One Pops & Another Flops

The Bed Bath & Beyond saga continues this week as prices rally 28% despite its earnings miss.

The company’s adjusted loss per share was $3.65 vs. the $2.23 expected. And revenues of $1.26 billion missed the $1.34 billion. 👎

So why the rally? It’s hard to know precisely, but the stock has essentially moved straight down from its August highs. It’s down around 95% from peak to trough since then. Last week’s “going concern” warning exacerbated the selling and overall negative sentiment. But even bad stocks can only go down so far so fast before experiencing a counter-trend rally.

Most investors and traders expect the volatility to continue. While many agree the company is likely heading for bankruptcy, they’re now trying to assess what it looks like after its reorganization. And what value is left for common shareholders to claim? 🤔

That discovery process means that the share price will continue to bounce around wildly as more news comes out and the market has more clarity about the company’s future. In the meantime, traders/investors will continue to react to the ongoing news releases and debate the company’s future.

For now, sentiment on the $BBBY streams remains highly negative, and message volume remains extremely high (relative to their 20-day history). 😮

Similarly, Virgin Orbit’s $VORB stream is experiencing similarly bearish sentiment and high message volume. 🚀

Last night was the company’s sixth mission and its second failed launch. With it being Britain’s attempt to become the first European nation to launch satellites into space, there was obviously a lot riding on this launch.

The failure was extremely public for Virgin Orbit, which uses a modified 747 jet to send satellites into space. As such, it’s not surprising to see its shares continue their decline, reaching a new all-time low of $1.50 (~$500 million market cap). 🔻

Some $PINteresting 2023 Predictions

It’s that time of year again when everyone shares their predictions for the year ahead. And it’s not just people. Companies are getting in on the action.

Today we’re looking at Pinterest’s predictions for 2023, which offers insights into the future trends its users are helping form. 📝

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Auto Industry News

Auto stocks continue to trend heavily after last week’s earnings report from Tesla. As a result, there was a lot of auto news to recap today. 📰

First up, Toyota Motors managed to defend its title as the world’s top-selling automaker for the third straight year…despite falling sales. The company sold 10.5 million vehicles in 2022, with Volkswagen Group behind it at 8.3 million vehicles. 🏆

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Another Stock On Hindenburg’s Chopping Block

Short seller Hindenburg Research has found its next target, Jack Dorsey’s Block. 🎯

After completing a two-year investigation into its Cash App business practices, the infamous short-selling firm confirmed Block as its latest short position.

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API Don’t Know What’s Happening

The wild west that is Twitter was back in the news today after an API (application programming interface) issue broke a lot of the site’s functionality. ❌

This afternoon the website was inaccessible to some folks, while others reported trouble seeing photos and clicking links. The issues sent the internet into a tailspin for about an hour, with us all returning afterward to complain about the outage on Twitter itself.

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