Elon Musk Mixes Tesla and Dogecoin

Today is Wednesday, December 15, 2021.

Elon Musk Mixes Tesla and Dogecoin in Tweet

The price of the cryptocurrency Dogecoin spiked over 30% at one point on Tuesday after a viral tweet from Tesla (Nasdaq: TSLA) CEO Elon Musk was posted.

Details: Early on Tuesday morning, Musk tweeted that “Tesla will make some merch buyable with Doge & see how it goes.”

Background: Musk is no stranger to Dogecoin. He’s been talking it up frequently over the past year. The digital currency, which began in 2013 as a joke, surged in 2021. In the past year, Dogecoin is up over 5,000%.

Caveat: Dogecoin is considered by some to be the ultimate meme coin, but it might be a victim of its own success. The Dogecoin craze has resulted in other meme coins jumping in price. The most notable example is Shiba Inu, which is up 57,000,000% this year.

Final Thoughts: Dogecoin is still a risky bet for some traders. Others, such as Musk, see the value in Dogecoin.

Notables

Notable Earnings Today: Lennar (LEN), Trip.com (Nasdaq: TCOM), ABM Industries (NYSE: ABM), Toro (NYSE: TTC), Nordson (Nasdaq: NDSN), REV Group (NYSE: REVG), Blue Bird (Nasdaq: BLBD), Heico (NYSE: HEI).

Notable IPOs Today: Samsara Inc. (NYSE: IOT), Valkyrie Balance Sheet Opportunities ETF (Nasdaq: VBB), Swiftmerge Acquisition Corp. Unit (Nasdaq: IVCPU), Genenta Science S.p.A. American Depositary Shares (Nasdaq: GNTA), Pearl Holdings Acquisition Corp Unit (Nasdaq: PRLHU), Ahren Acquisition Corp. Unit (Nasdaq: AHRNU)

Notable Equity Crowdfunding Campaigns Ending Today: Steel House Cycle (Honeycomb), Kickit (Wefunder).

Notable Economic Events Today: Retail Sales (8:30 a.m. ET), Export Price Index (8:30 a.m. ET), Import Price Index (8:30 a.m. ET), Empire State manufacturing index (8:30 a.m. ET), Business inventories (10:00 a.m. ET), Retail inventories (10:00 a.m. ET), Crude oil inventories (10:30 a.m. ET), Federal Reserve FOMC economic projections (2:00 p.m. ET).

Union Pacific: Buy or Not?

As we head into 2022, Union Pacific (NYSE: UNP) has come across as an attractive option for investors interested in the railroad sector.

Numbers: It’s been a good year for Union Pacific. Shares of the railroad company’s stock are up 22% in 2021.

The Good: Union Pacific has a solid balance sheet. The company is known for its strong dividend and buybacks.

The Bad: Union Pacific reduced its guidance for the full year on December 1 due to supply chain issues.

Final Thoughts: Last week, Union Pacific increased its quarterly dividend by 10%.

SeaChange Gets Bump Due to Merger Rumor

SeaChange (Nasdaq: SEAC) is up 119% in the past few days after Bloomberg reported that the video software microcap stock is in talks to merge with another company.

Details: Social video platform Triller (a competitor to TikTok), could potentially go public via a merger with SeaChange. The report says Triller could be valued at over $1 billion.

Earnings: Also on Tuesday, SeaChange reported its earnings. The company reported a net loss of 4 cents per share and 9% sequential revenue growth. The stock went up another 8.61% in after-hours trading.

Headwinds: While there seems to be a lot to like here, investors should tread lightly. SeaChange’s finances are not that good, including its cash burn rate.

Final Thoughts: Of course, if TikTok ever went public, there would be even more commotion.

Trends to Watch

Missed: China’s retail sales grow by 3.9% in November — slower than expected (CNBC)

Bad Day: Microsoft lost how much of its value on Tuesday? (Seeking Alpha)

Crypto Taxes: US Lawmakers Ask Janet Yellen to Define ‘Broker’ for Infrastructure Bill (CoinDesk)

Just Do It: Nike’s purchase of RTFKT hints at what its metaverse will look like (Quartz)

Work From Home: JPMorgan Tells Unvaccinated Workers To Stay Home (The Wall Street Journal)

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