Investors Spit Up Chewy Shares

Shares of online pet retailer Chewy are working on their tenth-straight down week, with shares falling to fresh all-time lows today. 📉

Although the company has been expanding into higher-margin businesses like medications, insurance, and advertising, investors are worried about declining margins and activity in its core business. And in the current environment, investors are not looking to buy the dip in growth stocks that are no longer growing (at an “acceptable” rate).

Instead, they’re looking for other opportunities to play catch up as we head into year-end with the major stock market indices all up big in 2023—nothing like a little career risk to force short-term portfolio decisions. We’re not saying it’s right, but explaining why you own a stock that’s down 50% YTD is challenging in this environment if you’re a portfolio manager or analyst. 🤷

Shares of $CHWY were up nearly 250% from their IPO price at their 2021 peak but hit a new low return of -45% today. What will be the catalyst for this stock’s turnaround remains unclear, but for now, another private market unicorn is being vomited up by the public markets. 🤮

What’s With All The Accounting Issues?

Accounting is the practice of using numbers to tell the story of a company’s past, present, and future. For an investor, these numbers and stories are the foundation of all decisions, so it’s imperative that they’re done correctly. And generally, they are.

But lately, there’s been an uptick in the number of accounting mishaps making their way into the financial markets. Today we got a few more instances of this problem, so let’s take a look. 📝

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Japan’s Nippon Takes Over U.S. Steel

After months of bidding, U.S. Steel finally has a buyer. However, the auction’s winner has some parties concerned. 🤔

Japan’s Nippon Steel emerged as the top bidder for the 122-year-old steelmaker, beating out offers from Cleveland-Cliffs, ArcelorMittal, and Nucor. Its $55 per share price represents a 142% premium to where $X shares were trading before Cleveland-Cliffs’ $35-per-share offer kicked off the bidding war.

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Nio & Nikola’s Never-Ending Story

No matter the day, there seems to be an endless stream of electric vehicle (EV) industry news. Let’s get into today’s headlines. 📰

First up is China’s Nio, which just received an additional $2.2 billion investment from Abu Dhabi’s CYVN Holdings, which raised its stake to 20.1%. The fund had last invested in Nio during July, with a $1 billion investment. 

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$LUNR Reaches A “Tipping Point”

One of the top stories in the market over the last 24 hours has been Intuitive Machines’, which trades under the ticker symbol $LUNR. 📻

The space exploration company’s Nova-C cargo moon lander known as “Odysseus” became the first privately developed spacecraft to land on the lunar surface. It was also the first U.S. spacecraft to soft-land on the moon in over 50 years. 🌝

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