Monthly Archives

Maybe we jinxed it… by declaring FANG stocks and the Nasdaq were relatively safe. However, new reports came out on Monday stating the Trump plans to crack down on Chinese investment in major technologies in the United States. Gotta love him.

Here’s who suffered… including the Nasdaq which dropped 2.1% (coming down from an all-time high last week). Netflix was down more than 6%, while Twitter and Amazon were down more than 3% each. The Dow also continues to drop, down 1.3% at one point.

There was a saving grace… in the form of White House trade adviser Peter Navarro, who stated there are no plans to impose investment restrictions and called the sell-off an overreaction. However, overreactions aren’t uncommon during the tense and uncertain times we are in. Bank of America reported that while the odds of a “full blown trade war” are low, the risks are “rising.”

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We’re not talking Facebook… but Kraft Heinz definitely “likes” Campbell Soup. Campbell Soup went up 10% following the announcement that Heinz is very interested in acquiring the company. This is welcomed news for a company whose soup sales have been cold and their organic food endeavors less than fresh.

You don’t need alphabet soup to spell this out… because it appears Campbell Soup is [probably] for sale. This may be a good thing for the struggling company, and it’s struggling counterparts (including Kraft Heinz), because the current plan isn’t working. In order to remain competitive, they need to find a way to compete with Amazon, Walmart, Costco, and even Kroger now, who have been keeping prices insanely low.

So just like LeBron… it may be time for Campbell Soup to give up the one-man band act and find a super team. Even with the 10% increase, the company’s stock is down 25% over the past twelve months. Having said that, they won’t be a cheap date for any potential suitor – with a valuation of nearly $13 billion. I mean, come on, it’s Campbell Soup we’re talking about here.

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The housing market isn’t just bad… it is 2008 bad. That is because the money you need to spend to buy a median-priced house is at its worse since 2008.

Yes, home prices are expensive… but there’s more. Mortgage interest rates hit their highest level in seven years. In just one year, the national average 30-year fixed rate went from 3.8% to over 4.4%. Not only will you be paying more for the property, you will be paying more for the ability to buy the property.

No, you don’t make enough… because wages are rising, but not enough to make housing more affordable. However, many people will not be stopped by high prices and interest rates because they just want a place to call home (and they don’t crunch the numbers like us finance geeks). You should view your home as an investment and only invest if the numbers make sense – but for now, let someone else get ripped off.

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We don’t care… about the trade war. That is (or should be) the sentiment for all four FANG stocks which hit record highs on Wednesday. In case you didn’t know, FANG includes: Facebook, Amazon, Netflix, and Google.

Tariffs or no tariffs… we are going to keep using the internet to stream media, shop and search, and stay connected on social media. That may explain why these stocks are doing so well despite the rest of the market reacting negatively to the uncertainty coming from the US-China conflict.

Don’t let us down… when it is time to report quarterly results. Investors believe in these stocks, but only time will tell. Netflix is first to bat – releasing their earnings on July 16^th with the others to follow shortly thereafter.

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No more “tax savings” for online shoppers… because the Supreme Court ruled that states can require online retailers to collect sales tax. Prior to today, states could not collect sales tax from online retailers without a physical presence, such as a warehouse or office, in that state.

Bad news for online retailers… including Amazon, Wayfair, eBay and Overstock, who suffered a dip in their share prices after the announcement. Small businesses are also going to feel the full impact of this news because they are losing a competitive advantage and gaining a headache that comes with complying with the new law.

Don’t be too upset… because you should have been paying use tax on those “tax-free” online purchases when you filed your tax return each year. With that said, this is good news for big box retailers that have been required to charge sales tax online due to their presence in every state (think Walmart). This law may be in full effect by Christmas this year – so maybe get a head start on your online holiday shopping (hint hint).

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The clash of the titans… has added a new participant – Kroger. Kroger shares jumped 10% today after beating Wall Street’s quarterly sales and earnings expectations. What you may find more interesting is that the grocery chain’s digital sales were up 66% compared to last year.

Imagine getting food delivered straight to your door… with no exercise required. That’s right – a few clicks and you have groceries. This is nothing new, but it is becoming the norm for more and more people. Kroger’s ClickList service, which allows for home delivery or curbside pickup, served as a catalyst for the company’s strong performance.

Digital, convenient, and organic… all things millennials love. Kroger has been getting ahead by focusing on these rapidly-growing segments of the market. This is an example of a company that recognizes that their customer-base is evolving and is reacting accordingly. From their business model to groceries, it looks like Kroger has managed to stay fresh.

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We all want Stranger Things back… and so does Kellogg (K), apparently. The company enjoyed a 14% average growth jump in the fourth quarter of 2017 and 9.4% in the first four months of this year. This may seem random for a long-struggling brand, but analysts have a theory as to what has strangely caused the resurgence of Kellogg.

Kellogg can thank Eleven... for her waffle-loving ways. Before the show first aired, there had been a steady decline in demand for Eggo waffles. However, the seemingly forgotten (albeit delicious) breakfast item has been revived overnight. Kellogg even saw the most monthly mentions ever for the brand in October of last year – the same time Stranger Things returned to Netflix for another season.

Nothing new to see here… as most Stranger Things fanatics binged the entire seconds season months ago and the Eggos remain fully stocked in the freezer isle. So Kellogg, and the rest of us, are going to need to wait very patiently for season three – which likely won’t be out until 2019.

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Seth Rogen is a very happy man… because Canada has legalized marijuana nationwide and it is time to ramp up production. Let’s take a look at two stocks that are preparing to make some serious green.

High times for… Aurora Cannabis (ACBFF) who just announced that it closed on an investment with Choom Holdings to expand marijuana production. Aurora stock saw its share price jump 4.31%. Meanwhile, Canopy Growth (CGC) agreed to terms with Neptune Technologies & Bioresources Inc. to increase production capacity. Canopy stock also went higher, up 6.40%.

The pot enthusiasts will be busy… because we can expect more investment, deals, and consolidations to come in this growing industry. Small companies will disappear and the strongest will survive.

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Data breach, Russian mischief, and growth concerns… and Mark Zuckerberg is laughing straight to the bank. Facebook’s stock (FB) just eclipsed $200 per share for the first time in company history – up 14% in 2018. That may come as a surprise given the negative news surrounding the social media giant.

Show me the money… and that is exactly what Facebook has been doing. Analysts are expecting a revenue increase of 40% and earnings per share to grow more than 30% from a year ago. With that expectation, Wall Street is willing to forget all of that other crap – what data breach?

They also own a little app… called Instagram. And while Facebook has lost some popularity (although my 60-something year old father just proudly signed up), Instagram now has 1 billion global users. With its original Facebook platform, Instagram, WhatsApp and Messenger, Facebook is still where every advertiser and their mother wants to be.

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No one will shut up about disruption… and neither will we. MoviePass made headlines last year for disrupting the movie theater experience by offering a $10 monthly subscription. With MoviePass, you can see one 2D movie per day and each movie can only be viewed once. AMC Stubs A-List aims to compete directly with the original disruptor.

MoviePass on steroids… is what AMC Stubs A-List looks like. For $19.95, subscribers can see up to three movies per week – book any movie, any time, including IMAX and 3D movies (all features not available with MoviePass).

If you can’t beat ‘em, join ‘em… except AMC could actually beat them. While AMC believes they are at a sustainable price point, many question the sustainability of MoviePass because they either break-even or lose money when a subscriber uses their service. To actually make money, the company plans to give marketers access to their subscriber base for a fee.

And since it’s 2018 both companies have taken to Twitter to insult one another for all to see.

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