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Nike's Latest Leadership Move đź’Ľ

Plus, FedEx cuts financial outlook.

September 20, 2024

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Today is Friday, September 20, 2024.

The Early Bird Index today is 73.34.

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Nike's Latest Leadership Move đź’Ľ

Nike (NYSE: NKE) replaced its CEO on Thursday, sending shares up 7.56% in after-hours trading.

Details: John Donahoe, who became CEO in 2020 right before the pandemic, is stepping down. Elliott Hill, a former executive with Nike, will return as CEO and president in October.

Stock Price: Nike’s stock is down about 20% since Donahoe took over. This year, the stock is down 24%.

Early Bird’s Nest Egg Gains: Nike has faced significant challenges in the past year and is lagging behind its competitors.

  • Economic pressures and changes in consumer trends have directly affected Nike's sales performance and led to increased inventory pain.

  • New competitors have quickly gained popularity through the effective use of social media platforms such as TikTok and Instagram.

  • Nike's shift to direct-to-consumer also has challenges such as returns and self-owned inventory management.

Final Thoughts: Investors hope Hill can turn the company around.

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Notables

Notable Earnings Today: Tamboran Resources (NYSE: TBN).

Notable IPOs Today: Global Engine Group Holding Limited Ordinary Shares (Nasdaq: GLE), Cayson Acquisition Corp Unit (Nasdaq: CAPNU).

Notable Equity Crowdfunding Campaigns Ending Today: Melanin Haircare (Wefunder), Sparx Holdings Group (Netcapital), Recycler's Exchange (Netcapital), MISAA (Netcapital).

Notable Economic Events Today: N/A.

FedEx Cuts Financial Outlook

FedEx (NYSE: FDX) plunged 11.12% in after-hours trading on Thursday after posting bad financial earnings results.

Financials: FedEx reported earnings of $3.60 per share in the past quarter and revenue of $21.6 billion; both were lower than expected.

Details: The company is adding a $1.5 billion stock buyback to raise the stock price.

Powering the Story: FedEx lowered its financial outlook for the year. It only expects a low single-digit percentage revenue growth rate. It is also cutting its earnings per share outlook.

Final Thoughts: FedEx was up 19% this year, but these results are troubling.

Lennar Faces Affordability Challenges

Despite posting good financial earnings results on Thursday, investors for Lennar (NYSE: LEN) are waiting on future growth, with the stock dropping 2.42% in after-hours trading.

Financials: Lennar reported earnings of $4.26 per share in the past quarter and revenue of $9.4 billion; both were better than expected.

Quote: “Affordability continued to be tested during the quarter.” - CEO Stuart Miller.

Final Thoughts: The company expects the home market to improve later in the year. Lennar was up 30% this year before these results.

Rejecting Popular Opinion: Ethereum is a 'contrarian bet' into 2025, says Bitwise exec (Cointelegraph)

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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.