Ethereum Cranked Through 4K, Then Collapsed.

Tale of the Tape

Good evening, y’all! Today was a tough Monday. 🥵

Every major index marched lower, and crypto quickly cracked after the equity markets closed. Are we in for a wild week?? Time will tell… 

The Nasdaq Composite and Russell 2000 collapsed 2.5%— it was their worst day since mid-March. Even the Dow went down 0.10%. 🙃

Safe” sectors (like utilities, consumer staples, and real estate) all rallied. Tech tumbled 2.52%, followed closely by communications and consumer discretionary. 

Ethereum flew through 4K on Sunday. The crypto ticked a high of 4,213 today, then flipped and dipped back below the round figure. Read more below. 

Bitcoin broke down 5% and Doge dropped 19%. 🐶

Solar continues to set lower. The solar ETF $TAN tumbled 4.06% to settle at its lowest price since November 10, 2020. 

The Trade Desk got chopped 26% after it dropped earnings early this morning. Read more in the Earnings Round-Up. 🤠

Here are the closing prints: 

S&P 5004,188-1.04%
Russell 20002,212-2.59%
Dow Jones34,742-0.10%

Hack Attack ⛽ 🚗

How was your Monday? It couldn’t have been worse than the US fuel industry’s…  

US gas prices hiked 6 cents in the last week due to a cyberattack on Colonial Pipeline, the US’ biggest fuel pipeline. Now, gas prices approach their former 2014 highs. AAA spokeswoman Jeanette McGee said: 

The shorter the pipeline shutdown, the better news for motorists.

US officials believe DarkSide, a criminal ransomware organization based on Eastern Europe, could be behind the cyberattack. Ransomware is used by hackers to shut down technological infrastructure until payments are made to unlock computers. An FBI spokesperson said: 

The FBI confirms that the DarkSide ransomware is responsible for the compromise of the Colonial Pipeline networks. We continue to work with the company and our government partners on the investigation.

DarkSide appears to have no connection to foreign governments. Here’s the WSJ with more. 

Ethereum Cranked Through 4K, Then Collapsed.

Following Elon’s eventful SNL debut, Etherum broke out to blue skies. ☀️ ☁️

$ETH.X, the world’s second-largest cryptocurrency by market cap, flew through $4,000 for the first time ever.

Buut after today’s close, the crypto quickly crashed to 3,650. It now sits around 3,900. Can $ETH.X reclaim 4K? Time will tell… 

In the crazy world of crypto, Ethereum continues to outperform Bitcoin. Check out this ETH vs BTC ratio chart:

Can $ETH.X carry on strong?? 🤔

Earnings Round-Up

The Trade Desk fell 25% today after releasing Q1 earnings. $TTD also announced a 10-for-1 stock split, with shares to be distributed on June 16.

Here are the stats:

EPS: $1.41 vs $0.77 est.
Revenue: $220M, +37% YoY

Here’s the daily chart breaking below $500:

Roblox reported Q1 results today after the bell for the first time ever as a public company. 🥳 The company saw a significant increase in player interest, with players spending 9.7B+ hours online.

Here are the numbers:

EPS: ($0.46) vs ($0.21) est.
Revenue: $387M, +140% YoY
DAUs: 43.3%, +37% YoY

$RBLX rose 5% after hours.

Virgin Galactic reported another quarterly loss with no revenue. The company is also reconsidering its next test flight.

Here are the details:

EPS: ($0.55) vs ($0.31) est.

Michael Colglazier, CEO of Virgin Galactic, said:

We are committed to delivering one of the world’s most unique and transformational customer experiences, with safety at the core of everything we do. Our greatest asset  is  our incredible talented group of employees, and the strength of the leadership team we have assembled for the next phase of our journey.

$SPCE slipped 5% after hours.

Meet Lightning ⚡ 🔋 

Ford will release its 2023 EV pick-up truck, called “Lightning,” on May 19. ⚡

The F-150 Lightning will be available for sale sometime in mid-2022, and its May 10, 2021 social media debut can be found on Ford’s Youtube channel

Jim Farley, Ford’s CEO, says the truck will be similar to the Hummer EV SUV— the pick-up includes a dual-motor setup, all-wheel drive, a 300-mile range battery pack, and an illuminated light bar stretching the length of the truck’s grille. 

Here’s a sneak peek: 

Goldman Starts Slinging Crypto

Investment banking giant Goldman Sachs has officially joined the crypto craze. 🎰 Last week, the bank created a cryptocurrency trading desk to trade two kinds of Bitcoin-lined derivatives, according to CNBC.

The bank flipped a full 180 from its claim last year that cryptocurrency isn’t an asset class. 🤔

The reason for this paradigm shift? A rapid rise in crypto activity and hype has forced Wall Street to take note. 

The bank also launched a “Digital Assets Dashboard” for clients to provide daily and intraday cryptocurrency market updates.

How long will the crypto craze continue?? Who knows…

Earnings This Week

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

Links That Don’t Suck

📉 The Underachievers: Nasdaq & Bitcoin

💸 Hedge Funds Facing Biden Tax Threat Grab Puerto Rico Toehold

🏙️ A Timeline of New York’s Tallest Buildings, from a Wooden Observatory to One WTC

🛑 Closing the Pits

🚀 Retail is Staying in the ARKK.

🏡 Arquitectura-G Installs Bright Red Family Home on Top of a Garage

💔 Here Are the Properties Bill and Melinda Gates Must Divide in Their Divorce

❌ NBC Straight Up CANCELLED The Golden Globes For 2022