China Fund News reporter Jin Youzhi
On the last day of January, technology stocks finally made a big turnaround!
Although the whole of January was "bleak", on the last trading day of January, many technology stocks suddenly rebounded sharply. Tesla surged 11 percent, Apple soared $460 billion, Netflix surged 11 percent, and the Nasdaq also rose more than 3.4 percent.
Chinese stocks also collectively "boiled", Pinduoduo rose 12, Ali and Jingdong rose 9%, and the three giants soared by 290 billion. Weilai soared 17%, and the new energy "Three Musketeers" soared a total of 66 billion. In addition, in addition, iQiyi, Bilibili, Shell, Zhihu rose more than 15%, Weibo, Tencent Music, Futu, 360 Digital Science rose more than 10%.
"Wooden Sister" also ushered in a big rebound, and the flagship fund soared 9.46% overnight.
Tesla soared nearly 11%
Market capitalization soared by $580 billion
Tesla, which plunged 11% last week due to earnings reports, finally ushered in a big rally this week.
On Monday, Eastern Time, Tesla's stock price opened high and went high, closing up 10.68%. On the same day, Tesla's market value soared by $90.8 billion, or about 580 billion yuan.
Over the weekend, Credit Suisse analyst Dan Levy raised Tesla's rating from neutral to outperform the broader market with a price target of $1,025, which greatly boosted investor confidence.
Levy said the plunge in growth stocks in the last month has created an attractive buying point for Tesla. Given its strong fundamentals ahead, we believe Tesla has seen an attractive entry point.
He also expects Tesla's sales to grow further and profit margins to continue to strengthen.
In addition, Tesla also has good news in terms of production and sales, and a netizen broke the news that more than 5,000 Tesla cars are parked in the port of Shanghai waiting for export.
According to the InsideEVs website, on the morning of January 30, EST, the Tesla fan and investor Sawyer Merritt posted some photos of Tesla Model Y and Type 3 cars parked in Shanghai's Luchao Port on Twitter. The cars are ready to be loaded on cargo ships for export. Others said that loading had already begun yesterday.
Merritt said he counted the number of cars in stock to about 5,200. He also noted that there were many cars blocked by buildings, so he couldn't accurately count their numbers. Merritt estimates that the batch has at least 5,500 or more Tesla vehicles waiting to be exported.
This means that even in the last month of 2021, when the epidemic and supply chain pressures are co-existing, Tesla's production and delivery show no signs of slowing down.
Last week, Tesla released a financial report showing that it withstood the impact of the epidemic and the global core shortage crisis throughout last year and achieved a sharp increase in production and sales. According to its financial report, in 2021, Tesla's global production and sales exceeded 936,000 vehicles, an increase of 87% year-on-year. Among them, the Model 3 and Model Y produced a total of 906032 vehicles, an increase of 99.15% compared with 2020, and the delivery of 911242 units, an increase of 105.9% over 2020. A total of 24,390 Model S and Model X were produced and 24,980 were delivered.
Wood sister 5 billion bottom
Ark Capital founder "Wood Sister" Cathie Wood's move to copy the bottom of Tesla has also provided strong confidence for the market.
Fund Jun has previously reported that from January 11 to 25, Wood Sister's fund has bought a total of 780,000 shares, calculated by the average price of $999, costing about $800 million (about 5 billion yuan).
Wood sister Wood also said at a recent external event that it is using market volatility to gather on some high-certainty varieties, and believes that after the market correction period, these companies will perform well.
She also pointed out that it is necessary to not only see the immediate fluctuations, but also to take advantage of the opportunity of valuation decline, and pointed out that her fund should have a 5-year investment goal and a long-term investment vision.
Big tech stocks "boiling"
Apple surged 460 billion, Netflix surged 11%
As Tesla soared, technology stock leader Apple also rebounded.
On Monday, Apple rose 2.61 percent, its market value soaring $72.5 billion, or about 460 billion yuan.
Big tech stocks, including Apple, rose on Monday. Meta is up 3.83%, Netflix is up 11.13%, Amazon is up 3.89%, Microsoft is up 0.88%, and Google A is up 1.81%.
Since the beginning of the year, the pressure on technology stocks to rise sharply in US Treasury yields has fallen a lot. However, with the continuous decline in valuation, there are more and more voices of "bottom reading".
Sarah Hunt, a fund manager at Alpine Woods Capital Investors, said the Fed's hawkish stance led to a drop in tech stocks, which provided investors with the opportunity to buy on dips.
He also suggested that for investors, the investment timeline must be quite long. "Some companies have been doing pretty well for a long time," he said. Some stocks have been suppressed recently, and I think they're all well valued. Some chipmakers have a price-to-earnings ratio of about 15 times. Some chip device makers are also now cheaper than before. ”
He also added that the Nasdaq market rose on Friday. Part of the reason is that Apple says some supply chain problems have eased. I think it's reassuring because some of the issues they're worried about are getting better.
"Sister Wood" turned over
Flagship fund surged 9.46% overnight
Since the beginning of 2022, technology stocks have suffered heavy setbacks, and the performance of The Wood Sister's flagship fund has also been miserable. On Friday, ARKK hit an intraday low of 64.35, down nearly 32 percent from its 2021 close.
But on the last trading day of January, ARKK turned around driven by a sharp rise in technology stocks. On the same day, the ARKK price opened higher and went higher, closing up 9.46%.
But after Monday's rally, the fund still fell 20.26 percent in January.
Recently, there are also market funds in the bottom of the "wooden sister". Although Ark Capital's flagship fund, the ARK Innovation ETF (ARKK), fell more than 20 percent in January and prices fell back to mid-2020 levels, investors poured $168 million into ARK in the past week, bringing the fund's net worth to $11.8 billion, According to Factset data.
Wood's ARKK fund is known for investing in technology stocks, and market funds betting on it also means that more and more investors are "indirectly" bottoming out technology stocks.
AS OF JANUARY 27, ARKK's number one heavy stock is Tesla, the second heavy stock is Zoom, and the fifth largest heavy stock is cryptocurrency trading platform Coinbase.
Chinese stocks soared en masse
Alibaba, Pinduoduo, and JD.com soared a total of 290 billion
Following the sharp rise in Hong Kong technology stocks, technology Chinese stocks also rose sharply on Monday.
On Monday, the market value of the three e-commerce giants soared by $45.7 billion, or about 290 billion yuan.
Among them, Pinduoduo rose 12.8%, and its market value rose by $8.5 billion. Alibaba surged 9 percent, sending its market capitalization up $28.6 billion. JD.com rose nearly 8 percent, with its market value soaring $8.6 billion.
In addition, iQiyi, Bilibili, Shell, zhihu rose more than 15%.
Weibo, Tencent Music, Futu, 360 Digital, and Vipshop will rise by more than 10%.
New energy vehicles also rose sharply
Weilai soared 17%, and the "Three Musketeers" soared 66 billion
On Monday, driven by Tesla's sharp rise, the Chinese stocks of new energy vehicles also rose collectively. The market value of the "Three Musketeers" soared by a total of $10.429 billion, or about 66.3 billion yuan.
Among them, Weilai Automobile rose 17.27%, and its market value rose by 5.741 billion US dollars.
On the news side, the market's long-awaited WEILAI ET5 model has new news, and the first batch of production line verification samples of the model have officially rolled off the production line in Hefei. According to fast technology news, ET5 is the second car released by Weilai on NIO Day 2021, positioned lower than ET7, the design is sporty, the price of the whole vehicle is 328,000 yuan before the subsidy for the purchase of 75kWh battery models, and the price of 386,000 yuan before the subsidy of 100kWh battery models is scheduled to start delivery in September.
In terms of power, the ET5 will be equipped with a front permanent magnet synchronous motor and a rear induction asynchronous motor power system, with a maximum output of 360kW, a peak torque of 700N·m, and an acceleration of 4.3 seconds per 100 kilometers. It is equipped with a 100-degree battery pack with a range of more than 700km and a 150-degree battery pack with a range of more than 1000km.
In addition, Xiaopeng and Ideal also rose sharply, Xiaopeng rose more than 9%, and its market value rose by $2.5 billion. Ideal rose nearly 9 percent, with market capitalization up $2.188 billion.
The Dow surged 400 points
Nasdaq up more than 3.4%
Led by a sharp rise in technology stocks, the US stock market, which performed dimly in January, ushered in a reversal on the last trading day.
As of the close of the last trading day in January (31st EST), the Dow rose 406.39 points, or 1.17%, at 35,131.86 points; the Nasdaq rose 469.31 points, or 3.41%, at 14,239.88; and the S&P 500 rose 83.70 points, or 1.89%, at 4515.55 points.
Last week, when the performance of us stocks was sluggish, the bottom money entered. On Friday, the largest ETF tracking the Nasdaq 100 index welcomed an inflow of $1.36 billion, bringing the fund's total withdrawal this year to $6.6 billion.
Goldman Sachs data shows that buying after the S&P 500 fell 10% from its highs, the median return for the following year was more than 15%, and the market has gained 76% of the times in all similar cases since 1950. In addition, the bank expects the S&P 500 to reach 5,100 points by the end of the year, up 21% from last week's intraday low.