Together With

Today is Tuesday, June 18, 2024.

The Early Bird Index today is 75.03.

New to this newsletter? Sign up here

Lennar's Sales Incentives 🏠

Despite posting good financial results on Monday, the home construction company Lennar (NYSE: LEN) ticked down 2.18% in after-hours trading.

Financials: Lennar reported earnings of $3.38 per share in the past quarter and revenue of $8.8 billion; both were better than expected.

Quote: “Although affordability continued to be tested by interest rate movements and simultaneously challenged consumer sentiment, purchasers remained responsive to increased sales incentives, resulting in a 19% increase in our new orders and a 15% increase in our deliveries year over year.” -  co-CEO Stuart Miller.

Yes, But: The average sales price of homes delivered fell 5%. Apparently, the increased use of sales incentives dragged the price down.

Background: It’s been a tough year for real estate. Yes, housing demand outweighs supply, but high interest rates are suppressing sales. Thus, incentives are needed.

Stock Price: Lennar is up 6% this year, but down 5% in the last 30 days.

Final Thoughts: Until rates are cut, some homebuilders will continue to struggle.

PRESENTED BY WEBSTREET

12.1% Cash Returns with Portfolios of Online Businesses.

WebStreet is a first-of-its-kind investment platform that allows accredited investors to own fractional shares in cash-flowing online businesses. 

Our process is simple:

1. We buy online businesses cash-flowing from day one. 💸

2. We partner with world-class entrepreneurs to run and scale the businesses. 🚀

3. You invest, gaining fractional ownership and earning quarterly dividends. 📈

Additionally, you'll share in the profits when we exit these businesses within 2-3 years.

Notables

Notable Earnings Today: KB Home (NYSE: KBH), America's Car-Mart (Nasdaq: CRMT), Cognyte Software (Nasdaq: CGNT), Patterson Companies (Nasdaq: PDCO).

Notable IPOs Today: Flag Ship Acquisition Corp. Unit (Nasdaq: FSHPU), Nova Minerals Limited (NYSE American: NVA), Lionheart Holdings Unit (Nasdaq: CUBWU), BlackRock Long-Term U.S. Equity ETF (Nasdaq: BELT), BlackRock High Yield ETF (Nasdaq: BRHY).

Notable Equity Crowdfunding Campaigns Ending Today: Jurny (StartEngine).

Notable Economic Events Today: Retail Sales / Core Retail Sales (8:30 a.m. ET), Industrial Production (9:15 a.m. ET), Business Inventories (10:00 a.m. ET), Retail Inventories (10:00 a.m. ET), Atlanta Fed GDPNow (1:00 p.m. ET), TIC Net Long-Term Transactions (4:00 p.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

XRP Finally Has a Good Day in 2024

The price of XRP, the name of the cryptocurrency for the fintech platform Ripple, finally had a good day on Monday with a nearly 4% gain.

Details: XRP jumped because David Hirsch, the crypto enforcer for the SEC, announced he was leaving the agency.

Background: Ripple has been in an ongoing regulatory battle with the SEC, with Ripple having to pay fines. As a result, XRP is down 19% in 2024. It is one of the few major cryptos to be negative this year.

Final Thoughts: It is wise to avoid buying XRP until Ripple’s SEC challenges end.

La-Z-Boy’s Strong Outlook

Furniture company La-Z-Boy (NYSE: LZB) shot up 10.97% in after-hours trading on Mondy after posting strong financial results.

Financials: La-Z-Boy reported earnings of 95 cents per share in the past quarter and revenue of $554 million; both were better than expected.

Outlook: The company expects sales in the current quarter to be in the range of $475 million to $495 million, which was better than expected

Final Thoughts: La-Z-Boy was down 7% this year, so it’s good to see the company finally stabilize after a rough start to 2024.

Trends to Watch

Flight Delay: Boeing’s CEO Search Hits Some Snags (Wall Street Journal)

New Synthetic Dollar: Tether launches gold-backed, US dollar stablecoin Alloy (CoinDesk)

AI Can’t Take This Job (Yet): McDonald’s to end AI drive-through test with IBM (CNBC)

No Concrete Updates: GameStop closes more than 12% lower after annual meeting fails to offer details on firm’s strategy (CNBC)

Buy Now, Pay Later: Apple is shutting down Apple Pay Later just months after launch (The Verge)

Thank you for reading!

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

Pick winning stocks: Upgrade to Early Bird Prime

Be social: Like our Facebook page and follow us on Twitter.

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.}