08/01/2023
๐ฅณ - The Top Equity Trades Of 2022! - ๐ฅณ
Welcome to the top 3 most interesting equity trades from a tumultuous 2022. In what was a historic bear market in almost all global asset classes - stocks, crypto, bonds, and just about everything else was down - these are all on the short side. Let's jump in and take a look!
3.) ๐๐๐ค๐ง๐ฉ ๐ฝ๐๐ฎ๐ค๐ฃ๐ ๐๐๐๐ฉ
Shares of Beyond Meat had a rough 2022.
The fake meat behemothโs losses have widened, and investors have questioned the basic unit economics of the company. As a result, the big brandโs market cap has suffered.
More specifically, the company has seen two quarters of negative gross profit, which means that it is currently costing the company more to make their fake meat products than they get for selling them. And that's even before taking into account marketing, administrative expenses, and more. ๐ฌ
As a result, keen eyed traders would have been able to make a huge gain from the company's poor performance, feasting on the 80% drop in share prices since January 1st.
2.) ๐๐๐ค๐ง๐ฉ ๐๐๐ฉ๐
Meta, formerly known as Facebook, has had a transformational year.
Late in 2021 the company announced its rebrand to Meta, meant to underscore its business shift to Augmented and Virtual Reality. This new focus meant billions of dollars into R&D, and an uphill fight convincing the public that the Metaverse really is the next big thing.
Investors havenโt taken the news well, dumping the stock from more than $300 per share, to, at its lows, $88. Also hurting performance; declining user numbers for its legacy products, and rising interest rates.
3.) ๐๐๐ค๐ง๐ฉ ๐ผ๐๐๐
As monetary tightening continued throughout 2022, many growth stocks got hit as the present value of their future profits shrank inversely with increasing risk-free interest rates.
This was doubly true for high growth companies that had no profits to speak of, like many of the holdings found within Cathie Woodโs flagship ARKK Innovation ETF. Her fund, famou
