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Bulls Turn Up Heat As Inflation Retreats

Stocktwits sent this email to their subscribers on November 15, 2023.

Home Depot's beat, Workhorse's wild ride, and investors lost at Sea Ltd. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

November 14, 2023

Bulls Turn Up Heat As Inflation Retreats

Bulls Turn Up Heat As Inflation Retreats Featured Image Gif

A continuation of inflation’s downward trend gave the bulls confidence to pour fuel on the recent rally, with bonds, stocks, and most commodities jumping sharply. Let’s see what you missed. 👀

Today’s issue covers October’s inflation data and Home Depot earnings, Workhorse’s wild ride, and investors remaining lost at Sea (Ltd). 📰

Here’s today’s heat map:

TECHNOLOGY. COMMUNICATION SERVICES CONSUMER DEFENSIVE HEALTHCARE e semiconpucTORS: bt BiscouNTSTORES DRUGMANUFACTURERS - GENERAL r eo7 ORCL LL YA Y ;4 et NVDA -002% LI.Y R Pyt 2.13% CHE 031% pa2n GOOG LIET, oy MSFT PR e e s KO LA Y 237% A e INJ AVGO -0.22% Y Py LU P P, 0 Y A P3N RExY et bt oz e b S T . PEP l s weocaoences maesosmessms wecumst sorom and B v B KDP R T e Y e T e Ve T Y ATvI 2 EL aipax consumeRsiscTRONIS M KTV e E . 2% v i A VTR S -4 e N R PACKAGEDFOODS oo v b KR e e T i s DT B R AAPL fiv A LG T o S e L1 e Pt R AL Rt NN g AMAT ANET APH 13 R : 7% EQx DR mpc oel0 e A7 L vl MPC o ey s AMZN TSA o T e VoY T T A P rav - ety e YA At 171 K I A AT Jity - P P e B L i Bt FINANCIAL ol NOC ux B Ei TR e B T oL V BRKB LT T T R o P 2 Pl A A L xS o e e Pl g e 23 Aer IOV N g PO 1 SRR -t VI e e S b E e T BAC BXx wu e s A TR TR FL e L o R e sl VIR T o e e L O o B PO B AT 7 T V A gy O B b p::4 WEC L L T ups 3% mous 2 e o 15 A v AN s e R T EEa TS L :IeE e e 7 o L

11 of 11 sectors closed green. Real estate (+5.40%) led, & healthcare (+0.68%) lagged. 💚

The world’s largest contract electronics maker, Foxconn, surprised the market with an 11% third-quarter profit despite operating revenues falling 12% from a year ago. It cited regional recoveries and new product upgrade demand as driving double-digit QoQ growth in the smartphone market. 🏭

Boeing added another 1.5% today as the 2023 Dubai Airshow continues to create activity in the aircraft and travel space. Ethiopian Airlines placed a landmark order for up to 67 Boeing jets as it looks to strengthen and diversify its fleet. ✈️

Despite the crypto market rebounding, some corporate miners like Hut 8 Mining continue to struggle. Its third-quarter net loss more than doubled due to production downtime as the company dealt with higher network difficulty, operational issues, and suspending some operations. ₿

Life sciences company Azenta popped 14% after its fourth-quarter earnings and revenue topped expectations. Meanwhile, VistaGen Therapeutics jumped 17% after Stifel initiated coverage on the biotech stock with a buy rating. 💊

Glencore shares popped after buying a majority stake in Teck Resources Ltd.’s coal business, setting the stage for it to exit the coal business itself via spinoff. 🪨

And Snap shares jumped 8% on reports that Amazon will allow people to buy products advertised on the social platform. 🛒

Other symbols active on the streams: $JD (+3.73%), $PSFE (+27.01%), $TGT (+4.32%), $FSR (-18.73%), $CELH (-3.48%), $UUUU (+0.85%), $AIRE (+120.14%), & $XRP.X (-11.77%).🔥

Here are the closing prices: 

S&P 500 4,496 +1.91%
Nasdaq 14,094 +2.37%
Russell 2000 1,798 +5.44%
Dow Jones 34,828 +1.43%

Economy

CPI Brings It Home For Bulls

CPI Brings It Home For Bulls Featured Image

The Fed’s hawkish tone toward interest rates and inflation kept a lid on the market. However, today’s consumer price index (CPI) data renewed bulls’ hope that we could avoid a “higher for longer” situation after all.

October’s headline consumer price index (CPI) was unchanged MoM and rose 3.2% YoY, below expectations for a 0.1% and 3.3% increase. That was also down from September’s 0.4% MoM rise. 🔻

Excluding food and energy prices, core consumer prices rose 0.2% MoM and 4.0% YoY. That was below the 0.3% and 4.1% increases expected by Wall Street. A key index component, shelter prices, rose just half its 0.6% pace in September, bringing its YoY increase to 6.7%. 🏘️

Wall Street economists have been saying since last year that shelter prices would eventually come down due to the long lag in how it’s factored into the CPI data. With October’s reading, market participants are hopeful that this key metric has finally turned a corner.

While this one reading is unlikely to change the Fed’s hawkish tone, it did cause the market to increase its expectations of a rate cut in late 2024. As we’ve seen in previous periods, when market positioning is skewed to the downside, even marginal improvements in the data are enough to spark sharp market moves. ⚡

And a sharp market move we got…with all the major U.S. indexes back into positive territory for 2023. Leading the charge remains the tech-heavy Nasdaq 100, up a whopping 45%. Meanwhile, rate-sensitive sectors like real estate, solar, and technology all soared today. 📈

Major U.S. Indexes Year-To-Date Performance INDU Dow Jones Industrial Average 5.10% 5.86% CAGR 0.87 years SPX SP 500 17.03% 19.71% CAGR 0.87 years p 50.00% NDX 44.62% 40.00% NDX NASDAQ 100 44.62% 52.53% CAGR 0.87 years IWM iShares Trust - iShares Russell 2000 ETF 3.48% 3.99% CAGR 0.87 years 30.00% 20.00% SPX 17.03% 10.00% INDU 5.10% ol AN A i 0.00% T T T T -10.00% koyfin

Tomorrow’s producer price index (PPI) is expected to show a continued disinflationary trend, given it typically leads to consumer prices. Investors are also focused on retail earnings this week as they try to gauge how the economy will perform this holiday season. 🛒

Home Depot kicked off results today, with its $3.81 earnings per share of $37.71 billion in revenues topping expectations.

Comparable sales showed a decline of 3.1% YoY, which was better than the 3.6% decline analysts anticipated. However, it marked a fourth straight quarter of declining comparable sales. Customer transaction volumes also remain challenged, falling over 2% YoY to 399.8 million. And the average ticket size remained flat at $89.36. 📊

Executives have had a cautious view for most of 2023, and that continued, with them narrowing their full-year outlook. They now anticipate sales will fall 3%-4% YoY and earnings to slip 9%-11%. As for inflation, CFO Richard McPhail said, “I think the most important observation we’ve made is that the worst of the inflationary environment is behind us.” 👀

It remains an interesting time for the home-focused retailer, with its core customer base remaining employed with healthy balance sheets. However, the lack of housing market activity due to low affordability and high-interest rates is weighing on demand. Additionally, consumers continue to favor experiences over goods when it comes to their discretionary spending.

Given most of this news was expected by investors and $HD shares are down about 25% from their 2021 highs, the stock experienced a 5% relief rally today. 👍

Home Symbol HD w rom ot v @ $303.63 S e 795M 1 51556 5.40% Today 52.Wk High $3a7.25 ::IS e zz e Watcher Ran $303.40 0.23110.08% After Hours 52-Wk Low $21426 About Feed News Sentiment Earnings Fundamentals $s s g o s oms oo s s wm om X Mo o w m w e w Aw Sentiment More S Message Volume More Last score Last score % 7 Ldayago @ o Extremely High 2o

Earnings

Workhorse’s Wild Ride Continues

Workhorse’s Wild Ride Continues Featured Image

It’s been a rough ride for electric vehicle startup investors over the years. But it’s been especially tough for investors in Workhorse Group, with today’s earnings results failing to improve their situation. 👎

The company’s third-quarter revenues of $3.03 million were up 95.5% YoY but missed consensus expectations of $20.9 million by a wide margin. It also expects 2023 revenues to come in between $10 and $15 million, while Wall Street was looking for $63 million. 🔻

Executives said results were “significantly impacted” by delays in clean truck and bus vouchers (HVIP) in California. Regarding that, CEO Rick Dauch said, “As of today, I am pleased to report that we have successfully resolved this issue and are moving swiftly ahead.” 🤔

While revenues remain lackluster, the company has cut costs to help narrow its quarterly loss. With that said, it has just $71.9 million in working capital ($38.9 million in cash), which leaves the market concerned about its ability to operate without raising new capital. Management said they’re taking major steps to strengthen their financial position, but it remains to be seen what exactly that looks like.

Clearly, Workhorse isn’t moving “swiftly” enough to satisfy investors. $WKHS touched new all-time lows before reversing to close roughly flat on the day. That caps off a wild ride since 2019, where shares rallied nearly 12,000% before crashing over 99% from those 2021 highs. 📉

Earnings

Investors Remain Lost At Sea (Ltd.)

Investors Remain Lost At Sea (Ltd.) Featured Image

Speaking of wild rides, let’s talk about Singapore-based internet services company Sea Ltd. The stock experienced a meteoric rise during the pandemic but has been plummeting since, with its decline continuing today. 📉

That’s because it surprised the market with a third-quarter loss of $0.26 on $3.31 billion in revenues. While revenues were about 5% better than expectations, analysts had anticipated $0.12 per share in earnings from the company. 🙃

For the last three quarters, it has reported a profit by focusing on cost-cutting and operational efficiencies. However, it performed a 180 in the current quarter, prioritizing investing to increase its market share and further strengthen its leadership position.

While investing in growth is important, the market has been rewarding companies that prioritize profitable growth plans. Based on the current quarter, it’s clear the company hasn’t found that balance yet. Additionally, investors remain concerned about the growing competition in Asia’s digital entertainment, e-commerce, and financial services industries. ⚔️

Roughly two-thirds of its revenues come from e-commerce, but Shopee has seen growing competition from major platforms like TikTok, Shein, and Temu. On top of that, China’s economic recovery has dampened domestic growth, forcing these companies to expand internationally to sustain their momentum. That’s a gamble that often takes several quarters or years to pay off. 🛒

Its executives argue that investing now to cement their market share position will position them well for the inevitable industry consolidation. Still, investors worry about the firm’s history of losses and ability to achieve even a fraction of its pandemic-era growth.

As a result, $SE shares remain “lost at sea,” so to speak. They fell an additional 22% today and are sitting at levels first seen in mid-2019. ⏪

Sea Ltd. 5-Year Total Return SE SealLimited 190.92% 23.72% CAGR 5.02 years P TO,UUV.UU 7O 2,500.00% b 2,000.00% 1,500.00% 1,000.00% 500.00% R K- P27 ........................................................................................................................................................................ 0.00% koyfin

Bullets

Bullets From The Day:

💻 YouTube issues new guidelines for videos using AI. The online video platform is preparing itself for a world where artificial-intelligence-created content proliferates, issuing new rules for AI-enhanced videos on its platform. This will include guardrails around videos that appear realistic but rely on AI tools and labels to inform viewers when the video they’re watching has been altered or synthetically created. Meanwhile, it continues to roll out new platform features and capabilities that leverage AI to give creators more artistic power than ever. Deadline has more.

🚫 Republicans unite against new bank regulations. As bank regulators prepare to testify in front of the Senate and House committees this week, they’re expecting sustained opposition from Republications who want to stop plans to increase bank capital requirements. The banking lobby has said that Basel III would restrict billions of dollars in capital from those who need it most, reducing availability and raising credit costs for millions of Americans. However, regulators argue that raising bank capital requirements is the easiest and most effective way to make the banking system safer. More from Axios.

🤖 Airbnb acquires a secretive new AI startup for around $200 million. The online rental marketplace has acquired GamePlanner.AI, whose cofounders were behind separate firms focused on AI assistants that Apple and Samsung acquired. It’s unclear what the company does specifically or how Airbnb plans to leverage the technology. Still, CEO Brian Chesky has previously stated that he wants to use generative AI to build a “travel concierge” that learns about and adapts to travelers. With its first acquisition as a public company, this bet shows he’s serious about that vision. TechCrunch has more.

✂️ China tells local governments to cut their public-private project debt exposure. The country has identified “problematic” public-private partnerships and has ordered its local governments to halt new investments in these projects as it looks to reduce municipal debt risks. Local government debt has soared to 76% of China’s 2022 economic output, up from 62.2% in 2019. Given its economy’s recent issues, the State Council is looking to reform the public-private partnership (PPP) model for the first time since its launch in 2014. More from Reuters.

Rivian signs an agreement to build a Georgia electric vehicle (EV) factory. The electric vehicle maker has signed agreements with the state of Georgia to rent land and machinery to operate the plant in exchange for $300 million in property tax payments. The new $5 billion plant, initially announced in late 2021, will employ more than 7,500 workers and build 400,000 vehicles a year once fully operational. Additionally, the company announced plans to raise nearly $15 billion in debt for its expansion efforts. Yahoo Finance has more.

Text-only version of this email

Home Depot's beat, Workhorse's wild ride, and investors lost at Sea Ltd. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌    Sign Up The Daily Rip presented by Stocktwits oaiy REP November 14, 2023 BULLS TURN UP HEAT AS INFLATION RETREATS Bulls Turn Up Heat As Inflation Retreats Featured Image Gif A continuation of inflation’s downward trend gave the bulls confidence to pour fuel on the recent rally, with bonds, stocks, and most commodities jumping sharply. Let’s see what you missed. 👀 Today’s issue covers October’s inflation data and Home Depot earnings, Workhorse’s wild ride, and investors remaining lost at Sea (Ltd). 📰 Here’s today’s heat map: TECHNOLOGY. COMMUNICATION SERVICES CONSUMER DEFENSIVE HEALTHCARE e semiconpucTORS: bt BiscouNTSTORES DRUGMANUFACTURERS - GENERAL r eo7 ORCL LL YA Y ;4 et NVDA -002% LI.Y R Pyt 2.13% CHE 031% pa2n GOOG LIET, oy MSFT PR e e s KO LA Y 237% A e INJ AVGO -0.22% Y Py LU P P, 0 Y A P3N RExY et bt oz e b S T . PEP l s weocaoences maesosmessms wecumst sorom and B v B KDP R T e Y e T e Ve T Y ATvI 2 EL aipax consumeRsiscTRONIS M KTV e E . 2% v i A VTR S -4 e N R PACKAGEDFOODS oo v b KR e e T i s DT B R AAPL fiv A LG T o S e L1 e Pt R AL Rt NN g AMAT ANET APH 13 R : 7% EQx DR mpc oel0 e A7 L vl MPC o ey s AMZN TSA o T e VoY T T A P rav - ety e YA At 171 K I A AT Jity - P P e B L i Bt FINANCIAL ol NOC ux B Ei TR e B T oL V BRKB LT T T R o P 2 Pl A A L xS o e e Pl g e 23 Aer IOV N g PO 1 SRR -t VI e e S b E e T BAC BXx wu e s A TR TR FL e L o R e sl VIR T o e e L O o B PO B AT 7 T V A gy O B b p::4 WEC L L T ups 3% mous 2 e o 15 A v AN s e R T EEa TS L :IeE e e 7 o L 11 of 11 sectors closed green. Real estate (+5.40%) led, & healthcare (+0.68%) lagged. 💚 The world’s largest contract electronics maker, Foxconn, surprised the market with an 11% third-quarter profit despite operating revenues falling 12% from a year ago. It cited regional recoveries and new product upgrade demand as driving double-digit QoQ growth in the smartphone market. 🏭 Boeing added another 1.5% today as the 2023 Dubai Airshow continues to create activity in the aircraft and travel space. Ethiopian Airlines placed a landmark order for up to 67 Boeing jets as it looks to strengthen and diversify its fleet. ✈️ Despite the crypto market rebounding, some corporate miners like Hut 8 Mining continue to struggle. Its third-quarter net loss more than doubled due to production downtime as the company dealt with higher network difficulty, operational issues, and suspending some operations. ₿ Life sciences company Azenta popped 14% after its fourth-quarter earnings and revenue topped expectations. Meanwhile, VistaGen Therapeutics jumped 17% after Stifel initiated coverage on the biotech stock with a buy rating. 💊 Glencore shares popped after buying a majority stake in Teck Resources Ltd.’s coal business, setting the stage for it to exit the coal business itself via spinoff. 🪨 And Snap shares jumped 8% on reports that Amazon will allow people to buy products advertised on the social platform. 🛒 Other symbols active on the streams: $JD (+3.73%), $PSFE (+27.01%), $TGT (+4.32%), $FSR (-18.73%), $CELH (-3.48%), $UUUU (+0.85%), $AIRE (+120.14%), & $XRP.X (-11.77%).🔥 Here are the closing prices:  S&P 500 4,496 +1.91% Nasdaq 14,094 +2.37% Russell 2000 1,798 +5.44% Dow Jones 34,828 +1.43% Economy CPI BRINGS IT HOME FOR BULLS CPI Brings It Home For Bulls Featured Image The Fed’s hawkish tone toward interest rates and inflation kept a lid on the market. However, today’s consumer price index (CPI) data renewed bulls’ hope that we could avoid a “higher for longer” situation after all. October’s headline consumer price index (CPI) was unchanged MoM and rose 3.2% YoY, below expectations for a 0.1% and 3.3% increase. That was also down from September’s 0.4% MoM rise. 🔻 Excluding food and energy prices, core consumer prices rose 0.2% MoM and 4.0% YoY. That was below the 0.3% and 4.1% increases expected by Wall Street. A key index component, shelter prices, rose just half its 0.6% pace in September, bringing its YoY increase to 6.7%. 🏘️ Wall Street economists have been saying since last year that shelter prices would eventually come down due to the long lag in how it’s factored into the CPI data. With October’s reading, market participants are hopeful that this key metric has finally turned a corner. While this one reading is unlikely to change the Fed’s hawkish tone, it did cause the market to increase its expectations of a rate cut in late 2024. As we’ve seen in previous periods, when market positioning is skewed to the downside, even marginal improvements in the data are enough to spark sharp market moves. ⚡ And a sharp market move we got…with all the major U.S. indexes back into positive territory for 2023. Leading the charge remains the tech-heavy Nasdaq 100, up a whopping 45%. Meanwhile, rate-sensitive sectors like real estate, solar, and technology all soared today. 📈 Major U.S. Indexes Year-To-Date Performance INDU Dow Jones Industrial Average 5.10% 5.86% CAGR 0.87 years SPX SP 500 17.03% 19.71% CAGR 0.87 years p 50.00% NDX 44.62% 40.00% NDX NASDAQ 100 44.62% 52.53% CAGR 0.87 years IWM iShares Trust - iShares Russell 2000 ETF 3.48% 3.99% CAGR 0.87 years 30.00% 20.00% SPX 17.03% 10.00% INDU 5.10% ol AN A i 0.00% T T T T -10.00% koyfin Tomorrow’s producer price index (PPI) is expected to show a continued disinflationary trend, given it typically leads to consumer prices. Investors are also focused on retail earnings this week as they try to gauge how the economy will perform this holiday season. 🛒 Home Depot kicked off results today, with its $3.81 earnings per share of $37.71 billion in revenues topping expectations. Comparable sales showed a decline of 3.1% YoY, which was better than the 3.6% decline analysts anticipated. However, it marked a fourth straight quarter of declining comparable sales. Customer transaction volumes also remain challenged, falling over 2% YoY to 399.8 million. And the average ticket size remained flat at $89.36. 📊 Executives have had a cautious view for most of 2023, and that continued, with them narrowing their full-year outlook. They now anticipate sales will fall 3%-4% YoY and earnings to slip 9%-11%. As for inflation, CFO Richard McPhail said, “I think the most important observation we’ve made is that the worst of the inflationary environment is behind us.” 👀 It remains an interesting time for the home-focused retailer, with its core customer base remaining employed with healthy balance sheets. However, the lack of housing market activity due to low affordability and high-interest rates is weighing on demand. Additionally, consumers continue to favor experiences over goods when it comes to their discretionary spending. Given most of this news was expected by investors and $HD shares are down about 25% from their 2021 highs, the stock experienced a 5% relief rally today. 👍 Home Symbol HD w rom ot v @ $303.63 S e 795M 1 51556 5.40% Today 52.Wk High $3a7.25 ::IS e zz e Watcher Ran $303.40 0.23110.08% After Hours 52-Wk Low $21426 About Feed News Sentiment Earnings Fundamentals $s s g o s oms oo s s wm om X Mo o w m w e w Aw Sentiment More S Message Volume More Last score Last score % 7 Ldayago @ o Extremely High 2o Earnings WORKHORSE’S WILD RIDE CONTINUES Workhorse’s Wild Ride Continues Featured Image It’s been a rough ride for electric vehicle startup investors over the years. But it’s been especially tough for investors in Workhorse Group, with today’s earnings results failing to improve their situation. 👎 The company’s third-quarter revenues of $3.03 million were up 95.5% YoY but missed consensus expectations of $20.9 million by a wide margin. It also expects 2023 revenues to come in between $10 and $15 million, while Wall Street was looking for $63 million. 🔻 Executives said results were “significantly impacted” by delays in clean truck and bus vouchers (HVIP) in California. Regarding that, CEO Rick Dauch said, “As of today, I am pleased to report that we have successfully resolved this issue and are moving swiftly ahead.” 🤔 While revenues remain lackluster, the company has cut costs to help narrow its quarterly loss. With that said, it has just $71.9 million in working capital ($38.9 million in cash), which leaves the market concerned about its ability to operate without raising new capital. Management said they’re taking major steps to strengthen their financial position, but it remains to be seen what exactly that looks like. Clearly, Workhorse isn’t moving “swiftly” enough to satisfy investors. $WKHS touched new all-time lows before reversing to close roughly flat on the day. That caps off a wild ride since 2019, where shares rallied nearly 12,000% before crashing over 99% from those 2021 highs. 📉 Earnings INVESTORS REMAIN LOST AT SEA (LTD.) Investors Remain Lost At Sea (Ltd.) Featured Image Speaking of wild rides, let’s talk about Singapore-based internet services company Sea Ltd. The stock experienced a meteoric rise during the pandemic but has been plummeting since, with its decline continuing today. 📉 That’s because it surprised the market with a third-quarter loss of $0.26 on $3.31 billion in revenues. While revenues were about 5% better than expectations, analysts had anticipated $0.12 per share in earnings from the company. 🙃 For the last three quarters, it has reported a profit by focusing on cost-cutting and operational efficiencies. However, it performed a 180 in the current quarter, prioritizing investing to increase its market share and further strengthen its leadership position. While investing in growth is important, the market has been rewarding companies that prioritize profitable growth plans. Based on the current quarter, it’s clear the company hasn’t found that balance yet. Additionally, investors remain concerned about the growing competition in Asia’s digital entertainment, e-commerce, and financial services industries. ⚔️ Roughly two-thirds of its revenues come from e-commerce, but Shopee has seen growing competition from major platforms like TikTok, Shein, and Temu. On top of that, China’s economic recovery has dampened domestic growth, forcing these companies to expand internationally to sustain their momentum. That’s a gamble that often takes several quarters or years to pay off. 🛒 Its executives argue that investing now to cement their market share position will position them well for the inevitable industry consolidation. Still, investors worry about the firm’s history of losses and ability to achieve even a fraction of its pandemic-era growth. As a result, $SE shares remain “lost at sea,” so to speak. They fell an additional 22% today and are sitting at levels first seen in mid-2019. ⏪ Sea Ltd. 5-Year Total Return SE SealLimited 190.92% 23.72% CAGR 5.02 years P TO,UUV.UU 7O 2,500.00% b 2,000.00% 1,500.00% 1,000.00% 500.00% R K- P27 ........................................................................................................................................................................ 0.00% koyfin Bullets BULLETS FROM THE DAY: 💻 YouTube issues new guidelines for videos using AI. The online video platform is preparing itself for a world where artificial-intelligence-created content proliferates, issuing new rules for AI-enhanced videos on its platform. This will include guardrails around videos that appear realistic but rely on AI tools and labels to inform viewers when the video they’re watching has been altered or synthetically created. Meanwhile, it continues to roll out new platform features and capabilities that leverage AI to give creators more artistic power than ever. Deadline has more. 🚫 Republicans unite against new bank regulations. As bank regulators prepare to testify in front of the Senate and House committees this week, they’re expecting sustained opposition from Republications who want to stop plans to increase bank capital requirements. The banking lobby has said that Basel III would restrict billions of dollars in capital from those who need it most, reducing availability and raising credit costs for millions of Americans. However, regulators argue that raising bank capital requirements is the easiest and most effective way to make the banking system safer. More from Axios. 🤖 Airbnb acquires a secretive new AI startup for around $200 million. The online rental marketplace has acquired GamePlanner.AI, whose cofounders were behind separate firms focused on AI assistants that Apple and Samsung acquired. It’s unclear what the company does specifically or how Airbnb plans to leverage the technology. Still, CEO Brian Chesky has previously stated that he wants to use generative AI to build a “travel concierge” that learns about and adapts to travelers. With its first acquisition as a public company, this bet shows he’s serious about that vision. TechCrunch has more. ✂️ China tells local governments to cut their public-private project debt exposure. The country has identified “problematic” public-private partnerships and has ordered its local governments to halt new investments in these projects as it looks to reduce municipal debt risks. Local government debt has soared to 76% of China’s 2022 economic output, up from 62.2% in 2019. Given its economy’s recent issues, the State Council is looking to reform the public-private partnership (PPP) model for the first time since its launch in 2014. More from Reuters. ⚡ Rivian signs an agreement to build a Georgia electric vehicle (EV) factory. The electric vehicle maker has signed agreements with the state of Georgia to rent land and machinery to operate the plant in exchange for $300 million in property tax payments. The new $5 billion plant, initially announced in late 2021, will employ more than 7,500 workers and build 400,000 vehicles a year once fully operational. Additionally, the company announced plans to raise nearly $15 billion in debt for its expansion efforts. Yahoo Finance has more. Links LINKS THAT DON’T SUCK: 😢 Another disappointing year for Wall Street bonuses ⚠️ ‘Substantial doubt’ Trump’s Truth Social will survive, accountants warn 🏘️ Tough housing market is luring buyers without kids and higher incomes 🙊 Google witness accidentally blurts out that Apple gets 36% cut of Safari deal 📰 Insider changes name back to Business Insider as Henry Blodget steps down as CEO 👀 McDonald’s and Crocs are releasing a line of $75 shoes inspired by Grimace and the Hamburglar Twitter   Instagram   Facebook   Web   Stocktwits 1001 Avenue of the Americas New York, NY 10018 Content, news, research, tools, and securities symbols are for educational and illustrative purposes only and do not imply a recommendation or solicitation to buy or sell a particular security or to engage in any particular investment strategy. Companies that are not affiliated with us may supply some of the content. The source of all, third-party Content, in which StockTwits, Inc. receives some sort of compensation, is clearly and prominently identified herein as “Sponsored by” or “Sponsored”. We have not been involved in the preparation, adoption or editing of third party content and we do not endorse or approve such content. The information provided is not warranted as to completeness or accuracy and is subject to change without notice. The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, are not guaranteed for accuracy or completeness, do not reflect actual investment results and are not guarantees of future results. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. Before investing in a fund, consider the fund’s investment objectives, risks, charges, and expenses. 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