JUMP REPORT

(Bloomberg) — Investor David Einhorn said technology stocks are in an “enormous” bubble and he has added a set of short wagers to profit from it.“The question at hand is where are we in the psychology of this bubble?” the head of hedge fund Greenlight Capital wrote in an Oct. 27 note, seen by Bloomberg. “Our working hypothesis, which might be disproven, is that September 2, 2020 was the top and the bubble has already popped. If so, investor sentiment is in the process of shifting from greed to complacency.”Tech stocks have driven the market’s rally this year. The Nasdaq 100 Index is up 33% since Jan. 1, led by gains in Zoom Video Communications Inc. and Tesla Inc. By contrast, the S&P 500 has risen 5.3%.As signs of a bubble, Einhorn points to a mania in IPOs, a huge market concentration in a small group of stocks or a single sector, extraordinary valuations and “incredible” trading volumes in speculative instruments.As a result, Greenlight has adjusted the portfolio of companies its wagering against by adding a fresh so-called bubble basket of mostly “second-tier companies and recent IPOs trading at remarkable valuations,” he wrote. Einhorn has long held what he calls a bubble basket of short wagers which have included tech giants such as Amazon.com Inc. and Netflix Inc.A spokesman for the firm declined to comment.This isn’t the first time Einhorn has flagged a tech bubble. In early 2016, he “prematurely identified what we thought was a bubble,” he wrote in the letter.It’s been a difficult road for Greenlight recently. The fund is down 16.1% through September, and has been trying to recoup losses that began in 2015. As of Jan. 1, the firm managed $2.6 billion, down from a peak of $12 billion.Other highlights from the letter:The coming election may rank “among the most perilous times, absent war, in modern American history.” A “tempest” of troubles related to the Covid pandemic — including inequities, violence and calls for social change — could explode after the election, no matter which side wins.The fund started “medium-sized” long positions in information technology company Synnex Corp., Austrian sensor maker AMS AG, and ATM-manufacturer NCR Corp.While a few Greenlight employees are working from the firm’s New York offices, which have been open since late summer, most of the staff continues to work from home, he said.(Adds additional comments on tech starting in seventh paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Zoom Video Communications, Inc. (ZM) stock flashed green on Monday despite the biggest down day since early September, highlighting resiliency that could translate into much higher prices in coming months. One analyst has called it quits, telling clients to take profits and move to the sidelines.

The Zacks Analyst Blog Highlights: Zoom Video, Spectrum Brands, Ollie’s Bargain Outlet, Grocery Outlet and Lifetime Brands

Zoom Video Communications (NASDAQ: ZM) has launched end-to-end encryption (E2EE) for both its free and paid services. This means that, for a 30-day period, Zoom is actively soliciting user feedback for it. As the descriptor “end-to-end” implies, when E2EE is in use the only users that have access to the encryption keys securing the meeting are the participants.

As the stock market is expected to do well heading into the election day and in all probability beyond that, it’s prudent to invest in some prominent growth stocks like Zoom Video (ZM) and RH.