Early Bird
Posts
RIP Silvergate Capital 1988-2023

RIP Silvergate Capital 1988-2023

Today is Thursday, March 9, 2023.

New to this newsletter? Sign up here.

RIP Silvergate Capital 1988-2023

Silvergagte Capital (NYSE: SI) is winding down operations and liquidating, the bank said Wednesday afternoon, causing major headaches for cryptocurrency investors.

Details: Silvergate said that this plan is the best path forward given “recent industry and regulatory developments.” The bank is planning to repay all deposits.

Background: Silvergate Bank began as a normal financial institution in 1988 before focusing heavily on cryptocurrency investing. But after major volatility in the crypto space in 2022 (thanks, FTX), the company faced liquidity issues. Last week, Silvergate closed its crypto exchange network. The stock is down 90% in the last 6 months.

Bigger Picture: The prices of most cryptos dropped on Wednesday, including a 1% decline for Bitcoin. Crypto stocks were also impacted. Coinbase Global (Nasdaq: COIN) declined by 1.86% in after-hours trading on Wednesday.

Final Thoughts: Silvergate’s demise could spell trouble for crypto. Yes, crypto prices are up so far in 2023 following a really bad 2022. But until things get better, it’s going to be painful to invest in crypto (at least for the short term).

Notables

Notable Earnings Today: Ulta Beauty (Nasdaq: ULTA), JD.com (Nasdaq: JD), BJ's Wholesale (NYSE: BJ), DocuSign (Nasdaq: DOCU), DarioHealth (Nasdaq: DRIO), BioNano Genomics (Nasdaq: BNGO), Paysafe (NYSE: PSFE), Gap (NYSE: GPS), Village Farms (Nasdaq: VFF), Oracle (NYSE: ORCL), 22nd Century Group (Nasdaq: XXII), Gevo (Nasdaq: GEVO), Vital Farms (Nasdaq: VITL), Wheaton Precious Metals (NYSE: WPM), Toro (NYSE: TTC), Ring Energy (NYSEAmerican: REI), BioXcel Therapeutics (Nasdaq: BTAI), Vail Resorts (NYSE: MTN), Build-A-Bear Workshop (NYSE: BBW), AppHarvest (Nasdaq: APPH), Allbirds (Nasdaq: BIRD), American Outdoor Brands (Nasdaq: AOUT), El Pollo Loco (Nasdaq: LOCO), FuelCell Energy (Nasdaq: FCEL), Genesco (NYSE: GCO), National Beverage (Nasdaq: FIZZ), Smith & Wesson Brands (Nasdaq: SWBI), Zumiez (Nasdaq: ZUMZ).

Notable IPOs Today: Atlas Energy Solutions Inc. (NYSE: AESI).

Notable Equity Crowdfunding Campaigns Ending Today: AvaWatz (StartEngine), Hacking Solutions (SMBX), Tablewine (Honeycomb), Von Perry (StartEngine).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET).

MongoDB’s Disappointing 2023 Outlook

Photo by Rubaitul Azad / Unsplash

Shares of MongoDB (Nasdaq: MDB) dropped by 11.06% in after-hours trading on Wednesday after the software company posted its financial earnings results.

Financials: MongoDB reported earnings of 57 cents per share in the past quarter and revenue of $361.3 million; both were better than expected.

Outlook: However, MongoDB only expects revenue to be between $344 million to $348.0 million in the current quarter and between $1.48 billion to $1.51 billion for the current year. Investors wanted more.

Stock Price: The stock is down 14% in the last six months, but is up 19% in 2023.

Final Thoughts: While there’s a lot to like about MongoDB’s current financial results (including 50% revenue growth for Atlas, the company's software) the weaker outlook suggests that growth has slowed.

American Express Presents Stock Buyback, Dividend Hike

American Express (NYSE: AXP) saw shares tick up by 1.53% in after-hours trading on Wednesday after the financial company announced that it would buy up to 120 million shares and increase its quarterly dividend from 52 cents to 60 cents per share.

Final Thoughts: While there are concerns about credit card delinquencies, American Express seems to be in good shape. The stock is already up 18% in 2023.