We Want Drive-Ins


Tale of the Tape

Good evening y’all. The S&P 500 fell for the first time since Monday, June 26, weakening as the day progressed. 

Far be it for us to practice hindsight attribution but maybe Mr. Market noticed that the world has lost its freaking marbles. Or, maybe just some “profit taking.” Place your bets… 

Financials sucked eggs and the financial ETF, $XLF, is back below the pivotal 23 level. What a dog.

Airlines also screwed the pooch, dropping 5%. The industry is down about 50% YTD. *please fasten your seatbelts*

On the bright side. Livongo Health blasted higher for a 20% gain and all time highs. Who the heck are these guys? See more below.

Here’s your closing prices on the major indices. Have a little look see…

S&P 5003,145-1.08%
Russell 20001,415-1.86%
Dow Jones25,890-1.51%

Walmart vs Amazon

Walmart rallied 7% today on heavy volume after announcing that Walmart+, its subscription service and Amazon Prime competitor, is set to launch this month

The service will offer same-day grocery delivery and other neat stuff. Walmart is way behind Amazon, which has like 4 trillion subscribers. However, if Walmart can stick the landing on groceries and solve the ripe tomato problem*, they will be able to legitimately compete.

Walmart is playing the long game here and they have the resources, culture, and work ethic to do it. 

Will people get subscriptions to both? We would not be surprised. (Raise your hand if you have more than one of Netflix, Prime, or Disney+.) ✋✋✋

Not to mention Costco, which already deployed this business model only they suck at delivery (so far).

The one certainty is that consumers (all of us 😉) will benefit as competition encourages improvements in customer experiences.

So bring it on Bentonville!

*None of the large grocers can consistently deliver a beautiful ripe tomato. Order one. We dare you.

We Want Drive-Ins 

Shake Shack reported a 49% drop in same-shack (store) sales from this time a year ago. The company also mentioned store traffic is down 60%.

$SHAK dropped 6.5%. It’s now down 16% YTD. Oof.

Here’s our advice, bring back Drive-Ins. 

It’s much safer in a world of COVID and who doesn’t wanna go to a drive-in…? 

Shake Shack, you’re welcome. 🙂

Livongo Health

Livongo Health had itself a day. The data science and technology-enabled platform provider jumped 20% to new all-time highs today. 

The move came after the company raised Q2 sales guidance to $86-87 million from $73-75 million.

The stock is now up 274% YTD. Sheesh.

Breakdown? 🛬

Airliners indicated potential layoffs coming in this Fall. Airline stocks took a tumble as the airline ETF, $JETS dropped 3.89% closing at its lowest level since June 26th. The $16.50 / $15.50 zone has been an area of support, will this hold? Place your bets… 

Novavax 🚀

Novavax rocketed another 31.6% after it was announced that the company received $1.6B from Operation Warp Speed to support its COVID vaccine.

$NVAX is now up 2500% in 2020. Incredible.

Novavax has been a leader in 2020. Since the inception of the Stocktwits Top 25 Russell 2000 list back in mid May, $NVAX hasn’t dropped from the top spot. 

Links That Don’t Suck

🎙 Interview with Hedge Fund Manager Jim Roppel 

🦒 A behind-the-scenes look at Texas’ Exotic Animal Ranches 

👨‍🏫 Jim Simons: Life Lessons from the ‘World’s Smartest Billionaire’ 

🏋🏼‍♂️ Stock Charts and Exercise with All Star Charts

🤷‍♂️ Quibi is Flailing Because no one at Quibi Understands What Quibi is

🚫 The US is Looking at Banning TikTok

⛳️ Bryson DeChambeau Destroys Another Golf Course | Tom Brady’s Improved Golf Swing