📽️ TikTok Is Worth $268B

1) Nike Still Sits On The Throne 2) Inflation Is In Line With Expectations, 3) TikTok Is Massive, and more!

Author

Carbon Finance
December 12, 2023

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!

Not subscribed yet? Sign up today!

✔️ 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

How was today's newsletter?

We value all of feedback we receive. Let us know how we did so we can continue to make this the best investing newsletter available!

Login or Subscribe to participate in polls.

🤝 Review of the Week

Disclaimer: The publisher does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author.

Carbon Finance is a publisher of financial information, not an investment or financial advisor. We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.

The information contained on this website/newsletter has been crafted with the assistance of an AI language model to enhance the content of this newsletter. We have made efforts to ensure the quality and reliability of the information presented, but we cannot guarantee its absolute accuracy. Therefore, readers are advised to exercise their own judgment and seek additional sources if necessary.

THE INFORMATION CONTAINED ON THIS WEBSITE/NEWSLETTER IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.

No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.

Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.

The publisher, its affiliates, and clients of the publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.

Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.

The views and opinions expressed in this newsletter are solely those of Carbon Finance and do not reflect the official policy or position of any other agency, organization, employer or company.

By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.