Key Points
Overall Market
After the Lowest New Jobless Claims Report Since the Start Of the Pandemic, the Market Stayed Flat in Anticipation Of the Core Inflation Report Coming Out Friday
All three indices finished the day relatively flat, only slightly below or above the flat line. The news jobless claims report hit the lowest pandemic-era level at 406,000. The second estimate of Q1 GDP growth in the U.S. came at around the same 6.4%, reiterating that the economy is on it's recovery track.
Investors are waiting for Core Inflation and Consumer Spending reports coming out tomorrow to confirm whether inflation is as problematic as they think so. What's Up
Shares of Boeing Jumped More Than 4% as New Plane Orders Are Rushing In
AMC continued to rally more than 35% today as WallStreetbets traders continue Yoloing their way pumping the stock up. As I scrolled through Reddit's Wallstreetbet thread, I came across this one post claiming to have invested "All his/her savings into AMC!!!" and asking folks to wish him/her luck. The "you online live once" (YOLO) strategy is the talk of the town these days. To be 100% transparent, I have invested $1,000 in AMC's stock at $15 per share, and I literally wrote "stupidity" as my strategy. I just want to have a stake in some of the most exciting phenomena on Wall Street!
Getting back to a more serious side of investing, Boeing (BA) shares were up more than 4%. Despite 737 challenges, airline customers need more planes, and when there are only two major aircraft manufacturers in the world, inevitably, Boeing would be a winner. As a reminder, I own a few Boeing shares and a put option at $205 per share, which I hope would expire at no cost to me. More plane orders are good news for Boeing and me, alike. WHAT'S DOWN?
Shares of Okta dropped more than 9% after the company revised its full-year earnings forecast downward
From the list of today's biggest losers, shares of Okta (OKTA) were down more than 9%. The company creates a platform that allows people to use single user names and passwords to log in to all their work-related systems. If you work for a big company, there are several systems you need to work with. From your email, to your paystub, to IT services, each one is a different system you'd need to have a username and password for. Okta makes it easy for you to have one login credential, and for your IT department to give you access securely.
The company released its latest earnings report, and the result was better than expected. Investors got spooked over the new bottom-line forecast for the rest of the year that is dragged down by a recent acquisition. This is one of those moments when Wall Street penalizes a stock for investing in its future. The new acquisition allows Okta to own its competitors and expand its market. Moreover, if you focus on the company's performance, you can see solid operations. Last quarter, Okta managed to retain 120% of its revenue, which means it's customers stayed and paid up for more seats, products, and services. Okta's business model is already generating free cash flow, and analysts' price target is higher than the current price. While based on valuation metrics such as price-to-sales or price-to-book value, the stock is overvalued. This is one stock to watch and consider for your portfolio. I own just a few shares, and I may add a few more. Want to receive this daily stock market recap report in your mailbox?
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