KB Home Beats Rate Pain šŸ”

And, IAC's anticipated Angi spinoff.

January 14, 2025

Together With

Today is Tuesday, January 14, 2025.

The Early Bird Index today is 79.43

New to this newsletter? Sign up here

KB Home Beats Rate Pain šŸ”

With the help of stronger-than-expected financial earnings results, the homebuilder KB Home (NYSE: KBH) jumped 10.94% in after-hours trading on Monday.

Financials: KB Home reported earnings of $2.52 per share in the past quarter and revenue of $2 billion; both were better than expected.

Details: Although the average home selling price increased by 3% in the quarter (sticker shock), home deliveries increased by 17%.

Quote: ā€œNet orders rose roughly 40% year over year, as buyers continued to demonstrate a desire for homeownership and housing market conditions improved relative to last year, despite ongoing mortgage interest rate headwinds.ā€ - CEO Jeffrey Mezger.

Early Birdā€™s Nest Egg Gains: Despite high mortgage rates, home buying demand remains strong.

  • Millennials are entering their prime home-buying years, creating a large pool of potential buyers.

  • Demand is also high due to a limited supply of housing. Thereā€™s a backlog of eager purchasers.

Final Thoughts: Hopefully the other homebuilder stocks also see similar results.

PRESENTED BY MASTERWORKS

BofA says +80% of young, wealthy investors want this assetā€”now it can be yours 

A 2024 Bank of America survey revealed something incredible: 83% of HNW respondents 43 and younger say they currently own art, or would like to.

Why? After weathering multiple recessions, newer generations say they want to diversify beyond just stocks and bonds. Luckily, Masterworksā€™ art investing platform is already catering to 60,000+ investors of every generation, making it easy to diversify with an asset thatā€™s overall outpaced the S&P 500 in price appreciation (1995-2023), even despite a recent dip.

To date, each of Masterworksā€™ 23 sales has individually returned a profit to investors, and with 3 illustrative sales, Masterworks investors have realized net annualized returns of +17.6%, +17.8%, and +21.5%. Shares can sell quickly, but our readers can SKIP THE WAITLIST BY CLICKING HERE.

Past performance is not indicative of future returns. Investment involves risk. See Important Disclosures at masterworks.com/cd. 

The content is not intended to provide legal, tax, or investment advice.

No money is being solicited or will be accepted until the offering statement for a particular offering has been qualified by the SEC. Offers may be revoked at any time. Contacting Masterworks involves no commitment or obligation. 

ā€œNet Annualized Returnā€ refers to annualized internal rate of return net of all fees and expenses, calculated from the offering closing date to the date the sale is consummated. For additional information regarding the calculation of IRR for a particular investment in an artwork that has been sold, a reconciliation will be filed as an exhibit to Form 1-U and will be available on the SECā€™s website. 

Price Appreciation Data based on repeat-sales index of historical Post-War & Contemporary Art market prices and S&P 500 annualized return (includes dividends reinvested) from 1995 to 2024, developed by Masterworks. There are significant limitations to comparative asset class data. Indices are unmanaged and a Masterworks investor cannot invest directly in an index.

This communication is sent exclusively from Masterworks and is not endorsed by or affiliated with Bank of America.  Masterworks did not contribute to the creation of the linked content.  The report is not intended to be regarded as investment advice, an offer, or solicitation of an offer to enter into any Masterworks offering. 

Notables

Notable Earnings Today: Applied Digital Corp (Nasdaq: APLD), Calavo Growers (Nasdaq: CVGW), Karooooo (Nasdaq: KARO).

Notable IPOs Today: Plum Acquisition Corp. IV Unit (Nasdaq: PLMKU), LogProstyle Inc. (NYSE American: LGPS).

Notable Equity Crowdfunding Campaigns Ending Today: NPCx (Republic), Cutting Edge Superconductors (Netcapital), The Noble Fox (SMBX).

Notable Economic Events Today: Producer Price Index / Core PPI (8:30 a.m. ET), Short-Term Energy Outlook (12:00 p.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

IAC's Anticipated Angi Spinoff 

Shares of the home improvement marketplace Angi (Nasdaq: ANGI) grew by 9.62% and its parent IAC (Nasdaq: IAC) climbed by 5.28% in after-hours trading due to a spin-off and reorganization on Monday.

Details: IAC is spinning off its full stake in Angi, resulting in Angi becoming a wholly separate entity. IAC shareholders will also get stock in Angi.

Also: The company announced that Joey Levin will leave his role as IAC CEO. With no CEO in place, senior leaders will report directly to Barry Diller, the chairman.

Stock Price: Both stocks are down in the last 12 months, with IAC down 16% and Angi down 32%.

Final Thoughts: After a rough 2024, IAC shareholders were pleased with this spinoff news.

Ethereum Slips on Monday

Itā€™s now Ethereumā€™s turn to become the latest cryptocurrency to have a weaker-than-usual day. Ethereumā€™s price declined about 3% on Monday as other digital asset prices remained flat.

Final Thoughts: Ethereum is down 18% in the last 30 days.

Thank you for reading!

Forward to a friend and tell them to sign up here.

Pick winning stocks: Upgrade to Early Bird Prime

Want more investing tips? Listen to the podcast.

Show your support: Buy Me a Coffee.

Questions or comments? Hit reply to reach out.

The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.