Today is Friday, January 14, 2022.
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Boston Beer’s Low Shipment Growth
Shares of the Boston Beer Company (NYSE: SAM) fell 10.76% in after-hours trading on Thursday after announcing that it was expecting a quarterly loss due to lower shipment growth.
Details: The company, which originally expected income to be between $2 and $6 per share, now projects a loss of $1 per share due to gross margins impacted by aggressive wholesaler inventory reductions, which primarily affected the company's hard seltzer brand Truly. Boston Beer is also seeing higher supply chain costs.
Glass Half Full: Despite the headwinds, the company says that the final results are not yet complete and the financials might change.
Background: Boston Beer was a good stock during the pandemic lockdown in 2020. As more consumers purchased beer, shares of the stock soared. But demand has changed and the stock is down 46% in the past year.
Final Thoughts: Boston Beer is scheduled to report earnings on February 16. The stock could rebound, but investors should be cautious.
Notable Earnings Today: Wells Fargo (NYSE: WFC), BlackRock (NYSE: BLK), JPMorgan Chase (NYSE: JPM), Citigroup (NYSE: C), First Republic Bank (NYSE: FRC).
Notable IPOs Today: Everest Consolidator Acquisition Corporation (NYSE: MNTN), Mana Capital Acquisition Corp. Common stock (Nasdaq: MAAQ), Tritium DCFC Limited Ordinary Shares (Nasdaq: DCFC), Cerberus Cyber Sentinel Corporation Common Stock (Nasdaq: CISO), Atlantic Coastal Acquisition Corp. II Unit (Nasdaq: ACABU), Papaya Growth Opportunity Corp. I Unit (Nasdaq: PPYAU).
Notable Equity Crowdfunding Campaigns Ending Today: Acre Mezcal (StartEngine), OurBanc Corporation (Wefunder), Hemp Real Estate Investment (Fundanna), Sene (SeedInvest), Roast Umber (MainVest), Supreme Foods Franchising (TruCrowd), Eco Allies (NetCapital), Apex Noire (MainVest).
Notable Economic Events Today: Retail Sales (8:30 a.m. ET), Import price index (8:30 a.m. ET), Export price index (8:30 a.m. ET), Industrial production (9:15 a.m. ET), Michigan Consumer Sentiment (10:00 a.m. ET), Business Inventories (10:00 a.m. ET).
Delta Sees Full-Year Profit Despite Rough Times
Shares of Delta Air Lines (NYSE: DAL) jumped 2.09% on Thursday after the company posted a quarterly loss, but expects to be profitable later in the year.
Financials: Delta had earnings per share of $0.22 and its quarterly revenue was $9.5 billion; both were better than expected.
Trouble: The omicron variant has wreaked havoc on the air travel industry. Delta had to cancel many flights as 8,000 employees tested positive for Covid-19 in the last four weeks.
Optimism: Despite a likely loss in the first quarter, CEO Ed Bastian told CNBC on Thursday that he expects a busy spring and summer, which could help the company achieve profitability for the full year.
Numbers: Shares of Delta are up 1.94% in the past six months.
Final Thoughts: Even if demand for air travel goes up, the airlines still have to deal with higher fuel prices.
Insuretech Startups Raising Money Via Equity Crowdfunding
Investors interested in insurance tech companies can look beyond the public markets by checking out equity crowdfunding platforms, which have startups in the industry that are raising money.
Home Run: Hiro, a U.K.-based insuretech provider for home insurance, closed a £1.6 million equity campaign on Seedrs last year, which attracted over 500 retail investors.
Quick: Insurtech ecosystem specialist Quotall quickly sold out its shares when it opened a campaign on Seedrs in August. The company raised £731,827 from 305 investors.
Still Raising: Medical insurance company Vxtra Health has an equity crowdfunding campaign running now on StartEngine. It closes on March 28 and has raised over $148,000 so far.
Final Thoughts: Equity crowdfunding investments can diversify a portfolio, but just remember that investing in startups carries both great possibilities and great risk.
Trends to Watch
Oh, Snap: Snap Stock Sinks After Downgrade. Why the Road Ahead Could Be Rough. (Barron’s)
Volatility: Analysts expect turbulent Bitcoin price until $46,500 flips to support (CoinTelegraph)
Driving Inflation: Soaring used car prices are pushing inflation higher, and there’s not much the U.S. can do about it (CNBC)
Still the Same: Equities hedge funds outperform in 2021 despite volatility and retail surge (Reuters)
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