Walmart's JD.com Stake Sale

Plus, Toll Brothers mortgage rates.

August 21, 2024

Together With

Souce: JD.com / Facebook

Today is Wednesday, August 21, 2024.

The Early Bird Index today is 71.73.

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PRESENTED BY CLICKPROFIT

Handsfree Passive Income

Did you know you can invest in e-commerce the same way people invest in real estate?

When people invest in multifamily real estate, the process usually consists of purchasing a property and then hiring a management company to deal with everything else.

You can do the same with e-commerce. 

Here are the benefits of partnering with a done-for-you e-commerce agency such as Click Profit:

  • Higher profit margins: When you combine the buying power of hundreds of people, you can drive the cost per unit down. This results in higher margins.

  • Access to better inventory: When you partner with a company that’s been around for a while, they have a massive list of manufacturers and suppliers.

  • Cheaper Operations: When you partner with a company that owns the supply chain, you get higher margins because you can cut out the middleman tax.

Bottom Line: You can own a portfolio of cash-flowing e-commerce brands by partnering with a leading e-commerce agency.

Walmart's JD.com Stake Sale

Chinese e-commerce company JD.com (Nasdaq: JD) plunged 9.58% in after-hours trading on Tuesday due to a report involving its largest shareholder, Walmart (NYSE: WMT).

Details: Bloomberg reported Tuesday that Walmart wants to raise $3.74 billion by selling part of its stake in JD.com. It is reportedly offering 144.5 million shares in JD.com. 

Background: Walmart acquired its stake in JD.com in 2016 through a partnership.

Final Thoughts: JD.com’s stock was up 3.64% in 2024 before this report. Walmart is up 40.38% this year.

Notables

Notable Earnings Today: Target (NYSE: TGT), Zoom Video Communications (Nasdaq: ZM), Snowflake (NYSE: SNOW), Macy's (NYSE: M), TJX (NYSE: TJX), Wolfspeed (NYSE: WOLF), Dycom (NYSE: DY), Synopsys (Nasdaq: SNPS), Urban Outfitters (Nasdaq: URBN), Analog Devices (Nasdaq: ADI), Agilent Technologies (NYSE: A), Nordson (Nasdaq: NDSN), Carlyle Credit Income Fund (NYSE: CCIF), Chemomab Therapeutics (Nasdaq: CMMB), Full Track Alliance (NYSE: YMM), GDS Holdings (Nasdaq: GDS), MDxHealth (Nasdaq: MDXH), UNIFI (NYSE: UFI), Zeekr Intelligent Technology (NYSE: ZK).

Notable IPOs Today: WeRide Inc. American Depositary Shares (Nasdaq: WRD).

Notable Equity Crowdfunding Campaigns Ending Today: Drewish Deli (Honeycomb).

Notable Economic Events Today: Crude Oil Inventories (10:30 a.m. ET), FOMC Meeting Minutes (2:00 p.m. ET).

Toll Brothers Mortgage Rates

Home builder Toll Brothers (NYSE: TOL) reported good financial earnings results on Tuesday and the stock ticked up 0.65% in after-hours trading.

Financials: Toll Brothers reported earnings of $3.60 per share in the past quarter and revenue of $2.72 billion; both were better than expected.

Quote: “With mortgage rates at their lowest point in a year and trending lower, favorable demographics, and continued imbalance in the supply and demand of homes for sale, we are optimistic that demand will remain solid through the end of fiscal 2024 and into 2025.” - Douglas C. Yearley, Jr., chairman and CEO.

Early Bird’s Nest Egg Gains: The declining mortgage rates are expected to have several impacts on the housing market in the second half of 2024.

  • As mortgage rates decline, we can expect to see an uptick in housing demand, particularly from first-time homebuyers who may have been priced out of the market previously.

  • Despite declining mortgage rates, home prices are expected to continue rising, albeit slower.

Final Thoughts: Toll Brothers is up 32% this year, but the stock has been flat in the last 30 days.

Tron Surges Into Top 10

The price of the cryptocurrency TRON jumped 12% on Tuesday and is now in the top 10 of the largest cryptocurrencies by market capitalization.

Details: Arkham Intelligence posted on Twitter Tuesday that over $1 billion in the stablecoin USDT has been minted on the TRON blockchain.

Final Thoughts: In the past year, TRON has risen by over 100%.

Slimming Down Diabetes: Eli Lilly Says Weight-Loss Drug Sharply Reduces Diabetes Progression (Wall Street Journal)

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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.