It has been a long week so far.
But at least the markets seem to be on the up and up. The Dow ended up 0.83%, the S&P 500 up 0.82% and the Nasdaq up 0.92%.
Let's Chat About the B-Word
These are technically two things that I want to focus on.
In the conference, Musk explained that Tesla is not the only company of his to hold Bitcoin.
"I own Bitcoin, Tesla owns Bitcoin, SpaceX owns Bitcoin," Musk said.
And there is a possibility that Tesla will begin to accept Bitcoin again so long as Bitcoin mining becomes more sustainable.
“I want to do a little more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50% and that there is a trend toward increasing that number. If so, Tesla will most resume accepting Bitcoin,” Musk said.
Not only were Musk's comments the IV that helped give Bitcoin a leg up on Wednesday, July 21. Bitcoin extended its gains following Musk's comments, initially going above $32,000. At the time that I'm writing this, it's just slightly below the $32,000 level.
But, somewhat shockingly--to me at least--it didn't really boost Tesla's share price.
When I heard the comments, I expected at least a little spike, but aside from a move within a couple of dollars of its $655 or so closing price, Tesla really didn't move.
It makes me wonder if Bitcoin bulls felt scorned by the previous back and forth and if they're waiting for Tesla to actually make bitcoin payments happen again before eyeing the stock.
A Little More Musk...
Outside of company stock Musk noted that he only owns "three meaningful assets" including Bitcoin, Ether, and Dogecoin, but that he owns "much more Bitcoin than ether or doge."
It's unclear how much Bitcoin SpaceX owns.
"The Doge community is somewhat irreverent, obviously and has great memes. And loves dogs. I love dogs and memes and, um, it doesn't take itself too seriously," Musk responded to a question about why he likes dogecoin.
"The most ironic and entertaining outcome would be that the cryptocurrency that was started as a joke [Musk laughed here] to make fun of cryptocurrencies ends up being the lead cryptocurrency," he said, laughing.
Cathie Wood, who was on the panel alongside Jack Dorsey, CEO of Twitter and Square, also looked amused when Musk answered.
Maybe this is where I should be a serious journalist and point out the flaws of doge, as others have. And don't get me wrong--there are flaws and investors should be cautious. But, also, what a lighthearted comment from a billionaire who could sink a decent chunk of pocket change into a crypto that could be worthless tomorrow and not blink an eye.
I mean really, I understand now why my cousins and friends have put hundreds of dollars into a cryptocurrency based on a popular meme.
OK, I'll stop being snarky. I really did find Musk's amusement funny, but then I did think about the money that has flowed into doge simply because Musk has a habit of tweeting about the crypto.
But the smile faded from my face as I realized that potentially millions of Musk's 58 million+ followers on Twitter could be taking him seriously and buying doge just because their favorite billionaire likes it.
I'm not saying don't buy doge either, because I'm not going to lie to y'all--I've thought about it, too.
What I am saying is buy stocks and cryptos because you want to and not because someone with a net worth of $160.7 billion and an extremely low tax rate thinks that it would be laughable if dogecoin became the most valuable cryptocurrency.
And, while I'm being the Debbie downer here, make sure you have an investing plan. Even if doge is a joke, approach it with some sort of due diligence.
Though, I do have to say I greatly appreciate the honesty from Musk. He knows what he's doing and whether you agree with him or not--he's going to be honest about his intentions.
The Death of FAANG?
By now, that's probably a question that you're tired of hearing, but it's one that holds some value.
With the release of Netflix's (NFLX) - Get Netflix, Inc. (NFLX) Report earnings last night, investors are once again left to wonder if the streaming company really has a space in the acronym. Though, if we're being frank here, the acronym would need a total rework without Netflix.
So, what's your take?
Stephen Guilfoyle, a Real Money contributor, discussed his thoughts with me after the earnings report Tuesday. Surprise, surprise: He thinks that Netflix and maybe one other name in FAANG aren't lifting their fair share of weight in order to be left with some of the biggest tech companies in the world.
This is something that I will also be weighing in on, alongside my colleagues Kevin Curran and Chris Versace in a Real Money webinar focused on FAANG on Thursday, July 22 at 11:30 am E.T.
But I want to give you a sneak peek here, because I have thoughts following the earnings release from Netflix on Tuesday evening.
I'm not sure I'm ready to fully believe in Netflix's gaming strategy. But I think that the bare-bones outline that we got in the report itself.
"We’re also in the early stages of further expanding into games, building on our earlier efforts around interactivity (e.g., Black Mirror Bandersnatch) and our Stranger Things games. We view gaming as another new content category for us, similar to our expansion into original films, animation and unscripted TV. Games will be included in members’ Netflix subscription at no additional cost similar to films and series. Initially, we’ll be primarily focused on games for mobile devices. We’re excited as ever about our movies and TV series offering and we expect a long runway of increasing investment and growth across all of our existing content categories, but since we are nearly a decade into our push into original programming, we think the time is right to learn more about how our members value games," Netflix stated.
“The success of this initiative is about great games, fundamentally,” said Netflix's COO and CPO Greg Peters in the earnings interview. “We think we can deliver more entertainment value through [games].”
And taking that at face value: that sounds great. Definitely puts some distance between Netflix and the concerns around the saturation of the streaming space. However, the video game sector isn't exactly open for the taking. It's a tough sector to break into.
So I'm curious to see the rollout. But, as an avid player of video games on consoles and Mac, I honestly need to see some actual proof and not words before I start to think that Netflix can outrun the bears here.
Watch Real Money’s Real Talk: Debating the Death of FAANG, Thursday, July 22, 2021, at 11:30 am E.T.