Welcome to the weekend! Investors pushed through a busy five trading days, witnessed more short squeezes than we can count, and apparently piled money into Elizabeth Holmes merch. As you wait for your questionable purchases to arrive, what did the stock market do today?
- The S&P 500 closed up by 0.2%
- The Dow Jones Industrial Average closed up by 0.04%
- The Nasdaq Composite closed up by 0.35%
So what else did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? Sell FANG Stocks.
Lawmakers were ready on Friday to deal a big blow to Big Tech. As Axios reported this afternoon, five new bills were just introduced in the House of Representatives. Together, these could fundamentally change how the top companies of Silicon Valley operator.
So what do you need to know? Here are the five bills:
- The American Innovation and Choice Online Act would prevent companies from unfairly disadvantaging their rivals. This feels especially relevant, especially given recent concerns about the Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) app stores. It also ties into concerns about how Alphabet handles internet search results.
- The Platform Competition and Opportunity Act would ban big online players from buying up competition. This feels particularly aimed at companies like Facebook (NASDAQ:FB) who have bought up smaller social media sites (like Instagram). It also comes as Big Tech companies eye creator economy startups like Discord and Clubhouse.
- The Ending Platform Monopolies Act could force Alphabet to divest YouTube. More broadly, it would make it illegal for a company to own a platform and competing services.
- The Augmenting Compatibility and Competition by Enabling Service Switching Act would allow consumers to switch data between platforms.
- The Merger Filing Fee Modernization Act would allow regulators to require higher fees on mergers valued at $1 billion or higher.
How Much Are You Worth?
Cryptocurrencies have promised to change the world, and they just may change how much we are individually worth… or at least how we perceive that worth.
One of the most quickly emerging startups in this space is BitClout, which has backing from billionaires Tyler and Cameron Winklevoss. Essentially, BitClout is the intersection of social media and crypto. Users are represented by their personal coins — and each user has a unique price. This takes into consideration your social capital, including your prominence on existing social platforms and general public sentiment. As of June 9, Elon Musk was the most valuable coin on the platform, worth more than $55,000.
So how does it work? As Caroline Lester wrote for The New Yorker, the white paper explains how you can grow and shrink in value. Using Musk as an example, any success in his space endeavors could see his coin appreciate. More bizarre antics on his Twitter could pressure prices down.
BitClout users therefore can make money investing in figures who they think have a chance of appreciating. Anyone represented by a coin can also play a role, acting as a content creator and engaging with holders. Lester highlights this dynamic with former Bachelor star Matt James, who has taken a great interest in his BitClout profile.
How should investors consider this now? In terms of the mechanics of BitClout, its developers have a few kinks to figure out. But beyond that, this interest in social tokens appears here to say, Black Mirror vibes and all. Social tokens continue to crop up across platforms, allowing content creators, influencers and celebrities to engage with fans in new ways.
Winners, Losers, Honorable Mentions
Winners: One of the biggest winners this week was Orphazyme (NASDAQ:ORPH), a Denmark-based biopharmaceutical company. At one point, shares were up more than 1,300% on no news. Perhaps speculation over a possible June 17 catalyst sparked the gains. Either way, retail investors have a lot to learn from the astronomical rally.
Losers: Cryptocurrencies like Bitcoin (CCC:BTC-USD) and Dogecoin (CCC:DOGE-USD) have continued to suffer. Lingering concerns over energy consumption and regulation are weighing on these cryptos. Plus, news this week that President Joe Biden will tackle the role of crypto in ransomware attacks during the G-7 summit has many on edge. One reason for hope? Many expert traders think we have hit a peak of bearish sentiment, suggesting a recovery rally is ahead.
Honorable Mentions: As crude as they are, PornRocket (CCC:PORNROCKET-USD) and CumRocket (CCC:CUMMIES-USD) deserve honorable mentions. This is because, thanks to unprompted tweets from Elon Musk, these cryptos became instant winners. They have experienced great volatility since then, but they just may offer real utility in a hard-to-bank industry.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Sarah Smith is the Editor of Today’s Market with InvestorPlace.com.