Chewy Is Fur-Real

Tale of the Tape

Good evening, y’all. The market of stocks was mixed as the Russell 2000 tried to reclaim yesterday’s dip. The small-caps snapped back 1.7%, but $IWM is still a few bucks off yesterday’s high.

The S&P 500, Nasdaq, and Dow Jones Industrial Average all barely fell.

Consumer discretionary was the strongest sector, followed by financials and industrials. Consumer staples peeled back 1%. 

What will consumers choose tomorrow? 🤔 Discretionary or staples?? Time will tell… 

The cryptos continue to creep higher. Bitcoin bopped to 59,300 while ethereum approaches 1,900. 

Regional banks rallied 2.5%, but biotech failed to bounce. iShares Nasdaq Biotechnology ETF $IBB dipped 0.4% and closed at its lowest price since December 3, 2020.

Steel stocks surged to new relative highs. 🏗️ 💚 US Steel accelerated 8.69%— $X settled at its highest price since November 2018. Steel Dynamics dashed 3.14% and closed a dime from its all-time high of May 2018. 

Tesla turned up 3.98%. 🙌 🍻 Ford flew 2.5% and General Motors gained 4.6%. $GM is only 2.5% off its all-time high. Meanwhile, $TSLA corrected 28% from its highest closing print and Ford is still down a whopping 66% from its pre-2000 all-time high. 

Check out Ford’s unfinished monthly chart:

The airlines advanced as $JETS jumped 2.5%. ✈️ The airline ETF settled at its highest price since last Monday.

RH, formerly known as Restoration Hardware, reversed yesterday’s reversal and closed at a new all-time high. ✨ $RH ripped 6% and stopped at $600 on the dot.

Chewy chugged 9% after hours. The company crushed earnings expectations and raised guidance. See more below. 

Here are the closing prints: 

S&P 5003,958-0.32%
Russell 20002,195+1.72%
Dow Jones33,066-0.31%

Newsletter$ Bring in The Money 💰

In case you didn’t know, the newsletter industry is red-hot right now (we’re just talking about the RIP, but others seem to be doing fine as well 😉). They’re doing so well, in fact, that Substack just disclosed another round of funding.

Substack’s new series is led by Andreessen Horowitz and totals $65M, contributing to a new comfortable $650M valuation. 

The platform is now a beacon for free-lance writers and it has seen tremendous growth within the last year. It’s still facing tough competition from Facebook, Twitter, and Medium, though. 👎

Will Substack soar to the top??

Live Sports on Spotify?! 🎙️

Look out, Clubhouse. Competition is heating up— Spotify just joined the ranks with an acquisition that’ll allow podcasters to host live audio conversations. 🔥 🔥 

Spotify will acquire the owner of Locker Room’s platform, Betty Labs. Locker Rooms’ app hosts live audio conversations (about sports) to compete with the likes of Twitter Spaces, Discord, and Clubhouse.

Spotify R&D Chief Gustav Söderström said Locker Room would be a “great complement” to the platform’s existing capabilities. Söderström also hinted that Locker Room and Spotify would remain separate apps, but that it’s possible the two could overlap sometime in the future. 

Spotify didn’t share the deal’s price tag. But with live audio exploding in popularity, this seems like a strategic move. 🤓 🧠

Bitcoin & Burritos 

Chipotle just made a pretty wild announcement about its National Burrito Day celebration on April 1st… 🤯

The campaign, dubbed “Burritos or Bitcoin,” features Stefan Thomas, the man who lost his passcode to a Bitcoin wallet with over $387M in it… you know who we’re talking about. 

Starting April 1 at 9 am PST, users get 10 tries to guess a random 6-digit code for a chance to win (you guessed it) either Bitcoin or burritos. Throughout the contest (which ends at 6 pm PST the same night) 10,00 fans will win free burritos, 50 fans will win $500 in Bitcoin, and 3 fans get $25k in Bitcoin. 😋 🤑

Will you try to brute force some Bitcoin? We know we will… though we’re not gonna complain if we just win the burritos. 

Let’s hope this isn’t a sick April Fools joke… 🙃

Lexus’ EV Concept ⚡

Lexus just released its LF-Z concept with plans to manufacture electric versions of every model by 2025, and we have to say— the LF-Z is quite the combo.  

What do we mean? Lexus’ LF-Z looks like a crossover, sedan, and hatchback had a baby. The EV sports blue stripes with electrochromic tinting, a ‘floating’ roof, pop-out door handles, and more. Take a peek: 

Lexus hasn’t shared details about the car’s power output, battery capacity, or range. The luxury car maker also warns that LF-Z’s concept could change by 2025, so the design’s not set in stone. 🤷

Lexus will continue to sell its popular hybrid and gas-powered cars through 2025. Read more about the EV concept here. 🔋

Earnings Round-Up

Chewy reported earnings after the close. The online pet-product provider popped 9% as it crushed estimates and raised guidance. 🐶 🐱

Here are the numbers:

EPS: $0.11 vs ($0.09) est.
Revenue: $2.04B, +51.1% YoY

Sumit Singh, Chewy’s CEO, shared: 

2020 was an incredibly challenging and unpredictable year for all of us. During this time, Chewy performed exceptionally well and made significant strategic and operational progress. Specifically, we grew net sales by 47 percent year over year, increased our customer base by 43 percent year over year, delivered our first full year of positive adjusted EBITDA, and generated the company’s first quarter of positive net income in the fourth quarter of 2020. Years of preparation and focus have positioned us as the Internet’s preeminent neighborhood pet store and a leading pure-play e-commerce company in the pet space. We look forward to a future marked by ongoing innovation and to winning customers’ hearts and minds as we grow to become the most trusted and convenient online destination for pet parents (and partners) everywhere.

$CHWY is gapping up just off its mid-March highs. Will the stock drift back to its February all-time high?? Place your bets… 

Here’s its daily chart:

Lululemon also reported earnings after the bell, and beat on both top and bottom lines. The company grew revenue by 24% YoY and announced plans to open 40-50 new stores in 2021.

Here are the numbers:

EPS: $2.58 vs $2.49 est.
Revenue: $1.73B, +23.6% YoY

$LULU lost 1% after hours. 

Earnings This Week

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

Links That Don’t Suck

💰Check out StockPix, IBD’s hub for free investing infographics! You’ll learn about options, stock charts and more.*

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