What to watch
Tencent Music Entertainment Group: TME is a joint venture between Chinese tech firm Tencent and Spotify to develop music streaming for the Chinese market, where its apps have more than 100 million paying subscribers. The firm, which has a US listing, has gained 28.8% in 2020 so far, behind the 63% and 83% gains posted by Tencent and Spotify themselves year-to-date. TME delivers its Q3 earnings update on Tuesday, after a recent run of quarters that have come in below expectations. Currently, Wall Street analysts heavily lean towards a buy rating on the stock.
Lyft: After rival Uber reported earnings last week that showed faster gains in its food delivery business than its ride business, Lyft will deliver its own earnings update on Tuesday. Lyft is only just beginning to dip its toes in the food delivery business, which has been reflected in its share price performance versus Uber. Year-to-date, the firm has lost 12% despite a 50% plus rally over the past week, versus Uber’s 62% year-to-date gain. On Monday, Lyft stock jumped 26% on the back of the Pfizer Covid-19 vaccine news, which is certain to be a key focus of its earnings call. Analysts are expecting the firm to deliver a $0.93 per share loss for Q3.
Apple event: Following the launch of its new iPhone, iPad and Apple Watch models, Apple is set to unveil its new Mac computers on Tuesday. The new laptop and desktop computers will be the company’s first powered by its own chips (built using ARM’s architecture), which are expected to be more akin to the chips found in its iPhone than a typical PC. This shift marks the end of an area for Apple, which has used Intel’s chips in its products for more than a decade.
Crypto corner: Dr Doom concedes bitcoin may be store of value
Famed economist and Bitcoin doubter Nouriel Roubini has conceded that bitcoin may be a store of value in a u-turn which comes amid the latest strong rally for the cryptoasset.
Roubini, nicknamed “Dr. Doom” for his gloomy predictions, has been a long-standing critic of bitcoin. In a Senate hearing in October 2018, he called cryptoassets “the mother of all scams and bubbles.”
However the economist, who famously predicted the housing bubble crash of 2007-2008, has reportedly changed his views, at least to a certain extent.
During an interview with Yahoo Finance on Friday, he was asked what he thought of bitcoin now that it just had a bull run. After reiterating his stance that it is not a currency, Roubini said: “It may be a partial store of value because it cannot be so easily debased, because there is at least an algorithm that decides how much the supply of bitcoin raises over time.”
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