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Spot Ethereum ETF Approval
Plus, Workday's "sales scrutiny."
Today is Friday, May 24, 2024.
The Early Bird Index today is 72.85.
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Spot Ethereum ETF Approval
In a major victory for cryptocurrency investors on Thursday, the U.S. Securities and Exchanges Commission approved forms filed by multiple issuers hoping to launch spot Ethereum ETFs (exchange-traded funds).
Details: The SEC approved 8 ETFs, including Grayscale, Bitwise, Invesco, VanEck, ARK 21Shares, Fidelity, and Franklin Templeton.
Definition: A spot Ethereum ETF (or spot Ether ETF) is a fund that gives traditional investors direct exposure to Ethereum. It is different than a futures ETF, which tracks Ethereum futures contracts.
Powering the Story: Investors now have more opportunities to add crypto to their portfolios through these ETFs.
Final Thoughts: The big question is what will be the next cryptocurrency to get a spot ETF?
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Notables
Notable Earnings Today: Booz Allen Hamilton (NYSE: BAH).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: Decaffe Republic (Honeycomb), The Green Kitchen (Honeycomb), Contractor+ (Wefunder), Catan Pisco (Wefunder), Nootropics Expert (OverSubscribe).
Notable Economic Events Today: Durable Goods Orders / Core Durable Goods Orders (8:30 a.m. ET), Michigan Consumer Sentiment / Expectations (10:00 a.m. ET).
Workday's "Sales Scrutiny"
Source: Workday
Good financial results for Workday (Nasdaq: WDAY) on Thursday couldn’t save the enterprise software vendor from plummeting by 11.23% in after-hours trading.
Financials: Workday reported earnings of $1.74 per share in the past quarter and revenue of $1.99 billion; both were better than expected.
Details: Revenue increased 18.1% in the quarter. The company also raised its margin outlook.
Powering the Story: The company lowered its full-year subscription revenue guidance to the range of $7.700 billion to $7.725 billion.
Quote: “Our updated subscription revenue guidance reflects the elevated sales scrutiny and lower customer headcount growth we experienced during the quarter.” - CFO Zane Rowe.
Stock Price: Workday was down 2.75% in 2024 before these results.
Final Thoughts: As enterprises cut down on staff and subscriptions, Workday is feeling the pain.
Intuit’s Disappointing Outlook
Despite posting better-than-expected financials on Thursday, Intuit (Nasdaq: INTU) fell 6.46% in after-hours trading.
Financials: Intuit reported earnings of $9.88 per share in the past quarter and revenue of $6.7 billion; both were better than expected.
Outlook: The company raised its full-year guidance to reflect growth of 13%, but investors wanted more.
Final Thoughts: Intuit is up 9% this year, but investors don’t like the outlook.
Trends to Watch
Retail Win: Ross Stores raises profit forecast, even as higher prices hit lower-income shoppers (MarketWatch)
Big Potential: Nvidia's split of soaring stock could boost retail investor appeal, Dow chances (Reuters)
No Fly Zone: Boeing Says Cash Flow Is Worse Than It Thought (Wall Street Journal)
Enterprise Ambitions: Canva’s radical overhaul aims to destroy Microsoft Office and Google Workspace (Fast Company)
Inflation Watch: Walmart and Target are slashing prices. What does that mean for inflation? (CNN)
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