Bezos Sprinkles $4B on his Corn Flakes

The Tale of the Tape

Good evening folks. Stocks closed positive but faded through the day, giving back much of the pre-market gains. Small-caps led the major indices in what feels like the first time since Hector was a pup

Internally, real estate marched higher (beast), and energy and consumer discretionary were not far off. The biggest loser of the day was technology as strong big cap tech stocks like Microsoft and Apple gave it up. These stocks have been leaders so keep an eye on the names.

Small caps and energy leading and tech lagging – maybe just a countertrend day.  

Here’s how the major indices faired: 

S&P 5003,357+0.17%
Nasdaq9,638+0.11%
Russell 20001,677+0.59%
Dow Jones29,276+0.00%

Sprint and T-Mobile… Finally.

This morning, a federal judge approved the Sprint and T-Moblie merger. Shares of Sprint and T-Mobile closed up 73% and 11% respectively.  The deal is not all cupcakes yet, the California Public Utilities Commission will still need to approve. Who knows how long that could take. 

Anyone wanna take a guess at what the legal fees will total for this transaction? More or less than Bezos’ divorce. 😉

For more, here’s The Wall Street Journal.

Spotify Pays $250M for The Ringer

We love this deal. Spotify is building a platform that people outside the company do not fully understand but you can tell they have a big vision. 

BTW… congrats Bill Simmons on the payday. Well deserved. 👏 

Check out The Street for more. 

Earnings Recap:

Under Armour

EPS: $0.10 in-line with estimates.

Revenue: $1.44B misses by $30M.

$UA -16.69% 

Hasbro

EPS: $1.24 vs $0.92 Est.

Revenue: $1.43B misses by $20M.

$HAS -0.79%

Lyft

EPS: -$1.19 vs -$1.39 Est.

Revenue: $1.02B beats by $35.75M.

$LYFT first move lower after hours.

Bezos Sprinkles $4B on his Breakfast Flakes

We’ve seen no less than 4 billion news articles over the last few days about Jeff Bezos selling $4B worth of Amazon stock. Let me tell you something – Jeff Bezos sprinkles $4B worth of stocks on his breakfast flakes in the morning. Jeff Bezos spends $4B repaving his driveway. Jeff Bezos spends $4B getting his teeth cleaned. Jeff Bezos still owns $115B worth of stock, give or take. Next story people …

More on the Rich and Aimless… 

Before you look at the chart below summarizing the ungodly money the most successful hedge fund managers made in 2019, please keep in mind that insanely rich people also get bad stuff like hemorrhoids or erectile dysfunction. They also die, which is even worse for them because they die with all this money in the bank left unspent. It must be miserable.

Here’s the full article from Bloomberg.

The 10-Year is Flirting with Lows. 

We’re sitting here having a look at long term treasury yield charts and it’s all ridiculous. US Government Bonds have been in a bull market since dinosaurs roamed the planet. Here’s a 25 year chart of the 10-year yield.

Zoom in and this most recent battle is this 1.5% yield level. We tapped it in August, September, and now we’re back here again kind of just dribbling. 

If we crack that 1.5% level with gusto, lord knows WTF … 

Win A Trip To NYC

Win a trip to NYC to ring the Nasdaq Opening Bell with us in the heart of Times Square on February 24th. Enter here.

Kings & Queens of Corbet’s

Jackson Hole’s annual Kings & Queens of Corbet’s took place today. Here’s a great video detailing the history of this legendary event.

Earnings Tomorrow:

Be sure to know when your stocks are reporting. Here’s the full earnings calendar.

Links that Don’t Suck

Outdoor Retailer REI Building the Most Outdoorsy HQ Ever – WSJ

It’s time to stop listening to Ray Dalio on China – Business Insider

NBA Team Values 2020: Lakers And Warriors Join Knicks In Rarefied $4 Billion Club – Forbes

6 Highly Relatable Charts About Weather – Outside Magazine