These Things Happen

Tale of the Tape

Good evening, y’all. It was a rough day out there. These things happen. 

The Dow had its worst down day since September 3. The Nasdaq only fell 1.6%.

Energy lagged. Utilities, the safe-haven sector, finished flat.

Apple and Amazon managed to close green. Apple was the only stock in the Dow that gained. 🍏

As we noted yesterday, it’s earnings season! Hasbro, Twilio, Chegg, and SAP reported numbers today. SAP sucked. See more below.

Japan wants to be carbon neutral by 2050. We are here for this.

NASA found water on the Moon. Can’t wait to go swimming. 

Here are the closing prints:

S&P 5003,400-1.86%
Russell 20001,605-2.15%
Dow Jones27,685-2.29%

Earnings Round-Up

Hasbro reported Q3 earnings that beat on top and bottom lines. The company benefited from marketing campaigns, innovative product lines, and games.

Here are the results:

EPS: $1.88 vs $1.67 est.
Revenue: $1.78B VS $1.78B est.

$HAS dropped 9.35%.

Twilio topped Q3 expectations thanks to demand for its communications software amid the pandemic. Revenue rose 52% and active customer accounts were up 21%.

Here are the numbers

EPS: $0.04 vs ($0.03) est.
Revenue: $448M vs $409.8M est.

$TWLO fell 1.7% after hours.

Chegg reported earnings after the close today. The digital education company beat forecasts and provided strong guidance for the rest of 2020 and early 2021. 

Here are the numbers:

EPS: $0.17 vs $0.12 est.
Revenue: $154M vs $143.9M est.

Chegg CEO and President Dan Rosensweig said this:

We have always said that the future of education was inevitable; to become increasingly online, on demand, and more affordable. The trends we are seeing in the industry and the momentum we are experiencing globally give us the confidence to raise our guidance again for 2020 and provide our initial outlook for 2021.

$CHGG was down 6% after hours.

SAP’s dire earnings erased $41B from the German software company’s market cap in minutes. Late Sunday, SAP cut its revenue forecast for the full year and expects the fresh wave of COVID-19 lockdowns to damage demand for the first half of 2021.

Christian Klein, CEO of $SAP, had this to say:

COVID-19 has created an inflection point for our customers. The move to the cloud combined with a true business transformation has become a must for enterprises, to gain resiliency and position them to emerge stronger out of the crisis. Together with our customers and partners we will co-innovate and reinvent how businesses run in a digital world. SAP will accelerate growth in the cloud to more than €22 billion in 2025 and expand the share of more predictable revenue to approximately 85%.

$SAP fell 23%, its worst day of all time. 

There Is Water On The Moon

There’s water on the moon! 🤯

NASA’s space mission SOFIA discovered lunar water by reflecting wavelengths of sunlight off the moon’s surface. 

SOFIA was launched in a Boeing 747 equipped with a giant flying telescope. 

Casey Honniball, the space mission’s leader, commented on NASA’s plan to keep hunting for H20: 

We hope to map a majority of the moon to characterize the behavior of water. Does it vary across the lunar surface with lunar time of day and latitude? This will help us understand its sources and where it resides.

This is the best news of 2020. 

The Biggest IPO Ever

China’s Ant Group expects to raise $34.4B in the world’s largest-ever IPO. 

The IPO anticipates raising $17.2B in both Hong Kong and Shanghai, and will exclude US exchanges. 

Ant Group’s partner, Alibaba Group Holding Ltd, raised $25B in 2014. With Ant Group’s plan to price at 68.8 yuan and HK$80 per share, the company will surpass Alibaba’s earnings.

Ant Group’s owner Jack Ma said this about the IPO:  

[It will be] the largest in human history. This is the first time that such a big IPO was priced outside of New York City, which we wouldn’t have dared to think about five, or even three years ago.

Here’s the WSJ with more. 

Boxing History

On this day 50 years ago, Muhammad Ali and Jerry Quarry let the leather fly. 

Ali returned to the ring from a 43-month exile in spectacular fashion by scoring a TKO in the 3rd round. Ali would knock out Quarry again in 1972.

Float like a 🦋, sting like a 🐝.

🌌 Stocktwits After Hours

Tonight on After Hours:

Stocks Sucked, What Gives?
Is SAP in Trouble?
CAT and MSFT Earnings Preview

Listen: Spotify | Apple Podcast | Google

Earnings This Week

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

Links That Don’t Suck

🐝 In Photos: How Washington State Crews Destroyed First Murder Hornets Nest in U.S.

😰 Trading Stress Away in 9 Simple Steps

🌚 Kid Cudi Teases Third Installment of Man On The Moon

🚲 Peloton The Roadmap to 100M Subscribers

📈 My Election Bet with Barry Ritholtz + How to Make Your First Venture Capital Investment

👏 Chobani Increases Workers’ Starting Hourly Rate to More than Double Federal Minimum Wage

🚷 Removing The CEO