MemeStocks Got Murdered

Tale of the Tape

Good evening, folks. The market of stocks marched to new highs. 

The S&P 500, Nasdaq Composite, and Russell 2000 all closed at their highest prices in history. 🙌 💸

Financials flew 2.22% while tech ticked an all-time high. Basic materials was the only sector to close lower. 

The cryptos were quiet. Could we see a follow-through on Friday? Time will tell… ⏳

Gold dropped 2.15% as $GLD closed at its lowest price since last November. 

Canada Goose gapped up and gained 22% off the back of an earnings beat. The stock closed at its highest price since November 5, 2019.  

The social media ETF closed at an all-time high prior to a few social stocks reporting earnings. Pinterest, Peloton, and Snap all posted numbers after hours. See the round-up below. 

The meme stocks got murdered, again. 🔪 $GME dropped 42% while $AMC collapsed 21%. To make matters worse, both stocks closed at their lows. 🙃

Here are the closing prints: 

S&P 5003,871+1.09%
Nasdaq13,777+1.23%
Russell 20002,202+1.98%
Dow Jones31,055+1.08%

Earnings Round-Up

Snap reported better-than-expected Q4 earnings after the bell. Revenue grew 62% YoY, the platform’s best figures since going public in 2017.

Here are the stats:

EPS: $0.09 vs $0.07 est.
Revenue: $911.3M, +62% YoY
DAUs: 265M, +22% YoY

Snap CEO Evan Spiegel said:

We delivered our first full year of Adjusted EBITDA profitability and, as we look towards the future, we’re excited to build on our investments in augmented reality, mapping, and content to drive our ongoing growth.

$SNAP slumped 6% after hours.

Pinterest provided stellar earnings and sales results thanks to holidays and pandemic lockdowns. 🎄🔒

Here are the numbers:

EPS: $0.43 vs $0.32 est.
Revenue: $706M, +76% YoY
Monthly active users grew 37%. Most notably, International MAUs grew 46% YoY. Here’s a cool infographic:

$PINS popped 7% after hours.

Peloton’s quarterly sales surpassed $1B for the first time. The stock got hit after hours even though the fitness brand couldn’t keep up with its customers’ demand.

Here are the details:

EPS: $0.18 vs $0.09 est.
Revenue: $1.06B, +128% YoY
Subscribers: 1.67M, +134% YoY

$PTON fell 6% after hours.

Ford reported surprise earnings after the bell, announcing plans to increase spending in EV and autonomous driving to $29B through 2025. 🚗 💨

Here are the numbers:

EPS: $0.34 vs ($0.07) est.
Revenue: $33.2B, -9% YoY

Ford President and CEO Jim Farley said: 

The transformation of Ford is happening and so is our leadership of the EV revolution and development of autonomous driving. We’re now allocating a combined $29 billion in capital and tremendous talent to these two areas, and bringing customers high-volume, connected electric SUVs, commercial vans and pickup trucks.

$F was flat after hours.

23AndMe Goes Public 🧬

The DNA-testing company 23AndMe Inc. will go public through its deal with billionaire Richard Branson’s SPAC, VG Acquisition Corp. 

The deal values 23AndMe at $3.5B— both Branson and the company’s CEO, Anne Wojcicki, will invest $25M into 23AndMe’s public equity offering. 

The deal’s expected to close in Q2 2021, but 23AndMe’s SPAC merger means no IPO. CEO Anne Wojcicki said: 

Covid-19 has really opened up doors…I’ve had this dream since 2003 that genetics would revolutionize health care and that’s really the era I see we can now usher in.  

While it’s fun to compare your genetic pie chart with friends and all, 23AndMe’s technology might actually transform healthcare. 🤭 Here’s Bloomberg with the details. 

Draftkings, Eh?

Draftkings has had a 2021 fit for kings. 👑 Not only did the company launch its sportsbook in Michigan ($DKNG now has sportsbooks in 12 states), it also signed a deal with the Drone Racing League, too. 

$DKNG didn’t put down its crown today, either. The company announced a deal with the NFL to become Canada’s official and exclusive daily fantasy partner. This means $DKNG will have sole access to NFL branding and collaboration opportunities in both the US and Canada. 🇺🇸 🇨🇦

When asked how DraftKings would celebrate the deal, the company’s Canadian division reportedly said “Oh, ya know. We’ll probably head on down to the rink to drink some Timmy Hortons and play some hockey.”

$DKNG gained 5% following the news. The stock closed within $1 of its all-time high. Here’s the daily chart:

Mattress Mack Moves Racks 💰

What’s the most you’ve ever spent in an airport? Maybe $20-30 on a meal? For Jim “Mattress Mack” McIngvale, that number is much, much higher… try $3.46M.

Late last night, “Mattress Mack” flew to Colorado Springs (where sportsbooks are legal) and placed his bet on the DraftKings app for the Tampa Bay Buccaneers to cover the 3.5 point spread against the Kansas City Chiefs— his potential payout? $2.71M. 

His bet is just a drop in the ocean for the game this weekend, though. The American Gaming Association predicts more than 7.6M people will place legal online bets, a 63% increase from last year.

If you’ve ever bet $5 on a game, just multiply how nervous you were by 632,000 to find out how Mattress Mack is probably feeling right now. 😂

ETF Extravaganza 🎉 

Today, Fidelity launched four actively-managed ETFs to mimic its well-known active mutual funds. Here are the ETFs and their expense ratios:

  • Fidelity Growth Opportunities ETF – $FGRO, 0.59%
  • Fidelity Magellan ETF – $FMAG, 0.59%
  • Fidelity Real Estate Investment ETF – $FPRO, 0.59%
  • Fidelity Small-Mid Cap Opportunities ETF – $FSMO, 0.64%

$FSMO is the only new ETF that boasts a new strategy. The other three ETFs follow Fidelity’s existing mutual fund strategies. 

Greg Friedman, Fidelity’s Head of ETF Management and Strategy, said this about the new funds:

They’re all really different, but they all bring innovation and choice for our clients.

Fidelity Magellan mutual fund currently has $22B AUM, down from the ~$100B it managed in the late 90s.

Earnings This Week

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

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