Ant Group listing – the largest IPO in history?

Equities

Jack Ma’s Ant Group is aiming to hold the largest IPO in history this year. Here’s how you can get involved with Marketsx.

Alipay operator seeks record IPO

Ant Group Co will attempt to hold the largest IPO in history later this year when it aims to raise as much as $30 billion for a valuation of at least $225 billion.

The fintech behemoth was founded by Jack Ma’s Alibaba. Amongst other things, it operates Alipay, the world’s largest digital payment platform.

The company has raised over $23 billion in private funding and was valued at $200 billion in its latest funding round. Alibaba owns a 33% stake in the business.

It’s backers include BlackRock, General Atlantic, Silver Lake, and Warburg Pincus.

Ant’s IPO filing reveals revenue of $10.5 billion in 2020 H1, representing growth of 40% year-on-year, while profit is up 1,000% on an annualised basis to $3.2 billion.

Will Ant Financial IPO beat Saudi Aramco’s record?

Ant Financial is expected to list in Shanghai and Hong Kong in October. If demand remains strong the company could raise as much as $30 billion. The IPO market got off to a slow start this year thanks to the coronavirus pandemic, but the Hong Kong market has roared back into life in the past few months.

The current record for an IPO was set by Saudi Aramco, which raised $29 billion when it listed on the Tadawul.

How to trade the Ant Financial IPO and Ant Financial shares

This could be the biggest IPO in history, and you can start trading it right now with the Ant Financial grey market on Marketsx.

Buy or sell the grey market to speculate on the eventual market capitalisation of the company when it goes public.

You’ll also be able to start trading CFDs on the shares the day they begin trading.

Palantir IPO: What you need to know

Equities

After many years of waiting it looks like investors might soon get a chance to grab a piece of Palantir. Watch on to find out how you can beat the crowd and start trading the Palantir IPO right now.

Stay on top of the US Presidential Election 2020 with our new XRay show

US Presidential Election

Get the headlines and insight you need to trade the US Presidential Election with XRay, your dedicated in-platform streaming service on Marketsx. Join Blonde Money CEO and XRay regular Helen Thomas for Election2020 Weekly for a look at the biggest developments in the race for the White House.

And don’t forget you can also join Helen every week for Blonde Markets to get the wider political and macroeconomic view on what’s driving the markets.

These are the most popular stocks for day trading

CFD Trading
Equities

Goldman Sachs recently reported that a basket of stocks favoured by retail day traders had outperformed their hedge fund basket by nearly 20% when the coronavirus sell-off was at its worst.

Retail day traders have helped fuel the market recovery from the March 23rd low, struck as fears over the economic impact of the Covid-19 pandemic reached their zenith.

Here’s what our signals tools have to say about some of the most popular stocks amongst day traders.

Moderna

Moderna is a hotly watched biotech company whose stock has seen a surge in popularity as markets try to bet on the winner in the race for a Covid-19 vaccine.

The stock is up 144% since March 23rd and over 230% year-to-date. Our Analyst Recommendations tool shows a consensus “Strong Buy” rating amongst Wall Street analysts, with the average price target of $87.64 representing a 35% upside even after months of incredible growth.

Tesla

Even CEO Elon Musk tweeting that the stock in his own company was overvalued couldn’t put the brakes on the Telsa stock rally this year. Day traders have helped drive this stock up 131% since March 23rd. Since January 1st the stock is up 140%.

The stock broke above $1,000 for the first time on June 10th, although it has since struggled to hold this level. The rally has left Wall Street analysts struggling to catch up – the average price target of $678.82 represents a -32% downside. Hedge funds snapped up three million shares in the last quarter, and news sentiment around the stock has been almost evenly split between bullish and bearish.

Snap

Snap is up 106% since March 23rd, although on a year-to-date basis the stock is up a more ‘modest’ 35%.

Our signals tools are sending bearish signals, however. Although the consensus rating amongst analysts is a “Buy”, at $19.91 the average price target represents a downside of -14%. Hedge funds dropped five million shares in the last quarter, and company insiders sold $206 million worth of shares.

MGM Resorts

MGM Resorts has been hit hard by the coronavirus pandemic, with its stock down 44% for the year. However, traders who bought it at the depths of the March sell-off would have netted a return of 103%.

The average price target amongst analysts of $17.92 represents an upside of just 1%, and the stock has a “Hold” rating. Hedge funds scooped up 48 million shares in the last quarter, while company insiders bought $24.5 million worth of the stock.

Spirit Airlines

SAVE is another stock that is down heavily on the year, but has surged from the March low. Since the market bottomed out, Spirit Airlines has recovered 102%, although it remains down -51% since January 1st.

Analysts rate the stock a “Hold”, although it has an average price target 11% higher than the current price of $20.56. Hedge funds trimmed their holdings by one million shares in the last quarter.

XRay Live Talks: Trading in the time of Coronavirus

XRay

This week we invited our traders to take part in a live conversation with our chief market analyst Neil Wilson.

This was the first of our Live XRay Talks, our virtual trading roundtables and Q&As where we give traders the chance to meet the experts and discover what’s really going on in the markets.

Neil took questions on both the economic and market impact of Covid-19, the reaction of central banks and what could still be to come, OPEC production cuts, the green revolution and more.

Watch it here:

We’ll be bring our traders plenty more of these exclusive events, where you can get your questions answered by veteran traders and market professionals. Our next session takes place on July 4th with Andrew Barnett, senior trader at Trading Mastery.

Make sure you’re signed up to Marketsx for your chance to join our next Live XRay Talk.

How to open a free MT4 or MT5 account on Markets.com

You can open a free MT4 or MT5 account with Markets.com, and it only takes a couple of minutes.

Open a free MT4 or MT5 account in the Marketsx trading platform

Here’s how to open an MT4 or MT5 account from within the Marketsx online trading platform.

 

Login to Marketsx

Once you’re logged in, head to the My Account dropdown menu in the top righthand corner of the trading platform. Click on My Accounts.

Create new account

Click on the Create New Account tab on the left side of the My Accounts popup, and select the type of account you want from the dropdown menu.

Set your preferences

Use the other dropdown menus to choose between a real or demo account, set your account currency, and choose your leverage.

Start trading with MetaTrader

You can fund your MT4 or MT5 account from within the Marketsx platform using the button next to your account details. You can also launch the MetaTrader Web Trader, or download MetaTrader to use the desktop application.

 

May’s top Blends: Einhorn rises, Corona falls

CFD Trading
Equities

The top performing Blends in May and the latest YTD performance.

May’s Star Performer: Einhorn Blend

David Einhorn led the way in May as global stocks continued their bounce back. The hedge fund boss – founder of Greenlight Capital – enjoyed a strong month as holdings like General Motors and Green Brick Partners rose along with other holdings such as AerCap and Chemours. The Einhorn Blend rose 15% in May but remains down 23% for the year.

 

The second-best performing Blend in May was the Cannabis Blend, which rose almost 14%. Earlier in the month it had been down but recovered strongly in the last two weeks. The blend is flat for the year, at -0.11%. Tilray (40% of the blend by weighting) and Canopy Growth (33%) both rallied in May but remain significantly off the 2018 peak.

Third place goes to the Gerstner Blend, which climbed 12% last month. As the Analyst Recommendation tool shows, the portfolio is made up of a stocks rated as ‘strong buys’ by Wall Street analysts.

As risk appetite improved across the month of May, some of the better performers lagged. Notably, the Corona Blend, which had been doing well, was the only basket to record a fall over the month of May.

The Social Media Blend rose over 5% in May despite the sector attracting the ire of Donald Trump. Twitter, which makes up 10% of the index, came in for the most brutal attack by the president but shares in Facebook (45% weighted) also slipped in the final week of May.

YTD, the leaders remain the ESG, Corona, Crypto and Warren Buffett Blends. Buffett continues to do well despite admitting to ditching airline stocks after a bad call on the sector.

The worst performer this year is the UK High Street Blend, which is hardly surprising given the structural shift in retail coming up against the lockdown measures enacted by the British government which has slashed footfall.

Blends 2020 Leader Board

Blend YTD
ESG 194.01%
Corona Blend 118.86%
Crypto 29.15%
Warren Buffett 28.63%
Ecommerce 26.79%
US Tech 10.04%
Bill Ackman 2.33%
Trade War Winners 2.21%
Cannabis -0.11%
Soros -2.12%
Social media -5.22%
Brexit Winners -6%
Fashion -6.06%
Dogs of the Dow -11.90%
Gerstner -14%
Trade War Losers -14.36%
David Einhorn -23.08%
Icahn -24.11%
Brexit Losers -30.06%
Oil and Petroleum -32.32%
High Street -35.88%

How trading stocks works

Trading stocks involves buying and selling the stock of publicly-listed companies in order to potentially profit from favourable changes in price. There are thousands of stocks to choose from, across dozens of industries, but while each stockfundamentals may differ, there are some basic principles that govern how trading stocks works. 

How Trading Works in the Stock Market 

Stocks, also known as shares or equities, grant the holder ownership of a fraction of the company issuing the stock. Investors in Amazon own a small piece of Amazon. This grants them rights, such as the right to vote on certain business decisions. Some shareholders also receive quarterly payouts called dividends. But traders buy and sell stocks primarily to benefit from the changes in price. 

There are two ways that stocks are traded: via exchanges, or over the counter (OTC). 

Likely the most well-known example of how trading works in the stock market is the New York Stock Exchange (NYSE). As the name implies, this is an exchange-based method of trading, where buyers and sellers come together on the trading floor to place trades. 

Brokers take orders from their clients and pass these on to the traders on the floor, the floor traders then find a trader who wants to make the opposite trade (so a trader looking to buy Facebook shares needs to find a trader whose client has Facebook shares they are looking to sell) and conducts the trade. 

Many exchanges, like the Nasdaq, conduct trades electronically, matching buyers and sellers without them having to physically meet. 

Over the counter trades are those made directly between parties, without an exchange acting as a market maker between them. Trading stock CFDs with Marketsx is an example of an OTC trade. 

Trading Stock CFDs 

Contracts for Difference (CFDs) are derivatives that track changes in price of an underlying asset. A stock CFD will move up if the underlying stock appreciates in price, and move down if the same asset depreciates. 

Trading stock CFDs has many advantages over buying and selling shares directly. Trading CFDs allows you to short a stock as well as going long. They also allow you to take much larger positions in a company than your capital may allow thanks to leverage, especially considering the stock of some companies trades for hundreds, or even thousands, of dollars per share. 

Remember, leverage can increase your losses as well as your profits. 

Making a stock trade 

Trading stocks on the Marketsx platform is a straightforward process. Search or browse for stocks to trade, then click on the Buy or Sell button above the stock chart. You can also open a position by right-clicking on the chart. 

The order ticket contains all the information you need to confirm the trade. Set the desired trade size and click the button to place the trade. The order ticket also allows you to set stop loss and limit orders.

When your position reaches a desired level of profit, or losses are too high, you can close the position with the click of a button.

Warren Buffett dumps airlines, Berkshire posts biggest quarterly loss

CFD Trading
Equities

Is Warren Buffett losing his touch? Stock in Berkshire Hathaway, the legendary company founded by the Oracle of Omaha, is down 22% year-to-date, compared to a 12% loss for the S&P 500. It’s the company’s worst performance against the benchmark index in a decade.

On top of that, earnings released over the weekend revealed a near $50 billion loss in the first quarter; the company’s biggest ever.

According to Berkshire Hathaway, up until the coronavirus pandemic hit the US proper many of its businesses were showing year-on-year revenue and earnings growth, but that quickly changed in April:

As efforts to contain the spread of the COVID-19 pandemic accelerated in the second half of March and continued through April, most of our businesses were negatively affected, with the effects to date ranging from relatively minor to severe,” the company said in its regulatory filing.

Chart: Berkshire Hathaway (blue) performance versus the S&P 500 cash market (purple) since January 1st 2020, Marketsx.

Turbulence for airline stocks hits Berkshire earnings

Buffett announced during the company’s AGM that he had sold off his stakes in American Airlines, Delta Airlines, Southwest Airlines and United Airlines. “Our airline position was a mistake,” Buffett told investors during the virtual gathering, after disclosing that he sold the airline stocks for $6.1 billion, much less than he paid for them.

The news sent AAL down 7.7%, DAL down 6.4%, LUV down 5.7%, and UAL down 5.1% on Monday. Buffett put the blame for the sale squarely on the pandemic, stating that he believes the companies are well-managed, but that “the airline business… changed in a very major way” and that the future was much less certain.

Even if passenger volumes do return to normal within the next few years, airlines could  struggle with the repercussion of taking billions of dollars in loans as part of the US government’s bailout package. As well as repaying these, the Treasury now has warrants to acquire their shares at a discount if it chooses to exercise the right.

Why isn’t Berkshire Hathaway snapping up cheap stocks?

Berkshire had a record $137 billion in cash at the end of the first quarter. The company’s shareholders have been wondering why the Oracle of Omaha hasn’t taken advantage of the huge drop in stock prices on the back of the COVID-19 pandemic. By March 23rd the S&P 500 was down 35% from the February 19th record.

Buying while others are selling is a classic Buffett move, after all. One of his (many) famous suggestions is to be greedy while others are fearful. He used the financial crisis to snap up shares in major US banks like Bank of America and Goldman Sachs for cheap.

But currently he doesn’t “see anything that attractive”. He told investors during the AGM that Berkshire is “willing to do something very big” should the right opportunity come along.

I mean you could come to me on Monday morning with something that involved $30, or $40 billion or $50 billion,” Buffett said. “And if we really like what we are seeing, we would do it.”

Three ways to trade like Warren Buffet with Marketsx

Looking to trade like the Oracle of Omaha? Marketsx gives you plenty of options. You can take a position on CFDs for Berkshire Hathaway stock or some of Buffett’s favourite companies, like Apple, Bank of America, and Coca-Cola individually.

You can also trade our Warren Buffett Blend – a hand-picked basket of stocks designed to mimic the performance of the Oracle of Omaha’s portfolio. Bet with or against him with a single position.

Trade the race for a COVID-19 vaccine with our new Corona Blend

CFD Trading

Scientists across the globe are racing to pull off an incredible feat – reducing the time it takes to develop a vaccine from years to months. 

Our new Corona Blend allows you to trade a basket of the top stocks directly linked to the search for a COVID-19 vaccine. There are currently over 70 potential vaccines in development – the Corona Blend focusses on seven companies who are well positioned to lead the race. 

Johnson & Johnson (JNJ) 

Pharmaceutical giant Johnson & Johnson is facing stiff competition across the globe, but the company has a distinct advantage: it has two backup vaccine candidates in case its primary candidate encounters unexpected setbacks during trials. JNJ also has immense production capabilities – the company reckons it could produce 900 million doses by April 2021. 

Our Analyst Recommendations tool gives Johnson & Johnson a 24% upside, but the consensus rating is a ‘Hold’. Hedge funds sold almost 100 million shares in the last quarter, while company insiders sold nearly 3.5 million in the last three months.

Pfizer (PFE) 

Pfizer, working in conjunction with BioNTech, has just received clearance to start running trials of its vaccine candidate in Germany. If all goes to plan the two companies expect to be able to produce millions of vaccines by the end of the year.  

Pfizer is currently trading below the year’s opening levels, but analysts and hedge funds are bullish on the stock. PFE has a 17% upside and hedge funds bought 65 million new shares in the previous quarter. 

Gilead Sciences (GILD) 

Gilead has seen some huge gains on the back of news surrounding its ‘remdesivir’ antiviral drug, but the stock remains highly volatile. Overall our stock sentiment tools are showing positive signals – company insiders and hedge funds have been snapping up the stock, although GILD is already trading around the consensus price target from Wall Street analysts. 

Regeneron Pharma (REGN) 

REGN is up nearly 50% this year, with recent gains coming on the back of hopes for a ‘cocktail’ of antibodies that may help protect health workers from COVID-19 until a vaccine is created. Many companies are attempting to produce such an elixir, but Regeneron is well-positioned to lead the search. 

Hedge funds added a total of 1 million REGN shares to their portfolios in the past quarter. Sentiment amongst top money managers is positive, while analysts rate the stock a ‘Buy’ and see a 10% upside. 

Sanofi (SNY – NYSE) 

Sanofi has partnered with GlaxoSmithKline to accelerate production of its vaccine, and the two companies are hoping to start clinical trials in the latter half of 2020. According to Sanofi CEO Paul Hudson, the company will be able to produce 600 million doses of the vaccine in 2021 if everything goes to plan. 

Moderna Inc (MRNA) 

Moderna stock jumped 10% on April 20th as investors began piling into pharmaceutical companies. The company’s mRNA-1273 vaccine candidate will receive $483 million in funding for Phase II and III clinical trials from the US Biomedical Advanced Research and Development Authority (BARDA). 

MRNA has a ‘Strong Buy’ rating according to our Analyst Recommendations tool, although the average price target is 19% below the current trading price. 

Vir Biotechnology (VIR) 

Vir recently announced that it was joining forces with GlaxoSmithKline to combat COVID-19. GSK stated that it will make a $250 million equity investment in Vir, and that some ‘promising antibody candidates ‘ will be ‘accelerated into phase 2 clinical trials within the next three to five months’. 

Vir Biotechnology currently has a ‘Neutral’ rating, according to our Analyst Recommendations tool. The average target price is $31, barely above the current price. Estimates range from $20 up to $41.  

Trade the vaccine trials with the Corona Blend 

Will one of these companies be the one to develop a working coronavirus vaccine, or will an outsider beat them to it? Trade the Corona Blend long or short to capture the performance of these top pharma stocks. 

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