Resurrection Hardware

Tale of the Tape

Good evening everyone. 

The market edged higher today as chaotic earth continues its relentless barbaric wobble. 

The market was choppy all day then a wave of aggressive buying hit the tape in the last 15-minutes. Here’s the intraday chart of the Dow Jones. You can see the Dow jumped 120 points late in the day.

Every sector closed green. Energy, Materials and Industrials led the way. And get this, Energy ETF, $XLE closed above $40 for the first time since March 6th. Next thing you know, we’ll be kveching about peak oil again. 😉

S&P 5003,080+0.82%
Russell 20001,418+0.91%
Dow Jones25,742+1.05%

Opening Bell From Space

Today, astronauts on the International Space Station rang the Nasdaq Opening Bell. Historic. 

Be sure to check out CNBC’s interview with the astronauts this morning on Squawk Alley.

Zoom Earnings

Zoom reported earnings after the market close and the company blew past estimates. Here are the numbers:

EPS: $0.20/share vs $0.10/share est.
Revenue: $328.2M +169% YoY

$ZM has been on one in 2020, the stock is up 200% YTD and it’s trading up another 3.7% after-hours. Wowza.

Check out the press release here.

Resurrection Hardware

In late March, RH (formerly Restoration Hardware) closed at $80 down from $250 a month earlier.

These guys were falling off the well appointed floor.

Well, don’t look now, because the stock is soaring – up $36 or 17% just today to close less than 2% from an all time high.

The company released its annual shareholder letter and Chairman and CEO Gary Freidman painted an optimistic picture about a digital platform that sounds either genius or ridiculous and margins, which are expanding nicely thank you very much. He writes,

The emergence of RH as a luxury brand generating luxury margins is becoming evident as our adjusted operating margin has expanded over 700 basis points in the past two years from 7.0% in 2017 to 14.3% in 2019. We continue to expect operating margins to expand in 2020 despite the current setbacks from COVID-19, and now see a clear path to 20% operating margin over the next few years.

Go read the full letter here

Heads up, $RH reports earnings Thursday after market close.

IPO’s Galore

It’s the busiest IPO week of the year. The following 8 companies are expected to go public and look to raise $3.7B. 

Here’s a list of the puppies:

Check out this post from Renaissance Capital.  

Tiffany, Oh No!

Tiffany & Co. was halted today after a Women’s Wear Daily article suggested that LVMH’s acquisition of Tiffany & Co. is at risk. $TIF dropped 12% after the news hit the tape.
Here’s the intraday chart.

Cowabunga Dude …

Speaking of falling out of bed…

Bitcoin fell $1,000 in a few minutes this afternoon. It does this kind of thing periodically just for sh*ts and giggles. 😉

$BTC.X had been holding above $10K for about 24 hours when whoosh.

Here’s the absurd Bart Simpson chart pattern.

Earnings Tomorrow

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

Links That Don’t Suck

How Big is the Racial Wealth Gap?

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Zion Williamson Required to Answer About Illegal Benefits

The Future of Road Cycling Is Electric

Volkswagen closes $2.6 billion investment in self-driving startup Argo AI