Morning Market Feed May 9th, 2024
Markets yesterday may be best described as directionless. You can also see it in the changes from the indices, mixed. A lot of stocks sold off reasonably well without a valid reason, although some surely had all the reasons to do so. Now without further ado, let’s dive straight into it.
S&P500 0.01% | Dow Jones 0.45% | Nasdaq -0.06% | Russell2000 -0.58% | 10-year yield 4.50%
(Numbers as of market close May 8th)
- Basically the worst company in the world now
Sounds interesting right? Well, it’s not as bad as it sounds, although that isn’t surprising either. Shopify reported earnings and the stock basically collapsed as it ended the day down about 20%. In this article I go over the earnings to see what happened to it and why Shopify all of a sudden isn’t the Wall Street darling it was the day before yesterday.
- The biggest drop since May ‘22
Tuesday after the bell, Palantir reported earnings, and those sparked the reactions that could have been expected. As the stock dropped 15%, the retail community became as outspoken as Alex Karp, Palantir CEO is on political matters. You can read my full, in-depth analysis here.
- Another new executive
When looking at the chart of PayPal, it may not really seem like it, however, PayPal has been very busy turning the business around. After changing 6 members of the C-suite, adding a Vice President, and replacing the board of directors, we can say that some moves have been made. The latest change isn’t counted in the 6 new C-Suite executives, so now it’s 7. So what happened?
On Tuesday, PayPal announced Steve Winoker as the new Chief Relations Officer. Winoker will be responsible for communications with the financial community. Winoker comes from GE where he has served as Chief Investor Relations Officer for the past 5 years. Before his tenure at GE is where it gets interesting as his last position was managing director of the industrial sector. Before that, he was managing director, svp, equity analyst. Many names, I will just put his resumé below, the point I am trying to make is that he is very conscious of what analysts want to hear and how to speak their language. Since January 2019 GE is up about 350%, helped by the company break-up. In his new position, Winoker will report to Jamie Miller.
Source: Dow Jones Newswire
- Steal from the rich, give to the poor
Can you guess what company I’m talking about here? Robinhood is up slightly over 4% in after hours trading after smashing analyst expectations. I will write a more in-depth article about the earnings at a later point today after listening to the earnings call which I will link in tomorrow’s Morning Market Feed, for now, let’s go over the core numbers as they were pretty good
Revenue: $618 million vs $552.74 million expected
EPS: $0.18 GÀAP EPS vs $0.06 GAAP EPS expected
Gold Subscribers up 41% Year-over-Year to 1.7 million
As I said, I will release a more in-depth article later today which I will link to tomorrow because there is a lot in these earnings, Robinhood is on a very good track although there are some issues.
Numbers according to Tradingview
- What to look for today?
Today should be a calmer day in terms of direct catalysts, however, ARM Holdings has reported earnings and the guidance it gave wasn’t really up to hope, tomorrow you will read more about this as I will dive deeper into those earnings later today. ARM is one of the AI leaders, and due to being so, it may indirectly impact markets due to impacting other AI stocks, such as Nvidia.
The catalysts we do have, are jobless data points. We are expecting to see Initial Jobless Data (212K expected), and Continuing Jobless Claims. In the afternoon, FED Daly is expected to speak, but it has to be said that the FED speakers have not managed to impress markets yet this week.
That was it for this morning market feed, I wish you a great day, and if you haven’t already, make sure to subscribe to my newsletter!
