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Bitcoin Makes ETF History

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Ladies and gentlemen, welcome back to another Daily Rip.

All four major indexes closed positive. 💚 The Nasdaq gapped up and gained 0.71% to sit just 1.6% away from all-time highs. The S&P 500 gained for the fifth straight day

10 of 11 sectors traded higher. Healthcare and utilities lifted the market – $XLV rose 1.31% while $XLU leaped 1.26%. 

Dutch Bros boomed 12.9% to all-time highs just one month after going public. ☕ $BROS is up 99% since its inception. Here’s the daily chart:

Netflix topped Q3 earnings and new subscriber expectations after the bell. 🔔 See the full details below. 

$BITO, the new ProShares Bitcoin Strategy ETF, launched today and rose 4.8% to $41.94 at the closing of its historical debut. Bitcoin broke above $64K with the potential for a new closing high. More on this momentous day below. ❤️

$HUDI hopped 26%, $ATOM.X ascended 9.25%, and $HRMY soared 10.18%.

Here are the closing prices: 

S&P 500 4,519 +0.74%
Nasdaq 15,129 +0.71%
Russell 2000 2,275 +0.36%
Dow Jones 35,457 +0.56%

Earnings

Netflix Earnings 🍿 📺

Netflix Earnings 🍿 📺 Featured Image

Today Netflix posted robust subscriber growth alongside its earnings reported after hours. 🌙

The company reported EPS of $3.19 (vs. $2.56 expected, a 24.7% surprise.) The company’s revenue was $7.48 billion, up 16.3% YoY. Analysts nailed this guess on the money (does that ever happen?)

The company also picked up 4.4 million net subscriber additions in Q3 2021, a step above the 3.72 million that analysts expected. That brought Netflix’s cumulative paid subscriber count to 213.5 million. 💰 💰

Subscription growth was boosted temporarily during the early days of the COVID-19 pandemic. However, the latest quarter’s jump might owe its thanks to Squid Game, which has become the platform’s biggest TV show ever and reportedly added nearly a billion dollars in impact value for Netflix. 🙌 Despite that, this has been Netflix’s slowest subscriber growth year ever.

Netflix is also feeling very bullish about Q4, forecasting that it will bring a boost of new, year-end subscribers. According to the company’s best guess, that number could be 8.5 million net subscriber additions. Netflix credits its “strongest Q4 content offering yet” for the outlook. The costs of that offering will weigh on operating margins, however (investors were not too happy about that.)

Besides original video content, the company is also in the process of reinventing itself by adding games, podcasts, and merch to its branding. At the end of Sept. 2021, the company acquired its first game studio, Night School Studio. Netflix also rolled out a Netflix store and a merch collab with Walmart.

$NFLX closed up 0.16% today, but it’s down 1.13% in AH.



Crypto

A Breathtaking Day for Bitcoin

A Breathtaking Day for Bitcoin Featured Image

Bitcoin is an inch closer to breaking its all-time high. The largest cryptocurrency by market cap reached $64,322 today, just 1% shy of its all-time high set back in April. It has the debut of the ProShares Bitcoin Strategy ETF to thank — the ETF is the first-ever bitcoin-linked exchange traded fund (ETF) in the U.S. 😁 👏

The ProShares Bitcoin Strategy ETF ($BITO) jumped more than 4.8% to $41.94. $BITO‘s first-day trading volume wowed investors, with at least 1.89 million shares of the ETF changing hands in the first couple hours… that means the Bitcoin Strategy ETF launch was one of the best ETF launches of all time. The bullish sentiment spread across the crypto market and $BTC.X soared 5%. 🚀 🚀

The fund tracks CME bitcoin futures (contracts speculating on future bitcoin prices) rather than investing in the cryptocurrency directly. SEC Chairman Gary Gensler has said that he preferred a Bitcoin Futures product over an ETF which holds crypto. However, on the heels of ProShares’s ETF launch today, Grayscale Investments filed with the SEC to convert its Grayscale Bitcoin Trust ($GBTC) into a formal spot ETF. The fund, which already boasts $40 billion in assets, will likely face scrutiny from the SEC in the filing process.

With the launch of the ETF today, Bitcoin stans rejoiced on social media. One of the biggest cheerleaders of $BTC.X, Michael Saylor, tweeted ‘‘Your money won’t last forever, unless it’s #bitcoin.’’ Some shared stories of how $BTC.X changed their lives. 😇


Stocks

Google’s Hot New Phones 🔥

Google’s Hot New Phones 🔥 Featured Image

Google announced its new flagship Pixel phones today, the Pixel 6 and Pixel 6 Pro. The two phones will retail at $599 and $899, respectively. As far as phones go, the new Pixel phones are a turning point for Google.

Google’s new handsets are powered by a new “system on a chip” (SoC) created by Google. It’s an eight-core CPU called Tensor — Google claims that its single-core performance is “80% faster than [the] previous generation [Pixel]” and “the GPU performance is 370% faster than our previous generation [Pixel].”

This means that the Pixel 6 and Pixel 6 Pro are leaps and bounds faster than the Pixel 5, which is impressive considering their prices.

Although the Pixels might not be iPhone 13-level fast, the phones’ cameras could catch Apple off guard. 🤭 Both phones have a 50-megapixel main camera and another 12-megapixel ultrawide camera. The Pro even has an added 48-megapixel telephoto camera. But we’ll have to wait for the DXOMARK scores to see who’s boss. 😌

Other added benefits include an in-screen fingerprint sensor, “24-hour+ battery life,” and other exciting software developments (including the “Hold for Me” and toll-free ‘wait times.’) The company also rolled out the Pixel Pass, which will offer options for Pixel stans to get new phones for cheaper and bundled with some other nice benefits.

Once both phones went live for preorder, the Google Store crashed for over an hour. We guess that’s a positive (albeit, not too positive) sign that Google’s latest phone might have staying power. 🤣 ⚡

$GOOG gained 0.6% today.


COVID

J&J’s Q3 Earnings 💉

J&J’s Q3 Earnings 💉 Featured Image

Good ole’ Johnson & Johnson reported Q3 earnings today. The pharmaceutical company sold $502 million worth of its COVID-19 vaccines, keeping up with its 2021 vaccine sales outlook. 💉

$JNJ beat expectations with EPS of $2.60 (vs. analyst estimates of $2.35, a 10.5% surprise.) The company just barely missed on revenue, pulling in $23.34 billion (analysts estimated $23.7 billion, a -1.60% surprise.)

J&J CFO Joseph Wolk blamed the company’s revenue miss on its vaccine sales and trailing medical devices segment. 🤷 Regardless, Johnson & Johnson’s revenue was up 18.2% YoY.

By segment, Johnson & Johnson reported better-than-expected profits thanks to higher sales in its Consumer Health, Pharmaceutical, and Medical Devices segments. $JNJ’s Consumer unit posted a 5.7% YoY increase in revenue ($12.9 billion), Medical Devices pulled an 7.6% YoY ($6.6 billion) boost, and its (*drum roll*) Pharmaceutical segment – responsible for the company’s COVID-19 vaccine sales – generated $12.9 billion in revenue, a 13.8% increase YoY.

JNJ’s vaccine obviously didn’t fare as well as competitors Pfizer or Moderna’s shots. Nonetheless, J&J CEO Alex Gorsky said this quarter’s earnings “demonstrate solid performance across Johnson & Johnson, driven by robust above-market results in Pharmaceuticals, ongoing recovery in Medical Devices, and strong growth in Consumer Health.”

$JNJ jumped 2.34% today. 


Stocks

Zillow Gets Hit by Supply Shortages

Zillow Gets Hit by Supply Shortages Featured Image

Even Zillow is hurting from supply and labor shortages in the U.S. 😪 👎 The company just announced that its ‘Zillow Offers’ business will stop buying and renovating homes through the end of this year.

Zillow Offers is a service which buys homes directly from sellers. The company then handles renovations and showings (so sellers don’t have to do anything.) In Q2 2021, the company bought a record 3,805 homes (and that was double what Zillow bought in Q1). 🏡 

In a press release, Zillow said the company will focus on finishing already-purchased homes and already-signed contracts, halting the pursuit of contracts for new homes. Zillow CEO Jeremy Wacksman commented on the decision:

“We’re operating within a labor- and supply-constrained economy inside a competitive real estate market, especially in the construction, renovation and closing spaces. We have not been exempt from these market and capacity issues and we now have an operational backlog for renovations and closings. Pausing new contracts will enable us to focus on sellers already under contract with us and our current home inventory.”

Shortages of nearly everything related to home construction — wood, steel, piping, and actual construction workers — are to fault for Zillow’s decision. A highly-competitive housing market isn’t helping much, either.

$Z gained 1.85% today.


Earnings

Earnings Highlights

Netflix ($NFLX) | EPS: $3.19 (vs. $2.56 expected) | Revenue: $7.48 billion (vs. $7.48 billion expected) | Link to Report

Johnson & Johnson ($JNJ) | EPS: $2.60 (vs. $2.35 expected) | Revenue: $23.3 billion (vs. $23.7 billion expected) | Link to Report

United Continental Holdings ($UAL) | EPS: ($1.02) (vs. ($1.67) expected) | Revenue: $7.75 billion (vs. $7.64 billion expected) | Link to Report

Procter & Gamble ($PG) | EPS: $1.61 (vs. $1.59 expected) | Revenue: $20.34 billion (vs. $19.9 billion expected) | Link to Report

Haliburton ($HAL) | EPS: $0.28 (vs. $0.27 expected) | Revenue: $3.9 billion (vs. $3.91 billion expected) | Link to Report

Intuitive Surgical ($ISRG) | EPS: $1.19 (vs. $1.17 expected) | Revenue: $1.4 billion (vs. $1.39 billion expected) | Link to Report

Philip Morris ($PM) | EPS: $1.58 (vs. $1.54 expected) | Revenue: $8.12 billion (vs. $7.93 billion expected) | Link to Report

Looking for more earnings action? Check out all the companies that reported today on Stocktwits and hop into the community to see what’s buzzing. 🐝