Zacks Investment Ideas feature highlights: SPY, Riot Platforms, BlackRock, IBIT, Coinbase and MicroStrategy

Zacks Equity Research
·5-min read

For Immediate Release

Chicago, IL – June 5, 2024 – Today, Zacks Investment Ideas feature highlights S&P 500 Index ETF SPY, Riot Platforms RIOT, BlackRock BLK, iSHares Bitcoin ETF IBIT, Coinbase COIN and MicroStrategy MSTR.

Bitcoin: The Road to $100K

Bitcoin, the world's first and largest cryptocurrency, has outpaced every other asset class – by a lot. Bitcoin is up a mind-boggling 17,355.7% while the S&P 500 Index ETF is up 223.3%. Though the run may seem long in the tooth to amateur investors, the data points to much higher prices.

Bitcoin's Supply & Demand: The Perfect Storm

The Halving (Supply)

Earlier this year, the highly-anticipated Bitcoin halving event occurred. This is built into Bitcoin's monetary policy, increasing scarcity (supply) by reducing the number of new Bitcoin entering the market and reducing the reward for Bitcoin miners like Riot Platforms. Historically, Bitcoin investors reap rewards post halving. Halving events occurred in November 2012, July 2016, and May 2020. One year later, Bitcoin's price more than doubled each time (and much more).

Bitcoin ETFs Spur Demand

While supply will be more constrained, demand for Bitcoin is near-insatiable after the launch of several spot Bitcoin ETFs in the U.S. BlackRock,the world's largest asset manager, achieved $10 billion in assets under management in it's iSHares Bitcoin ETF far faster than any ETF launch in history – a sign of immense demand.(crypto exchange giant Coinbase is the custodial exchange).

Governments, Companies Adopt Bitcoin

Governments, States Move Toward Bitcoin Holdings

Nayil Bukele, the young president of the Latin American nation El Salvador took the bold step of buying Bitcoin for his country and making it legal tender. After some early turbulence, the bold step is paying dividends for Bukele. El Salvador has an average price ~$40,000 on its Bitcoin holdings (Bitcoin is currently trading near $70,000). As a result, Bukele was victorious in attaining another presidential term.

El Salvador's success is influencing asset allocators in the U.S. Last month, the State of Wisconsin Investment Board purchased $99 million worth of the IBIT ETF.

Public Companies Move to "Bitcoin Standard"

In late 2020, software firm MicroStrategy became the first publicly traded company to adopt Bitcoin as a reserve asset. Though the strategy was controversial at first, the results are tough to argue with. MSTR shares are up more than 1,000% over the past five years.

Bitcoin: Hedge on Reckless Government Spending

Amid the COVID-19 pandemic and the support for foreign wars like the War in Ukraine, government spending has exploded over the past decade. Why is increased government spending bullish for Bitcoin? Many investors see Bitcoin as a hedge against reckless spending and inflation because of its fixed supply and built-in monetary policy.

Bitcoin's Big Base

Bitcoin is emerging from a multi-year base structure. Earlier this year, theGold ETF emerged from a similar base structure and trended strongly to the upside. As the Old Wall Street adage goes, "the longer the base, the higher in space."

Trump & Biden Court Crypto Voters

Joe Biden and Donald Trump, the leading candidates to be the next president of the United States, have not always been pro crypto. However, each candidate has pivoted their message to a more pro crypto stance in an effort to court young crypto enthusiasts. Friendlier regulation and a more open-minded view toward the crypto industry should be a bullish catalyst.

Bottom Line

Bitcoin is the top performing asset over that past decade and has gone on a meteoric run. Nevertheless, several data points suggest Bitcoin will eclipse $100,000 by year-end.

Why Haven't You Looked at Zacks' Top Stocks?

Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.

Today you can access their live picks without cost or obligation.

See Stocks Free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

BlackRock, Inc. (BLK) : Free Stock Analysis Report

SPDR S&P 500 ETF (SPY): ETF Research Reports

MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report

Riot Platforms, Inc. (RIOT) : Free Stock Analysis Report

Coinbase Global, Inc. (COIN) : Free Stock Analysis Report

iShares Bitcoin Trust (IBIT): ETF Research Reports

To read this article on Zacks.com click here.

Zacks Investment Research

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • Russia's war-driven economy is so hot that the World Bank upgraded it to a 'high-income country'

    Russia's trade rebounded by nearly 7% last year, while activities in the financial sector and construction grew by 6.6% and 3.6% respectively.

  • 6 family office funds tied to Singapore launder case got tax breaks

    Six single family office funds linked to a S$3 billion money laundering case in Singapore have received tax incentives from the Monetary Authority of Singapore.

  • Paramount, Skydance Merger Is on Again in $2.4 Billion Deal

    But NAI's controlling shareholder Shari Redstone might be setting off a bidding war ahead of Sun Valley The post Paramount, Skydance Merger Is on Again in $2.4 Billion Deal appeared first on TheWrap.

  • A-G’s report: Mara Inc’s inefficient operations lead to RM286m loss

    KUALA LUMPUR, July 4 — Government-linked Mara Inc has incurred RM286.30 million in losses due to inefficient business op...

  • Fed officials touted 'modest further progress' on inflation at last meeting: Minutes

    Fed officials offered encouragement about the path of inflation while meeting in June, but they made it clear they didn’t expect to lower rates until they saw more evidence of a downward trend.

  • BP CEO Halts Offshore Wind Projects, Enacts Hiring Freeze

    BP's new CEO Murray Auchincloss has implemented a hiring freeze and paused new offshore wind projects, shifting the company's focus to oil and gas to address investor concerns over its energy transition strategy.

  • Shell (SHEL) Hits Pause on Major Biofuels Plant in Europe

    Shell (SHEL) remains committed to achieving its net-zero emissions target by 2050 despite abandoning several renewable projects to focus on its more profitable ventures, primarily in oil and gas.

  • Mondelez (MDLZ) Navigates Hurdles Through Portfolio Strength

    Mondelez's (MDLZ) focus on core categories and portfolio strength place it well in a challenging and dynamic operating environment.

  • SLB and TotalEnergies Ink 10-Year Digital Solutions Partnership

    SLB and TotalEnergies enter into a 10-year collaboration to co-develop scalable digital solutions, focusing on enhancing energy resource access and efficiency through advanced AI technologies.

  • Bitcoin Sinks Under $61K as One Trader Sticks to $150K Prediction This Year

    U.S.-listed ETFs ended a five-day inflow streak with $13 million in net outflows on Tuesday.

  • London stocks, pound climb as Britons vote

    London's stock market and the pound advanced versus the dollar Thursday as Britons voted in a general election expected to be won by the centre-left and main opposition Labour party."Today's UK election looks unlikely to cause too many shockwaves given just how resounding the Labour party victory is expected to be, with markets feeling optimistic over the potential change at Downing Street," said Scope Markets analyst Joshua Mahony.

  • Super Micro Computer (SMCI) Up 194.5% YTD: Is it Worth Buying?

    Super Micro Computer (SMCI) is making strides in the AI infrastructure market, which makes the stock worth a watch.

  • US market exceptionalism is approaching its dramatic denouement

    The investment focus naturally shifts to the US on Independence Day but more so than ever this year as the completion of elections here on Thursday and in France at the weekend moves the political spotlight across the Atlantic too.

  • Japan's Nikkei 225 index hits a record high close of 40,913.65

    Japan’s Nikkei 225 stock index closed Thursday at a fresh record high of 40,913.65, pushing past its most recent record close set in March on heavy buying of automaker and technology shares. The index's all-time high during intraday trading is 41,087.75, set on March 22. The gains tracked an overnight rally on Wall Street, where the S&P 500 and tech-heavy Nasdaq also hit fresh records.

  • Is America saving enough for retirement?

    Despite high inflation, Vanguard found that Americans set aside funds for retirement at the highest rates ever.

  • Stocks Often Pop in July: Time to Buy These 4 ETFs?

    July is historically an upbeat month for the S&P 500 - here are some of our top ETF picks to ride the heat wave.

  • Nvidia is the best way to play AI for the 'next 10 years'

    Nvidia (NVDA) shares are falling back today following the chipmaker's recent market high. Rosenblatt Securities senior research analyst Hans Mosesmann joins Market Domination to explain why he is not worried about the stock's bumpy previous weeks. Mosesmann has issued the highest price target for Nvidia on Wall Street. Mosesmann has a long-term view, explaining that the sale pressure is negligible when one considers that Nvidia is going to be the "best way to play AI for the next 10 years." He adds that Nvidia is not just a semiconductor company anymore but a platform that is "all things AI." For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This article was written by Gabriel Roy

  • How to rebalance your portfolio for the second half of 2024

    As Wall Street heads into the second half of the year, Mitlin Financial founder and author of "Financial Planning Made Personal" Lawrence Sprung joins Wealth! to discuss the markets' (^DJI,^GSPC, ^IXIC) momentum and how it should inform your investing decisions. While past performance does not determine future performance, Sprung notes that historically, when there has been a strong first half, the momentum continued for the rest of the year. He believes the election will be a catalyst as it typically enhances market returns in an already strong year. He also explains that a possible interest rate cut could be another catalyst that drives higher returns. He encourages investors to review their portfolios mid-year and rebalance if necessary. Financials have been performing well in a higher interest rate environment and could tumble once a rate cut is initiated. Meanwhile, the energy sector will be sensitive to geopolitical events, which Sprung explains, "We can't time, but we can try to anticipate." For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Melanie Riehl

  • What is a 'Winnie the Pooh' economy and is the US in one?

    Pick a new storybook because it's not a Goldilocks economy anymore; it might be a "Winnie the Pooh environment" now, at least according to Sanders Morris Harris chairman George Ball. Ball joins Market Domination to explore the balance being struck between the Federal Reserve's inflation policies and American business growth.  Fed Chair Jerome Powell is "pleased with the trajectory of inflation, and business is very pleased with its ability to earn good and growing profits in a higher interest rate climate than many people thought," Ball elaborates. "It's not Goldilocks, but it's a good backdrop for both business and the economy right now." At the European Central Bank (ECB) Forum on Central Banking on Tuesday, Powell stated the Fed has "made a lot of progress" in lowering inflation and is "getting back on a disinflationary path." Ball continues by commenting on the stock market's (^DJI, ^IXIC, ^GSPC) growth and the bond market's outlook ahead of the 2024 election. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Luke Carberry Mogan.

  • Why Paramount is back at the negotiating table with Skydance

    Shares of Paramount Global (PARA, PARAA) are rallying on revived merger talks with Skydance. According to reports, Skydance has reached a preliminary agreement to buy Shari Redstone's National Amusements, the controlling shareholder of Paramount. If that deal goes through, Skydance would then begin the merger process with Paramount Global. Bloomberg Intelligence senior media analyst Geetha Ranganathan joins Morning Brief to discuss the news and what it means for the media giant's future. "With Skydance, what we've constantly seen is that they are proposing a deal which basically favors Shari Redstone, who is the controlling shareholder, favors her over everybody else. So it favors her over class A shareholders as well as class B shareholders. And that is something that has the potential for attracting a lot of lawsuits. And that is something that has made Shari Redstone extremely wary, and so it looks like this time around, there is much stronger indemnification language in the agreement that should or could potentially protect her from a lot of the upcoming litigation," Ranganathan explains. Paramount has faced a rocky 6 months in its attempts to merge with Skydance, and Ranganathan believes that this deal comes with unique pressure: "The one thing that we have to remember is that the longer and longer this whole process kind of drags out, the less and the less value that the assets will have. And I think Shari Redstone realizes that she's been publicly negotiating for six months. That's something that's highly unusual in the media landscape, in any M&A deal for that matter, so for her to come that far and then just drop everything again, it created huge overhang on the stock. And I think she's realized that, which is why she's back at the negotiating table." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Melanie Riehl