Tale of the Tape
Good evening, everyone. Happy hump day! 🐪 Stocks got silly early this morning as the Russell 2000 broke its 7-day winning streak.
Here’s the 5-minute chart of the S&P 500 ETF $SPY:
Shortly after the open, $SPY tumbled from 392 to 387.5 in less than an hour. Despite the frenzy, every major index closed within +/- 1%.
Energy was the strongest sector. $XLE advanced 1.9% and closed at its highest price since last June.
Social stocks stayed hot 🔥— Twitter closed at its highest price since January 3, 2014 following yesterday’s earnings report. See more below.
Google managed to gain 0.57%. The stock has barely budged since it gapped up on earnings earlier this month. Where will Google drift next?? Place your bets…
China tech carried on. BILI bopped 11.6%. Futu flew another 7%.
Emerging markets closed at another all-time high while the Nikkei 225 closed at its highest price since the summer of 1990.
Sonos reported earnings after the close. $SONO soared and is trading at all-time highs after hours.
Here are the closing prints:
| S&P 500 | 3,909 | -0.03% |
| Nasdaq | 13,972 | -0.25% |
| Russell 2000 | 2,282 | -0.72% |
| Dow Jones | 31,437 | +0.20% |
Social Stocks Stayed Hot 🔥👻
Social stocks continued to trend after Twitter beat earnings last night.
The social media ETF $SOCL surged another 3% to close at an all-time high. $SOCL maintained its 8-day winning streak… sheesh!! 🔥👻
Here’s the daily chart:
Twitter ticked a 7-year high after last night’s earnings. Check out its monstrous monthly chart:
The Match Group, owner of Tinder, Match.com, and other online dating sites, marched to fresh all-time highs. ❤️ 💋
BiliBili, the ‘YouTube of China,’ bounced back from an early morning gap down and broke out to blue skies. ☁️ ☀️ $BILI is now up 213% since the company reported earnings last November. Here’s the daily chart:
Earnings Round-Up
Uber posted mixed Q4 results after the bell today. The ride-sharing company beat on earnings, but fell short on revenue.
Here are the stats:
EPS: ($0.54) vs ($0.56) est.
Revenue: $3.2B, -16% YoY
Mobility (gross bookings): $6.79B, -50% YoY
Delivery (gross bookings): $10.05B, +130% YoY
Dara Khosrowshahi, Uber’s CEO, said:
While 2020 certainly tested our resilience, it also dramatically accelerated our capabilities in local commerce, with our Delivery business more than doubling over the year to a nearly $44 billion annual bookings run-rate in December.
$UBER was flat after hours.
General Motors topped Wall Street estimates with ease, though the company did warn that a global semiconductor chip shortage may hurt earnings. 💔
Here are the stats:
EPS: $1.93 vs $1.64 est.
Revenue: $37.5B, +22% YoY
$GM lost 2%.
Sonos Inc. recorded record revenue in its most recent quarter. 🚀 🔊 The home-improvement trend persisted through the holidays as customers outfitted homes with $SONO’s smart audio products.
Here are the numbers:
EPS: $1.17 vs $0.84 est.
Revenue: $645.6M, +12% YoY
Sonos CEO Patrick Spence commented:
Despite all of the challenges of the pandemic, our team rose to the occasion and delivered the best quarter in our 18 year history. We welcomed a record number of new customers while a record number of existing customers returned to add additional products to their system. Based on our outstanding first quarter performance, the momentum in our business, the exciting products we have planned for the future, and the power and profitability of our unique business model, we are raising our outlook for fiscal 2021.
$SONO soared 16% after hours.
All Dip, No Chips
If you’ve been paying attention to the news recently, you may have heard of the impending chip shortage. It’s not actual chips (what would we do without Doritos?!)— it’s semiconductors.
Processing chips are largely unavailable thanks to increased demand caused by booming tech sales, a side effect of former President Trump’s trade war.
Recently, car companies face the brunt of this issue as GM, Ford, Honda, and FCA all indicate that production may (or has already) slow(ed).
Guarav Gupta, a semiconductor analyst, commented on the situation:
The problem is even if that 10-cent chip is missing, you can’t sell your $30,000 car.
The semiconductor chip industry is working hard to pull through, but only time will tell when delays will stop. 🤷
Imitation Is The Sincerest Form of Flattery
Breaking: a social media company copies another social media company. Time to go post on our Instagram stories while watching Snapchat spotlight videos! 😂
Zuckerberg and Facebook are reportedly building a Clubhouse clone… just 6 days after Zuck first joined the app.
This report comes as Clubhouse explodes in popularity. Today, even Elon Musk agreed to host a room with Kanye West. We hope for Clubhouse’s sake that they’re upgrading their servers.
Twitter also joined the race late last year with the introduction of its ‘Twitter Spaces’ feature. It’s a true clash of the titans.
Who will come out on top? 🥊 Time will tell…
Googleland 🍭
Google plans to develop a Bay-area tech campus, its own community complete with thousands of new homes, small shops, and nonprofits.
The project will transform SF’s Mountain View area into a fully-functional tech campus…sounds like Googleland. 🤔 🍭
The tech giant will partner with Lendlease to add 7,000 new homes to its future Mountain View campus in San Francisco’s North Bayshore neighborhood.
Michael Tymoff, Google’s Mountain View development director, said:
As we continue to grow in the Bay Area, we’re committed to helping our hometown communities recover from the pandemic and solve challenging problems. Our proposal prioritizes housing, on our land and offers a great opportunity to turn North Bayshore in Mountain View into a community with affordable homes, restaurants, parks, office space and so much more.
Take a look:
Earnings This Week
Be sure to know when your stocks report earnings. Here’s the earnings calendar.
Links That Don’t Suck
✈️ Ready for an adventure-filled 2021? Make it happen for $1. Think Hawaii from $109 or Greece from $247*
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