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As expected, the shortened holiday week started as a crawl, with trading volumes half their 3-month average. But there’s still plenty to talk about — so let’s get into it. 👀

Today’s issue covers fresh lows in some retail favorite stocks, Disney’s fairytale ending (or beginning), and Zoom’s earnings recap. 📰

Check out today’s heat map:

7 of 11 sectors closed green. Consumer staples (+0.95%) led, and discretionary (-1.45%) lagged. 💚

Qatar is in the news as the 2022 World Cup kicked off this weekend, giving rise to this crazy chart showing how much it spent to prepare for the event. On an unrelated note, the country also penned a 27-year LNG deal with China. 🌍

DraftKings fell 5% on reports that roughly $300,000 in customer funds were affected by unauthorized money withdrawals. 🔻

Dave shares rose 8% after CEO Jason Wilk worked to reassure investors that the fintech company is “alive and kicking” despite being down 97% from its highs. 👍

Beyond Meat was down marginally after leaked documents suggested that one of its key factories is riddled with mold and other contaminants. 🦠

Other symbols active on the streams included: $MMAT (+30.12%), $DWAC (+0.56%), $MMTLP (+30.90%), $MULN (-4.49%), $SHC (+32.89%), $MARA (-17.14%), and $SATX (-27.30%). 🔥

Here are the closing prices: 

S&P 500 3,950 -0.39%
Nasdaq 11,025 -1.09%
Russell 2000 1,839 -0.57%
Dow Jones 33,700 -0.13%

Bob Iger Returns To Disney Featured Image

A stock price falling nearly 60% over the last eighteen months left many investors wondering what could turn things around at the company. 🤔

Well, in a late-Sunday announcement, Disney informed the world that Bob Iger is back as Chief Executive Officer (CEO). Just eleven months after leaving, he’ll replace his hand-picked successor, Bob Chapek, who has faced much scrutiny over his company management. 

Reports are that Kareem Daniel, Disney’s head of media and Chapek’s right hand, is also being pushed out. 👋

Disney+ has been a major growth driver for the company, but it came with many increased costs. That, combined with other business segments like parks missing analyst expectations, had investors concerned that the company was headed down the wrong path. There were also concerns that Chapek’s management style did not jive with Disney’s family-friendly culture.

Overall, investors appeared thrilled that “Bob the Builder” Iger was back to right the ship. $DIS shares rose 6.30% today. 👍

New Lows, More “Oh No’s” Featured Image

The charts of two retail favorites were making the rounds today, so let’s talk about’em.

The first is Coinbase, whose shares hit new all-time lows of $40.61 before the close of trade today. While CEO Brian Armstrong assured investors the company does not have “any material exposure to FTX,” crypto contagion fears continue to pummel Coinbase and other crypto-related stocks. Besides the contagion fears, overall trading volumes remain dismal during crypto winter. As a result, investors fear the company’s coming financial performance will be worse-than-expected.

Secondly, Tesla has fallen over 25% since Elon Musk took over Twitter. Today there was news that Tesla has to recall 321,000 cars – marking its nineteenth recall this year. However, the bigger fear among investors appears to be the distraction that Twitter is causing CEO Elon Musk. The billionaire has a lot on his plate, and all of his companies require significant effort and attention. So fears are that his overcommitment will result in dropping the ball at Tesla.


Zoom Goes Boom

Zoom Goes Boom Featured Image

Like other technology companies, Zoom has faced many challenges over the last year or so. And that continued today with its quarterly earnings report.

The company reported better-than-expected adjusted earnings per share ($1.07 vs. $0.84), while revenue of $1.10 billion met expectations. 👍

The economic reopening and increased competition from players like Microsoft have caused Zoom’s growth to plummet. Additionally, as the economy softens and companies look to cut costs, it’s facing a “heightened deal scrutiny for new business.” This means deals take longer to close than in the past.

Net income was down roughly $300 million YoY, and revenues grew just 5%. It now has 209,300 enterprise customers, up from 204,100 last quarter. But its online business, where customers subscribe directly through its website, fell 9%.

Lastly, the company reduced its revenue guidance primarily due to a strong U.S. Dollar. 💵

Overall, investors were not thrilled with the results. Selling pressure sent $ZM shares down another 7% after hours toward its year-to-date lows. 🔻


Bullets From The Day:

☢️ PG&E secures $1.1 billion to keep its nuclear plant open. The Biden administration confirmed that it’s providing Pacific Gas & Electric Co. with a grant to help it prevent the closure of its Diablo Canyon nuclear power plant. It was originally set to be decommissioned in 2024 and 2025, but lawmakers voted to keep it open for five more years, given it’s the largest in California. The government argues that nuclear power will play a vital role in fighting climate change and help achieve its commitment to 100% clean electricity by 2035. CNBC has more.

🤔 ‘Stranger Things’ actor is crowdfunding for his vegan Nutella startup. Noah Schnapp co-founded “tbh,” a company that aims to “reinvent” hazelnut cocoa spread Nutella. The company’s product contains 50% less sugar and has three times the protein, along with eliminating other ingredients typically included in its competitor products. Additionally, the actor is using crowdfunding to raise money. He hopes this can help empower a new generation of investors and encourage them to learn about investing in the private sector. More from TechCrunch.

🏭 The world’s largest semiconductor maker is coming to Arizona. Taiwan Semiconductor plans to produce chips with advanced 3-nanometre technology at its new $12 million Arizona factory. The news comes as both the U.S. and Europe are providing billions in incentives to get companies to make chips in their regions after the pandemic exposed issues with the current supply-chain system. Reuters has more.

💰 Berkshire boosts its Japanese trading house bets. Regulatory filings show that Berkshire Hathaway has raised its stakes in each of Japan’s largest five trading houses by at least 1% to more than 6%. The company originally said in 2020 that its investments were long-term and could rise to 9.9%, so the move is in line with those expectations. Japanese regulatory rules require disclosure within five business days when an investor owning more than 5% increases or decreases a stake by 1%, so we’ll keep an eye out for any further updates. More from Reuters.

◀️ Musk continues to reinstate banned accounts, including Donald Trump’s. The new Twitter leader continues bringing back those exiled from the platform. He even posted several tweets that seemed to be baiting the former president to return to the platform. With that said, there’s no indication that Trump will return, though many believe he will, given the importance of Twitter in reaching a wide audience in the upcoming 2024 presidential election. Yahoo News has more.