Tale of the Tape
Good evening, y’all. It’s Veterans Day. 🇺🇸
Today, we honor all the brave men and women who served our great nation. We are forever grateful. Thank you. 🙏
The market of the stocks was mixed. The Nasdaq led for the first time this week while the small-caps finished flat.
Litcaptial said it best… lol.
The Nasdaq closed up as investors rotated back into the tech names they rotated out of on Monday.
Will the market rotate tomorrow? Who knows.
Tech and communications services were the best performing sectors. Basic materials and energy stumbled more than -1%.
Plug chugged 15% and closed at a new all-time high. The stock was trending all day.
NY State ordered bars and restaurants to close at 10 PM. COVID cases continue to climb. More on this below.
In case you forgot, today is also 11.11. Make a wish. 💭
Here are the closing prints:
| S&P 500 | 3,572 | +0.77% |
| Nasdaq | 11,786 | +2.01% |
| Russell 2000 | 1,736 | +0.00% |
| Dow Jones | 29,397 | -0.08% |
Earnings Round-Up
Fossil flew 30% after hours following Q3 earnings. Sales from the company’s e-commerce websites were up 66% and 3rd-party marketplace e-commerce sales increased 44% YoY.
Here are the results:
EPS: $0.31
Revenue: $435M -19% YoY
Kosta Kartsotis, CEO of Fossil, said this:
The organization continues to execute well in the face of a challenging environment. We outperformed our topline expectations in the third quarter, reflecting ongoing momentum in our digital channels and strong growth in mainland China, as well as trend improvement in the wholesale channel globally.
$FOSL is down 24% YTD. We’ll see where it opens tomorrow.
Revolve Group reported Q3 earnings after the close. The online fashion retailer beat on earnings but fell short of revenue estimates.
Here are the numbers:
EPS: $0.27 vs $0.14 est.
Revenue: $151M vs $157.4M est.
Co-CEO Mike Karanikolas commented:
Strong execution on our merchandising and operational initiatives led to another quarter of record results. Despite the challenging backdrop and short-term pressures, we continued to drive efficiencies throughout the business in the third quarter, leading to higher margins and record profitability.
$RVLV is down 9% after hours.
GrowGeneration reported its eleventh consecutive quarter of record revenues and EBITDA thanks to strategic growth in key markets and acquisitions. Revenue grew 153% YoY to $55M.
Here are the stats:
EPS: $0.06 vs $0.06
Revenue: $55M +153% YoY
GrowGen CEO Darren Lampert said this:
Our steadfast focus on rapid, strategic growth in key markets, both organically and through acquisitions, has resulted in our eleventh consecutive quarter of record revenues and EBITDA. We are building a best-in-class team of growing professionals, a robust e-commerce platform, and an insight-driven retail footprint targeting both established and emerging markets. The results of the recent elections, combined with our proven ability to scale while reducing operational costs, will allow us to grow our revenue and expand our bottom line into the following quarters. We have raised our guidance accordingly.
$GRWG grew 8% after hours.
Chipotle’s Digital Kitchen
Chipotle announced its first all-digital kitchen.
The restaurant will open in Highland, NY. Customers will be forced to order on the Chipotle app or other 3rd-party apps to receive service. No walk-ins welcome. 🙅🏻♀️🌯
The digital kitchen will not have a dining room or service lines. Instead, it’s designed to simulate the smell, sound, and appearance of a regular Chipotle.
After hearing about the digital kitchen, Jeff Macke said:
Chipotle digital-only is an automat w/ an app.
Here’s Curt Garner, Chief Technology Officer of Chipotle:
The Digital Kitchen incorporates innovative features that will complement our rapidly growing digital business, while delivering a convenient and frictionless experience for our guests. With digital sales tripling year over year last quarter, consumers are demanding more digital access than ever before so we’re constantly exploring new ways to enhance the experience for our guests.
See the press release here.
$BABA Singles’ Day Success
Alibaba’s ($BABA) Singles’ Day online shopping event made over $74B in China.
That’s 21x sales from the U.S.’s Amazon Prime Day.
The $74B Singles’ Day symbolizes China’s pathway to post-COVID economic recovery. Alibaba VP Liu Bo commented:
Because of COVID-19, many Chinese cannot go overseas. This actually stimulates online consumption.
The gigantic shopping event still didn’t satisfy investors after Ant Group’s IPO botch, though.
Here’s Reuters with more.
Coronavirus
COVID cases continue to climb as we approach winter. Hospitals around the country are seeing capacity issues. New York State just ordered bars and restaurants to close at 10 p.m.
As if that wasn’t enough, yesterday the U.S. reported its highest-ever number of COVID cases.
Here’s a chart of COVID-19 infections in the US:
Chart via CDC.
Stay safe & healthy, everyone. 😷
🌌 Stocktwits After Hours
Tonight on After Hours:
Is Another Lockdown Looming?
Bill Ackman Is Hedging, Again
Chipotle Goes Digital
Listen here: Spotify | Apple | Google
Earnings This Week
Be sure to know when your stocks report earnings. Here’s the earnings calendar.
Links That Don’t Suck
🔋 The First Ever BMW iX
🗽 New York Workers Are Most Reluctant in U.S. to Return to Office
👎 Quibi Founders’ $1.7 Billion Failure Is a Story of Self-Sabotage
⏱ TikTok Presses for Delay in Sale Deadline
🏦 Modern Gospel and Moats and Networks in Financial Services
🚀 Scott Kelly — Lessons Learned from 500+ Days in Space, Life-Changing Books, and The Art of Making Hard Choices
