As the Wall Street titans Caterpillar (CAT - Get Report) and Boeing (BA - Get Report) missed the Q2 earnings forecast this morning, should investors be worried?
Well, the CEO of Webull, Anthony Denier is not.
Katherine Ross: This morning we saw our first major earnings miss with Caterpillar. Looking at just generally this earning season, was this miss an isolated event or should investors expect more misses ahead?
Anthony Denier : Well, there's a big macro theme going on here, whether it's China, whether it's a, whether it's a debt ceiling. So there's always may be some little misses peppered in, but overall the economy's strong.
Katherine Ross: Now you're the CEO of Webull, which is a trading platform. Looking at what your traders are doing, what stocks are they trading?
Anthony Denier : They tend to trade the active stocks, right? So anything that has a lot of volatility where zero commission platform, so they get in and out in names and they can scalp them quickly.
Katherine Ross: When you say active stock, what do you mean by that?
Anthony Denier : To be specific? HI volume names Tesla, Tilray, C. R. O. N., right? So anything that's active in volatility and has a high movement intranet.
Katherine Ross: What about sectors? What sectors do you see get traded the most?
Anthony Denier : Well, lifestyle sectors are usually the most common. We have a younger investor base so they invest in what they know, right? They know Tesla, they know Beyond Meat, right? They know the names that are in the news. And that seems to be the most active.
Katherine Ross: Now, I'm glad that you say that you have a younger audience 'cause I do want to ask about that millennial. Now millennials, we know they're scared to trade, they don't like spending money. So commission is kind of asking a lot out of them and they don't trust Wall Street. So taking that and looking at, how you guys have a commission free trading platform, how is that bringing in millennials?
Anthony Denier : Well, a zero commission trading platform allows investors to get in and out of names without having to pay the high commission costs and trading costs of the commission. Now traditional brokerage is usually, forget those newer novice or maybe a lower investment account individuals. They are our bread and butter, right? So they come, they come to our platform and they can use all the tools that we have and trade without having to incredible large costs.
Katherine Ross: And why should they trust you?
Anthony Denier : Well, they should trust us because we're there for them. Right? So we are, we are fin are registered where SCC registered, we have SIPC insurance, we are a US registered broken dealer. And our goal is to educate newer investors and to give them all the tools that they find on all the larger platforms, but not pay a subscription, not pay a membership fee and not pay commissions. And we put a lot of effort into using programs like our paper trading, competitions and our paper trading simulators so they can use virtual money trading to learn how to do it by experience before they actually use their own capital.
Katherine Ross: Let's talk about Fintech. Sure. We are moving away from cash. I'm a frequent Venmo user myself. And I got to ask, as a Fintech CEO, where do you see Fintech in the next 10 years?
Anthony Denier : I see it continued to expand. We're just going to continue moving into new products, whether it's money management trading or investments that again, that traditional and the larger banks forget about the smaller users and the newer users. It's because it's expanding at an explosive rate. Now we're seeing a lot of investment come in to expand those services and it's going to continue to grow.
Katherine Ross: Thank you so much for joining me.
Anthony Denier : Thank you for having me.
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