🚕 Uber Joins The S&P 500

1) Uber Joins The S&P 500 2) Bitcoin Is Back From The Dead, 3) The Hare vs The Tortoise, and more!

Author

Carbon Finance
December 05, 2023

Happy Tuesday.

A huge welcome to the 208 new subscribers that have joined the newsletter this past week. Excited to have you here.

I have a lot of big things in the pipeline and I can’t wait to continue to build up this community!

As always, I appreciate each and everyone of you for continuing to support the newsletter.

Some key data bites you should know: 

  • Kraft Heinz $KHC board approved a $3B share buyback program.

  • Cigna $CI is in in talks to merge with Humana $HUMN in a potential $60B deal.

  • AbbVie $ABBV acquired cancer biotech ImmunoGen $IMGN for $10.1B, gaining the new ovarian cancer drug Elahere.

  • Alaska Air Group $ALK is set to acquire Hawaiian Airlines $HA for $1.9B, buying shares at $18 against the $4.86 market price.

  • Spotify $SPOT to layoff about 1,500 employees, constituting 17% of its workforce.

In today’s newsletter:

  • 🚕 Uber Joins The S&P 500

  • ⚕️Bitcoin Is Back From The Dead

  • 🐢 The Hare vs The Tortoise

Let’s dive right in!

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🚕 Uber Joins The S&P 500

This marks a significant turnaround for the company post-pandemic, driven by its successful food-delivery division and a resurgence in its ride-hailing service.

The company was eligible to be included in the S&P 500 after it achieved a trailing 12-month net income of $1.05B.

To meet the index’s criteria, a company must have positive net income for the previous four quarters and have a market capitalization of at least $14.5B.

This inclusion in the S&P 500, a key benchmark for many investment funds, is expected to boost Uber's stock due to increased demand.

⚕️Bitcoin Is Back From The Dead

This year, Bitcoin has resurrected from the dead, climbing over +150%.

The cryptocurrency has now surpassed $40K, reaching the level for the first time since April 2022.

This represents as 20-month high.

Demand has primarily been driven by hopes that regulators will soon approve the first spot Bitcoin exchange-traded-fund, attracting a new wave of investors.

Experts believe the first approval could happen in early 2024.

With its incredible performance this year, Bitcoin is just shy of Meta’s market capitalization, and has sped past notable companies such as Berkshire Hathaway, Tesla, and Visa.

🐢 The Hare vs The Tortoise

While Cathie Wood has struggled in recent years, she can celebrate this month.

Her flagship ARKK innovation ETF gained 31% in November, recording its best month ever.

While ARKK is outperforming the Nasdaq-100 this year, its performance has waned, with it’s 5-year return at 15.65%.

Meanwhile, over the last 5 years, the Nasdaq-100 has delivered 139.39% and the S&P 500 has delivered 73.27%.

Her innovation ETF has also underperformed Warren Buffett’s Berkshire Hathaway, which has posted a return of 74.08% over the past 5 years.

Slow and steady always seems to win the race.

🥖 Panera Bread IPO. Panera Bread confidentially filed for an IPO - AX

🇧🇷 Brazil Joins OPEC. Brazil, South America’s largest oil producer, is set to join OPEC+ in January 2024 - S&P

🤖 Super AI Decades Away. Meta's $META chief scientist believes current AI systems are decades away from human-like intelligence - CNBC

🗂️ Twilio Layoffs. Twilio $TWLO announced a 5% reduction in workforce, primarily affecting sales roles, as part of its third major downsizing - BB

Notable Companies Reporting Earnings This Week:

  • Monday:

    • GitLab $GTLB

  • Tuesday:

    • AutoZone $AZO, Ferguson $FERG, MongoDB $MDB, Nio $NIO, SentinelOne $S, Asana $ASAN

  • Wednesday:

    • Brown Forman $BF.A, Veeva Systems $VEEV, Chewy $CHWY, GameStop $GME, C3 AI $AI

  • Thursday:

    • Broadcom $AVGO, Lululemon $LULU, Dollar General $DG, DocuSign $DOCU

  • Friday:

    • Hello Group $MOMO

All of the companies that are reporting earnings this week can be viewed here.

Major Trades Published Since 11/28. Trades may be those of family members. [Source: 2iQ]

Buys:

  • David Kustoff (R)

    • Company: Nvidia ($NVDA)

      • Amount Purchased: $15K - $50K

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