- 3 Big Scoops
- Posts
- Peloton Might Go Private
Bulls, Bitcoin, & Beyond
Market Moves Yesterday
S&P 500 @ 5,187.70 ( ⬆️ 0.13%)
Nasdaq Composite @ 16,332.56 ( ⬇️ 0.10%)
Bitcoin @ $62,325.50 ( ⬇️ 1.91%)
Hey Scoopers,
Happy Wednesday! Are you ready to tackle the midweek hustle?
👉 Peloton stock spikes over 15%
👉 Disney misses revenue estimates
👉 Billionaire offloads Nvidia
So, let’s go 🚀
Market Wrap 📉
The S&P 500 index inched higher on Tuesday as traders continued to look for hints on when the Fed may start slashing interest rates.
Wall Street is coming off a winning week, and investors are riding the momentum after U.S. jobs data for April alleviated concerns that the economy was too hot.
Moreover, Fed Chair Jerome Powell ruled out an interest rate hike as the central bank’s next move.
Alternatively, Chinese stocks trading in the U.S. stock exchanges stumbled yesterday, giving back some of the gains generated year-to-date.
Trending Stocks 🔥
Reddit - The social media stock popped 14.5% in pre-market trading after it reported better-than-expected quarterly earnings.
Lyft - The ride-share company advanced 6% after Q1 sales and earnings surpassed estimates.
Sonos - The audio product manufacturer tumbled 6% after reporting a wider-than-expected loss.
Private Equity Firms Eye Peloton
Several private equity firms are looking to acquire Peloton, a connected fitness company that has posted 13 consecutive quarters of losses.
Source: CNBC
Peloton stock surged over 15% in a single trading session, as CNBC reported PE firms are circling the company to take it private.
Recently, Peloton announced a restructuring plan that aims to reduce annual run-rate expenses by $200 million by the end of fiscal 2025.
Peloton stock trades 98% below its all-time highs as it has struggled to grow sales and generate a positive free cash flow in the last two years.
Disney’s Big Miss
Disney shed close to 10% on Tuesday, posting its worst day in more than 16 months. The decline in shares was attributed to the company’s fiscal Q2 of 2024 results.
Disney surpassed earnings estimates and reported better-than-expected subscriber growth for its streaming business Disney+. However, the media and entertainment giant missed revenue estimates and expects to report a loss in its direct-to-consumer entertainment business in fiscal Q3.
In Q2, Disney reported:
👉 Revenue of $22.08 billion vs. estimates of $22.11 billion
👉 Earnings of $1.21 per share vs. estimates of $1.10 per share
Disney boosted earnings growth from 20% to 25% in fiscal 2025, which was still short of estimates of 25.5%.
The company has now outpaced earnings forecasts for four straight quarters, indicating the turnaround has gained pace under CEO Bob Iger.
Despite the pullback, Disney shares are up 16% in 2024.
Stanley Druckenmiller Is Cautious On AI
Yesterday, billionaire investor Stanley Druckenmiller revealed he cut his position in Nvidia, sending shares of the chip maker lower by 1.7%. According to Druckenmiller, the AI boom is overdone, at least in the near term.
In an interview with CNBC, the billionaire explained, “We did cut that and a lot of other positions in late March. I just need a break. We’ve had a hell of a run. A lot of what we recognized has become recognized by the marketplace now.”
Nvidia is positioned to benefit from strong demand for large AI models developed on its pricey graphics processors for servers. The tech stock has rallied from $150 to more than $900 in less than two years and is up a staggering 19,000% since May 2014.
Headlines You Can't Miss!
Ab InBev beats profit estimates in Q1
Monzo boosts funding round to $610 million to crack the U.S. market
U.S. revokes export licenses to sell chips to China’s Huawei
Gold bars are selling like hot cakes in South Korea
Crypto investment products record outflows for the fourth consecutive week
Chart of The Day
The above chart shows the key moments that have allowed Microsoft to become the world’s largest company by market cap.
Valued at more than $3 trillion, Microsoft stock has returned over 400,000% to shareholders since its IPO (initial public offering) in March 1986.
The tech giant's growth story is far from over, given its big-ticket investment in OpenAI, ChatGPT’s parent company.
Meme of the Day
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.