Daily Doses

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You will find here the history of our "daily doses" ๐Ÿ’Š

๐Ÿ’Š Microsoft - 27-Feb

Microsoft just joined Apple in admitting that their revenue forecast of Q1 2020 was too optimistic ๐Ÿ™ˆ

Indeed, Microsoft is warning investors that the "Windows" division will not meet expectations for Q1. Why? Because of the Coronavirus, of course! ๐Ÿค’

Microsoft declared "Although we see strong Windows demand in line with our expectations, the supply chain is returning to normal operations at a slower pace than anticipated"...

The market is under a lot of pressure and reacted very strongly to the announcement with a 4% loss in pre-market trading. In other words, $40B worth of stock value just vanished ๐Ÿคฏ
Will it keep falling?

๐Ÿ’Š Disney - 26-Feb

Disney CEO Bob Iger is stepping down and replaced by Bob Chapek, previously chairman of Disney Parks ๐ŸŽข

It's huge news on Wall Street as Iger has been CEO for 15 years and was at the origin of key strategical and highly profitable moves such as the acquisition of Star Wars, Marvel, and Fox, as well as the recent launch of the streaming platform Disney+...
... Not even mentioning Baby Yoda ๐Ÿค‘

Chapek intends to continue Iger's legacy: โ€œRight now the course that Bob has laid is one that we fully intend to follow and I think will pay dividends to shareholders for years to come,โ€ ๐Ÿ˜‡

Let's see if those words are reassuring enough...

๐Ÿ’Š General Electric - 25-Feb

General Electric cut about 78K employees last year according to its newly published annual report, leaving it with around 205K workers at the end of 2019. To give you an idea, it's the lowest headcount for GE since WWII ๐Ÿ˜ง

The new CEO Larry Culp has been praised for trying to put back GE on the right track by selling big chunks of GE's business for cash. "Our work is by no means finished, but we are on the right path," he said ๐Ÿคž
The stock gained 40% in a year, showing investors' trust is slowly but surely recovering.

GE's stock is highly correlated to the Dow Jones and has suffered recently from the Coronavirus fear... ๐Ÿค”

๐Ÿ’Š S&P 500 - 24-Feb

It took some time but it seems like the market is finally waking up and getting seriously anxious about the consequences of the Coronavirus on the World Economy ๐Ÿ“‰

Last week, when Apple adjusted its growth numbers for Q1 2020 because of production issues in China, we could already detect signs of fear and weaknesses in the US. market.
The weekend news did not help with a major spread of the virus in South Korea ๐Ÿ‡ฐ๐Ÿ‡ท, an unexplained outbreak in Italy ๐Ÿ‡ฎ๐Ÿ‡น and a slightly worsening situation in China ๐Ÿ‡จ๐Ÿ‡ณ

What do you think? Is it the beginning of a serious market correction, or will investors quickly flip back to optimism? ๐Ÿค”

๐Ÿ’Š Wells Fargo - 21-Feb

In 2016, Wells Fargo revealed that it had opened 2M bank accounts in customersโ€™ names WITHOUT their knowledge while charging other customers unnecessary fees for auto and home loans... The reason for that? Virtually boost sales numbers and collect hefty bonuses ๐Ÿ˜ก

The DOJ & the SEC (the market Cops) will announce TODAY the amount of the penalties Wells Fargo will have to pay to settle this case โŒ›
Since 2016, the company already spent around $4B in fines, and it has provisioned $3.1B for the final settlement due today.

If the fine is less than $3.1B, the market will celebrate. If it's more, the market will punish ๐Ÿง˜โ€โ™€๏ธ

๐Ÿ’Š Morgan Stanley - 20-Feb

Morgan Stanley is buying the Broker E-Trade for $13 billion ๐Ÿ’ฅ

Okay, why is it a big deal? Because Morgan Stanley is an investment bank focusing on big accounts and wealthy individuals. Buying out a consumer service like E-Trade shows a willingness to start building offers for the "average Joe" ๐Ÿค—

E-trade, with 5.2 million client accounts and over $360 billion of retail client assets, will be adding to Morgan Stanleyโ€™s 3 million client accounts and $2.7 trillion of client assets. Read that again.

Not quite sure why, but the investors of Morgan Stanley seem to not appreciate the news as Morgan Stanley fell 4% in pre-market...

๐Ÿ’Š Groupon - 19-Feb

Groupon just published bad Q4 2019 results sending the shares to -25% in pre-market trading ๐Ÿ’ฅ

Groupon is a marketplace of deals and promotions made to "lure" you into trying new products & services thanks to aggressive discounts ๐Ÿค‘

They reported $612M in revenue instead of the $709M that analysts were expecting. Recognizing the failure to find a growth trajectory, the CEO also said that the company has a masterplan aiming to ditch "goods" to focus on "experiences" - allowing โ€œa stronger Groupon to emergeโ€ in 2020 ๐Ÿ’ช

Will investors further punish and lose faith in Groupon or realize that they over-reacted? ๐Ÿค”

๐Ÿ’Š Apple - 18-Feb

You must be tired of hearing about it, but the Coronavirus is sticky news ๐Ÿ˜ท

Apple shares fell over 3% in pre-market today after it warned that it does not expect to meet its own guidance for Q1 2020 because of the impact from the coronavirus on production ๐Ÿ˜ฑ
Guidance? It's basically a "roadmap" that Apple commits to at the beginning of each quarter. Apple is basically saying here "we told you it will be fine, but it won't" ๐Ÿ˜‡

All its manufacturing facilities have re-opened in China but are โ€œramping up more slowly than we had anticipatedโ€ leading to โ€œiPhone supply shortagesโ€

It's now a game of fear and expectations ๐Ÿค”

๐Ÿ’Š Pinterest - 14-Feb

Let's finish the week with some lighter news ๐Ÿ˜‡

Facebook just silently launched a new app called "Hobbi", and the problem is... It really looks like a copycat of Pinterest. The app is a social media enabling you to share photos and other materials organized by topic ๐Ÿ–ผ

Facebook already has a reputation for "stealing" the ideas or features of its competitors including Snapchat or Instagram before they acquired it.

Earlier in Jan., we mentioned that Pinterest took back its position as third-biggest Social Network in the US ๐Ÿ†

Pinterest shares fell 4% after a journalist spotted the new app - do you think investors should worry? ๐Ÿค”

๐Ÿ’Š Alibaba - 12-Feb

Alibaba, a Chinese conglomerate (with activities in eCommerce, Payment, Search, etc.) is reporting its Q4 2019 earnings tomorrow before the market opens ๐Ÿค‘

Alibaba has suffered from the Coronavirus outbreak in the past few weeks, losing almost 10% in Jan. because of the Chinese economic slowdown. However, the stock has almost completely recovered in Feb. since the number of new cases is slowing down ๐Ÿฅณ

Alibaba hit a record $38.4 billion on "Single day" in November, beating in one day the revenue of Amazon online sales for the whole quarter ๐Ÿคฏ

Things are looking good, but expectations are high.
Hold your trade until tomorrow ๐Ÿคž

๐Ÿ’Š Lyft - 11-Feb

Lyft will report tonight its earnings for Q4 2019 โŒ›

Last week, we told you that Uber will reach profitability sooner than expected. A milestone very welcomed by investors who are tired of the "profit-less" growth of companies like Uber & WeWork... ๐Ÿ˜ก

Funny enough, the news had a positive trickle-down effect on Lyft that soared by almost 10% in the past 7 days ๐Ÿค”
Why? Because the market is judging the progress of the industry as a whole.

But tonight, it will be Uber Vs. Lyft - no "industry effect" nor friendly competition.
The wind is already blowing in favor of Lyft, but it could quickly backfire as expectations are high ๐Ÿฆ„

๐Ÿ’Š Apple - 10-Feb

Apple may postpone the launch of a cheaper iPhone due to the coronavirus ๐Ÿ˜ท

Apple supplier "Foxconn" got approval to resume production at a key China plant after being forced to shut it down... But only 10% of the factoryโ€™s workforce has been allowed to return so far ๐Ÿ’จ
Meanwhile, Apple's arch-nemesis Huawei said last week it had resumed production and operations were running normally...

To give you an idea of the pressure on production: Foxconn, which makes devices for global electronics firms, has built its own production lines to make masks for its hundreds of thousands of employees ๐Ÿคฏ

๐Ÿ’Š Uber - 07-Feb

Uber just announced it will reach profitability sooner than expected ๐Ÿค‘

The company is known for its HUGE losses due to massive R&D investments, lawsuits, and aggressive growth strategy ๐Ÿ”ฅ

Uber still expects to lose more than $1B this year, but the company said it is on target to be profitable on an adjusted basis by the fourth quarter of this year (instead of a previous target end of 2021) ๐Ÿ’ช

Wait... How can they lose money and be profitable?
Because Uber is talking about EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization)...

Will investors believe in the promise? ๐Ÿค”

๐Ÿ’Š Twitter - 06-Feb

Yesterday, Snapchat got slammed (-14%) after reporting weaker earnings than expected and kept falling during the day ๐Ÿš‘

Today, Twitter is taking the opposite direction thanks to a higher than expected Revenue and "Monetizable Daily Active Users" - basically, 152 million people per day are exposed to advertisements on Twitter, generating revenue of roughly $1B last quarter ๐Ÿค‘
Investors also praised the decision to ban political ads prior to the US Elections, unlike Facebook...

The question is whether Twitter will mirror Snapchat move yesterday and keep rising after an initial +9% this morning - or will it correct its trajectory? ๐Ÿค”

๐Ÿ’Š Snapchat - 05-Feb

Snap just released its Q4 2019 earnings, and the company missed on revenue expectations, sending shares plunging as much as 14% after the bell yesterday ๐Ÿคฏ

What went wrong? Actually, it didn't go so bad. Snap reported revenue of $561M, up 44% compared to last year. Analysts were expecting Snap to report $563M in revenue... $2M short - Potayto Potahto? ๐Ÿฅ”

Despite stiff competition from Facebook and TikTok making investors nervous, Snap has managed to continue growing its user base, while ramping up ad sales by putting a focus on young users and augmented reality technology.

Is it too much of a punishment or a real sell-off? ๐Ÿค”

๐Ÿ’Š Tesla - 04-Feb

You're wondering why some of the players on Newspill are crushing the leaderboard lately? Partly because they are holding Tesla shares which are literally going through the roof: +146% in 3 months ๐Ÿš€

Why is it raising so much? ๐Ÿค”
Because we entered a process called "reflexivity" or "positive feedback loop": a self-reinforcing effect of market sentiment, where rising prices attract more and more buyers ๐Ÿ“ˆ

Do you like bubbles? ๐Ÿพ
The last bubble you might have heard about is the Bitcoin. Funny thing, the evolution of Tesla's stock price looks a lot like it...

So, will you ride the wave or take a contrarian investment strategy ๐Ÿ‘

๐Ÿ’Š American Airlines - 03-Feb

Waking up today was rough? Well, in China, Traders woke up with a huge hangover as the market reopened after a long weekend break due to the Chinese New Year...
-8% at the opening for the main Chinese Index ๐Ÿ˜ต๐Ÿ’จ

The airline sector is feeling the immediate impact of the Coronavirus โœˆ๏ธ

American Airlines, for instance, said Friday that all flights to China are canceled until further notice, due to pressure and concerns from the Union of Pilots ๐Ÿ˜ฎ
Trump also signed an order temporarily barring entry to foreigners who had traveled to China within the past two weeks...
And of course, the demand for tickets is slowly dropping ๐Ÿ“‰

๐Ÿ’Š IBM - 31-Jan

The emblematic CEO of IBM Ginni Rometty is stepping down and being replaced by Krishna, the head of IBMโ€™s cloud business โ˜๏ธ

The market seemed happy with the news (+4%)
Investors did not like Ginni? It's not that simple ๐Ÿค“

IBM has 2 separate businesses: its older, legacy businesses, including hardware and services, and its cognitive/cloud business, which includes Artificial Intelligence.

Ginni might represent the "old IBM" for investors, though she terminated or sold many unprofitable legacy businesses and organized the acquisition of RedHat (a cloud services company for Linux).

Over-reaction or real hope for a new strategy? ๐Ÿค”

๐Ÿ’Š Facebook - 30-Jan

Facebook announced better-than-expected revenue for Q4 2019 ๐Ÿ‘
BUT... The costs of FB have increased by 51% in 2019 compared to 2018, therefore reducing their "operating margin" ๐Ÿงพ
Some investors must have been surprised yesterday when FB shares fell by 7% after the "good news" ๐Ÿ“‰

Over-reaction? Eventually, FB numbers are overall pretty good with a growing number of active users & rising revenue per user.

Investors are tensed because there is a $5B Fine pending after the scandal of Cambridge Analytica. Not mentioning Libra (the Crypto project of FB) undergoing a lot of pushback.

So, over-reaction or real downward trend? ๐Ÿค”

๐Ÿ’Š Tesla - 29-Jan

Tonight is the Q4 2019 Earning report of Tesla - a moment of truth after a massive market rally, +120% since October ๐Ÿ’ฅ๐Ÿ“ˆ
This exponential rise was due to several good news: the Shangai MegaFactory is operational, a surprisingly high number of cars was delivered in Q4, the CyberTruck was unveiled, and even Trump compared Elon to Thomas Edison ๐Ÿคฏ

Musk is notoriously known to "play" with the stock market, and yesterday he sent the enigmatic tweet below... Is he actually talking about disrupting the CHAIR industry or is it a hint on the value of Tesla SHARES? ๐Ÿง

Be careful though: Expectations are high and competition is rising...

๐Ÿ’Š Apple - 28-Jan

If you've been with us long enough, you might remember that Apple asked its suppliers in China to increase the production of iPhone 11 by about 10% in Nov., hinting that demand was rising.
Will it be reflected in the Q4 2019 earning report of tonight? ๐Ÿ“ˆ๐Ÿฅณ

Apple almost doubled its Market Capitalization in 2019 (+90%), making it the most valued company in the world after Saudi Aramco.

For tonight, investors will be judging based on the following:
๐ŸŽฅHow did Apple TV+ perform vs. the streaming competition?
๐Ÿ‡จ๐Ÿ‡ณIs there a shift in preference to Chinese phone brands?
๐Ÿ“ฑHow badly the Coronavirus will affect the production timeline?

๐Ÿ’Š Starbucks - 27-Jan

Would you like some Coronavirus with your Chai Tea Latte? โ˜•

Starbucks has temporarily closed ALL its locations in Chinaโ€™s Hubei province because of health concerns for customers and employees amid the spread of the coronavirus ๐Ÿ˜ท

Starbucks is also reporting its Q4 2019 Earnings Tuesday night and, for the past year, Starbucks earnings have always been a good surprise ๐Ÿ’ธ

To sum up: very interesting setup since the China situation is bringing Starbucks in freefall - which, on the other hand, is an opportunity to "buy" Starbucks at a discount price 2 days before a potentially good earning report that could make the stock rise ๐Ÿ“ˆ

๐Ÿ’Š Disney - 24-Jan

Shanghai Disney Resort will be closed until further notice to help stop the spread of coronavirus ๐Ÿ˜ท

No Mickey parade this weekend then - what's the big deal?
Well, China is on a 7-day Lunar New Year holiday, a period when the park would be usually packed with tourists and generate hefty revenue for the group ๐Ÿค‘

Disney had an amazing year with a rise of +30% of its market value thanks to several $1Billion box-office revenue movies and the launch of its own streaming platform.
The estimated financial impact was not immediately clear, but Disney said it would refund park & hotel tickets...

Will investors panic or hold still? ๐Ÿ˜ณ

๐Ÿ’Š Alibaba - 23-Jan

A new deadly pneumonia-like virus first reported in China has killed 17 people and infected nearly 600 others ๐Ÿ˜ท

Two cities in China (~11 Million people) are on total lockdown ๐Ÿ‡จ๐Ÿ‡ณ๐Ÿ”’
Major public events for the Chinese New Year just got canceled and the city government of Wuhan said it will shut down all urban transport networks and suspend outgoing flights.

The economic consequences of a pandemic in China could be terrible.
Alibaba, the Chinese Amazon, has lost around 4% of its value this week mostly because of the market anxiety ๐Ÿ˜ฑ
If the virus is contained, Alibaba should recover quickly. If not, it could plummet.

๐Ÿ’Š American Airlines - 22-Jan

Tomorrow morning, American Airlines (AAL) will publish its Earnings for Q4 2019 ๐Ÿ’ธ

It's a fascinating case study since AAL is under the radar for multiple reasons:
โœˆ๏ธ Numerous flight cancellations resulted from the grounding of Boeingโ€™s 737 Max jet
๐Ÿ˜ท The spread of the coronavirus could put a stop to tourism - AAL lost 4% yesterday after the first US case of the virus was diagnosed
๐Ÿ‘‘ AAL is lagging behind the competition with a very bad stock performance last year (-19%)

Overall expectations are low, but the stock could rebound in case of a good surprise or be badly punished in case the results are worse than forecast...

๐Ÿ’Š Uber - 21-Jan

Uber Eats gives up in India and sells its activity to local rival Zomato โœŒ๏ธ
The deal is an "all-stock transaction" where Uber gets a 9.99% stake in Zomato in exchange for disappearing from the market and therefore giving more chances to the Indian startup to beat the competition โ˜˜๏ธ

Uber's CEO declared that "India remains an exceptionally important market to Uber" and that the focus will be put on the ride-hailing service, the leader on the market ๐Ÿ‘‘

Giving up could be seen as a smart move in this ultra-competitive market but it could also show weakness from Uber whose food delivery activity is also slowing down in the US...

๐Ÿ’Š Amazon - 16-Jan

Amazon will invest $1 billion in India to bring small businesses online in the country ๐ŸŽ

But this move is no charity act.
India's trade minister says that "itโ€™s not as if they are doing a great favor to India when they invest a billion dollars." ๐Ÿ˜ 

Amazon is facing mounting criticism from Indiaโ€™s brick-and-mortar retailers, which accuse the U.S. giant of violating Indian law by racking up billions of dollars of losses to fund deep discounts and discriminating against small sellers ๐Ÿ˜ฎ

The Market could punish an escalating relationship with India's government or celebrate a smart move from Amazon to dispel criticism...

๐Ÿ’Š Pinterest - 15-Jan

Pinterest took back its position as third-biggest Social Network in the US in front of Snapchat and behind Facebook & Instagram ๐Ÿ†

Shares of Pinterest surged 9.6% yesterday after a report said the company had 82.4 million users last year in the US, compared to Snapchatโ€™s 80.2 million ๐Ÿ”ฅ
"While Snapchat has a young core audience that it caters to, Pinterest has a more universal appeal, and it's made significant gains in a wide range of age groups."

It is obviously good news for Pinterest but one could say that the market is over-reacting and the price surge could backlash.
What do you think? ๐Ÿค”

๐Ÿ’Š Visa - 14-Jan

Visa just acquired Plaid in a deal worth $5.3 billion โ€” roughly double the start-upโ€™s last private valuation ๐Ÿค‘

You might have never heard about it but Plaid is often referred to as the โ€œplumbingโ€ behind fintech companies, letting start-ups connect to usersโ€™ bank accounts and retrieve their financial data โš™๏ธ

Visa said the deal has the potential to add as much as 1% to the companyโ€™s net revenue growth by 2021. On the other hand, some investors might say that this was a very expensive deal.

The whole Tech ecosystem is going crazy, celebrating the move from Visa but also the success of Plaid. Will the market see it the same way? ๐Ÿค”

๐Ÿ’Š JP Morgan - 13-Jan

This week on the Market is Earnings Week for big Banks ๐Ÿ’ธ

Citigroup, Goldman Sachs, JPMorgan, Morgan Stanley and Bank of America are reporting their 4th Quarter 2019 earnings - an interesting game of expectations where the "consensus" of the market already made up its mind on a certain level of earnings expected and will celebrate ๐Ÿฅณ or punish ๐Ÿ˜  in case the actual earnings are higher or lower than expected.

Tomorrow morning starts with JP Morgan which has been on a slightly declining trend in 2019, losing 3.9% of its value. However, last quarter earnings were higher than expected which was "celebrated" by the investors (+3.1%)

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