Displaying items by tag: overstock
Morgan Stanley has been making some interesting investments with its own account, with four stocks standing out. The bank increased its equity holdings in these companies enough to trigger regulatory filings. The four stocks are Greenlight Capital, Shake Shack, Overstock.com, and CGG. Greenlight Capital, David Einhorn’s fund, has not been this cheap since 2009 because of poor performance. Shake Shack is looking very healthy, and MS owns over 11%. Overstock skyrocketed in 2017 on blockchain hype, but has since lost a bunch this year; but MS’ seems to like the valuation, again increasing their holdings to over 11%.
FINSUM: What an interesting mix of stocks. It is also illuminating to see where banks are putting their own money.
Advisors look out. The big bang moment in wealth management might be about to happen. That moment might be when Amazon launches its own robo advisor, taking the concept to the masses in a way that has not been done before. Amazon is already getting involved in finance with its pursuit of checking accounts and ecommerce retailer Overstock.com is launching its own robo. One wealth management commentator put it this way, saying “Advisers have their head in the sand; they are in denial … Many think this won’t affect them or their clients … There were probably a large number of buggy manufacturers that were saying the same thing in 1910”. Amazon has a mountain of using data on people’s spending habits, which could give them a leg up.
FINSUM: It seems like only a matter of time before Amazon moves in this direction. There is still good margin to be had in this space, which makes it ripe for Amazon.
The supposed battle between robo advisors and human advisors has largely fizzled. Evidence indicates that robos are not stealing funds from human advisors, but are instead attracting entirely new ones, increasing the total fee pool overall. However, a new robo has just launched that should perhaps be worrisome. Discount ecommerce retailer Overstock.com, which has a very diversified base of businesses, has just launched a flat fee ($9.95 per month) robo advisor. While the platform itself should not worry advisors, the implication is that much bigger tech players, like Amazon, may soon be involved, which could dramatically change the landscape.
FINSUM: If Amazon, or any of the other huge tech companies, started robo advisors, then there could be a legitimate issue for human advisors.