Happy Sunday Funday … and welcome back to The Daily Rip!
Indexes were 2-for-4 this week. The Nasdaq Composite was up 1% and the S&P 500 barely ended up in the green. The Dow Jones fell 1.4% and the Russell 2000 is down 2.86%.
Earnings season is officially winding down as we move into the thick of Q4 … the Holiday season! We’ll have our eyes on a few retailers reporting this week, looking to get a pulse on how they’re attacking the supply chain shortage. 👀
Don’t forget: this week will be an abbreviated week for trading. Markets will be closed on Thursday in observance of Thanksgiving. However, all you crypto folk can keep trading at the dinner table if you so please.
On that note, in crypto/web3 world, the ConstitutionDAO got outbid for one of the final privately-owned copies of the Constitution by billionaire and GameStop villain Ken Griffin. More on that story in The Litepaper.
Crypto began to claw back late in the week after large-cap coins fell to the tune of double digits. $BTC.X was down 7.7% week-over-week, $ETH.X was down 4.7%, and SOL.X was down 2%.
However, just coz the big players fell, doesn’t mean everyone was in the red. $AVAX.X staged a 40.6% rally this week in spite of the sea of red. $GALA.X bubbled into the top-100 coins with a 306% pop.
And how could we forget Crypto.com Coin? It was up 81.5% this week after the company acquired naming rights for an NBA stadium. More on that below.
Here’s what’s up (and down):
| S&P 500 | 4,697 | +0.18% |
| Nasdaq | 16,057 | +1.02% |
| Russell 2000 | 2,343 | -2.86% |
| Dow Jones | 35,601 | -1.46% |
Lakers and Clippers fans are in for a real surprise this Holiday season. On Christmas Day, Los Angeles’ Staples Center will become Crypto.com Arena.
Crypto.com acquired the naming rights to the stadium in a $700 million, 20-year partnership. It represents the largest naming rights deal in American sports history.
“If I had to pick one place to have naming rights, it would be Staples Center,” in the world’s cultural capital, said Kris Marszalek, crypto.com’s chief executive officer, in an interview with Bloomberg. “This is in line with our ambition to be a top brand in the coming years, next to Nike and Apple.”
The news sent Crypto.com’s coin, $CRO.X, rising over 80% this week. Check out the hourly chart:
Not everyone is too jazzed about the rename, which is frankly bizarre because imagine being mad about which corporate overlord sponsors your building.
Jokes aside, the deal feels like it was taken straight out of FTX’s marketing playbook — which has boiled down to beefy sports sponsorships, influencer campaigns, and other spendy deals. FTX, a competitor to Crypto.com, bought the naming rights for the Miami Heat’s stadium in June.
However, crypto traders don’t really see another stadium sponsorship as a liability (ask the chart!) After all, there’s an abundance of opportunity for crypto companies to attack — both in sports and beyond.
Sponsored
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Traditional pharmacies can be a headache (oh, the irony).
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This year, the company is on pace to surpass $22M in revenue and with their newest telehealth product growing 73% MoM, the time to invest has never been better!
Oh – and did we mention the share price has increased by over 1,600% since 2016?
Check out NowRx for yourself.
Earnings
The China Stock Shuffle
In last week’s edition of The Weekend Rip, we touched on how a number of U.S-listed China stocks would report. Based on the earnings reaction to rideshare company $DIDI, we were inclined to think Chinese stocks were ready to stage a big comeback.
Investors were feeling confident too, KraneShares CSI China Internet ETF gained 8% going into last week’s big China earnings. Unfortunately, most that rose in sympathy with $DIDI‘s solid earnings has since-fallen back to Earth.
The sole gainer in “Big China” this week was JD.com, which gained 6.3% after beating analyst estimates on the top- and bottom-line.
$JD was able to turn increased demand for online shopping into real results. However, other names weren’t so lucky:
Alibaba sank to multi-year lows after the company reported one of its worst days ever. The company missed on top- and bottom-line and slashed its FY 2022 outlook.
The stock sank 16% this week. Check out the summary of $BABA’s earnings from our Nov. 18 edition of the Rip.
It doesn’t stop there, either. Baidu and Bilibili also endured ugly, double-digit losses. Because, you guessed it, they missed the green.
$BIDU took an 11.5% hit this week. Get a load of this:
Oh, and you think that’s bad? Check out $BILI‘s chart. It’s down 22.7% this week:
It’s fair to say that high hopes for a Chinese stock recovery might be weaker this coming week. However, we’ll be holding out to see reports from $XPEV and $PDD this week.
Company News
Live Nation Weathers Astroworld Storm 🌩️
Live Nation strutted its stuff in a star-studded earnings performance last week, posting a $305.7 million operating income for Q3. 🌟
However, after weathering the storm that is the Covid-19 pandemic, the entertainment giant faces a new obstacle: hundreds of lawsuits levied against Live Nation in the wake of Travis Scott’s Astroworld Festival disaster.
A crowd crush occurred at the festival, claiming the lives of at least ten. Many more were injured. Travis Scott & team refunded all 100,000 attendees (50,000 for each night of the two-day festival.)
As you’d expect, refunds will be the least of the company’s costs. Hundreds of lawsuits have rolled into a billion dollar class action lawsuit. Even if Live Nation has insurance for things like this, or settles most of the suits, the company could forfeit a sizable portion of its recovery quarter income.
In the aftermath of the festival, a report in the Houston Chronicle suggests that Live Nation has a history of safety incidents. Live Nation has also increased its lobbying costs, likely to defend its relative monopoly on event ticketing in Ticketmaster. 🎟️
$LYV has fallen 9% since the event.
The Brief
Here’s a brief for the week of Monday, November 22, 2021:
Economic Calendar:
11/22 Existing Home Sales (10:00 AM ET)
11/24 Initial & Continuing Claims (8:30 AM ET)
11/24 GDP – Second Estimate (8:30 AM ET)
11/24 Personal Income & Spending (10:00 AM ET)
11/24 PCE Prices (10:00 AM ET)
11/24 New Home Sales (10:00 AM ET)
11/24 FOMC Minutes (2:00 PM ET)
Peep the full Economic Calendar provided by Briefing for all the reports this week.
Here’s what to expect from earnings this week:
For more information on stocks that are reporting (and what our community is watching), check out the Stocktwits earnings calendar.
Links
Links That Don’t Suck:
✍️ Substack Attracted Thousands Of Indie Writers. They’re Now Heading Back to Traditional Media.
🚗 The Highs and Lows of the 2021 LA Auto Show
📈 Dune Analytics Is Building DIY Crypto Analytics for the Masses
📅 Want To Host Events With Other Stocktwits Users? We’ve Designed a Program Just For You.
🦠 Covid-19 Cases Rise Once Again As America Rushes Toward Thanksgiving Holiday
🔒 Inside A DC Jail’s “Patriot Wing”, Where Capitol Rioters Struggle to Cope With Being Locked Up