“You have a new technology that people are still trying to understand and not fully understand,” Jacob, also chairman of Jacob Funds, told MarketWatch in an interview on Monday. Still, a big then-and-now difference remains between the two.
“Cryptocurrency doesn’t really drive the stock market today. The Internet drove the stock market in the late 1990s. We might get that far, but we’re not there yet, ”he said.
Jacob, whose funds seek companies with innovative technology and a broad investment moat, says they are approaching the crypto space with the same balance as Chinese internet stocks in the early 2000s, which were then considered risky. “We know we want the exposure, but we also want to be extra careful about the risk that we introduce into the portfolios,” he said.
One game he likes is Voyager Digital VYGR,
VYGVF,
a top position in both the Internet Fund and Jacob Discovery Fund JMCGX,
It is a small Canadian cryptocurrency broker with robust technology and an impressive management team. Co-Founder and Chief Executive Steve Ehrlich is a former E * Trade executive, while another co-founder, Oscar Salazar, was the founding architect and chief technology officer of ride-hailing technology group Uber UBER,
More than 2,000% in 2021, shares are up 382% this year so far.
Another stake in those Jacob funds is Silvergate Capital SI,
a specialized bank that focuses on the digital currency industry.
It is a “traditional bank that decided the crypto market needed an exchange network that can handle 24/7 assets,” said Jacob. The bank is known for its Silvergate Exchange Network, an instant settlement network. Because the existing financial system in this area is slow, smaller, agile players remain better able to provide what is currently needed. Shares are up 68% so far this year, after gaining 367% in 2020.
Cryptos are a “dangerous playground to play in for sure … but it is also an area where there are exciting companies that will benefit greatly from this and should be around for a long time or eventually be acquired,” said Jacob.
Looking at income and cryptos
Equity Futures ES00,
YM00,
NQ00,
are under pressure after Monday’s tech-driven Nasdaq COMP,
to sell. Shares in Tokyo NIK,
tumbled 2% amid rising COVID-19 cases. Elsewhere, bitcoin BTCUSD,
continues to drift south, but Dogecoin DOGEUSD,
rises on “Doge Day” – a loosely organized attempt to push the cryptocurrency to $ 1 that started as a joke.
Pharmaceutical giant Johnson & Johnson JNJ,
and cigarette maker Philip Morris PM,
reports pre-opening earnings, with streaming giant Netflix NFLX,
the big headliner after the closing.
Read: The various revenue effects of the pandemic will be seen in airline technical reports
Shares of International Business Machines IBM,
climbing ahead of the open, after the tech giant topped Wall Street estimates, predicting a return to pre-COVID-19 growth levels.
Shares of United Airlines UAL,
collapsed after losing more than $ 1.3 billion at the start of the year, with Wall Street forecasts missing, but the airline promised new international routes for countries open to travelers. That is, if they can find one, because the State Department is now warning Americans not to visit 80% of the world because of COVID-19 risks. India has just put its capital under a week-long lockdown amid rising cases.
Canadian national CNI,
confirmed a $ 33.7 billion cash and stock offer to purchase rival Kansas City Southern KSU railroad,
A tweet from Tesla TSLA,
Chief Executive Elon Musk appeared to be increasing the stock of the late trading electric car manufacturer. “Datalogs recovered so far show Autopilot was not engaged and this car did not purchase FSD [Full Self-Driving] he said on Twitter TWTR,
Elsewhere, an article in China’s state-run Xinhua News Agency said Tesla should do more to gain 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 passed a measure that makes it easier for cannabis-related companies to access financial services.
Apple AAPL,
organizes a virtual event on Tuesday – ‘Spring Loaded’. Analysts expect the tech giant to roll out newer, faster iPads. Also check out MarketWatch’s new quarterly review of Apple’s key metrics.
Random reads
After raising doubts about COVID-19, rocker Ted Nugent says he has it.
Tyrannosaurs may have hunted in groups like wolves, new research has shown.
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