Citi’s chief US equity strategist Tobias Levkovich makes future predictions about market trends amid positive news from COVID.
Barstool Sports founder Dave Portnoy said at a news conference on Wednesday that he is supporting a new exchange-traded fund that will be launched on the New York Stock Exchange on Thursday.
BUZZ ETF uses artificial intelligence to track the top 75 big-cap stocks every month, based on positive conversations on social networks. The fund will have shares with a market capitalization of more than $ 5 billion.
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Buzz Holdings founder Jamie Wise said the Buzz Index came about seven years ago when the company launched a research project related to the growing prevalence of online communities and individual investors looking for a forum to share and collaborate on ideas.
“The feeling has always been something that fascinated me personally,” said Wise. “So my thinking at the time was, ‘Well, if more and more people are going to go online, share their investment ideas and train themselves to make better investment decisions, there must certainly be some value to that information and wouldn’t it be? Great for understanding collective conversation ‘. “
From there, Buzz Holdings saw considerable growth in data where the company could measure sentiment based on the social media posts it was watching.
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Portnoy said he was approached by Buzz Holdings five years ago, after the company’s algorithm ended positive conversations on social media around PENN National Gaming. Portnoy noted that Buzz’s algorithm, which was licensed to investment firm VanEck’s Vectors Social Sentiment ETF, outperformed the S&P 500 by 40% in 2020.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| PENN | PENN NATIONAL GAMING | 117.73 | -7.40 | -5.91% |
Last year, Penn National paid $ 163 million for a 36% stake in Portnoy’s Barstool Sports. Penn National’s sports betting app is named Barstool. The agreement also provides for Penn National casino sports betting across the country to be renamed “Barstool” and, in a post-pandemic world, casinos would feature Barstool stars hosting pre and post-game sports betting whenever major sporting events to return to normal for sports fans
Currently, the top ten stakes in BUZZ include DraftKings, Twitter, Ford, Facebook, Amazon, American Airlines, Apple, Advanced Micro Devices, Netflix and Tesla.
AFTER ROBINHOOD GAMESTOP TRADING FRENZY, THE SEC COULD EXAMINE PENNY’S STOCK LISTING STANDARDS
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| DKNG | DRAFTKINGS | 65.75 | -2.83 | -4.13% |
| TWTR | TWITTER, INC. | 70.86 | -2.81 | -3.81% |
| F | FORD MOTOR CO. | 12.17 | -0.38 | -3.03% |
| FB | FACEBOOK, INC. | 255.41 | -3.59 | -1.39% |
| AMZN | AMAZON.COM, INC. | 3,005.00 | -89.53 | -2.89% |
| AAL | AMERICAN AIRLINES GROUP, INC. | 22.17 | +0.73 | + 3.40% |
| AAPL | APPLE, INC. | 122.06 | -3.06 | -2.45% |
| OMG | ADVANCED MICRO DEVICES, INC. | 80.86 | -3.27 | -3.89% |
| NFLX | NETFLIX, INC. | 520.70 | -27.12 | -4.95% |
| TSLA | TESLA, INC. | 653.20 | -33.24 | -4.84% |
In a second video posted on Twitter on Wednesday, Portnoy clarified the misconceptions surrounding the initial announcement.
“In the first place, I am not being paid to market it, I am not being paid to talk about it,” said Portnoy. “I received an equity stake in BUZZ and then this license for VanEck, the ETF staff.”
The move comes after a recent stock market spurred by a group of retail traders and amateur investors on Reddit’s WallStreetBets speculative investment discussion forum. Investors came together to buy the options for the video game retailer GameStop, causing the company’s stock to rise, which hurt short sellers.
Volatility has prompted brokerage apps like Robinhood to restrict trading on GameStop and other securities targeted by retail investors and amateurs. The restrictions were crushed by both Wall Street and Main Street – with Portnoy leading the charge. The sports media mogul who became a day trader criticized Robinhood in January for changing the rules “overnight, without telling anyone.”
The decision by Robinhood and others was later reversed, but Portnoy beat Robinhood co-founder Vlad Tenev, arguing that he should be thrown into prison and that the investment platform is ‘finished’ for what he has done. Robinhood’s action triggered an audience with the Chamber’s Financial Services Committee and opened an investigation by the Department of Justice investigating possible market manipulation.
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Portnoy explained that BUZZ will not pursue volatile stocks like GameStop or AMC. Don’t even try to manipulate the market with the ETF. But he added that “suits” that are concerned about a potential market bubble as a result of the recent volatility need to realize that internet conversations about Wall Street and the stock market will not end.
“It’s getting bigger and bigger, COVID pushed in, I pushed in, but it’s not going anywhere,” he said. “Just because you are talking about shares of companies on social networks, it does not mean that you are not talking about good companies that will exist for years and, like, you buy and keep in this portfolio for months and months and months. “
He stated that there is a misconception that those “talking” about actions on social platforms like Reddit are talking strictly about “exaggerated action” when that is not the case.
“You can talk about real companies and real things that they are doing and why you like them,” said Portnoy. “We are taking the discussion to where it all takes place, using this, which is a large body of information, to find the 75 best that the algorithm finds.”
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Portnoy said he believes in the algorithm and that someone needs to harness the power of social media to make better investment decisions. He noted that he previously trusted only three people he worked with: Mike Kerns of Chernin Group, Barstool Sports CEO Erika Nardini, and Penn National Gaming CEO Jay Snowden.
“If the person sitting in front of me is not someone I trust, and I mean, I have to trust him instantly, like trust, first vibe, yes, I trust you, and then at every step along the way, yes, I trust you, yes, I trust you, yes, I trust you, I will not do business with you, “said Portnoy. “Not in a million years.”
While recognizing that the ETF is different from investing in stocks like Penn National Gaming, he explained that he would not put his reputation at risk if he did not think BUZZ could succeed.
“The biggest thing I have is credibility,” said Portnoy, so when he puts his “name on something … people believe me and know that I’m telling the truth. So I would never sacrifice that for something I use I think that will work. I have to trust people. “
Noting that “there are no guarantees in life,” Portnoy said he believes BUZZ will make investors make money. “I’m going to put my own money into it … But the only thing I can guarantee is that you are going to get good people who are going to work hard and it’s a good idea and I believe in the Internet.”
As of Wednesday, the ETF had a cumulative rate of return of 15.53% and a one-year return of 78.88%