Over the weekend and through Monday, Bitcoin (BTC-USD) lost around 5%. Fortunately, buyers stepped in by late Monday afternoon, sending BTC-USD from a $86,300 day low to $86,639.50.
Bitcoin’s prospects are dimming. Touted as an alternative to the U.S. dollar (USD) as a reserve currency, speculators have second thoughts. Investors are buying up gold (GLD) and silver (SLV) instead. In addition, China is producing far less silver, creating a tight supply condition.
Investors should consider Newmont (NEM), Barrick (GOLD), and Freeport-McMoRan (FCX).
In the communications sector, Warner Bros. Discovery (WBD) reportedly received a binding bid from Netflix (NFLX). Netflix would pay mostly cash, raising debt to come up with the funds. The firm might outbid Paramount Skydance (PSKY) and Comcast (CMCSA). The winning bidder is not guaranteed to close the deal. Regulators may call the merged firm too big.
Tesla (TSLA) is firmly above the $430 level at a $1.43 trillion valuation. Famous short-seller Michael Burry called the EV firm “ridiculously overvalued” in a Substack post released on Sunday. Although the concerns about valuation and the $1 trillion pay package are reasons to be bearish, Burry is not likely to succeed in betting against Tesla. Rivian (RIVN) shares are steady, while Lucid Motors (LCID) has yet to declare bankruptcy. The firms have enough funds to operate at a loss. Tesla is a hot, “meme” stock that benefits from momentum to propel its stock to high levels.
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