are the biggest tech investment stories of the new year, according to the experts.
Crypto
Cryptocurrencies already generated a considerable amount of buzz during the close of 2020 and the press is likely to continue. After hitting record highs in 2017, the crypto market lost a tremendous amount of value in a short period of time. But the end of 2020 once again saw large gains and renewed investment industry buzz.
Monetary policy and the devaluation of the USD are driving institutional interest in Bitcoin, which could spell good news for a number of major coins. There are several crypto stocks out there which look well-positioned for major activity in the coming weeks and months.
Michael Burry and Tesla
Tesla is a major story for many reasons. Founder and iconic CEO Elon Musk is undoubtedly one of the world’s most recognized and talked about individuals. He appears on Joe Rogan and makes controversial statements on Twitter. Tesla’s cars and charging stations are common sights throughout advanced countries around the world.
But one of the most iconoclastic investors of the 21st century believes Tesla is poised for a major devaluation. Michael Burry, the now-famous California-based MD-cum-hedge fund guru, who was one of the first to correctly understand and predict the 2008 housing market collapse, has been shorting Tesla stock since at least early December. If Burry’s analysis is once again correct, the demise of Tesla could be 2021’s most scandalous tech investment story.
Bumble’s IPO
Dating App Bumble was co-created by a former Tinder employee. It has long been a popular alternative to what many see as Tinder’s seedier and more overwhelming counterpart. Bumble stands out by letting women make the first move. It now boasts around 100 million users worldwide. Across all of its app offerings, the total user base nears 600 million.
Crypto market gains surge as investors seek high-growth opportunities. At the same time, Bumble reportedly plans an IPO in mid-February. Its expected valuation is between $6 and $8 billion. Although the pandemic disrupted dating, usage of dating apps actually increased last year. That’s good news for Bumble—and for investors. The rise of both crypto and tech platforms like Bumble shows a clear trend. Digital-first investments are gaining momentum.
Walmart Edging Away at Amazon
Most casual newsreaders likely know that the pandemic and our reliance on online purchasing have made Amazon one of only four trillion-dollar tech companies. Amazon is now a dominant player in a wide range of consumer markets and its plans are clearly to be the number one provider of all things to all people.
2021 may be a surprisingly good year for Walmart investors, however, as the company recently and successfully rolled out Walmart+. Walmart is still the biggest physical retailer in the world, and with the addition of Walmart+ and Walmart-sized deep pockets that will allow it to continue to make real headway in the market, Amazon’s position as the world’s dominant online retailer may come under threat in 2021.
Conclusion
2020 was a year of volatility, once in a century uncertainty, and likely unprecedented economic disaster, which many experts predict could have permanent effects on global markets. But there are winners and losers in both good times and bad. The above four stories are not the only investment stories of 2021 that are already making waves, but they are four of the most talked-about throughout the industry and ones to keep an eye on as the new year trudges along.