Tale of the Tape
Good evening everyone and welcome back to the market of stocks.
It was another ugly one.
The Nasdaq gave up 4%, it’s now up just 3% in 2020.
Every sector finished red. Tech was down 4.5% while energy lost another 3.6%.
Sector SPDR Energy ETF, $XLE closed at its lowest level since April. Should we be worried? 🤷♂️
Tesla had its worst day ever because it was “excluded from the S&P 500.” More on this below. 😂
Nikola and GM formed a partnership and the stocks jumped 41% and 8% respectively.
Delta and Southwest Airlines gained on analyst upgrades.
Here are the closing prints.
Today, Shake and Riley cover:
-Tesla’s Worst Day Ever
-Nikola and General Motors’ partnership
-Earnings Review ($LULU, $WORK, $COUP)
Worst Day Ever
Tesla had its worst day ever. The stock dropped 21%. Oopsie daisy.
$TSLA is now down 34% from its high close on August 31st, but it’s still up 295% YTD. Silver lining.
Here’s the daily chart. For the technicians out there, $TSLA closed right at its 50-day moving average. Will it hold? Place your bets…
Coupa Software blew out Q2 earnings expectations. The company saw earnings soar 200% while revenue climbed 32%. Despite beating expectations, $COUP was down after-hours.
Here are the numbers:
EPS: $0.21 vs $0.08 est.
Revenue: $125.9M vs $118.8M est.
Lululemon Athletica reported earnings after the close. The yoga-wear maker saw a Q2 surprise report that beat both sales and earnings expectations.
Here are the numbers:
EPS: $0.74 vs $0.56 est.
Revenue: $903M vs $833.81M
Lululemon CEO Calvin McDonald had this to say:
As trends around the world are shifting to working and sweating from home with an increased focus on health and wellness, we believe 2020 is likely an inflection point for retail and for Lululemon.
$LULU was down after hours.
Slack had earnings after today’s close. Revenue grew by ~50% for the third straight quarter. Paying customers were up 30% YoY to 130,000.
Here are the results:
EPS: $0.00 vs ($0.03) est.
Revenue: $215.9M vs $209.1M est.
$WORK was down 18% after-hours…
Nikola X GM
Nikola formed a strategic partnership with General Motors.
GM will receive a $2B equity stake in the company in exchange for “in-kind services and access to General Motors’ global safety-tested and validated parts and components.”
$NKLA charged up 41%, closing at its highest level since July 16.
$GM jumped 8%.
Here’s a quote from General Motors Chairwoman and CEO Mary Barra:
This strategic partnership with Nikola, an industry-leading disrupter, continues the broader deployment of General Motors’ all-new Ultium battery and Hydrotec fuel cell systems. We are growing our presence in multiple high-volume EV segments while building scale to lower battery and fuel cell costs and increase profitability. In addition, applying General Motors’ electrified technology solutions to the heavy-duty class of commercial vehicles is another important step in fulfilling our vision of a zero-emissions future.
See the press release here.
Peloton’s New Bike
Peloton rode higher this morning after its release of the Bike+, a new-and-improved stationary bike built to keep up with demand for at-home fitness junkies.
The company priced the Bike+ at $2,495 for its enhanced features, including a retractable 22” screen and upgraded speaker system. Peloton also lowered the price of its original bike below $2K.
$PTON closed up 6% on the news.
Here’s the Wall Street Journal with more.
Smile Direct Club
Smile Direct Club launched Telehealth Explained, a platform aimed to educate consumers about the benefits of telehealth for physical, mental, and dental health.
Here’s what SmileDirectClub CMO John Sheldon had to say:
There could be no greater nudge [towards telehealth] than the current pandemic environment, regardless of the resistance that might have been there early on. We’re listening to our customers, who had moved from starting in our SmileShops to starting with our impression kits at home, and they had a lot of questions.
Is Telehealth Explained the answer? We shall see…
$SDC closed up 10% today and reached levels not seen since prior to the coronavirus pandemic.
Be sure to know when your stocks report earnings. Here’s the earnings calendar.
Links That Don’t Suck
📕💰 New Book: The Psychology of Money
🍎📱 Apple event just confirmed for Sept. 15 — here’s what to expect
👨💼 Your Responsibility as a Manager is to Hire 7 People
📉🤷♀️ Whither the P/E?
🔥❄️ Cameron Peak Fire Grows To 102,596 Acres As Snow Begins To Fall
🥩 🏭 Beyond Meat to Build Factories Near Shanghai in Major China Push