Nikola Gets Trashy

Tale of the Tape

Good evening everyone and welcome to the working week.

Stocks were mixed today with high dispersion between the major indices. The Nasdaq Composite fell .5% while the Dow and Russell 2000 rallied 1%.

Tech was the weak spot, while select industries rallied hard. Airlines , for instance, took off, gaining 7%, and Autos sped ahead 4%.

Royal Caribbean reported earnings this AM and sailed higher by 10%.

Kodak fell another 28% today on news the pump and dump might not get that big loan after all. The stock has dropped from $60 to $10 in 9 days.

What a charade.

Barry Diller’s $IAC took a $1B bet on $MGM and the hotel casino gained 14% on the news. Right or wrong we love the optimists, the guys who take bets the world will return to normal. 

Bon chance Thriller Diller!

A 23 year old won the PGA Championship and if you watched last night you will one day be able to tell your kids that you saw Collin Morikawa win his first golf major. The Kid is a stud and a star in the making.

Here’s your closing prices in the major equity indices.

S&P 5003,360+0.27%
Russell 20001,584+0.99%
Dow Jones27,791+1.30%

Are We Open?

The airlines got a lift as TSA reported its highest screening numbers since March 17th. By these numbers it would appear that the US is starting to open up or maybe we’re just getting accustomed to living with the virus? 🤷‍♂️

The airline ETF, $JETS closed at its highest level since June 19th. Will we be testing those early June highs? Place your bets… 

Here’s how the major airlines performed today.

$UAL + 9.35%
$DAL + 7.95%
$AAL + 7.45%

Earnings Round-Up

Royal Carribean reported earnings this morning and surprising no one the numbers were atrocious. Revenue was down 93.7% YoY but the executives cited “pent-up” demand and “remarkable” bookings for 2021. Due to these optimistic statements $RCL finished the day up 10% bringing the rest of the industry with it.

EPS: ($6.13) vs ($7.71) est.
Revenue: $175.61M

$NCLH + 8% | $CCL + 8.5%

Canopy Growth Company came in with better than expected earnings that still looked pretty bad. 

The stock opened the day 10% higher, traded up 13% intraday, and faded to close up 7.82%.

Here are the numbers:

EPS: ($0.20) vs ($0.28) est.
Revenue: $85.9M vs $76M est.

$CGC is down 15% YTD.

Nikola Dump Trucks?

Nikola Corp. closed up 22% on news of a 2,500 electric garbage truck order from Republic Services. This comes a week after $NKLA reported earnings for the first time since its June IPO. The company lost $86 million with no revenue. 

The vehicle pictured below is the Nikola Tre semi. The garbage trucks will be a variation of the semi which begin testing in 2022 with deliveries expected in 2023. The truck can run 150+ miles while handling up to 1200 cans/charge.

The company declined to provide specific pricing for the Nikola model, but traditional garbage trucks cost around $500k.

Robinhood Is Eating the World

Bloomberg out with a piece earlier today about how Robinhood is crushing the other retail brokerages in the number of trades it is generating.

Robinhood is eating the world and it’s pretty clear what’s happening here.

The app is fun and awesome and younger people, who are just getting into trading, are having a blast.

The incumbents never built awesome and fun so too bad. 

While we’re riffing here, let’s talk about another thing… Robinhood traders get mocked by the oldesters on financial tv which is hilarious or sad. 

The kids haven’t had their souls crushed yet and so somebody’s jealous of all these snow white uncrushed souls, especially when they’re catching a rally and turning a buck in financial markets.

Don’t hate the players y’all. 😉

The Boardroom

The importance of remote work has never been more understood. 2020 has forced us to become intimately familiar with the challenges businesses face when most of their workforce is stuck at home trying to be productive, while refusing to change out of their pajamas. Savvy investor and NBA all-star Andre Iguoadala must have understood this, investing in Zoom prior to its IPO in 2019. In a recent interview, he lamented not investing more in the platform, which saw its stock price increase nearly 300% this year with a market cap surpassing $70B. 

For more on where else athletes like Andre are putting their money, subscribe to The Boardroom

Earnings Tomorrow

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

Links That Don’t Suck

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🇮🇹 An expert travel guide to Lake Como

🔊 The Importance of Writing

🎥 TikTok announces first wave of creators set to receive payment for their videos