Today is Tuesday, November 2, 2021.
Malls Are Not Dead, Based on Simon Property's Earnings
Shares of real estate investment trust Simon Property Group (NYSE: SPG), which focuses on shopping malls and outlets, jumped 4.21% in after-hours trading on Monday after posting good third-quarter results.
Numbers: Simon Property achieved a $2.07 earnings per share, which was nearly double the estimate from analysts. Revenue reached $1.29 billion, which was also better than expected.
Aiming Higher: On top of the impressive earnings, Simon Property announced Monday that it is increasing its full-year 2021 guidance and raising its quarterly dividend by 15% year-over-year.
Quote: “Demand for our space from a broad spectrum of tenants is growing. Occupancy gains continued, retailer sales accelerated, including our owned brands, and cash flow increased.” - CEO and Chairman David Simon.
Deeper Dive: While an occupancy rate of 90% is good for Simon Property, there are still some challenges, including higher expenses.
Final Thoughts: The results suggest that the mall industry has survived the worst of the pandemic. We’ll see how the mall industry performs in the upcoming holiday season.
Notable Earnings Today: Pfizer (NYSE: PFE), BP (NYSE: BP), ConocoPhillips (NYSE: COP), Under Armour (NYSE: UAA), T-Mobile US (Nasdaq: TMUS), Amgen (Nasdaq: AMGN), Activision Blizzard (Nasdaq: ATVI), Lyft (Nasdaq: LYFT), XPO Logistics (NYSE: XPO), Zillow (Nasdaq: Z), Ralph Lauren (NYSE: RL), Mondelez International (Nasdaq: MDLZ), Estee Lauder (NYSE: EL).
Notable IPOs Today: SurgePays, Inc. Common Stock (Nasdaq: SURG), Fortune Rise Acquisition Corporation Units (Nasdaq: FRLAU), Compass Therapeutics, Inc. Common Stock (Nasdaq: CMPX).
Notable Equity Crowdfunding Campaigns Ending Today: TomBot (StartEngine), BeerMKR (StartEngine).
Notable Economic Events Today: N/A
The Incredible Rise and Fall of the “Squid Game” Cryptocurrency
A cryptocurrency that was inspired by the hit Netflix (Nasdaq: NFLX) show “Squid Game” skyrocketed by more than 2,000% in a few days. On Monday, the coin's price plummeted with its creators closing the project and making off with $2.1 million from investors.
History: The “Squid Game” coin, which was not affiliated with the show, launched on October 26.
Red Flags: Despite the hype, there were plenty of red flags that pointed to the coin being a scam. This includes a website filled with spelling and grammatical errors, social media pages that prohibited responses, and an inability for traders to sell the coins, according to Gizmodo.
Collapse: After shooting up to a price of $2,800 in the early morning hours on Monday, the price quickly fell to less than 1 cent in a matter of minutes. This type of market manipulation is referred to as a “rug pull” in cryptocurrency.
Aftermath: The creators of the coin have since left and all social media accounts appear to be disconnected.
Final Thoughts: Hopefully, this serves as a lesson on why you should research before jumping on the next big meme coin.
Legacy Healthcare Companies Exploring Telehealth
Want to get exposure to the telehealth industry in a safe way? Consider investing in a legacy healthcare company that is also dipping its toes into telehealth.
Humana: Since the start of the pandemic, health insurance company Humana (NYSE: HUM) has been pushing its telehealth services for patients. The stock is up 12% this year.
Anthem: Another insurance company that has also invested in its telehealth services is Anthem (NYSE: ANTM). The stock is up 36% this year.
Big Picture: Many healthcare companies are investing in telehealth, which makes them a safer bet for investors given their long track record.
Final Thoughts: The stock prices for legacy companies in healthcare are usually higher than many young companies.
Trends to Watch
Start Your Engines: Amazon-backed EV start-up Rivian plans to price shares up to $62, putting valuation near $55 billion (CNBC)
Meme World: Welcome to the Stonk Market (The Verge)
October Surprise: 5 Technology ETFs At the Forefront of October's Market Rally (Nasdaq)
Falling Down: Chegg stock plummets as CEO says ‘the education industry is experiencing a slowdown’ (MarketWatch)
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