Robinhood Revenge | The Daily Peel | 7/22/21

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Market Snapshot

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What's Ripe

Dominos Pizza Inc. ($DPZ) – Drunken pizza orders for the win! Well it must be, as Dominos just blew earnings out of the water and that's really the only acceptable time to order from them. Beating virtually across the board, traders sent shares up 14.5% for its biggest single-day gain since the March 2020 rebound. Ironically, Domino's success boosted rival Papa John's to an all-time high. Great day for pizza.

Crocs, Inc. ($CROX) – You know them, you love them, you made fun of them at first but after seeing your friends buy a pair you bought them too. That's right, we're talking about Crocs, who saw shares soar 10% yesterday. Crocs too killed their quarterly earnings, delivering 93% YoY revenue growth and crushing adjusted EPS estimates by over 40%. As I'm wearing their shoes as I write this, it feels good to see a beloved company succeed.

Bumble ($BMBL) – Still not getting any matches? That's not Bumble's problem. Spiking 7.1%, they can thank the Motley Fool for claiming Bumble as "the ultimate all-in stock for 2021." This is likely the driver for shares seeing 3x their average daily volume yesterday. Shares are up 30% from lows seen in May, but still down 33% from their February peak. Earnings for the quarter will be out August 11th and, as seen in the cautionary tales below, they better deliver.

 

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What's Rotten

Didi ($DIDI) – The Chinese ride-hailing giant has been kicked around to no end since going public. To put the cherry on top, Bloomberg reported that the CCP has a whole lot of punishment in store for the company, including; record fines larger than Alibaba's $2.8bn, suspension of certain operations, and delisting or withdrawal of U.S. shares. Everyone wants to set a record, but maybe aim for something other than the largest fine ever. Just an idea. Shares were down 11.2% yesterday.

Unilever PLC ($UL) – Be honest, what would you really do for a Klondike bar? Apparently not enough because the firm that makes them got beaten down yesterday after yet another earnings release. Unilever, the holding company of some of your favorite products, ranging from Axe Deodorant to Ben & Jerry's ice cream, is heavily impacted by inflation. As a result, margins tightened, especially in their detergent, hair care, and ice cream business lines. Investors were less than pleased, letting shares fall 5.4%.

Texas Instruments Inc. ($TXN) – In the market's latest temper tantrum, shares of Texas Instruments are down 5.3%. The semiconductor and integrated circuits maker released estimates for their quarter ending in September, and Wall Street immediately vomited as a result. Basically, the high chip demand now is seen to indicate lower chip demand later as the shortage eases up. I guess that's the problem with making too much money, you better keep it up.

 

Macro Monkey Says

Antitrust Attackers – President Biden, or to use his official title, Uncle Joe, has assembled a team of antitrust Avengers to take on the tech titans. Lina Khan, Chairwoman of the FTC, Tim Wu, tech and competition advisor to the President, and Jonathan Kanter, set to head the DOJ Antitrust Division, are all names you may not be familiar with, but you will be soon. Khan is Amazon's worst nightmare and has already caused the e-commerce giant to request her dismissal from the investigation. Tim Wu literally coined the term "net neutrality" and is hated by everyone in Silicon Valley. The latest edition to the squad, Kanter, already has heavy beef with Google going way back. Apes, get your popcorn ready, this is going to be interesting.

Food for Thought:

Revenge on Robinhood? – Robinhood is going public, albeit, probably 5 months later than they should've. The popular trading (read: money stealing) platform has set its sights on a roughly ~$35bn valuation and will be setting a record for the highest portion of float sold to retail investors. $770mn, or about one-third of the projected notional value of the shares being sold, will be reserved for users of the platform, all in the name of their mission to "democratize finance." As we learned just how hypocritical their tagline is earlier this year, how funny would it be if users of the platform sought vengeance and collectively decided to short the stock on their own platform?

 

Meme Meditation

 
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Wise Investor Says

"You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets."

 Peter Lynch

 

Happy Investing,

Patrick & The Daily Peel Team

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Comments (1)

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