Good evening folks. Stocks gapped higher at the open then remained quiet through the day. The Dow is now up 1100 points from last Friday’s close. We saw light volume and a tight trading range on the major indices, perhaps the market needs a breather. Flat and low volatility tomorrow would cap a constructive week.
Energy snapped back to reality and was the worst-performing sector while Communication Services and Technology led the way higher. Consumer Staples ETF $XLP posted a new all-time closing high. Whoopie.
The Dow, S&P 500, and the Nasdaq all closed at new highs. Small Cap Russell 2000 was negative, sheesh.
| S&P 500 | 3,345 | +0.33% |
| Nasdaq | 9,572 | +0.67% |
| Russell 2000 | 1,677 | -0.27% |
| Dow Jones | 29,379 | +0.30% |
#STONKS
Twitter CEO Jack Dorsey is a freak with his hot yoga, one meal a day, Buddhist austerity, and hipster-dufus beard but we still kinda love him.
The company reported earnings this morning and, while it technically missed on the bottom line, the stock ripped 18% higher on metrics that were received positively. Here’s a couple key ones to chew on:
- First quarter ever with revenue above $1B coming in at $1.01B vs estimates of $994M.
- Monetizable Daily Active Users at 152M, 21% YOY growth, ahead of the 147M expected.
Twitter committed to spending to improve advertising operations and pointed to the Super Bowl as evidence of initial success. Even with today’s ramp, the stock still trades below its IPO price from seven years ago. That’s punching below your weight but just maybe things are turning.
The Wheels Coming Off at Peloton
Meanwhile, Peloton reported a healthy earnings beat on both top and bottom lines and the stock proceeded to crash like a multi-bike pile up at the Tour de France.
The problem here is lowered guidance. Peloton guided revenue to $470M to $480M vs. prior $494M estimates and EBITDA to -$25M to -$35M vs prior -$32M estimates.
The market hates bad guidance and losing money so the stock is getting crushed. If churn picks up this year above 1% look out.
Here’s the numbers:
EPS: $0.12 beats by $0.04
Revenue of $400M (+46.5% Y/Y) beats by $31.07M.
Full story provided by AlphaStreet.
The Barstool Effect?
Since partnering with Barstool Sports, Penn National Gaming is up 33%. Mr. Portnoy has reminded us of his gains, every day tweeting an image of the rising stock price.
Dave – we recommend you use candlestick charts on a log scale. Much more visually appealing.
$CSPR Debut
Casper officially began trading today. After lowering its range yesterday, the stock opened at $14.50 and closed at $13.50. Not the way you’d like to come out of the gate.
Casper is now valued at $551M.
In its last round of private funding, investors valued the company at $1.1B… The stock would need to hit $28 for them to be above water. Even VCs get it wrong sometimes. But who knows, this thing could go to $1000 for all we know.
Deutsche Bank New 52 Week Highs…? WTF?
German-based Deutsche Bank gapped higher today, closing at new 52-week highs. The gap up coincided with news that US-based Capital Group built a 3% stake in the firm. Here’s more from The Wall Street Journal.
We should mention, $DB is still -92.5% from its 2007 highs. 😬
Don’t ring any bell, ring THE bell.
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Uber Beat, Top & Bottom
Uber reported earnings after the bell today. Here’s how the numbers came in:
EPS: -$0.64 beats by $0.04.
Revenue of $4.07B (+37.0% Y/Y) beats by $10M.
Here’s CNBC with more details.
Shares were higher after hours.
Tomorrow’s Earnings:
Be sure to know when your stocks are reporting. Here’s the full earnings calendar.
Links that Don’t Suck
This electric motorcycle startup is transforming the Rwandan taxi industry – Fast Company
A 19th Century Tesla? – Investor Amnesia
Facial Recognition Moves Into a New Front: Schools – NYT
You can now make sick beats in Microsoft Excel – The Verge
Buying Marketplaces – Points and Figures
A Small Rocket Maker is Running a Different Kind of Space Race – Bloomberg
