Tale of the Tape
Good evening, y’all. It’s 10.20.2020. How bout that.
The major indices squeaked out a slight gain. Still no stimulus.
Energy was the strongest sector. Consumer staples was the only sector in the red.
Bitcoin broke back above 12,000. The cryptocurrency ticked a high of 12,486 last August. Is it heading toward a higher high? Place your bets…
Solar surged. $JKS and $DQ ripped double digits. See more below.
Nautilus climbed 11%. The workout from home stock is within 7.5% of its July 2005 high.
General Motors wants to build EVs in Tennessee. $GM jumped 6.75%.
Netflix and Snap reported earnings after the close. $SNAP sizzled. Netflix… not so much.
Here are the closing prints:
🌌 Stocktwits After Hours
Tonight on After Hours:
Netflix… Not So Much
Google Got Sued
Snapchat reported Q3 earnings today after the close and didn’t disappoint. The company beat on top and bottom lines with ease.
Here are the numbers:
EPS: $0.01 vs ($0.05) est.
Revenue: $678M vs $550.5M est.
Daily active users: 249M vs 243M est.
Snapchat CFO Derek Andersen said this:
While there is continued uncertainty about the macro operating environment, we are pleased with the strength of the underlying momentum we have established with our advertising partners, and we remain highly optimistic about the long term prospects for our business.
$SNAP was up 20% after-hours.
Texas Instruments reported earnings after the close and beat by a lot.
Here are the numbers:
EPS: $1.45 vs $1.27 est.
Revenue: $3.82B vs $3.43B est.
$TXN jumped 1.5% after-hours.
Netflix fell short on earnings estimates and subscriber additions but surpassed revenue expectations.
Here are the results:
EPS: $1.74 vs $2.14 est.
Revenue: $6.44B vs $6.38B est.
Global paid net subscriber additions: 2.2M vs 3.57M est.
Netflix had this to say:
The state of the pandemic and its impact continues to make projections very uncertain, but as the world hopefully recovers in 2021, we would expect that our growth will revert back to levels similar to pre-COVID.
$NFLX was down 6% after-hours.
Solar is shining bright in 2020. The solar ETF, $TAN is up 152% YTD.
JinkoSolar was trending all day. 🔥
Yesterday, the company announced that it signed a sales agreement for the Kozani solar park in Greece. Construction of the solar park is expected to start in November 2021.
Here’s the press release.
$JKS is up 289% in 2020.
Daqo New Energy was also hot. The company updated its 3Q sales guidance and full-year production guidance last Friday.
See the press release here.
$DQ is up 372% YTD. Here’s the daily chart:
The US vs Google
On Tuesday, the US filed the biggest antitrust lawsuit in decades against Google.
11 states filed claims accusing the tech giant of an “illegal monopoly” in search engines and advertising. Google’s pre-loaded, long-term device agreements will also be prosecuted.
Google said the lawsuit was “deeply flawed.”
The lawsuit intends to challenge Google’s tech dominance, and call for structural relief as needed to cure any anticompetitive harm.
Here’s the New York Times with more.
Goldman 1MDB Scandal
An Asian Goldman Sachs subsidiary will plead guilty to foreign corruption and bribery charges.
The Goldman subsidiary will have to pay $2B to the US Justice Department for looting 1Malaysia Development Berhad, a Malaysian sovereign wealth fund.
The Goldman parent company is accepting partial responsibility but will not pay penalties.
The scandal financed van Gogh and Monet paintings, a yacht in Bali, a giant acrylic grand piano, jewelry, and a share of “The Wolf of Wall Street”. There’s even a book about it.
s/o Jho Low
Earnings This Week
Be sure to know when your stocks report earnings. Here’s the earnings calendar.
Links That Don’t Suck
🎙 Naval Ravikant on Happiness, Reducing Anxiety, Crypto Stablecoins, and Crypto Strategy
🛢 Oil Industry Turns to Mergers and Acquisitions to Survive
🏙 Sidewalk Labs Creates Machine-Learning Tool for Designing Cities
🏡 A Year After Fetching $17 Million, a Vail Mountain Home Lists for $32 Million
🔋 Watch the 2022 GMC Hummer Electric Truck’s Debut
🍿 Brick and Mortar Winners in a Post Covid World
🚫 Why Facebook Is “Under Review” and Not Awarded a JUST Seal in the 2021 Rankings