Salesforce Seals The Deal

Tale of the Tape

Howdy y’all. The first day of December didn’t disappoint!

The Nasdaq closed at a new all-time high, just a hair better than the prior high set on September 2nd. 

Semiconductors were hot after World Semiconductor Trade Statistics forecasted chip sales rising 5.1% to $433 billion in 2020.🔥 $AMD advanced 6% yesterday, $TSM topped the $100, and $QCOM hit new all-timers.

Bitcoin nicked a high of 19915, just shy of 20K.

Moderna popped and dropped. $MRNA gapped up 16% but finished down 7.5%.

Salesforce will acquire Slack. Hear what this means and more on today’s episode of Stocktwits After Hours.

The FAANG gang grew and all five stocks finished higher. $FB was king, +3.5%.

Zoom tumbled 15% following its Q3 earnings report. $ZM is still up 497% YTD.

SPCE closed at its highest level since February 26. Will $SPCE shoot higher? Place your bets… 🚀

Here are the closing prints: 

S&P 5003,662+1.13%
Russell 20001,836+0.89%
Dow Jones29,823+0.63%

Earnings Round-Up

Salesforce sealed the deal with Slack. $CRM will acquire $WORK for ~$27.7B in a cash / stock transaction, but the deal isn’t expected to close until Salesforce’s 2022 fiscal year.
(~August 2021??)

Salesforce CEO Marc Benioff said: 

This is a match made in heaven. Together, Salesforce and Slack will shape the future of enterprise software and transform the way everyone works in the all-digital, work-from-anywhere world. I’m thrilled to welcome Slack to the Salesforce Ohana once the transaction closes.

Salesforce also reported Q3 earnings after the close. $CRM saw revenue grow 20% YoY.

Here are the numbers:

EPS: $1.74 vs $0.75 est
Revenue: $5.42B +20.2% YoY

$CRM sank 4% after hours.

Oh no, Momo 🙈

The Chinese social media company Momo reported earnings early this morning. $MOMO saw revenue decrease 15% YoY, and expects Q4 to see a decrease of 20% – 22%. 

Read the press release here.

EPS: $0.44 vs $0.37 est
Revenue: $554.8M – 15% YoY

The stock gapped 3% and finished down 5.6% on the day. 

Nasdaq Diversity Proposal

Nasdaq submitted a proposal that requires diversity on the boards of its listed companies. 

Nasdaq’s new rules expect company boards to include at least one woman and a director who is a racial or sexual minority. 

The stock exchange can even remove companies that don’t comply. 

Wall Street leaders are on board! Nasdaq CEO Adena Friedman cited studies showing board diversity improves governance and company performance. And SEC Chairman Jay Clayton said this about Nasdaq’s efforts: 

We welcome dialogue on how to improve diversity, inclusion and opportunity in the financial services sector and our economy more broadly.

Here’s the WSJ with more on the proposal. 

Blackberry Collabs with AWS 

BlackBerry (yes, they’re still around) announced a multi-year global partnership with Amazon Web Services today. The agreement will develop BlackBerry’s Intelligent Vehicle Data Platform, IVY.

BlackBerry IVY is a cloud-connected software platform that allows automakers to securely read and interpret vehicle sensor data. 

Blackberry CEO John Chen said: 

Data and connectivity are opening new avenues for innovation in the automotive industry, and BlackBerry and AWS share a common vision to provide automakers and developers with better insights so that they can deliver new services to consumers. This software platform promises to bring an era of invention to the in-vehicle experience and help create new applications, services, and opportunities without compromising safety, security, or customer privacy. We are pleased to expand our relationship with AWS to execute this vision and deliver BlackBerry IVY.

$BB opened the day +40%, but only closed up 19%.  

Here’s the intraday chart:

Airbnb’s Big Plans

Despite a rocky 2020, Airbnb says it hopes to reach a $34.8B valuation through an IPO in December.

The home rental company plans to list on the Nasdaq on December 10. If Airbnb reaches its $34.8B goal, its current valuation will double from April 2020. 😮 

Shares will sell between $44 and $50. Renaissance Capital Senior Strategist Matthew Kenndy said:  

Looking at Airbnb there’s a lot to like. The company’s third quarter has shown they’ve bounced back better than a lot of their travel rivals. 

What a recovery! Read more about the anticipated $ABNB IPO here.   

It’s December 🙏

Between the pandemic, natural disasters, and everything else, this winter will be a tough one. 

Everyone could use a hand, consider helping those in need! Here are some great resources:

🧭 Charity Navigator 
🏥 American Red Cross 
🌐 United Way
🌾 Feeding America 
❤️ The Salvation Army 

Stay on the lookout for local food, clothing, and blanket drives, too! 

Stay safe, y’all. 🙏

Earnings This Week

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

Links That Don’t Suck

💰 Rich As I Say, Not As I Do

👨‍💻 Apple Hires Prominent Venture Capitalist for App Store Role

🔋 VW Brand Dissolves Racing Operation, Shifts Staff to Work on EVs

🦠 Sports Keep Playing through the Covid Surge. It’s Getting Ugly.

✈️ Boom Supersonic Start-Up Goes ‘All-in’ on Using Amazon’s AWS for Aircraft Design and Development

⛰️ 6.4-Magnitude Earthquake Hits Off Southern Alaska