A Regressive Tax | The Daily Peel | 8/9/22

Market Snapshot

Futures looked to jump higher after the S&P had been up three weeks in a row. Valuations are still front and center as interest rates remain in focus. The ten-year hovered around 2.8%.

Have DeFi markets found a floor? BTC is above its 200-day technical levels, but there is little influx of new capital into the largest DeFi asset.

At the closing bell, the Dow was up 0.09%. The S&P and the Nasdaq lost ground, closing lower by 0.12% and 0.10%, respectively.

Looking to springboard your career into venture capital? Learn everything you need to know about cap tables, term sheets, due diligence, venture fund structure, and more from elite VCs with successful track records in WSO's VC Course.

Let’s get into it.

Banana Bits

Monkey Wanted: The Daily Peel is Hiring

Banana Brain Teaser

Macro Monkey Says

Springboard Your Career

What's Ripe

The Boeing Co. ($ BA) — On the heels of a crucial announcement about Dreamliner deliveries, shares of $ BA initially soared until the final hour of yesterday’s trading session.

Due to rumors about manufacturing defects, Boeing’s premium widebody format jumbo jet deliveries had been halted. American Airlines and United Airlines have been most affected by the delivery stoppage.

On the news, shares of $ BA rose 0.52%.

Bed Bath & Beyond Inc ($BBBY) — Is this the return of the meme stock? Shares of $BBBY were all over the place yesterday, thanks to a surge in volume and a potential short squeeze.

Up more than 60% at one moment yesterday, $BBBY surged. The most glaring question: will the squeeze live on, or is the upside already out of the stock?

Shares of Bed Bath & Beyond jumped 39.83% yesterday.

What's Rotten

Palantir ($PLTR) — Sometimes you make money. Sometimes you lose money. For Palantir, this was one of those quarters when Palantir did not make money.

Earnings were rotten. The Street hated it. The former pandemic darling has been taking punches in the face non-stop of late, and yesterday was no different. Keep your gloves up, son.

In a quarter where $PLTR was expected to make about 3 cents a share, they ended up declaring a loss of a penny. This was a major bummer, and shares tumbled, closing down 14.24%.

Nvidia ($NVDA) — Nvidia’s shares fell yesterday after the company slashed its outlook and revenue guidance. Its earnings call is coming up at the end of the month, but it updated revenue guidance to be about $1.5Bn less than previously expected.

This miss can be mainly attributed to gaming revenue. As the economy has opened up, more gamers have been forced off the couches in their mom’s basements and back out into the world. Now that they are back in the world, shares of $NVDA fell 6.30%.

Thought Banana

What’s Wrong with New York? — We’ve said this before, and it’s obvious to everyone with a pulse: New York City is the Mecca of the world’s financial system. It’s the center, the capital, the hub.

But lately, it would seem that many would prefer the humidity and sunshine over a terrible commute and ridiculous state income taxes.

I’m talking about South Florida and the exodus from all over the country into the Sunshine state.

It’s not just fintwits. It’s cryptobros, commercial real estate, and tech companies too.

The exodus from high-tax states has been extreme. Places like Jersey, the Empire State, Illinois, and California have felt the brunt of the exodus, while more business-friendly states like Florida, Texas, Arizona, and the Carolinas have been on the receiving end of many high-earners.

For places like Miami, this has been a boom time. New developments, revitalization efforts, and a flood of new money have invigorated the local economy.

The latest move to South Florida is BlackRock. Their head of fixed income, who runs about 20% of BlackRock’s book, owns a home in West Palm Beach, and he is setting up shop in a snowbird office along with a few dozen other employees.

Sure, Manhattan is a magical place, but it’s by no means Disney World for adults.

Lately, the city smells like New Jersey, with a summer heat wave turning our trash into literal hot garbage. Don’t get me started about crime. That’s a problem nationwide of late, but it seems like we are also getting the short end of the stick here in the city.

Also, have you ever experienced a winter where it never dipped below 60 degrees? Sure, you might get the occasional hurricane scare, but not getting dumped on by a snowstorm every other weekend for a few months out of the year is a nice reprieve.

What do you think, Apes? Any interest in moving to Florida?

Wise Investor Says