My Thoughts on Didi, a Stock Rotation, and Crypto Flipping

i want to know from you would you come

to a fundraiser cruise

with the campaign kids if cruises are

legal and open and assuming that of

course

let us know would you all go oh yeah yes

grace

welcome back everyone to another episode

of the meet kevin report in this video

we're going to start with the dd

on dd and then we're going to get into a

bunch of other things that we got to

talk about as well

like inflation and bitcoin and the

rotation that almost rhymed anyway let's

get to the dd on dd on it take it away

okay dd shushing announces ipo today

the chinese ride-sharing company that

absolutely dominates the ride-sharing

market in china

controlling 91 of it with 550m million

registered users that's nuts and with

that said we've got some

dd on dd auto how much

did these shares sell for of this

company in their last private valuation

they had a 62 billion fundraising round

in august

august okay i just saw on the bloomberg

terminal that this company

had a valuation in the secondary portion

of the private market so it's kind of

like they had a fundraising round for 62

billion

then now people are trading shares

amongst each other for

95 billion dollars that's a lot and it

got me scratching my head like how is

this

the 95 billion dollar company you've got

uber with a market cap of 92 and

you know here i am home bias thinking

come on uber like

we all know uber we don't know dede uh

it's not like how could it have a bigger

valuation than uber

and lyft has a valuation of just 18

billion dollars

but then i started into the dd a little

bit along with all y'all

and we noticed that in 2019 so before

the pandemic

uber had revenues of 13 billion dollars

lyft had revenues of 3.6 billion dollars

this year in 2021 if they're lucky

uber will get to 15.7 bill and 3.1 over

at lyft

yeah well when you go do the dd on dd

they did 6.4 billion in revenue

in just the first quarter which is over

25 billion

in revenue for the year if we annualize

that

which is nuts because if we jump on over

to trying to value a company like this

given that

uber and lyft are losing money uber's

not expected to make money until 2023

lyft's not expected to make money into

late 2022 dd's already making money

we can try to value them using a

market cap to revenue ratio so just kind

of dividing their market cap by their

revenue

and so uber trades right now on their

2021 earnings for about 5.9 times

lyft literally has the same valuation at

5.9 times

feels like an efficient market if you go

over to dd

it's only trading at 3.7 times its

annualized quarter one revenue now

this would be a problem well first of

all this feels very cheap

actually given all the money they're

making and they're profitable actually

seems really good

the problem is we don't know if we can

just take the first quarter

and say traffic for the second third and

fourth quarter are going to be the same

so that would be additional dd that

would have to be done

but if this were true and the valuation

were about 95 billion

with 1.1 billion shares outstanding this

has a share price of about

86 bucks when it comes out but quite

frankly

if those revenues keep cranking this

will easily be over a hundred bucks a

share

the company is also has one billion

invested in it by apple

and uber has a 12.8 percent

share of it as well as softbank owning

21 of it did uber like

shut down all their china stuff they did

they actually sold it all to dd in

exchange for 12 percent of the company

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so they're like we're gonna sell

ourselves to yolo on your company

that's basically the day okay great

awesome uh what's what do we got next so

that's dd that's interesting let us know

in the comments down below

if you're interested in dd or maybe even

a more of a deep dive

on dd that's interesting did they give a

date yet or just mentioned that they're

planning on listing

said uh july july july okay so july

and then on like an american stock

exchange as well so we cross listed oh

yeah it will be

good so uh next up jonathan what

happened to the s p

today the s p woke up from its slumber

today it hit an all-time high kevin

at 42.49 so it was trending in that

direction for the past five days and

today it actually hit that mark

um small caps they're retreating from

the june leaders so

just another indication that it's going

to shift as far as leading the market

alphabet rose past a new buy point and

it moved

very kind of quietly the volume was

below average

and the stock rose less than one percent

it's still too early to write off

if alphabet is a breakout but it's

looking like it might be

well wait so who thinks google is going

to break out according to

the the business standard who wrote this

article the business standard thinks

youtube's going to break out the only

way youtube and google are going to

break out

is if you hit that red subscribe button

and turn it gray

okay so uh i also drew this kind of like

half smiley face here because it's kind

of annoying that the index funds have

been doing so damn well and my tesla's

in the toilet

not bitter at all see i'm smiling

okay what's up with el salvador in

bitcoin what do we got over here

um el salvador's president approved

bitcoin as legal tender he was hoping it

could help speed up money transfers

throughout the country

and also that it could boost financial

inclusion for the roughly 70 percent of

salvadorians who don't have bank

accounts

i think countries adopting crypto as

their own currency would be really

brilliant especially bitcoin because if

you think about it

what would you trust more like the

zimbabwe dollar the new government

has set up you know in the last decade

or would you rather

bitcoin and even though bitcoin's so

volatile it just seems like

it could easily be this like starter

currency

for for countries what happened to

bitcoin after that announcement

uh bitcoin was up roughly eight percent

it's trading at thirty six thousand nine

hundred and thirty five dollars

and ethereum also went up about one

percent to trade at two thousand five

hundred

and forty eight dollars yes almost break

even

on the note of el salvador the imf just

released a statement

that quote the adoption of bitcoin as

legal tender

raises a number of macroeconomic

financial and legal issues

that require very careful analysis so we

are following the developments closely

and we can and we will be continuing our

consultation with authorities

this is the imf speaking in washington

and this is because they say that crypto

assets can pose significant risks

and effective regulatory measures are

very important

when dealing with them so in other words

the imf is really pissed about el

salvador's

move and i have to say is anyone

surprised

anyway let's keep going somebody wrote

bitcoin fud uh who has bitcoin fud let's

hit the fight was that brisk

jonathan yeah jonathan

butt warning everyone fudd warning chill

okay

oh wait the commenters need to have a

very clear warning

what you're about to hear is wall street

foot we're making it very clear the

entire video is not fun

this portion is fetish but we're going

to talk about it

because we got to know about it okay

jonathan hit us with the foot the global

regulator puts bitcoin in the highest

risk category in bank capital who the

hell is the global regulator

that's a good question did somebody

figure out who the global regulator is

they sound like

scam uh what else i guess this is a

proposal the proposal is open to public

comment before it will take effect and

the committee said that the initial

policies are likely to change several

times as the market evolves wait so so

this

they put out some kind of proposal is

what you're saying that's what it seems

like and they want to

integrate crypto more but right now

they're classifying it as the highest

risk asset possible

that's exactly right the the panel

proposed that a

1 250 risk

might be applied to the bank's exposure

to bitcoin and other cryptocurrencies

wow i don't even know what to make of

that i mean what

so how are they i mean if you put that

much risk in basically what you're

saying is

you have to put 1300

into like an s p 500 index fund for

every dollar

uh it might be doing that right yeah

right

in practice that means that a bank may

need to hold a dollar in capital for

each

dollar worth of bitcoin well how many

dollars a dollar

of capital per dollar of bitcoin so i

guess usd

this is one to one though yeah but they

would have to actually hold it as

capital so i guess that would be

oh just have a cash reserve yeah right

collateral it seems like

someone summarizes a fund for us so i

wouldn't consider this even fud

because they're creating laws to allow

banks to hold

sorry i'm sorry because they're creating

laws to allow banks to hold crypto it's

actually helping the bitcoin

bitcoin price soar because once banks

buy into crypto it's going to be way

more official and everyone's going to

buy in

there you go so tell me more about this

risk profile though so

with their percentage the bottom line

that they gave was that a bank should

hold

a dollar of cash for every dollar of of

crypto that they have

so almost kind of like like okay we'll

toy with this but we've got a dollar to

back it up sort of thing

so basically it sounds like the bazel

committee is like okay well

we're gonna acknowledge that uh bitcoin

is a thing but we're gonna go classify

it in the group over there with all the

junk bonds and the garbage

but even though they're being fuddy

about it it's actually good news because

it gives banks this sort of green light

that okay all right maybe we should

really start considering crypto

and all the old fuddy duddies can

actually finally get with the program

okay next up inflation we've got w

george what's up what's going on with

inflation canada

so uh i don't care about canada what do

they have to say

so uh the pickup in canadian inflation

to above three percent was one of the

key

issues discussed by policy makers uh

this week

uh they believe that the inflation will

be uh largely just temporary due to

you know the economy reopening how much

did jerome pay them

i they would not disclose that

but uh annual inflation in canada

already hit

3.4 percent in april and uh they're

expecting it to stay above 30 percent

for the

next several months they are the first

central bank

of uh more advanced economies though to

start shipping

away from the bailouts as well and they

expect

uh that there will be further tapering

down uh

in july or on july 14th

he said taper the taper is beginning in

canada and it's going to spread to the

u.s like a virus the taper is coming

okay uh uh otta you have uh something on

the proportion

of inflation i do yeah bloomberg

estimates 52

of the month over month growth came from

six components

used cars rental cars vehicle insurance

lodging

airfares and food away from home down

slightly from 64

in april this supports the thesis that

the latest impulse

is largely due to transitory factors

even as cpi inflation at five percent

year-over-year is the highest since

august 2008. ah so

really we broke down these numbers a

little bit and they kind of

spit this up onto the board here uh most

of the

inflation we're seeing as otto said was

was transitory more than half

52 and the things that are not

transitory

that are actually helping kind of weigh

down inflation a little bit

where things like fuel medical services

car repair rice cakes cookies pork

instant coffee laundry equipment toys

consumer information and cosmetics and i

believe rent was pretty low on the list

as well in terms of how much you can

study it

minus 0.2 minus 0.2

for rent that's interesting so these are

actually things holding it down a little

bit and

these generally deem to be a little less

transitory anyway

whereas the more transitory inflation

things where we're seeing the big

numbers

i mean look at this we got like point

negative point seven okay a big one here

pork right

minus 3.6 but airline tickets we

mentioned this earlier today

was up seven percent and

uh cars used cars was seven

twelve percent on car rentals and a used

cars i want to say it was 7.6

it's crazy so uh but these things deemed

to be transitory

and the things going down deemed not to

be transitory that's actually good

because when the things that are

transitory

go away those increases go away

inflation goes down these are things

that are deemed not transitory and

they're already going down

those both reiterate potentially lower

inflation great now i want to talk

quickly about a rotation

i'm always looking for rotation

ideas so if you have ideas on what you

think is potentially happening in the

stock market what are we rotating into

next i want to hear from you in the

comments

see we went from healthcare which saw

the first decline

to tech seeing the next decline consumer

discretionary seeing the next decline

this was all like

late jan to feb right here right

then we saw i'm gonna put momentum

momentum we saw this decline

and then recently we've kind of seen a

little bit of a resurgence we've

obviously we've seen momentum go back up

we've seen uh oh the spax kind of start

coming back a little bit

we've seen tech maybe a little bit start

coming back

ev and energy like end phase though

still kind of flat

so what's next where are we heading to

next or is it going to be momentum again

for

uh the rest of june into july are we

going to go back into tech or ev

or or what about recovery because what

we're seeing right now a little bit too

is a little bit of

recovery heading down so i want to hear

from you does anybody have opinions on

that does anybody want to chime in

on what you think which sector might be

next he said tesla tesla

tesla's next okay so all in on two-week

call options otto's fault sue him if uh

if he's wrong okay great next keystone

so the pipeline's decade-long game of

tug-of-war has now

ended tc energy is pulling the plug

after obama was delaying it trump gave

it the green light and then

biden again squashing that down when

they already put 1.1 billion on the

project

so a lot of union members have had to

find new work

uh and the tourist donation or

destinations that

south dakota and the other states that

we're going to be into

are no longer promising anymore

well you know i want to look more into

like the keystone but lately we've been

so interested in california

uh uh especially running pipelines one

of the things i know is california has

no pipelines you've got to truck all the

gas through california that's a big old

state

and california has the most expensive

gas

in the country so you know there's

always there are always things to

balance out here but i'll tell you

people who leave in california due to

expensive gas housing and other things

it all adds up you know it's taxes yes

everything

this is why you got to go to

meetkevin.com and support me kevin for

governor and

make sure you come to my rally in san

francisco this weekend it's free go to

meetkevin.com to sign up we'll be there

saturday the 12th

and we'll be in los angeles on june the

19th

or june 19th all right what else then we

got

workers something about workers

the labors the labor department's latest

jobs report

uh posted a record 9.3 million job

openings in april

the jolt survey has never shown more

openings since labor began keeping track

in 2000.

job openings increased 998 000 in

april as well we're that's the same

though

that's a lot that is a lot yeah yeah i

mean that's

especially with unemployment so high

it's no surprise that a lot of states

are like let's just stop paying the

unemployment boost

i think you've got 23 mostly republican

states saying no more unemployment

boosts

just to start getting people to fill

these vacancies i think the big concern

though is how long is it going to take

for people to sort of retool the new

skills

if the job they used to have is no

longer a job that's needed

i really think and i want to hear from

you all what do you think about this but

i remember at the beginning of the

pandemic we always used to say you know

the

as bad as this is for the markets and as

bad as it is for the economy

all the corporations are gonna just fire

a ton of people

and then just hire back the best ones

and then everybody else who's left

doesn't get a job anymore when things go

back to normal the companies get left

more efficient

the people get burned oh anybody have a

comment on that

it's kind of a double-edged sword at

that point companies get more profits in

a way efficiency wise but you also have

a lot of people now out of work

well at the moment they're actually

finding it hard to find highly skilled

workers in america

and they're considering lots of like

immigrant options for new visas and

stuff

see that's another thing that's a big

problem in the united states is

well that skill gap relates you lose

your job now you lose your skills

now the companies can't find skilled

workers but one of the reasons we have

such

horrible immigration problems in the

country is because the legal immigration

process

is pretty horrible i mean companies that

need to hire people can't find skilled

workers are being constrained

because you can only get x number of

lottery tickets essentially to bring in

visa to workers

it's nuts so anyway anybody else have

anything are we done for the meet kevin

report

i think that's a wrap for today we're

done all right

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