30. March 2021 | 08:20 CET
REVEZ, GameStop, Tencent: Watch out! Things are getting interesting here!
The "stock market" ecosystem faces new challenges every day. A few weeks ago, the artificial short squeeze in GameStop stock led to the most extensive trading dislocations in US stock market history. Even the Senate had to initiate a special investigation into the events, and today, we are still missing final clarification of how it can come to 1000% deflections. Gigantic turnovers of over 2500 trades per minute brought even modern trading systems to the limits of feasibility. If we had not experienced true leaps in digitization in recent years, everything would probably be collapsing now under the flood of data and remote work requirements.
time to read: 3 minutes by André Will-Laudien
Born in Munich, he first studied economics and graduated in business administration at the Ludwig-Maximilians-University in 1995. As he was involved with the stock market at a very early stage, he now has more than 30 years of experience in the capital markets.
REVEZ - Solid business away from the same-day hustle and bustle
For REVEZ Corporation, there are no headline numbers that can't be managed. The Company has been building a powerful tech hub in Singapore with a dual focus on innovation in digitalization and industrial automation (IoT) for years. REVEZ cares deeply about its clients because the REVEZ development team hears even the most challenging customer requirements.
Today, any problem can be introduced into an intelligent software solution, and the processes then run in a standardized and automated manner. They replace tedious and error-prone manual activities, and once the systems are installed, everything runs much more cost-effectively. REVEZ's customer base appreciates this all-round service, which is currently still limited to the Asia-Pacific region. Work is currently underway to expand to other parts of the world.
REVEZ's portfolio also includes cybersecurity and artificial intelligence, i.e. systems that can derive rules from their interactions and build a human-like decision matrix. The topic of man and machine is part of industrial automation under the keyword IoT (Internet of Things), more commonly known in Europe as "Industry 4.0". REVEZ appears with different brands, but the individual solutions work together synergistically. Integrated solution packages transform brand experiences, support communication and interaction, and significantly improve productivity within a company.
The debt-free SaaS Company has a market capitalization of SGD 40 million and is also listed in Germany. REVEZ is an attractive small-cap with great IoT imagination!
GameStop - The next wave of gamblers rolls through
What's going on with GameStop stock again? Constantly whipsawed back and forth by long and short overhangs, it's been heading massively higher again since Friday. In recent weeks, it once looked as if the speculation in this title could subside. Now, the management spoke up and added a shareholder letter to the latest financial report, in which they explicitly warned of the highest volatility in their own stock. However, new female COO Jenna Owens emphasizes that this volatility has nothing to do with the Company's operational processes.
The quarterly report reveals that GameStop only turned over USD 2.1 billion in the last quarter of 2020. Below analyst estimates but still stationary sales; however, it also confirms the massive downward trend of retail stores. Because the chain already shows the ninth quarter in a row that the revenues on-site instead fall. On an annual basis, only USD 5.1 billion was earned and the Company lost approximately USD 230 million after taxes.
By comparison, as recently as 2015, GameStop was still scraping the 10 billion mark in revenue, but today, unfortunately, even the stock's enormous increase and popularity does not help. The question and answer session in the investor conference was then quickly ended. It did not revolve around the Company, but purely around the wild price swings, which the management can not comment on. Thus, the obscure fact remains that GameStop is too expensive by at least a factor of 10 but obviously cannot fall.
Tencent Holdings - Now it is hitting Pony Ma's financial division, too
Pony Ma is battling Chinese regulators over the existence of Tencent's financial platform. For months, Beijing has shown a crackdown on the most powerful Internet companies in the country. The reason: the businesses have taken on an international life of their own and can no longer be efficiently monitored by the control-addicted government.
So the outlook for Tencent's holding companies and its USD 120 billion financial services business is taking a massive turn for the worse. China's top regulators are scrutinizing everything from Tencent's insights into the online behavior of more than a billion people to an investment portfolio that includes hundreds of startups. Jack Ma, the founder of Alibaba, can tell you a thing or two about this approach, as his Ant Group has not yet been able to obtain a stock market listing either.
The uncertain outcome of these wide-ranging investigations will also overshadow Tencent's huge gaming division when the Company reports its quarterly results on Wednesday. Ma met with officials from the government's Office of Market Regulation earlier this month to discuss Tencent's compliance. Antitrust watchdogs gathered information and investigated possible monopolistic practices on the WeChat platform.
Due to the accumulation of negative news, Tencent's share price has now corrected from EUR 80 to EUR 66, but growth is over 40% even without adding the financial platform. In this respect, a further buckling of the price on Wednesday could prove to be a medium-term buying opportunity.