Elon Musk's SpaceX IPO Tweet
Plus, some retail stock picks.
Today is Tuesday, November 30, 2021.
Elon Musk's SpaceX IPO Tweet Goes Viral
A tweet on Monday afternoon by Tesla (Nasdaq: TSLA) CEO Elon Musk has investors wondering if an initial public offering could soon happen for SpaceX, Musk’s aerospace company.
Details: Trung Phan, a writer for The Hustle, tweeted in September a copy of a 2013 email that Musk wrote to employees about why he wants to keep SpaceX private. Musk responded on Monday with a tweet that read: “A lot has happened in 8 years.”
Background: Between Tesla and Dogecoin, Musk has the attention of many investors. If SpaceX went public, there would be a lot of investor interest.
Numbers: SpaceX reached a $100 billion valuation after a 2021 secondary share sale, according to CNBC.
Final Thoughts: The speculation regarding SpaceX’s potential IPO won’t stop, no matter what Musk tweets.
Notable Earnings Today: Salesforce (NYSE: CRM), Jinko Solar (NYSE: JKS), NetApp (Nasdaq: NTAP), Hewlett Packard Enterprise (NYSE: HPE), Box (NYSE: BOX), Ambarella (Nasdaq: AMBA), Citi Trends (Nasdaq: CTRN), Chico's Fas (NYSE: CHS), Zscaler (Nasdaq: ZS).
Notable IPOs Today: OceanPal Inc. Common Stock (Nasdaq: OP), BayFirst Financial Corp. Common Stock (Nasdaq: BAFN), Canna-Global Acquisition Corp Unit (Nasdaq: CNGLU), Seaport Global Acquisition II Corp. Class A Common Stock (Nasdaq: SGII).
Notable Equity Crowdfunding Campaigns Ending Today: Skunk Brothers Spirits (StartEngine), Cityzenith (Wefunder), Greenzone Pharms (Fundanna), Coquette (MainVest), AEXLAB (StartEngine), Parknav (StartEngine), Jivati (StartEngine).
Notable Economic Events Today: S&P/Case-Shiller home price index (9:00 a.m. ET), Chicago PMI (9:45 a.m. ET), Consumer confidence index (10:00 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).
Retail Stocks to Pick, Avoid Among Omicron Variant
The retail sector was already trying to recover from recent supply chain challenges, but it seems that the Omicron variant could pose a threat to that recovery.
Background: Retail stocks, like most sectors, were spooked by the emergence of the Omicron variant last week. Retailers are hoping for better in-store holiday sales this year, but consumers could stay away because of the Omicron variant.
Avoid: In general, it could be wise for investors to avoid brick and mortar retail names tied to department stores or malls. This is especially true for stocks that were already having supply chain issues before Omicron, including Nordstrom (NYSE: JWN) and the Gap (NYSE: GPS).
Pick: However, retailers with a strong e-commerce business, as well as those that prepared for supply chain problems, could be a good bet. Some examples include Walmart (NYSE: WMT) and Macy’s (NYSE: M).
Final Thoughts: A strong savings rate for consumers could help retailers rack up big sales this holiday season, despite the Omicron variant.
New Ether Futures ETF Proposed
Investment firm Kelly Strategic Management filed paperwork Monday for a proposed exchange-traded fund (ETF) that will be tied to ether futures.
Definition: A futures ETF allows investors to get exposure to ether without having the buy the actual asset. Some investors favor this type of deal, whereas others want to actually own the cryptocurrency.
Details: Kelly Strategic Management’s ETF will be actively managed and focus on cash-settled ether futures contracts traded on commodity exchanges registered with the Commodity Futures Trading Commission, according to paperwork filed with the U.S. Securities and Exchange Commission.
Background: ProShares and VanEck withdrew their SEC applications a few months ago for similar ETFs. Meanwhile, two bitcoin futures-based ETFs went public in October.
Final Thoughts: If approved, this would be the first ether futures ETF in the United States. However, it wouldn’t be the first in the world. There’s already an ether futures ETF in Canada on the Toronto Stock Exchange.
Trends to Watch
Watch Today: Powell to tell Senate omicron variant poses downside risk to economy, complicates inflation picture (CNBC)
Studying: FTC demands information from top companies, such as Amazon and Walmart, in sweeping supply chain probe (The Washington Post)
Big Jump: AeroClean stock price soars again, up 1,074% since last week’s IPO despite no revenues (Seeking Alpha)
Strong Fundamentals: Crypto Miner Sell-Off ‘Too Much Too Fast,’ Says DA Davidson Analyst (CoinDesk)
Delay: Facebook Postpones Ticker Change To MVRS (Benzinga)
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