Baby Gets Paid 💰

The Tale of the Tape

Good Evening Folks. We gotta admit. We were kinda hoping the market would get crushed today just so we could mix it up and have a little fun mocking bulls for a minute. Alas, this morning’s sell off met a steady drip higher throughout the day and we closed mixed with the Russell 2K managing to close green. Gotta love the small caps playing a little catch up the past week or two. They’re primed. 

This is what bull markets look like, dips get bought. BTFD. Amen.

The big story of the day was probably Morgan Stanley buying E-Trade. More on this below. Real Estate and Utes were the strongest sectors while Infotech took its turn dropping a full 1%. Here’s how the major indices fared:

S&P 5003,373-0.38%
Nasdaq9,751-0.67%
Russell 20001,696+0.21%
Dow Jones29,219-0.44%

Baby Gets Paid

Morgan Stanley is buying E-Trade for $13B in an all stock transaction. The deal is expected to close in the fourth quarter when Morgan Stanley will pay $58.74 a share for the discount broker, a 24% premium to yesterday’s close. 

There’s a pretty clear complementarity here with E-Trade adding a large retail brokerage base and online trading to Morgan’s businesses.

In the last year, we have seen commissions get cut to $0, Schwab acquire TD Ameritrade, and now Morgan Stanley takes E-Trade. Wall Street is consolidating. 

We wonder who might grab Robinhood…

Hearing this news we couldn’t help but reminisce about the fantastic E-Trade baby commercials. Here’s our favorite one. Enjoy.

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Gpaisa on $IWM

The Russell 2000 led the major indices today. Small caps have lagged thus far in 2020, perhaps things are changing… 

Here’s what Stocktwits community member Gpaisa shared on the $IWM stream:

$IWM held the 20ema and got a bullish stance to it. Let’s see if we can close the week at the 2020 highs on this tomorrow. 

Earnings Wrap Up 

Six Flags

Amusement park operator Six Flags reported earnings before the bell today and missed by a lot. Investors were not pleased and the stock dropped 16%. Call them Five Flags. 

These guys are sucking serious wind, having fallen 55% since the June 2018 high around 72.

Here’s how the numbers came in:

EPS: -$0.13 vs $0.16 est.

Revenue: $261M vs $260M est. (-3.2% Y/Y)

Domino’s

Shares of the tech company that sells pizza’s jumped 25% today following earnings. Here are the numbers: 

EPS: $3.13 vs $2.97 est.

Revenue: $1.15B vs $1.13B est. (+6.5% Y/Y)

The stock broke out of 2-year base. Check out this weekly chart:

Stamps.com

$STMP traded like a biotech stock today closing up a full 65.5%. These guys crushed earnings and it also appears that a new contract with the US Postal Service reversed the harm it did last February when it changed their licensing agreement. Fortuna spins her wheel…

Despite the stock skyrocketing today, it’s still down 44% from its 2018 highs.

If you’re holding this puppy and bought it after the shnide, call someone whose company you favor and buy them and yourself a fat steak dinner. Life’s too darn short not to.

Here are the numbers and a chart with a clean view of this wild ride.

EPS: $2.12 vs $0.98 est. 

Revenue: $160.9M vs $142.3M (-5.5% Y/Y)

First Solar

$FSLR reported earnings after the bell today. The numbers came in well below analyst estimates and the stock was halted after-hours. We will have to wait to see where this thing opens, but it could get ugly.  

EPS: $1.48 vs $2.91 est.

Revenue: $1.4B vs $1.86B est. (+102.5% Y/Y)

The Baby Yoda Plush is Almost Here… 

Well people, the officially licensed Baby Yoda plush doll is now available for pre-order. It looks cute, and it’ll only run you $25. The downside, it’s not expected to be available until June. How the heck did it take Disney nearly 6 months after this little guy blew up on the internet before they had merchandise ready…? 

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

In Other News

Liquid Death raises $9M to make canned water cool

U.S.C. Will Offer Free Tuition to Low-Income Students

SentinelOne raises $200M at a $1.1B valuation

Victoria’s Secret to go private in a deal that values the brand at $1.1 billion

Links that Don’t Suck

A Short History of Advertising – A Wealth of Common Sense

Silicon Valley Is Quietly Building Its Own Wall Street – Marker

They Looked at Luka Doncic and Saw the Future of the NBA – WSJ

The Natural Progression of Life – The Irrelevant Investor