In today’s edition:

  • What China Says and What China Does
  • Decline of Nintendo Switch 
  • Quarterly results from Coinbase and Block (Cash App)

Market Snapshot

On Wednesday, the Nasdaq Composite experienced gains as investors turned to technology stocks following a less alarming inflation report than anticipated. While the overall market saw some gains, stocks tied to the economy, known as cyclical stocks, traded lower. 

Market Snapshot - 2023-05-10

Data as of market close 10th May 2023


Source: AlphaScreener

What China Says and What China Does

When it comes to China, it’s important to pay attention to what it does rather than what it says. For example:

On COVID-19

  • What it said: Chinese state media claimed there was “no clear evidence of human-to-human transmission” in 2019 amid escalation of cases and fear of contagion. Once the outbreak became public, Chinese government officials began a coordinated disinformation campaign to obscure the origins of the virus and underrepresented the death rate. Later, they tried to downplay the pandemic by claiming new cases were in decline in March 2020.
  • What it did: In June 2020, China introduced its “Zero COVID” policy, implementing stringent rules to eradicate signs and transmission of COVID. Entire cities like Wuhan, Jilin, and Xi’an were placed in quarantine. To combat high case counts, new hospitals were being built in record time.

On the war in Ukraine

On foreign businesses

  • What they did: Last month, Chinese authorities began cracking down on foreign businesses with heightened scrutiny and inspections. The government’s efforts to control the narrative and limit information collected by foreign companies have raised worries that many topics are becoming off-limits, hindering the business community’s ability to gather sufficient information.

News Summaries

Nintendo (NTDOY) announced a 22% decline in last year’s sales for its flagship console, the Nintendo Switch. This is a marked contrast to the Switch’s successful launch and performance, which helped Nintendo recover from the failure of the Wii U console. Releasing new games in the near future may generate a short-term surge in demand. However, reversing a sales slump has always been challenging for console manufacturers, and Nintendo is not an exception.


Coinbase (COIN) and Cash App (SQ) announced good results in a recent earnings report,  leaving investors bullish. Coinbase beat expected revenue, reduced its net loss, and saw a 14.3% growth in user base, causing its stock to soar. Meanwhile, Cash App reported $931 million in profits, with $50 million coming from selling BTC to customers. Bitcoin revenue also saw an impressive increase of 25% year-over-year, leaving investors feeling like they struck crypto gold.

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Our team members at Vested may own investments in some of the aforementioned companies/assets. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for an investor’s portfolio. Note that past performance is not indicative of future returns. Investing in the stock market carries risk; the value of your investment can go up, or down, returning less than your original investment. Tax laws are subject to change and may vary depending on your circumstances.

This article is meant to be informative and not to be taken as an investment advice, and may contain certain “forward-looking statements,” which may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “potential” and other similar terms. Examples of forward-looking statements include, without limitation, estimates with respect to financial condition, market developments, and the success or lack of success of particular investments (and may include such words as “crash” or “collapse”). All are subject to various factors, including, without limitation, general and local economic conditions, changing levels of competition within certain industries and markets, changes in interest rates, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors that could cause actual results to differ materially from projected results.

This video is meant to be informative and not to be taken as an investment advice and may contain certain “forward-looking statements” which may be identified by the use of such words as “believe”, “expect”, “anticipate”, “should”, “planned”, “estimated”, “potential” and other similar terms. Examples of forward-looking statements include, without limitation, estimates with respect to financial condition, market developments, and the success of or lack of success of particular investments (and may include such words as “crash” or “collapse”.) All are subject to various factors, including, without limitation, general and local economic conditions, changing levels of competition within certain industries and markets, changes in interest rates, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors that could cause actual results to differ materially from projected results.

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