Tale of the Tape
Good evening everybody.
The S&P 500 fell .78% today while the small cap Russell 2000 somehow managed a small gain. Yay.
The big market news today was political which sucks for everyone except politicians who sprinkle conflict on their breakfast flakes and news media animals who pour it in their vodka cocktails for lunch.
No offense intended if one or both of you are reading. I’m sure you’re fine people and the exceptions proving the rule.
Anyway, China is tightening the noose on Hong Kong and the US is livid from both sides of the aisle. Go ahead and read about it here if you’re a glutton for more bad news and stupidity. And here’s the official US Strategic Approach to The People’s Republic of China.
Tech and Energy were the weakest sectors and only Industrials managed a gain but just barely.
Lululemon ripped 3.5% to close at an all-time high on no news. It’s been a super strong stock and you gotta love the momo.
We asked the Stocktwits $LULU stream why the stock was so strong and @KapitalG31 quipped, “Lulumon is replacing office real estate budgets for Facebook, Twitter and the like. It’s the Work From Home Uniform.”
This is a solid rationale so we pass it along.
Tesla logged its highest close since March. What a winner.
Who knows, we could be watching NBA basketball in 6-8 weeks.
Cannabis Cures COVID?
Canadian Scientists think they found a potential treatment for the coronavirus. Researchers from the University of Lethbridge said marijuana could reduce the virus’ entry points by up to 70%. Yup, you heard that right. Marijuana.
This is what happens when you get high AF while doing scientific research. You have a crazy breakthrough, or you just get high AF and think you have a crazy breakthrough. 😉
Right on queue, cannabis stocks rallied with the news. Here’s how the biggest kush names traded today:
Will cannabis cure everything? Place your bets…
Nvidia reported an earnings beat after the close. Here’s the numbers.
EPS: $1.80 vs $1.69 est.
Revenue: $3.08B +38.7% YoY
Nvidia’s gaming division was up 25% YoY.
$NVDA was flat after-hours.
Office Centricity Is Over
Today, Shopify CEO Tobi Lutke announced that $SHOP would become a digital company. He writes:
As of today, Shopify is a digital by default company. We will keep our offices closed until 2021 so that we can rework them for this new reality. And after that, most will permanently work remotely. Office centricity is over.
…The future of the office is to act as an on-ramp to the same digital workplace that you can access from your #WFH setup.
This means that the work experience should be the same for everyone who works together at Shopify no matter where they are working from. Everyone will be in their own tile during meetings and we will use the best digital communications tools to work together.
Slowly, as larger and larger companies recognize how much efficiency can be added (AKA – Cost Savings), this will become the norm. This seems ridiculously obvious.
Shout out to Tobi and Jack who are the trailblazers here.
Small Cap Value Is Having a Minute
Small cap value has been the worst of both worlds since forever. Vanguard Small Cap Value ($VBR) is up just .9% over the last 5 years while the S&P 500 is up 38.7% over the same period.
However, $VBR looks like it’s having a minute. Since Friday’s open, it’s up 10.77% while the S&P 500 is up 4.59%. Not too shabby.
Could this be the beginning of something great?
It’s probably nothing and we’ll revert to the natural order of things in a second, but you never know. From little acorns great oaks grow…
Joe Rogan Got $100M?
Details of Joe Rogan’s Spotify deal are beginning to surface. Supposedly it’s worth more than $100M. Spotify has gained $5.8B in market cap since the announcement. So maybe $100M is a bargain.
The real question is… when will Joe join the Billionaire Boys Club?
Ackman is Courting Elon 💃🕺
Hedge fund manager Bill Ackman pitched Elon Musk via Twitter today.
The fund manager shared a video partnered with Howard Hughes, a real estate developer in which Ackman owns 30%, further enticing Tesla to relocate to Nevada and Texas.
This is crazy. We’ve never seen anything like this before, fitting for 2020.
NASA’s New Telescope
NASA named its latest space telescope after the late legendary astronomer Nancy Grace Roman.
Nancy was the first female executive at NASA and the first chief astronomer. Much respect 🙏
Be sure to know when your stocks report earnings. Here’s the full earnings calendar.
Links That Don’t Suck
Coronavirus could cost College Football at least $4B
Will Titanic’s Iconic Telegraph Be Recovered By Deep-Ocean Robots?
The Podcasting World is Now Spotify versus Everybody Else
The Innovations That a Pandemic Inspires