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- 💦 Boeing's failure to Launch Alliance
Hey there weekday warriors,
Today we’re giving credit where credit is due (Boeing actually did something right), checking in on Apple & a whole lot more.
Enjoy the next 4 minutes and 27 seconds of blue-chip news and commentary.
Keep on snapping necks and cashing checks,
+ “The S&P 500 and Nasdaq Composite closed at record highs on Wednesday, ignited by a Big Tech surge. The rally came amid tentative optimism for interest rate cuts on signs of slowing labor demand and a cooling economy.” (Yahoo! Finance)
+ The 10-year Treasury yield “slipped Wednesday as investors considered the state of the economy amid a series of key data releases." (CNBC)
+ Oil “fell more than $1 a barrel on Tuesday on skepticism about an OPEC+ decision to boost supply later this year into a global market where demand has already shown signs of weakness.” (Reuters)
+ Bitcoin rose “on Wednesday, buoyed by growing expectations of U.S. interest rate cuts as weak economic readings continued to trickle in and a resurgence in inflows to spot BTC exchange-traded funds (ETFs).” (Investing.com)
+ The three most talked about stocks on WallStreetBets in the past 24 hours were: 1) Nvidia +5.1% 2) Lululemon +0.4% // +9.7% after hours 3) C3.ai +3.0%
The market moves you need to know about…
+ Being the bottom feeder of the S&P 500 isn’t without any perks. Isn’t that right, Lululemon? You see, expectations are really (I cannot stress this enough) low for earnings. The athleisure maker jumped 9.7% after hours despite reporting flat sales (that did manage to beat expectations) and sharing pretty anemic guidance.
+ Archer Aviation rose 6.1% on news that it has been granted a key FAA certification that moves its electric vertical takeoff and landing aircraft (eVTOLs… which doesn't exactly roll off the tongue) one step closer to commercial flight.
+ You guys aren’t going to believe this. Shares of a meme stock moved on some … actual news. AMC rose 7.7% on the day after shareholders rejected the company’s proposed exec comp plan at its annual meeting.
Failure to Launch Alliance
(Source: Giphy)
Boeing: *forgets to tighten bolts on airplane doors*
Also Boeing: *successfully puts manned space capsule into orbit with plans to dock at the International Space Station*
The United Launch Alliance, a Boeing (+0.6%) and Lockheed Martin (-0.7%) collab, has finally put the Starliner spacecraft into orbit. And I think it’s safe to assume that in the group project that is the United Launch Alliance, Lockheed Martin did most of the work and Boeing is just taking credit…
Astronauts Butch Wilmore and Suni Williams were propelled into the heavens by way of ULA’s Atlas V rocket. The Starliner capsule’s goal is to link up with the International Space Station today.
In fact, by the time you’re reading this, the Starliner should be preparing for its initial descent to the ISS.
And it’s only like *checks watch* 4 years behind schedule…
The manned Starliner has suffered numerous technical setbacks that cost it precious time and have put the project billions of dollars over budget. Boeing has eaten more than $1.5B in overages to date… and literally no one feels bad for them.
Boeing and Lockheed’s shortcomings have allowed Elon’s SpaceX to step up and become NASA’s go-to rocket as a service provider. To put things in perspective, SpaceX has been launching regularly since 2020.
+ Probably not a coincidence that Jensen Huang signed some bewbs on Tuesday… and the company’s market cap surpassed Apple’s on Wednesday…
Not only did Nvidia (+5.1%) pass Apple (+0.7%) as the second most valuable company in the US… it also hit a $3T market cap. Up next? Microsoft, which currently has a $3.15T valuation.
Shares of NVDA are up 24% since reporting another blowout earnings report just a few weeks ago.
+ Adam Silver be like “thank you for your service, Caitlin Clark…”
You see, the NBA is about to bag up. It’s reportedly close to inking a broadcast deal with three partners over 11 seasons that is worth a staggering $76B.
Here’s how the WSJ thinks it could break down…
NBC will pony up $2.5B a year for ~100 games per season. Half would air on Peacock, which, up until this point, had one redeeming quality (spoiler: ‘The Office’).
Amazon will pay $1.8B annually for regular-season and playoff games. It would also get the NBA in-season tournament rights.
Disney/ESPN/ABC will cough up $2.6B every year to keep the rights to the NBA Finals and a bunch of other games. To put things in perspective, it currently pays ~$1.5B per season under the current deal (spoiler: it would get fewer games this time around).
Notably absent? Warner Bros. Discovery, which has NBA rights via TNT currently. WBD is a bit of a sh*tshow and is saddled by debt, which may make it hard to throw its hat in the ring. But it does still have the option to match any outside bids.
+ Luckily, Google (+1.1%) got rid of its motto “don’t be evil” because it just poached its next CFO from big pharma. Eli Lilly’s Chief Financial Officer Anat Ashkenazi will take over as Alphabet’s next finance lead. She’ll take the reins from Ruth Porat who will become GOOG’s Chief Investment Office.
+ It appears hiring MJ in the 90s wasn’t cheap.
Hanesbrands (+4.9%) has a yuge pile of debt sitting on its balance sheet (>$3B). Yesterday it decided to do something about it. The underwear maker sold its Champion brand to Authentic Brands Group for $1.2B and plans to use the proceeds to pay down its outstanding obligations.
+ New 'McCheapest' map helps fast food lovers get sweetest deal on their McDonald's burger (Read)
+ The ‘dangerous’ but common mistake a self-made millionaire says couples often make with money (Read)
⏪ Yesterday, we were keeping an eye on Dollar Tree and Lululemon earnings, plus ADP’s jobs report.
+ Dollar Tree (-4..9%) announced earnings that met the Street’s expectations. The biggest takeaway was that the company is planning a sale of its Family Dollar banner.
+ ADP’s jobs data (which drops just a few days ahead of Uncle Sam’s official jobs report) came in lower than expected. It showed the economy added 152k jobs, which was also below April’s 188k.
+ Check out all the details on Lululemon’s earnings above…
⏩ Here's what we’re keeping an eye on today...
+ JM Smucker and Nio report this AM
+ DocuSign reports after the bell
+ The European Central Bank is expected to announce a... wait for it... rate cut
Yesterday, I asked, “Do you want the CEO of a company in your portfolio acting like a rock star?”
It was pretty damn close, but “No… I like my CEOs low-key” won the day.
Here’s today’s question…
Today we talked NBA broadcast rights, so…
Who do you like in the NBA Finals? |
Before you go…
This scene from ‘Silicon Valley’ is so funny/messed up (also very relatable if you have kids and have ever traveled)…
A look at Tim Cook’s to-do list after Nvidia passed Apple in market cap (Twitter)
What did you think about today's newsletter? |
Does this look like the face of a guy you should take financial advice from?
No, it’s the face of an individual who is financially irresponsible/dumb enough to be talked into spending money on a family photo shoot that he could have just done with his iPhone. So, act accordingly...
This is not financial advice. Nothing in this newsletter is an investment recommendation. All content is created for entertainment, educational, or informational purposes only. Do your own research, or do yourself a favor and hire a professional.