Today is Thursday, September 30, 2021.
Dollar Tree Raises Prices Over $1
Shares of Dollar Tree (Nasdaq: DLTR) soared 16.49% Wednesday as the discount retail chain announced it will start selling items above $1.
Background: Dollar Tree recently tested higher prices at some stores, which it called Dollar Tree Plus stores. Now, it will roll out the program across more stores and it will offer items between $1 and $5 each.
Bigger Picture: The price hike at Dollar Tree is due to an increase in inflation and shipping costs. Annual inflation in the U.S. was 4.2% in July, according to the Associated Press.
Competitors: As Dollar Tree’s stock surged, shares of rival Dollar General (NYSE: DG) ticked up 0.82%. However, shares of Five Below (Nasdaq: FIVE) fell 0.51%.
Bottom Line: While higher prices will be bad for consumers, it is good for investors.
Final Thoughts: Dollar Tree is trading with a price-to-earnings ratio of 15, making it a value stock.
Notable Earnings Today: CarMax (NYSE: KMX), Bed Bath & Beyond (Nasdaq: BBBY), Paychex (Nasdaq: PAYX), McCormick & Co. (NYSE: MKC), Jeffries Financial Group (NYSE: JEF).
Notable IPOs Today: Olaplex Holdings, Inc. Common Stock (Nasdaq: OLPX), Procaps Group, S.A. Ordinary Shares (Nasdaq: PROC), Nova Vision Acquisition Corp. Ordinary share (Nasdaq: NOVV), Home Plate Acquisition Corporation Unit (Nasdaq: HPLTU), Conyers Park III Acquisition Corp. Class A Common Stock (Nasdaq: CPAA).
Notable Equity Crowdfunding Campaigns Ending Today: Benson Watch Company (Republic), Rentberry (StartEngine), Steel City Jet Skis (Honeycomb).
Notable Economic Events Today: Real GDP (8:30 a.m. ET), Jobless Claims (8:30 a.m. ET).
Tesla Stock: What’s Next?
It’s been an incredible year for Tesla (Nasdaq: TSLA), which is up over 6% this year and over 90% in the past 12 months. But what’s next for the electric vehicle giant?
Recent History: In July, Tesla reported better-than-expected revenue and earnings results, signaling that the company’s business is strong.
Recent Developments: A global chip shortage has hurt the auto industry. Last week, CEO Elon Musk said that the shortage will be “short term” and things will get better in 2022.
High Hopes: Investor Cathie Wood recently set a stock target of $3,000 per share for Tesla, and added that she would trim her stake in the company if it reaches that level.
Not a Value: Tesla’s price-to-earning’s ratio is over 400, which means this is definitely not a value stock. Still, this hasn’t stopped hoards of investors from backing the popular company.
Final Thoughts: Investing in Tesla is more than just about your outlook for the EV industry; it’s also about how you view Musk.
Gensler Praises Bitcoin Futures ETFs, Again
On Wednesday, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler spoke during a conference for the Financial Times and stated his support for future-based Bitcoin Exchange-Traded Funds (ETFs).
Details: Gensler used examples of the types of funds traded on the Chicago Mercantile Exchange and a 1940 investor protection law as reasons for his support for a Bitcoin futures ETF.
Recent History: In August, Gensler originally stated his support for these types of specific financial instruments for investors.
Background: A Bitcoin futures ETF is a derivative product that would allow investors to get some exposure to Bitcoin without having to actually own any of the digital coins. This idea has some support in the crypto world, but some critics are against it because they want to own the actual coins.
Final Thoughts: Many companies have applied to have a Bitcoin futures ETF. Some analysts believe that approval for at least one could happen in a few weeks.
Trends to Watch
No Silver Bullet: Silver price plunges to 14-month low; silver miners sharply lower (Seeking Alpha)
Good Vision: Warby Parker shares soar on first day of trading (Yahoo! Finance)
More Than Streaming Movies: Netflix Has Acquired Its First Video Game Studio (Gizmodo)
Go Slow: IPOs slow down globally in Q3 after frenetic 2021 start (Reuters)
Interesting Strategy: Here are three ways one bond investor is looking to beat inflation (CNBC)
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