Today is Tuesday, December 28, 2021.
Lemonade Squeezed by Investors
Shares of Lemonade (NYSE: LMND) fell 6.79% Monday due to a selloff involving insurance technology companies.
History: When Lemonade went public in 2020, the stock soared 76% that year. But as investors turned away from mid-cap growth tech stocks in 2021, Lemonade's stock dropped 60.47%.
The Good: Lemonade has broadened its customer base and increased its quarterly revenue by 101%.
The Bad: However, the company’s marketing and advertising expenses are up. Lemonade is still not profitable.
Final Thoughts: Last month, Lemonade acquired automobile insurance tech company Metromile. Hopefully, this helps the company expand into car insurance.
Notables
Notable Earnings Today: Cal-Maine Foods (Nasdaq: CALM).
Notable IPOs Today: FingerMotion, Inc. Common Stock (Nasdaq: FNGR), Welsbach Technology Metals Acquisition Corp. Unit (Nasdaq: WTMAU).
Notable Equity Crowdfunding Campaigns Ending Today: Global Startup Ecosystem (StartEngine), Covira Surgical (StartEngine), Zenus (StartEngine).
Notable Economic Events Today: S&P Case-Shiller U.S. home price index (9:00 a.m. ET), CB Consumer Confidence (10:00 a.m ET), API Weekly Crude Oil Stock (4:30 p.m ET).
Santa Floki Surges After Elon Musk Tweet
A tweet by Elon Musk on Saturday resulted in a cryptocurrency named Santa Floki jumping 179,000% by Monday.
Details: Santa Floki, which is reportedly named after Musk’s dog, increased after the Tesla (Nasdaq: TSLA) CEO posted a photo of his dog on Christmas.
History: Santa Floki was created last month and is one of many meme coins that has a Shiba Inu dog as a mascot.
The Good: The surge in Santa Floki shows that meme coins can really pick up momentum, especially after Musk tweets anything cryptic.
The Bad: The problem is that this strategy depends on luck. In fact, there have been other similar meme coins that also performed well last weekend.
Final Thoughts: For now, Santa Floki is probably relegated to the meme coin territory.
Stay-At-Home vs. Reopening in 2021
One of the biggest investing themes of 2021 involved stay-at-home stocks against reopening stocks.
Background: During the start of the pandemic, companies that specialized in stay-at-home circumstances thrived. This included technology, food delivery, and home workout.
Downfall: As 2021 went on and the economy reopened, some stay-at-home stocks fell. This included a 47% decline for Zoom (Nasdaq: ZM), a 53% decline for Teledoc (NYSE: TDOC), and a 74% decline for Peloton (Nasdaq: PTON).
Rising: However, some stocks in travel and hospitality picked up steam in 2021.
Final Thoughts: The reopening stocks had the upper hand in 2021, but that might change in 2022 because of the omicron variant of the coronavirus.
Trends to Watch
Upcoming Year for Tech: Tech That Will Change Your Life in 2022 (The Wall Street Journal)
Cutting Down: CDC shortens recommended Covid-19 isolation and quarantine time (CNN)
Can’t Enter: Apple closes stores to customers in New York City due to surge in Covid cases (CNBC)
Bear With Me: JPMorgan Says Investors Are Too Bearish, No Selloff In Sight (Bloomberg)
Lost: Salvadorans Claim Bitcoin Is Going Missing From the State-Run Chivo Wallet (Tom’s Hardware)
Thank you for reading! Please email any feedback to info@earlybird.email.
