“You have a new technology that people are still trying to understand and do not fully understand,” Jacob, also chairman of Jacob Funds, told MarketWatch in a Monday interview. However, there is still a big difference between the two.
‘Cryptocurrency really does not drive the stock market today. The internet drove the stock market in the late nineties. “We may get to that point, but we are not there yet,” he said.
Jacob, whose funds are looking for companies with innovative technology and wide investment forces, says his approach to crypto-space has the same balance as his outlook on Chinese internet stocks in the early 2000s, which was considered risky at the time. “We know we want the exposure, but we also want to be extra careful in terms of how much risk we pose in the portfolios,” he said.
One play he likes is Voyager Digital VYGR,
VYGVF,
a leading stake in the Internet Fund and Jacob Discovery Fund JMCGX,
It is a small Canadian crypto-currency broker with robust technology and an impressive management team. Its co-founder and CEO, Steve Ehrlich, is a former CEO of E-Trade, while co-founder Oscar Salazar was the founding architect and chief technology officer of technology group Uber UBER.
Voyager shares have risen more than 2,000% so far this year in 2021.
Another interest in the Jacob funds is Silvergate Capital SI,
a specialty bank focusing on the digital currency business.
It is a “traditional bank that has decided that the crypto market needs a stock market network that can handle a 24/7 asset,” Jacob said. The bank is known for its Silvergate Exchange Network, an immediate settlement network. As the existing financial system on this front has been slow, it allows smaller, more skilled players more to provide in what is currently needed. Shares have risen 68% so far this year, after rising 367% in 2020.
Cryptos is a “dangerous playground to play in for sure … but it’s also an area where there are exciting businesses that will benefit greatly from this and that will be long or can eventually be acquired,” Jacob said.
Look at earnings and cryptocurrencies
Stocks DJIA,
SPX,
COMP,
is lower after Monday’s tech-driven sales and investors are spending their flood on earnings this week. Stocks in Tokyo NIK,
tumbles 2% amid rising COVID-19 cases. Elsewhere, bitcoin BTCUSD,
still drifting south, but dogecoin DOGEUSD,
rises on “Doge Day” – a loosely organized attempt to push the cryptocurrency that started as a joke to $ 1.
Pharmaceutical giant Johnson & Johnson JNJ,
and cigarette maker Philip Morris,
reported forecast beat results, with streaming giant Netflix NFLX,
the big head move to the closure.
Read: The air reports state the different earnings effects of the pandemic
Shares of IBM International Business,
climbs after tech giant meets Wall Street estimates and predicts a return to growth levels ahead of COVID-19.
Shares of United Airlines UAL,
is declining because it lost more than $ 1.3 billion at the beginning of the year, because it missed Wall Street forecasts, but the airline promises new international routes for countries open to travelers. That is, if they can find it, as the State Department now warns Americans not to visit 80% of the world because of COVID-19 risks. India has just closed its capital under a week-long lockdown amid serious cases.
Canadian National CNI,
confirmed a $ 33.7 billion cash-and-share bid to buy rival Kansas City Southern KSU,
of which the shares are soaring.
A tweet by Tesla TSLA,
CEO Elon Musk has apparently strengthened the shares of the electric car manufacturer in late trading. “Data logs that have been recovered so far show that Autopilot was not activated and that this car did not buy FSD [Full Self-Driving], ” he said on Twitter TWTR,
Elsewhere, an article in the state-run Xinhua News Agency in China said Tesla should do more to win consumer confidence, following a customer protest at a car show on Monday.
In what appears to be a victory for cannabis companies, the House of Representatives has taken a measure that makes it easier for cannabis-related businesses to access financial services.
Apple AAPL,
presents a virtual event on Tuesday – ‘Spring Loaded’. Analysts expect the technology giant to roll out newer, faster iPads. Also check out MarketWatch’s new quarterly review of Apple’s key metrics.
Random reading
After the doubt about COVID-19, rocker Ted Nugent says he has it.
Tirannosaurs may have hunted in clouds like wolves, new research has found.
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