Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Amazon

Crazy StocksMy ThoughtsStocks

The Apple Car and the GM Bolt Are Opportunities for the Battery Company Tesla

Musk intends to compete with the utility industry as well as the auto industry. He’s already competing with oil companies; Tesla even operates filling stations. Now Tesla intends to be your electric company as well as your car company.

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Long Ideas

Amazon’s Revenue Is Fast approaching $100 Billion

That makes Amazon one of the five largest retailers in America, larger than Target (NYSE: TGT), which reported a TTM revenue of $73.7 billion on Oct. 31, 2014; Walgreens Boots Alliance (NASDAQ: WBA), which reported a TTM revenue of $77.62 billion on Nov. 30, 2014; and Home Depot (NYSE: HD), which reported a TTM revenue of $81.71 billion on Oct. 31, 2014.

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Long Ideas

How Costco’s Memberships Generate Float

Costco, on the other hand, can use the float from its memberships for almost anything it wants to. That’s good news for investors because Costco generated $768 million in membership fee revenue in the fourth quarter of 2014, according to The Wall Street Journal. Costco’s float is growing too – its membership fee revenue grew by 7% during the fourth quarter.

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Good Stocks

Alco’s Demise Reveals Kroger’s Incredible Ability to Discount

Walmart and Target certainly have their work cut out for them if they want to maintain their positions in the retail market. Safeway will have even more work to do if it wants to become a credible rival to Kroger.

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You Missed It

Musk Is Still Involved in the Hyperloop Wants to Build Test Track

A high-speed ground transportation system like Hyperloop could be enormously profitable if somebody actually built it. A customer for it would be United Parcel Service (NYSE: UPS), which reported a TTM revenue of $57.31 billion on Sept. 30, 2014, a $2.28 billion increase over September 2013, when it posted a TTM revenue of $55.03 billion.

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My Thoughts

Momentum for Stocks

Many of today’s market rock stars, including Google (NASDAQ: GOOGLE), Amazon (NYSE: AMZN), (Netflix: NASDAQ: NFLX), Apple Inc. (NASDAQ: AAPL) and Costco Wholesale (NASDAQ: COST), are momentum stocks. The theory driving these stocks is that the new markets these companies create are capable of generating unlimited growth.

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Market CommentaryMy Thoughts

Some Predictions for 2015

PayPal will start disrupting the financial services industry as soon as it gets spun off by eBay Inc. (NASDAQ: EBAY). Expect PayPal to unveil its version of Apple Pay in the form of a souped-up Venmo and enter the banking industry, possibly by buying a bank.

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Politics

What is the Cause of Income Inequality?

You see the problem here. Technology is most likely to take the jobs of those members of the working and lower middle classes that make the most. It also takes the jobs that provide them with some upward mobility. This

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