It’s a strange thing, but it may well be the ascendant idea: the big thing happening in the stock market is… stocks.
This is the first time we have a true-blue retail-trader-driven bull market since the late 1990’s – the so-called “dotcom bubble”. While the question is up for grabs as to whether or not the current market represents a “bubble”, there’s no question that this has become something driven by mom-and-pop retail investors.
The notion of “mom and pop” may be a bit off as data has started to show that the lion’s share of new investor money pouring into the market is coming from millennials and gen-z market participants, who are set to inherit nearly $70 trillion in capital over the next 10 years – a windfall that has already gotten started according to Morgan Stanley data.
In any case, the recent booming squeezes in stocks like GME, BB, and AMC, and the sudden existential fight to survive by multi-billion-dollar funds like Melvin Capital and Maplelane lay bare the emergent power structure.
All of that suggests we may see stocks tied to market access and resources for market participants take a leadership role. It’s ironic, but it makes perfect sense if you give it a moment of thought. We saw the same thing in the late 90’s with stocks like ETFC and AMTD.
With that in mind, we take a look at a handful of the most interesting names in the space right now, including: Up Fintech Holding Ltd (NASDAQ:TIGR), FDC Tech Inc (OTCMKTS:FDCT), and CME Group Inc (NASDAQ:CME).
Up Fintech Holding Ltd (NASDAQ:TIGR) bills itself as a leading online brokerage firm focusing on global investors. The Company’s proprietary mobile and online trading platform enables investors to trade in equities and other financial instruments on multiple exchanges around the world.
The Company offers innovative products and services as well as a superior user experience to customers through its “mobile first” strategy, which enables it to better serve and retain current customers as well as attract new ones. The Company offers customers comprehensive brokerage and value-added services, including trade order placement and execution, margin financing, IPO subscription, ESOP management, investor education, community discussion and customer support.
Up Fintech Holding Ltd (NASDAQ:TIGR) recently announced that the Company engaged KPMG Huazhen LLP (“KPMG”) as the Company’s independent registered public accounting firm, to replace Deloitte Touche Tohmatsu Certified Public Accountants LLP. The change of the Company’s independent registered public accounting firm was approved by the Audit Committee of its Board of Directors.
According to the release, DTT has served as the Company’s independent registered public accounting firm since 2018, and the reports of DTT on the Company’s consolidated financial statements contained no adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principle. The Company is working closely with DTT and KPMG to ensure a seamless transition.
If you’re long this stock, then you’re liking how the stock has responded to the announcement. TIGR shares have been moving higher over the past week overall, pushing about 66% to the upside on above average trading volume. Shares of the stock have powered higher over the past month, rallying roughly 180% in that time on strong overall action.
Up Fintech Holding Ltd (NASDAQ:TIGR) pulled in sales of $38.3M in its last reported quarterly financials, representing top line growth of 150.9%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($104.9M against $0).
FDC Tech Inc (OTCMKTS:FDCT) provides innovative and cost-efficient financial technology and business solutions to OTC Online Brokerages and cryptocurrency businesses.
The Company’s products are designed to provide a complete solution for all operating aspects of customer’s business, including but not limited to trading terminal, back office, customer relationship management, and risk management systems. The Company provides business and management consulting, which includes management consulting and the development of customers’ B2B sales and marketing divisions.
FDC Tech Inc (OTCMKTS:FDCT) most recently announced that it had added PayPal – the leading payment gateway – to its Condor FX Pro Trading Platform. Consequently, FX/Crypto traders can fund their trading account with small to large payments instantly and securely while keeping transaction fees lower and following all regulatory policies, and adhering to strict international Anti-Money Laundering laws.
According to the release, FX/Crypto brokers widely offer PayPal to fund trading accounts. PayPal connects the trader’s forex account with their bank card or bank account. PayPal is used in over two hundred countries and has 346 million active accounts worldwide. PayPal’s announcement in October 2020 to allow customers by early 2021 to buy, sell and hold bitcoin and other virtual coins using the digital payments company’s online wallets may enable Cryptocurrency as a funding source for funding FX/Crypto trading accounts worldwide. The trend appears positive for FX/Crypto brokers as Cryptocurrencies tend to be volatile, making them attractive to speculators and margin traders.
The stock has been on fire over recent days, up something like 85% in that time.
FDC Tech Inc (OTCMKTS:FDCT) managed to rope in revenues during the company’s most recently reported quarterly financial data. However, the main commercial activity for the company is likely just starting up and the important numbers still lie ahead. The company appears to have the potential for significant traction, and we are clearly ramping up a retail investment driven market environment, which favors providers of tools and resources that cater to that context. And that makes FDCT worth a closer look.
CME Group Inc (NASDAQ:CME) trumpets itself as the world’s leading and most diverse derivatives marketplace.
The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world’s leading central counterparty clearing providers, CME Clearing.
CME Group Inc (NASDAQ:CME) recently announced that BrokerTec, a leading provider of electronic trading platforms and technology services in fixed income markets, has migrated its U.S. Treasuries benchmark trading and U.S. Repo platform to CME Globex.
“Going forward BrokerTec clients will benefit from the world-class technology available on the CME Globex platform, allowing them to leverage new features and functionality,” said John Edwards, Global Head of BrokerTec. “As clients look to more efficiently manage their risk, this migration will facilitate greater opportunities across execution, analytics, clearing and settlement for listed interest rate derivatives, cash government bonds and repos – all in one place.”
The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 5% in that timeframe. CME Group Inc (NASDAQ:CME) pulled in sales of $1.1B in its last reported quarterly financials, representing top line growth of -15.4%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.4B against $0).
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