The Real Reason These Revenues Are Rising - InvestingChannel

The Real Reason These Revenues Are Rising

“We make a living by what we get, but we make a life by what we give.” ~ Winston Churchill

Dear Trader,

Welcome to today’s edition of Wall Street Connected.

It’s earnings season and new all-time highs are being made – but they’re not stock prices.

The all-time highs being made right now are how much revenue digital advertising companies were able to generate according to their recent earnings reports, as internet retail demand reached all-time highs.

With consumers either choosing to or having no choice but to stay-at-home through the fourth quarter of 2020 due to the global pandemic, physical retail outlets lost a tremendous amount of business, while internet retailers took their market share and made out like bandits.

This company is targeting the year’s hottest healthcare trends (sponsored)

Internet retailers also had to spend a tremendous amount of money in order to report the positive revenue numbers which many have in the fourth quarter of 2020, and we’ll discuss why later in today’s issue.

Today, we’re noticing internet retail ranking #11 on top searched industries by financial professionals with $1B+ in assets under management…

In order to be successful, internet retailers must locate potential consumers who are interested in the internet as a starting point.

One could make a strong argument that the ideal location to find potential customers who are willing to conduct internet retail purchases is the internet itself.

This means companies such as Amazon (AMZN) and Microsoft (MSFT) need to go through well-established digital advertising companies such as Facebook (FB) and Alphabet (GOOGL) to bring their brands and products to the attention of potential customers, who they are able to locate on the internet.

And do you know how companies such as Facebook and Alphabet make the majority of their money?

Being paid to promote digital advertisements for other companies.

Perhaps you’ve seen an advertisement on YouTube or Instagram in the past…

Alphabet owns YouTube, and Facebook owns Instagram, which increases the amount of potential customers companies such as Amazon and Microsoft can reach through these well-established digital advertising companies.

With the global pandemic continuing to dictate how consumers are either willing or able to conduct retail transactions, one can only wonder if digital advertising companies will report more new all-time highs in revenue through 2021.

TrackStarIQ Data

Here are some highlights from FA searches this week…

RANKTOP SEARCHES BY FAs (Surging Traffic) This Week [STOCKS]TOP SEARCHES BY FAs w/ AUM>$1B (Surging Traffic) This Week [STOCKS]TOP INDUSTRY SEARCHES BY FAs (Surging Traffic) This Week [EQUITIES]TOP INDUSTRY SEARCHES BY FAs w/ AUM>$1B (Surging Traffic) This Week [EQUITIES]
1RVIVGMEManagement servicesBiotechnology
2KOSSBNGOServices-Personal ServicesSpecialty Retail
3USAQGTLLAgricultural ServicesEntertainment
4PTTNPBIGroceries, general lineCommunication Equipment
5HMNYNCTYServices-AdvertisingCutlery, Handtools & General Hardware
6TGHIBBDetective and armored car serviceDiagnostics & Research
7BDGRHOFVRadiotelephone CommunicationBusiness Services
8PBIOITRMServices-Miscellaneous Amusement & RecreationBiotechnology
9DHCEXPRMortgage FinanceOther Industrial Metals & Mining
10CBDLTGHIFabricated Rubber Products, NECSpecialty Chemicals
11GTXOAMRNBook publishingInternet Retail
12TXCBAUPHAgricultural ChemicalsSoftware – Infrastructure
13HVCWJAGXHeavy construction, miscBiotechnology
14CLRAMTXLife insuranceElectronic Gaming & Multimedia
15VPERVXRTConfectionersInformation Technology Services
16LDKBRKTCutlery, Handtools & General HardwareBiotechnology
17VTNRWFCFurnishingsServices-Computer Programming, Data Processing, Etc.
18FIZZQEPCCommercial PrintingBusiness services, misc
19PBINAKInformation retrievalSemiconductors
20KWBTAMZNRetail-Food StoresPharmaceutical preparations

What We’re Reading:

  1. S&P 500 shrinks from record highs
  2. White tiger bleg
  3. Small cap chemical company up big after lab analysis

What We’re Watching:

Square (SQ) has become a popular payment process in recent months as the company provides a unique-to-market product.

This could explain why shares of Square’s stock nearly quintupled in 2020.

Learn more about Square in this clip…

What We’re Liking (Sponsored):

-InvestingChannel

Related posts

Peers Reducing Beta in Uncertain Times

InvestingChannel

Can this Stock Ease Your Stress?

InvestingChannel

Advisors Looking East and Going for Gold

InvestingChannel

Market Showing Some Crox

InvestingChannel

Tech Earnings, Elections and Covid Oh My!

InvestingChannel

Commodities at the Forefront as Elections Loom

InvestingChannel