What we’re reading (5/24)
“Tech Stocks Continue To Fall After Snap’s Profit Warning” (Wall Street Journal). “Other tech stocks that rely on digital advertising spending also fell. Google parent Alphabet Inc. slipped $110.36, or 5%, to $2,119.40, while Meta Platforms Inc. dropped $14.95, or 7.6%, to $181.28. Streaming-video company Roku Inc. was recently down $12.61, or 14%, to $79.16, while Twitter Inc., which last month agreed to be sold to Tesla Inc. Chief Executive Elon Musk, traded lower $2.10, or 5.6%, to $35.76.”
“What History Says Happens To Stocks If There’s A Recession” (Yahoo!Finance). “Using the historical average and median decline around recessions going back to 1948 (see chart below), [Truist Co-Chief Investment Officer] Lerner estimated that the S&P 500 has another 7% to 13% downside potential from current levels.”
“The Bull Market Minted Millions Of Day Traders. They’re In For A Rough Ride” (CNN Business). “‘I see a stock going up and I buy it. And I just watch it until it stops going up, and I sell it,’ says the user known as Chad. ‘I do it over and over and it pays for our whole lifestyle.’ Yes, Chad had discovered momentum trading. And it seemed to work out well for him. Like the millions of people who took up day trading during the pandemic, Chad was riding a thrilling bull market that was bingeing on ultra cheap money from the Federal Reserve”
“How Much Longer Can Google Own The Internet?” (Vox). “A group of lawmakers led by Sen. Mike Lee (R-UT) introduced the Competition and Transparency in Digital Advertising Act on Thursday. This bipartisan and bicameral legislation would forbid any company with more than $20 billion in digital advertising revenue — that’s Google and Meta, basically — from owning multiple parts of the digital advertising chain.”
“Spotting Talent” (City Journal). “High-status occupations are often extremely demanding, in part to select against people who are more interested in prestige than in the profession itself. The authors note that those who tend to do especially well in their careers prioritize improving their craft above other motives, such as the pursuit of prestige. In one of many unique insights throughout the book, Cowen and Gross provide a “quick window” into whether a person is more interested in ideas or obtaining social status. They state that in a group setting, ‘status-seekers focus on maximizing attention from the perceived elite. Idea-seekers, on the other hand, want to advance knowledge and stimulate curiosity.’”
