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Weekly Recap February 27 2021
An article by • Published Feb 27, 2021

Weekly Recap February 27 2021

For the week ending February 27, 2021 - the S&P 500 (ticker: $SPY) decreased by 2.9%, NASDAQ-100 (ticker: $QQQ) decreased by 5.8% and Dow Jones Industrial Average (ticker: $DIA) decreased by 2.2%.

The decline in stock prices seems to be a reaction of spike in U.S. 10-year Treasury yield rates this week due to heavy sell-off of U.S. government bonds. This could be a signal of market participants indicating that U.S. economy would experience high inflation as a result of massive fiscal stimulus from government and economic growth from re-opening of the economy in upcoming months. However, it is uncertain whether this would lead to U.S. Federal Reserve raising interest rates in the short-term.

Twitter Share Glimpses of Subscription Feature
Twitter (ticker: $TWTR) management presented about future Subscription feature on the platform at
Virtual Analyst Day
event on Thursday, February 25. The company is experimenting on a Super-Follow feature that would enable a twitter user to monetize via a subscription tier through which "
all of their super followers could get access to whatever subscriber-only tweets that, that individual wants to create or subscriber-only spaces they want to host or subscriber-only DMs or a subscriber-only newsletters
" according to Kavyon Beykpour, Product Lead.

Snap Spotlights On Growth Opportunity
Snap (ticker: $SNAP) held a
Virtual Investor Day
event on Tuesday, February 23. The company expects its revenues to grow more than 50% for next several years monetizing its key screens - Camera, Chat, Snap Map and Spotlight through self-serve ad platform. The company also commented that gross margins will rise to more than 60% as it begins monetizing Map and Spotlight (company's gross margins for
fiscal year of 2020 were 52.8%
).

Square Buys More Bitcoin
Square (ticker: $SQ) released fourth quarter 2020 earnings on Tuesday, February 23. The company's purchase of more Bitcoin made more news headlines early this week than its earnings performance. Company announced in the
earnings release
that it has bought approximately 3,318 Bitcoins for $170 million along with an additional comment that it is buying Bitcoins because it believes the cryptocurrency is "an instrument of economic empowerment." Square has previously bought $50 million of Bitcoins.

Economic Updates:

The U.S. Bureau of Labor Statistics released Personal Income data for January 2021. Personal Income in the U.S. increased by 10% on Month-over-Month (MoM) basis. This is the largest increase in personal income since April, 2020. The massive spike occurred due to an increased spending of U.S. government through coronavirus relief packages.

The U.S. Bureau of Labor Statistics also released Personal Spending data for January 2021. Personal Spending in the U.S. increased by 2.4 on Month-over-Month (MoM) basis. This is the biggest increase in personal spending since June, 2020. This increase can be attributed to higher unemployment benefits and other payments for individuals through U.S. government's coronavirus relief packages.