Today is Tuesday, December 21, 2021.
Nike Grows Despite China Problem
Shares of Nike (NYSE: NKE) jumped 5.98% in after-hours trading on Monday after the footwear and apparel company posted mixed earnings results.
Financials: Nike reported earnings per share of 83 cents and revenue of $11.4 billion in the quarter; both were better than expected.
The Good: The company had a strong quarter in North America. There were higher levels of in-transit inventory. Nike’s direct sales in the market grew 30%, including record sales during the week of Black Friday.
The Bad: Revenues in China declined. Nike attributed the drop to decreased levels of inventory due to pandemic-driven factory closures.
Numbers: Nike has experienced 12% growth in 2021, but the stock is down nearly 10% this month. Will the company recover those losses in the coming weeks?
Final Thoughts: Last week, Nike acquired virtual shoe company RTFKT. Is Nike making a play for the metaverse?
Notable Earnings Today: Rite Aid (NYSE: RAD), BlackBerry (NYSE: BB), General Mills (NYSE: GIS), Apogee Enterprises (Nasdaq: APOG), AAR Corp. (NYSE: AIR), CalAmp (Nasdaq: CAMP), FactSet Research Systems (NYSE: FDS), Neogen (Nasdaq: NEOG).
Notable IPOs Today: Allarity Therapeutics, Inc. Common Stock (Nasdaq: ALLR), Sagaliam Acquisition Corp. Units (Nasdaq: SAGAU), Welsbach Technology Metals Acquisition Corp. Unit (Nasdaq: WTMAU), Larkspur Health Acquisition Corp. Unit (Nasdaq: LSPRU)
Notable Equity Crowdfunding Campaigns Ending Today: M.O. Food & Distribution (Honeycomb), CPRWrap (StartEngine), Flavors of the Isle (Honeycomb), Marek Landscaping (Honeycomb), Soul Slice (Wefunder).
Notable Economic Events Today: Current account deficit (8:30 a.m. ET), API Weekly Crude Oil Stock (5:30 p.m. ET).
Carnivals Plans for Profitability in the Second Half of 2022
Photo by Kevin Bluer / Unsplash
Shares of Carnival Corp. (NYSE: CCL) went up 3.39% on Monday after the cruise company projected to be profitable in the second half of 2022.
Details: After its cash from operations turned positive in November, Carnival anticipates a net loss for the first half of 2022 followed by a profitable second half of the year.
Quote: “During 2021, we believe we have clearly maximized our return to service and strengthened our financial position to withstand potential volatility on our path to profitability.” - Carnival Corporation & plc President and Chief Executive Officer Arnold Donald.
Background: The pandemic decimated the cruise industry. The sector is planning for a comeback. Carnival’s stock is down 10% this year.
Final Thoughts: If you are bullish on the cruise industry, this might be the time to buy in. But, the Omicron variant of the coronavirus still threatens the industry.
Bitcoin Futures ETFs Emerge in 2021
While we didn’t see a Bitcoin exchange-traded fund (ETF) in 2021, we saw a few Bitcoin futures ETFs get approved in the U.S.
Definition: A Bitcoin futures ETF indirectly gives investors exposure to the cryptocurrency without having to actually own the real thing. It tracks a derivative of Bitcoin instead of the actual crypto, which might be a plus or a minus depending on who you ask.
History: There have been proposals for a Bitcoin ETF for nearly a decade, but the U.S. Securities and Exchange Commission hasn’t approved one yet. That could change in the future.
Currently: This year, the U.S. saw the approval of the first Bitcoin futures ETFs, such as the ProShares Bitcoin Strategy ETF and Valkyrie Bitcoin Strategy ETF. Both ETFs launched in October and could pave the way for a real Bitcoin ETF in the future.
Final Thoughts: There are currently over a dozen active Bitcoin ETF filings that are waiting to get approved.
Trends to Watch
Good Earnings: Micron Stock Rallies as Outlook Tops Street Estimates (Barron’s)
Next Chapter: Nordstrom reportedly hires AlixPartners to review possible Rack spinoff (CNBC)
Before Going Public: Knightscope Returns to StartEngine to Raise Capital, Plans Listing on Nasdaq in 2022 (Crowdfund Insider)
Not Balanced: 0.01% of Bitcoin holders control 27% of all circulating coins (Cointelegraph)
No Santa Claus Rally: Dow plunges and Nasdaq nears correction because stock-market investors don’t see a Christmas cavalry coming to the rescue (MarketWatch)
Thank you for reading! Please share any feedback with [email protected].