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Howdy, y’all. It was rough ridin’ out there. 🤠

Each major index finished in negative territory. 📉 The Nasdaq fell 2.47% as the weakest index, followed by the Russell 2K. The Dow dropped just 0.08%, the strongest of the four. 

Calliditas soared 23% after receiving FDA approval for its treatment ‘Tarpeyo’ for Nephropathy patients. $CALT is now up 28.5% in December. 

8 of 11 sector ETFs registered gains, the opposite story from major index weakness. Healthcare, utilities, real estate, and consumer staples all notched record high closes. Tech was the weakest, sinking 2.83%. Ouch.

Rivian Automotive got ripped to shreds following its Q3 earnings report. 🔪 Check it out in the earnings section below.

Bitcoin backtracked 2.5%, but remains within yesterday’s price range. $WAVES.X tacked onto yesterday’s impressive performance, surfing 8.4% higher. 🏄

$ARCT ascended 21.06%, $CUBI climbed 8.3%, and $CRV.X jumped 5%.

Here are the closing prices: 

S&P 500 4,668 -0.87%
Nasdaq 15,180 -2.47%
Russell 2000 2,152 -1.95%
Dow Jones 35,897 -0.08%

IPOs

Reddit To The Moon??

Reddit To The Moon?? Featured Image

If there’s one company we’ve been hearing a lot about this year, it’s Reddit. Doesn’t it feel like this social media giant should already be public?? Well, the platform has reportedly begun taking the steps to do so.

Reddit announced on Wednesday that it filed a confidential S-1 with the Securities and Exchange Commission. The number of shares and pricing has not been determined, but there are a few clues hinting at what we can expect from this blockbuster IPO. 👏 👏

The company raised a $700 million round at a $10 billion valuation back in August. Reddit also commented that its ad revenue surpassed $100 million in Q2 2021, which was up 200% YoY. That makes lots of sense, given the rise of Reddit communities like r/WallStreetBets to prominence. In August, the company also had over 52 million DAUs.

These factors imply that Reddit will probably be a beefy IPO, offering investors access to a huge social media growth opportunity. Better yet, investment communities on Reddit have already begun to discuss turning it into the next momentum trade. 🚀 Early estimations have pinned Reddit’s IPO as a spicy decacorn event. 🦄 🦄

You can follow the conversation about Reddit in the Stocktwits community! 🥳 The ticker is $REDDIT.P.



Events

Run Insiders, Run!

Run Insiders, Run! Featured Image

The SEC wants to control (*get ready for it*) LEGAL insider trading.

Yes, you heard that right. In 2021, 82 big business stakeholders sold more than 3 billion shares of their respective companies, valued at a total of $162 billion in stock. 

When company stakeholders have shares in 10b5-1 plans, which are plans to regularly sell shares, they can supposedly insider trade by selling according to their plan’s pre-written instructions. In other words, a stakeholder is protected from insider trading charges if they sell shares within the guidelines of their 10b5-1 plan. However, 10b5-1 plans are deliberately vague to allow sell offs in a host of circumstances. 

SEC Chair Gary Gensler reported “Over the past two decades, we’ve heard concerns about and seen gaps in Rule 10b5-1 — gaps that today’s proposals would help fill.” This implies that the SEC will go after the structure of these plans, and the leaders who use them (like Mark Zuckerberg, Elon Musk, Ronald Lauder, and the Walton family, to name a few) to sell massive amounts of shares. 

There has been a 50% YoY increase in stock sell offs by wealthy business leaders. Conversations about tax increases, especially the ones outlined in the Democrats’ Build Back Better agenda, resulted in the largest sell off of the year in November, valued at $15.59 billion.

Elon Musk sold over $10 billion of Tesla stock in a month, Microsoft’s Satya Nadella sold off $374 million, Google’s co-founders sold $1.5 billion of their stock, Michael Dell of Dell Technologies sold $235 million , and there are plenty more to add to that list.

Will the 10b5-1-planners get tackled by the SEC?? 🏈 Time will tell.


IPOs

GoPuff Preps for IPO

GoPuff Preps for IPO Featured Image

Your favorite munchie-delivery service GoPuff is gearing up for an IPO next year. The company just raised $1.5 billion in its latest funding round at a $40 billion valuation.

The company’s latest round —‘Series X’ is what they’re calling it — is a convertible note from Guggenheim Partners. The round has not officially closed, but GoPuff was valued at $15 billion over the summer, so its latest round is kind of a big deal (no pun intended 😉.)

GoPuff is a delivery service for groceries and everyday items where you can expect deliveries at your door in 15 minutes or less. The company launched operations in London this year and even offered to acquire a Germany-based grocery service to expand its footprint in Europe. 🌎

The company was reportedly backed by Amazon, a leader in last-mile delivery for packages and groceries, but GoPuff supposedly denied any sort of M&A/partnership discussion. The company was backed by DoorDash, a leader in food delivery, instead.

When GoPuff goes public next year, it might become one of the biggest IPOs in recent history — looking to clear a $50 billion public valuation. However, we don’t know much about the company’s financials or earnings. We can only look at comparable businesses like Uber Eats and DoorDash. But from what we can tell, those companies aren’t raking in the profits. 

Ultimately, this is a ‘wait and see.’ You can discuss the IPO on the $GOPUFF.P Stocktwits stream.


Earnings

Earnings Today

Rivian reported earnings for the first time as a public company and it didn’t go great$RIVN plunged 10.5% to all-time lows in extended trading after lowering 2021 EV production estimates. 

$RIVN | EPS: ($12.21) (vs. ($5.52) expected) | Revenue: $1 million (vs. $1 million expected) | Link to Report

Adobe recorded record revenue of $4.11 billion, but still dropped 10.2%. $ADBE got whacked after earnings guidance fell short of expectations.

$ADBE | EPS: $3.20 (vs. $3.20 expected) | Revenue: $4.11 billion (vs. $4.09 billion expected) | Link to Report

FedEx Corp beat earnings and sales expectations in its Q2 report, but faded 0.94%. Labor shortages are still hanging up the transport behemoth. 

$FDX | EPS: $4.83 (vs. $4.23 expected) | Revenue: $23.5 billion (vs. $22.4 billion expected) | Link to Report


Bullets

Bullets from the Day

  • Waste and recycling platform going public. It’s not everyday that a Kentucky startup goes public, since it’s a state which gets a fraction of the venture funding that other states like Illinois and California get. However, Rubicon Technologies will be the second company to recently SPAC out of Lexington, KY. The company will be valued at roughly $2 billion. Read more in WSJ.
  • Apple continues pivot to DIY hardware. After turning away from former chip partner Intel in favor of its own in-house M1 Chip, Apple now looks poised to make a move on Broadcom and Skyworks Solutions, two companies which provide wireless chips. Apple reckons it can build modems and wireless semiconductors better than established names (and gain a competitive advantage in the process.) To support the effort, Apple will open a new office in Southern California. Read in Bloomberg.
  • Kellogg workers strike tentative deal. Workers that have been striking against cereal giant Kellogg’s have supposedly reached a “tentative deal.” The deal could bring a conclusion to a strike involving some 1,400 plant workers. The offer includes a cost-of-living adjustment and $1.10/hour raise. It will now go to a vote. Read more in Seattle Times.