We share weekly commentaries with investors on stocks in our strategies that have appreciated or dropped more than 15% in a day during the course of the week. We hope you find this commentary useful.
Beike (BEKE), Meituan (3690 HK), Pinduoduo (PDD), and Boss Zhipin (BZ)
Beike (BEKE) and Meituan (3690 HK) declined more than 27% and 17% on Monday and Tuesday, respectively, while Pinduoduo (PDD) and Boss Zhipin (BZ) both rebounded by 15% on Wednesday after having sold off less than 15% on Monday. Chinese stocks sold off broadly after the central government confirmed its directive, among others, to turn after school tutoring companies into non-profit entities. The degree of regulatory intervention has unnerved existing investors and weakened new investor appetite in Chinese stocks. ARK’s investment team has been monitoring closely both political activity in China and the continued political tension between the United States and China. The Chinese government’s actions against any entity challenging its power, especially those with sensitive personal and other data, is impacting our scoring system, particularly the ‘thesis risk’ associated with most pure play Chinese technology companies and the revenue base of non-Chinese companies with business in China. While we believe that China still is placing a high priority on innovation, in the short-term its government appears to be more focused on equalizing the distribution of wealth and opportunities as it moves to address negative demographic trends with policy measures like its new “three child policy”. ARK’s investment team will continue to monitor this rapidly evolving situation, evaluating the mid- to long-term impact of China’s moves on various companies and securities.
The Grayscale Bitcoin Investment Trust (GBTC), a grantor trust tracking bitcoin’s market price, soared24% on Monday after bitcoin hit $40,000 for the first time since May. Bitcoin’s recovery appears to have been catalyzed by Elon Musk, who has alleviated concerns about the impact of mining on the environment: he noted a positive shift toward renewables as energy sources for bitcoin mining during a conversation with Cathie Wood and Jack Dorsey at last week’s “The B Word” live keynote session.
注: Grayscale Bitcoin Investment Trust（GBTC）是追踪比特币市场价格的赠与人信托，在比特币自5月以来首次达到4万美元后，周一飙升24%。 比特币的复苏似乎受到了埃隆-马斯克的催化，他缓解了人们对采矿对环境影响的担忧：他在上周的 “The B Word “现场主题会议上与凯西-伍德和杰克-多尔西的对话中指出，比特币采矿正在向可再生能源积极转变，作为能源来源。
LendingClub (LC), a fintech offering a range of online financial products and services, traded up 48% on Thursday after releasing second quarter earnings and trouncing consensus expectations. On the heels of acquiring a bank, the company posted sequential revenue growth of 93%, driven by higher origination fees and net interest income.
Pinterest (PINS) traded down 18% today after reporting a sequential decrease in monthly active users (MAUs). Although it did report that MAUs dropped 24 million sequentially to 454 million, Pinterest also reported a 125% year-on-year increase in revenue and higher-than-consensus metrics across revenue, average revenue per user (ARPU), and earnings. Although we believe reopening dynamics in a post-COVID environment may have contributed to the lower retention of users, continued growth in its mobile user base highlights Pinterest’s high level of engagement in a mobile-first world. Pinterest is a social media platform company that encourages users to discover from each other items of interest or sources of inspiration, suggesting that it could become a prime beneficiary of the shift toward social commerce.