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KEY POINTS
OVERALL MARKET
Despite a loss of confidence from consumers, the stock market continued to climb by the end of the trading week.
The market indices ended the day in the green.
Contradictory forces are shaping the market's sentiment. Thursday’s jobless claims report from the Bureau of Labor Statistics painted a better economic picture, with a lower number of new claims for the third row in a week. However, a Survey of Customers by the University of Michigan showed consumers' surprising loss of confidence at the beginning of August. This could be due to the growing concerns around the COVID Delta variant. In the end, positive sentiment won over, and all three indices finished the week in the green. GET THE DAILY MARKET RECAP
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Yum Brands (YUM) is “defying” drive-thru norms with its new experimental Taco Bell location.
Folks, recently, we have been exploring some food companies that are innovating how we eat. For example, we discussed Wendy’s (WEN) ghost kitchens. From plant-based foods to fermented ingredients and new ways to prepare and deliver food, the way we eat is changing rapidly, and that's why the team at Stock Card manages the “Future of Food” portfolio.
Today's winner stock is a company that is innovating how food is delivered to us. Yum Brands’ (YUM) Taco Bell franchise is defying the norm of fast-food drive-thrus. I mean that quite literally! Taco Bell is breaking ground this month on an experimental “Defy” drive-thru-only building. Fast food companies across the nation pivoted to depending on contactless food services, like drive-thrus, during the pandemic. Many went through quite a lot of operational challenges to deliver food efficiently in this new world, and now we see food delivery innovation popping up all around us. Drive-thrus and mobile order windows are great ways for companies to increase sales revenue, and this new step is taking the idea all the way. Yum! Brands had its earnings call 2 weeks ago, which surpassed expectations. The investor reaction brought the stock up from $122 to $130, and it has continued to climb steadily since. The company also owns KFC and Pizza Hut, among other brands. Its Stock Card shows good profitability, revenue growth this fiscal year, and free-cash-flow generating operations. With 1.5% in dividend yield, the stock could easily fit into a dividend-focused portfolio, although there are some concerns about the amount of debt it carries. If the innovations such as the new drive-thru pay off, Yum Brand can expand it across all its brands and run a much more profitable business. It is worth watching, especially if you are a dividend seeker. Yum Brands is shaping the future of food by reimagining the drive-thru. WHAT'S DOWN?
Does Tattooed Chef’s (TTCF) dip mean it’s time to buy?
Speaking of companies on the mission to shape the Future of Food and get into our Future of Food portfolio, I want to revisit an old favorite of mine. Tattooed Chef (TTCF) has been on my personal 2021 watchlist for a while. You can find this by searching “2021 watchlist” on the Stock Card portfolio page as well. I’ve been waiting around for this stock to drop so I could snatch it up at a good price. My wish came true today!
TTCF shares were down 16% by the close. It's a ready-to-eat, plant-based food startup that focuses on the frozen aisle for now and serves you things like Budda Bowls and cauliflower pizza. It was founded in 2018, but despite its young age, its growing revenue rapidly and is already profitable. Earlier today, the company released itsearnings report for this quarter. Tattooed Chef saw a 46% growth in revenue this year, which was great, but investors latched onto some future guidance. It forecasted a lower gross margin and a substantial loss in adjusted earnings before interest, taxes, depreciation, and amortization, known as EBITDA. As for last quarter, EBITDA was a loss of $5.9 million, yet future guidance from the company is expecting an even more significant loss of $14 to $17 million. It’s no wonder that the company has a short interest of 14%, as I see on its Stock Card. The reason for the loss of profitability, according to the management, is reinvesting into expansion. Investors forget that the company is just 2-3 years old and already has distribution deals with Walmart (WMT), Costco (COST), Target (TGT), Sam’s Club. Thanks to the latest price drop, I’m considering picking up some more shares on Monday to enjoy a lower price. Tattooed Chef is shaping the future of food by delivering better pre-made food in the grocery aisles. NEW STOCK CARD FEATURE
Announcing: Stock Card’s new ETF cards!
Folks, I've already told you a few times and want to share this exciting news once again that we rolled out a significant new update to Stock Card. You can now research ETFs using the same easy-to-use and intuitive visualization and color-coding on Stock Card. ETF Cards have been one of the most requested features you have asked for in the last 12 months, and your wish is our command.
A couple of days ago, I uploaded a quick rundown to show you how to research ETFs using the new ETF Cards. For a more in-depth explanation, I'd like to invite you to check out the demo video. WANT TO RECEIVE THIS DAILY STOCK MARKET RECAP IN YOUR MAILBOX?
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KEY POINTS
OVERALL MARKET
The DOW and S&P both hit new records again as the market closes in the green.
The market indices ended the day in the green.
The S&P 500 and DOW Jones indices once again set record highs by the close. The $1 trillion infrastructure bill and optimistic inflation indicators from yesterday’s Consumer Price Index kept investors more confident in the future. Also, the new weekly jobless claims report came out today, down to 375,000 new claims, lower by 12,000 compared to the last week. Overall, the market had an optimistic outlook, and the indices reflected that. GET THE DAILY MARKET RECAP
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Palantir Technologies (PLTR) keeps winning government contracts and the stock is soaring in response.
Our first defense stock of the day is Palantir (PLTR). The company popped up on today’s winning list of stocks. This technology company is focused on helping large operations manage their data efficiently for better decision-making. Palantir has a history of winning government contracts, like this May, when the U.S. The Air Force awarded them a $32 million contract to provide strategizing software in critical missions. Its biggest deal ever was in December 2019, when Palantir was picked for an Army contract. The Army recently opted for the second year in this ongoing contract that could total over $800 million in value. By the end of 2020, about 50% of Palantir’s revenue was coming from government contracts, giving us enough reasons to group it as a defense stock.
Today's earnings report pushed the stock up over 11% after investors were happy to see a 49% growth in revenue. Judging by its Stock Card, Palantir won’t have problems with cash anytime soon, and it has some great sales growth. WHAT'S DOWN?
Kratos Defense (KTOS) may be a dependable contractor, but is it a dependable stock?
Speaking of defense contracts reminded me that I saw Kratos Defense & Security Solutions (KTOS) on Stock Card’s earnings calendar last week. The company released its quarterly earnings on the 3rd, which showed a 20% growth in revenue year-over-year. The company predicted equal if not slightly lower revenue for the coming quarter, citing an international training contract that it lost as the primary reason. This is likely why the stock dropped from $27 to under $24 and has yet to climb back since.
Investors are expecting more hefty contracts like the one Kratos was paid $55 million for in February. For this contract, the company would provide hardware and systems for the government’s unmanned drone, satellite, and defense operations. It's no wonder the company's Stock Card paints a great picture. Not only is it profitable with free cash flow, but management has also done a great job on returns for invested capital, which you can see under the management effectiveness tab. Kratos was founded in 1994 and has some longstanding ties with the government for contract work. They’ve been recognized as a dependable company, and I would have to agree. It also doesn't hurt that you can invest in the stock now at a reasonable price, based on an average analyst price target of $28-ish per share from the estimated fair share price section on its Stock Card. In a way, Kratos Defense is the opposite of Palantir Technology. One is a newcomer that is hard to trust, and the other is an old-timer that keeps winning. Kratos is a top-25 holding on the iShares US Aerospace and Defense ETF (ITA) that you can find by searching ITA in the search bar on Stock Card. It's also a top 25-holding of ARK Autonomous Technology&Robotics ETF (ARKQ). Comparing ARKQ with ITA, ARK's ETF has a better fee and cost structure and has outperformed the S&P, and it's undervalued at the current price. At the same time, the ITA is reasonably priced with a lackluster performance track record compared to the S&P 500. Between PLTR, KTOS, ARKQ, and ITA, I would rather invest in ARKQ to get some exposure to defense stocks instead and still get a well-priced and well-performing investment. ARKQ wins my vote today as a defense-oriented ETF, although I know it's not exactly a defense ETF. NEW STOCK CARD FEATURE
Announcing: Stock Card’s new ETF cards!
Folks, last week, we rolled out a significant new update to Stock Card. We greatly improved our ETF Cards! Earlier today, I uploaded a quick rundown to show you how to research ETFs using the ARK Innovation ETF (ARKK) example.
The Stock Card team and I are super excited to let you guys get your hands on this tool! ETF Cards have been one of the most requested features that you have asked for in the last 12 months, and your wish is our command. For a more in-depth explanation, I'd like to invite you to check out the demo video. WANT TO RECIEVE THIS DAILY STOCK MARKET RECAP IN YOUR MAILBOX?
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KEY POINTS
OVERALL MARKET
The Consumer Price Index showed higher consumer prices but didn’t exceed inflation expectations.
The market indices ended the day mixed.
The Consumer Price Index by the Bureau of Labor Statistics was released today, and it showed higher consumer prices. Luckily, the core inflation numbers didn’t rise too quickly, falling just short of expectations. For example used car prices have only gone up .2% in July, compared to 10% in June. Perhaps the Fed's insistence on the short-term nature of recent inflation is true, and things are cooling off as the economy deals with short-term shortages and logistic challenges. GET THE DAILY MARKET RECAP
Did you know you can get your Daily Market recap report on YouTube, listen to it on our Podcast, or get it in your inbox?
Watch it, Listen to it, Or, read it. Sign up for a free Stock Card account to get the report in your mailbox every day. WHAT'S UP?
The ghost of Wendy’s (WEN) kitchens is looking like the future of fast food.
Sometimes ghosts can scare off would-be customers, but sometimes they’re good for business. The ghosts I’m talking about today don’t haunt people. I’m talking about ghost kitchens!
Last year, founder and ex-CEO of Uber (UBER), Travis Kalanick, turned his Uber Eats expertise into a new business venture. He watched food delivery services boom and found a need that he could fill. He named them “ghost kitchens” for restaurants that have no actual restaurant. Kalanick began renting out commercial spaces for restaurants just to fulfill online delivery orders for services such as Grubhub (GRUB) and more. It seems as though his idea has been validated by other companies following suit. In today’s earnings report for The Wendy’s Co. (WEN), the company announced that it would be launching 700 ghost kitchens for food delivery in the next four years. This comes through a partnership with REEF, the largest logistics hubs and kitchens operator in the United States and Canada. Wendy’s stock was up by almost 4% at closing today, after reporting a 20% jump in sales compared to last year’s second quarter. Looking at the company’s Stock Card, it is profitable, with solid free cash flow. It does need to work on its debt, mainly. I like how Wendy's is thinking, and I’m going to keep a close eye on the success of its new experimental kitchens to decide whether or not I should invest. WHAT'S DOWN?
What makes Weight Watchers (WW) a “Mom” stock?
I found WW International (WW) near the top of today’s loser list on Stock Card. You probably recognize this company by its previous name: Weight Watchers, which had Oprah Winfrey on its board and as an investor and promoter. Well, today, the company released its second-quarter earnings report, and the stock quickly plummeted. So what Has Oprah abandoned her investment, and should you? Let’s take a look.
It appears that investors weren’t impressed by the underwhelming outlook for new subscriptions to the company’s weight loss program. The 6% year-over-year growth in subscribers wasn’t quite up to the expectations of WW management. It might be that Weight Watchers is just not quite reaching the young adult population as well as it used to. New companies approach marketing and branding with a more modern angle like its privately-managed competitor Noom. Noom is a startup that maintains a heavy focus on the psychological side of getting fit and healthy. It’s an app that helps you understand why you eat what you eat and then builds a diet and lifestyle around that. It has even attracted corporate investors like Novo Nordisk Holdings (NVO), which became a shareholder in May of this year. That being said, is WW International just outdated? To me, it mostly feels like a weight loss program for moms! I’m just joking, of course, but I couldn’t help it. I looked at the WW Stock Card and noticed that it was a top-25 holding in the Invesco DWA Consumer Staples Mom ETF (PSL) on the left-hand panel on WW's Stock Card. The name gave me a good laugh. In this case, if you are wondering, “Mom” in that ETF's name represents momentum. But, it's indeed a good reference to WW's target customers. I think there are better stocks to invest in rather than WW International. If Oprah Winfrey's name couldn't lead to sustainable rapid growth, the brand is in trouble in my books. NEW STOCK CARD FEATURE
Announcing: Stock Card’s new ETF cards!
Folks, last week, we rolled out a significant new update to Stock Card. We greatly improved our ETF Cards! Earlier today, I uploaded a quick rundown to show you how to research ETFs using the ARK Innovation ETF (ARKK) example.
The Stock Card team and I are super excited to let you guys get your hands on this tool! ETF Cards have been one of the most requested features that you have asked for in the last 12 months, and your wish is our command. For a more in-depth explanation, I'd like to invite you to check out the demo video. WANT TO RECEIVE THIS DAILY STOCK MARKET RECAP IN YOUR MAILBOX?
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KEY POINTS
OVERALL MARKET
The 1 trillion dollar infrastructure deal helped the S&P and DOW to reach record highs again.
The market indices ended the day mixed.
Stocks tied to economic growth got an optimistic boost today as the Senate passed a 1 trillion dollar infrastructure bill. Over half of it will be spent on transportation, utilities, and broadband connection in the U.S. That's most likely why investors remained positive and kept the S&P and DOW Jones in the green, setting new records for both. Tomorrow, new Consumer Price Index numbers will be out. They typically impact the market sentiment, so let's keep an eye on them. GET THE DAILY MARKET RECAP
Did you know you can get your Daily Market recap report on YouTube, listen to it on our Podcast, or get it in your inbox?
Watch it, Listen to it, Or, read it. Sign up for a free Stock Card account to get the report in your mailbox every day. WHAT'S UP?
Anheuser-Busch (BUD) releases its first beer for dogs. Is this company worth buying the stock?
Today's winning stock is courtesy of my dog Kratos. The other day, I passed by the fridge in the kitchen, and I heard him asking me to crack open a cold one for him! Well, something like that. Honestly, he just looked thirsty, and I took my best guess. Luckily, folks at Anheuser-Busch (BUD) were listening to him.
What am I talking about? I'm talking about a new kind of beer for dogs by the good people at Anheuser-Busch. The company just launched its Busch Dog Brew, as they call it. The drink is a mix of bone broth, corn, and celery that dogs can have with their food. This is the first of its kind by the makers of Budweiser, America's favorite beer. I love how innovative this product is; it shows Anheuser-Busch is open to explore and fund new ideas. The company even has a Research Pilot Brewery for this very reason, where the team originally developed the idea. Anheuser-Busch (BUD) produces five of the top 10 beer brands globally by sales and has 18 brands with retail sales of over $1 billion. The company is focused on growth and adapts to new trends, like its expansion into seltzer versions of many of its popular brands. Looking at the company's Stock Card, sales were hit heavily during the pandemic when restaurants and events were shut down. Now, in 2021, revenue is expected to grow by 13%. It's profitable and generates free cash flow. However, it hasn't been able to overperform the market in the past, and while it pays nearly 2% in dividends, the company's debt situation is problematic. Its ability to innovate makes it a stock to monitor and potentially pick for a dividend-focus portfolio, especially because the stock is also undervalued at this point. The stock might not be getting a nod of approval from us, but the move is winning the hearts of dogs. Woof! By the way, I heard about this story on the Robinhood Snack podcast on one of what I consider to be their best podcast episodes yet! Thanks, Jack and Nick, Robinhood Snack's podcast hosts. WHAT'S DOWN?
Coinbase (COIN) stock is down nearly 4% today after its earnings report.
Stock Card has plenty of tools that you can use for research. One of my personal favorites that I use often is the earnings calendar under the Tool's section. Today, I noticed Coinbase (COIN) was down by nearly 4% after seeing it on the calendar. As we all know, Coinbase is one of the world's largest and most well-established cryptocurrency exchanges. The stock is down despite Bitcoin and crypto regaining momentum in the last few days. This is surprising to me, so let's explore why:
In the shareholder letter for today’s earnings, the company pointed to the crypto market’s volatility for its eye-raising numbers. On a good note, Monthly Transacting Users (MTUs) for individual investors (retail investors) grew 44% from Q1 2021, and net profit was up about 4900% from last year. The influx of transactions and cash flow was seemingly tied to the hype generated by crypto’s boom in April. On the negative side, the company forecasted a decline in trading volume for the next quarter. This likely turned investor sentiment against the stock. It’s also important to note that a week ago, the chairman of the SEC approached Congress to ask for more power in regulating crypto. He was mainly concerned about platforms and products that may drop between “regulatory cracks.” He wants to create a safer market with more oversight that can protect investors in this volatile and risky frontier of finance. He needs to ask for permission because crypto isn't a security in the eyes of the regulators yet. So, the head of the Securities and Exchanges Commission (SEC) needs permission to regulate cryptocurrency exchanges. This will undoubtedly affect any crypto-adjacent business, including Coinbase, but whether it will be positive or otherwise remains to be seen. You can, of course, look up and follow Coinbases's stock on Stock Card to get notified when important information changes about the company. Coinbase's core market on the company’s Stock Card, cryptocurrency, is expected to see plenty of growth in the coming quarters. Also, if you would like to get a good idea of other stocks in this space, search “cryptocurrency” in the search bar and get the list of stocks in the Digital Currency collection.
FEATURED PARTNER PORTFOLIO
Stocks to Buy In August by Bow Tie Nation Portfolio
Folks, Stock Card partner Joseph Hogue from Let's Talk Money channel has a new video and stock recommendations to buy in August. This month's portfolio review is quite cool because he has invited his community to come up with ideas. I quite enjoyed the video and got at least one good idea to add to my portfolio.
Watch Joseph's video and make sure to follow his Bow Tie Nation portfolio to get notified when he adds companies to the list. WANT TO RECIEVE THIS DAILY STOCK MARKET RECAP IN YOUR MAILBOX?
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KEY POINTS
OVERALL MARKET
The market indices ended the day mixed as oil prices fell.
The market indices ended the day mixed.
The S&P 500 and the DOW Jones indices both took a dip into the red by the end of the day, with the NASDAQ beginning the week with some gains. This tough start to the week is partly due to oil prices slipping more than 2% over the course of the day. This was evident by the West Texas Intermediate price. In addition to oil prices, the COVID delta variant continues to trouble the world economy and investors sentiment is impacted by it. GET THE DAILY MARKET RECAP
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Watch it, Listen to it, Or, read it. Sign up for a free Stock Card account to get the report in your mailbox every day. WHAT'S UP?
Golden Nugget Online Gaming (GNOG) stock surges 50% after announcing its purchase by DraftKings (DKNG).
On top of the winners list on Stock Card, Golden Nugget Online Gaming (GNOG) stock is up 50% today after announcing that it was being bought by DraftKings (DKNG).
It seems the Golden Nugget's acquisition is a good deal for DraftKings due to its 5 million users on its online gaming market, which includes online casinos and sports betting. Gambling, and more recently sports betting in the United States has been on the rise for years. The pandemic brought gambling revenue to its lowest since 2003, only reaching $30 billion. DraftKings will benefit from the resurgence of gambling as it expands its coverage and user base. In Friday’s earnings report, DraftKings shared its 320% revenue growth since the second quarter last year. The company is live in 12 states that make up 25% of the country’s population. This still leaves plenty of room to grow, and as acquisitions and legislation proceed, DraftKings is positioned to expand. Looking at the DraftKings Stock Card, what bothers me is its negative free cash flow which could be an indicator that the company is still trying to figure out how to make money with its core business. I'd like to keep monitoring DraftKings to see more stability in its operation. But, DraftKings isn't the only game in town. Type in “gambling” in the search bar on Stock Card, or take a look at the themes and collections DraftKings belongs to, and the watchlist of 65 companies in the Gambling collection. Better yet, create a new filter, then just add gambling and “no cash concerns.” There you have 9 stocks on a neat and tidy list. WHAT'S DOWN?
Axsome Therapeutics (AXSM) runs into setbacks with FDA approval, and stock plummets 45%.
I noticed a company I didn’t recognize on top of Stock Card’s losers list today. It's Axsome Therapeutics (AXSM). I got curious to see what could cause a stock to drop 45% in one day. It seems it's a pharma stock that announced regulatory setbacks with the FDA on its major depressive disorder drug. This made it clear for me why the stock dropped that much. Yet again the market is reacting to clinical trial news. So, is this a buying opportunity? Let's find out:
Axsome Therapeutics is a clinical-stage biopharmaceutical company. In today’s earnings report, the company announced that the FDA had halted the approval process of its major depressive disorder treatment AXS-05, because of deficiencies in the drug’s regulatory application. The CEO admitted that this could likely delay the eventual approval of the drug. Leading up to this, AXS-05 has been delivering great results in phase 2 trials. Axsome share price has fallen quite a ways since its January high, losing nearly half of its value even before today's nosedive. This sudden drop in price is very characteristic of pharmaceutical companies that are in the clinical trial stages. The most important question is whether it has enough cash to keep going. The company stated in today’s report that its cash reserves are enough to keep it afloat through the potential commercial launch of AXS-05 in MDD and AXS-07, or at least until 2024. The company also has other treatments in the pipeline. Looking at the Stock Card, while investor sentiment may be very poor, the analyst consensus is to buy. The knee-jerk reaction that today’s setback brought seems to be a great opportunity to pick up some shares at a discount if you can tolerate volatility and possible additional delays in the drug's approval. You never know when a drug is approved, so this is indeed a risky bet. FEATURED PARTNER PORTFOLIO
Stocks to Buy In August by Bow Tie Nation Portfolio
Folks, Stock Card partner Joseph Hogue from let's Talk Money channel has a new video and stock recommendations to buy in August. This month's portfolio review is quite cool because he has invited his community to come up with ideas. I quite enjoyed the video and got at least one good idea to add to my portfolio.
Watch Joseph's video and make sure to follow his Bow Tie Nation portfolio to get notified when he adds companies to the list. WANT TO RECEIVE THIS DAILY STOCK MARKET RECAP IN YOUR MAILBOX?
Sign up for a free account on Stock Card's website to get the daily market recap reports in your inbox:
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