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- 📽️ TikTok Is Worth $268B
📽️ TikTok Is Worth $268B
1) Nike Still Sits On The Throne 2) Inflation Is In Line With Expectations, 3) TikTok Is Massive, and more!
Happy Tuesday.
Hope you all had a restful weekend. It’s only Tuesday and there’s been a lot of news already!
Some key data bites you should know:
Apple $AAPL and its suppliers aim to manufacture over 50M iPhones annually in India within the next two to three years.
xAI filed to raise $1B according to an SEC filing, but Elon Musk denies any immediate fundraising plans.
Procter & Gamble $PG announces up to $2.5B in charges over two years, mainly due to writing down its Gillette business.
Arkhouse Management and Brigade Capital offer $5.8B to buy Macy's $M.
Occidental Petroleum $OXY is set to acquire Permian Basin energy producer CrownRock for $12B.
In today’s newsletter:
✔️ Nike Still Sits On The Throne
🔥 Inflation Is In Line With Expectations
📽️ TikTok Is Massive
Let’s dive right in!
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✔️ Nike Still Sits On The Throne
Nike was founded in 1964 and started as a small distributor of Japanese running shoes.
With innovative marketing strategies and product design, including the famous 'Swoosh' logo and the Air Jordan line, Nike rapidly grew into a global giant in athletic apparel and footwear.
In the athletic retail sector, Nike leads with a trailing twelve-month revenue of $51.5B, followed by Adidas at $23.1B, and Puma at $9.32B.
Lululemon, in fourth, recently reported earnings with revenue guidance below expectations, indicating a slowdown due to changing consumer spending trends.
The next few years should be exciting to watch to see if Nike will continue to dominate this space or if rivals will narrow the gap.
🔥 Inflation Is In Line With Expectations
This morning, the Federal Reserve released the November Consumer Price Index report.
In November, the CPI for all urban consumers rose 0.1%, with a 3.1% increase over the past 12 months.
Notably, transportation and shelter costs increased 10.1% and 6.5%, respectively.
On the other hand, gasoline and natural gas prices dropped -8.9% and -10.4%, respectively.
Core CPI (excludes food and energy) climbed 0.3%.
This report was largely in line with expectations, and investors expect the Fed to maintain current rates for the time being.
However, the market is currently pricing in a roughly 40% chance of a rate cut in the Fed’s March meeting, but many economists have varying opinions as to how early rate cuts will come.
📽️ TikTok Is Massive
For all of you TikTok lovers, here’s some interesting data.
ByteDance, the parent company of TikTok, is planning to buy back stock up to $5B, offering shares at $160 each.
This would value the company at about $268B.
The buyback, with no set timeline, would allow shareholders to cash out.
While this valuation is lower than last year when ByteDance valued itself at $300B, it’s size cannot be understated.
The company is roughly the size of Costco, and has a larger valuation than the combined market capitalizations of PayPal, Lululemon, Chipotle, Snapchat, Pinterest, and Zoom.
🔎 Epic Beats Google. Epic Games has won a antitrust trial against Google $GOOG, challenging the Google Play app store's position - R
💸 Cohen’s Hedge Fund. GameStop $GME has granted CEO Ryan Cohen the ability to use company funds to invest in stocks - CNBC
🐻 Bearish 2024 Outlook. JPMorgan's $JPM Marko Kolanovic predicts a challenging year for US stock investors, advising cash or bonds over equities and sees no major rate cuts - BB
🏥 First Crispr Medicine. The FDA approved the world's first Crispr-based medicine for sickle-cell disease, Casgevy, developed by Vertex Pharmaceuticals $VRTX and CRISPR Therapeutics $CRSP - WSJ
🦷 BrokeDirectClub. Telehealth company SmileDirectClub filed for bankruptcy and shut down due to financial struggles and legal controversies - NYT
Notable Companies Reporting Earnings This Week:
Monday:
Oracle $ORCL, Caseys General Stores $CASY
Tuesday:
Johnson Controls Internationals $JCI
Wednesday:
Adobe $ADBE, Nordson $NDSN
Thursday:
Costco $COST, Lennar $LEN
Friday:
Darden Restaurants $DRI
All of the companies that are reporting earnings this week can be viewed here.
Major Trades Published Since 12/5. Trades may be those of family members. Buys and sells may be options trades. [Source: 2iQ, Quiver Quant]
Buys:
Josh Gottheimer (D)
Company: Microsoft ($MSFT)
Amount Purchased: $5M - $25M
Description: Call Options; Strike Price $160; Expires 06/21/2024
Company: Microsoft ($MSFT)
Amount Purchased: $1M - $25M
Description: Call Options; Strike Price $170; Expires 06/21/2024
Jonathan Jackson (D)
Company: T-Mobile US ($TMUS)
Amount Purchased: $15K - $50K
Ro Khanna (D)
Company: Coca-Cola ($KO)
Amount Purchased: $15K - $50K
Company: Pfizer ($PFE)
Amount Purchased: $15K - $50K
Company: T-Mobile ($TMUS)
Amount Purchased: $15K - $50K
Doug Lamborn (R)
Company: NetApp ($NTAP)
Amount Purchased: $45K - $150K
Sells:
Josh Gottheimer (D)
Company: Microsoft ($MSFT)
Amount Sold: $5M - $25M
Description: Call Options; Strike Price $165; Expires 01/17/2025
Company: Microsoft ($MSFT)
Amount Sold: $1M - $25M
Description: Call Options; Strike Price $170; Expires 01/17/2025
Kevin Hern (R)
Company: Federal Home Loan Mortgage ($FMCC)
Amount Sold: $100K - $250K
Sheldon Whitehouse (D)
Company: Kimberly-Clark ($KMB)
Amount Sold: $50K - $100K
Jonathon Jackson (D)
Company: Honeywell International ($HON)
Amount Purchased: $50K - $100K
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