Misery = Fortune
By Wed, Dec 16, 2020
Hey Scoopers,
The market had an upbeat Tuesday, partly thanks to Apple and partly due to the continuation of the COVID-19 vaccination. — More on that in the “Overall Market” section.
Beyond the overall market, one new-gen fashion retailer got an upgrade. In contrast, a movie theatre stock scared investors with dilution. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, one company’s misery could be a few stocks’ fortunes. — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
Market Recap
- U.S. markets: The stock market indices ended Tuesday higher than 1% and in the green. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price continued to hover and hold above the $19,000 per coin level.
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Apple’s Effect
All three indices finally agreed on the direction and moved up to finish Tuesday at least 1% higher than they started. Of course, COVID-19 vaccination is going slowly and steadily. Also, the news from Apple helped fueled the market forward. The company plans to make 30% more iPhones in 2021, which investors embraced as good news and sent the stock higher at least 4%. Being one of the largest companies on the stock market, it’s 4% upward movement had the strength to move the market as a whole.
Celebrating An Upgrade
So what happened?
Shares of Revolve (Ticker: RVLV) were up by more than 13% on Tuesday. The company is a recent IPO and a fashion retailer that uses social media and eCommerce as its main platforms to sell clothes. The stock price has been falling steadily after the IPO hype subsided. However, on Tuesday, the company got an overweight rating from Piper Sandler, and investors celebrated the upgrade.
Bill O’Reilly’s Stunning Money Revelation
At the height of his hit TV show, Bill O’Reilly was reportedly making a staggering $37 million a year.
But today, something incredible has happened to his wealth.
For the first time publicly, Bill comes clean about it in this video.
This ought to get interesting…
Dilution
So what happened?
Shares of AMC Entertainment Holdings Inc (Ticker: AMC) were down by more than 10%. While the stock market is betting on the recovery and companies such as Imax (Ticker: IMAX) got a 5% jolt of excitement, AMC has been hovering on the brink of bankruptcy. The company is about to sell new shares, double the number of outstanding shares in the market to raise money, and skip disaster. Of course, investors hate getting diluted with new shares, and it’s no surprise the stock is falling.
One Company’s Misery = Other Stocks’ Fortune
So what happened?
While this is going to be tough for USPS employees and people waiting for fo their packages, it can be the indicator that FedEx (Ticker: FDX) and UPS (Ticker: UPS) could be up for one of their best quarterly performances ever.
As they say, one man’s misery is another man’s fortune. USPS’s gridlock is happiness for FedEx and UPS.
If you have any questions, or suggestions let us know by emailing us at members@tradestocks.com. We look forward to hearing from you.
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
