AMD shakes hands with Meta

November 9, 2021 AMD shakes hands with Meta Good morning traders, Welcome back to The Daily Setup. Markets were up yesterday, with the S&P 500 notching its longest series of records since’97. Here’s what’s on the docket today: - Trade Desk reports earnings beat - Elon may sell 10% of Tesla stock - Ethereum hits an all time high So give us a read and let’s make today a good one. Jeff Trade Desk, AMD, and Coty Biggest Mover BIGGEST MOVER Don Draper Would Be Proud Shares of advertising technology company [The Trade Desk (TTD)]( spiked higher in Monday’s trading session after the company beat analysts’ earnings estimates on both the top and bottom line. Following the announcement, which came out prior to the opening bell, the company’s stock opened the day up [23% at $84.30]( before continuing its rally to close at [$88.77, up 29.5%]( on the day. - The company reported adjusted [Q3 EPS of $0.18/share on $301M in revenue](. According to FactSet consensus, the Street was expecting adjusted earnings per share of $0.15 on $283.5M in revenue. - The company also raised their Q4 net income guidance from $162M to $175M. - CEO Jeff Green said, “The company is seeing growth across all channels, and none more so than Connected TV, as viewers shift to new digital, streaming services and advertisers apply data to TV ad campaigns for the first time.” - [Analyst Matthew Swanson]( of RBC Markets Capital did warn that due to the macro-environment, the outlook for the company will, “likely remain conservative.â TTD is up 72% from its May 11th dip and is now only [13.3%]( off its all time high of $97.28 in December of 2020. The company’s stock has been trading between $60-$90 for most of the past 6-months. Keep TTD on your watchlist to see if sellers come in at these levels to move the stock back towards the middle of the range, or if buyers will take it to new all-time highs. AMD Be Like... [Advanced Micro Devices (AMD) announced]( that Meta (the artist formerly known as Facebook) had chosen the chipmaker to help power its data centers. The company also announced a range of new chips during their Accelerated Data Center Premiere keynote (hopefully it was open bar). Shares of the company rallied following the announcement, [ending the day up 10.4% at $150.63](. - With the announcement, AMD hopes to continue taking market share from Intel, whose customers include the likes of Amazon, Microsoft, and Google (ever heard of’em???). - In October, [AMD CEO Lisa Su announced]( that its data center chip sales doubled year-over-year... which seems good. - Meta and AMD have been working on a more power-efficient chip based off of AMD’s 3rd generation EPYC Chips. Shares of AMD are up over [64%]( year-to-date and put in a new all-time high of [$153.60]( during Monday’s trading session. In comparison, company rival Intel (INTC) is up [3.5%]( during the same period. Keep both AMD and Meta on your watchlist as positive or negative news may affect both companies. I love the smell of earnings in the morning Beauty products company Coty Inc. (COTY) started the week off with a bang by reporting [an earnings beat]( and selling a minority stake in its Wella hair care brand to KKR. Shares were up almost 15% on Monday in reaction, closing at $10.69. - Revenue clocked in at $103M, up 22% YoY thanks in large part to both e-commerce and brick and mortar. - Monday’s announcement to sell an additional 4.7% stake in Wella followed a [similar agreement]( in October to sell another 9%, also to KKR. History repeats itself I suppose. - Growth in the Prestige segment, which includes brands like Burberry and Marc Jacobs, grew at a 23% clip. This outpaced its Consumer segment, which grew at 4.4% and includes names like CoverGirl and Max Factor. It sounds like the Consumer segment needs to add Axe Body Spray to its portfolio and really go after the middle school boy demographic. Coty raised forward guidance, suggesting the momentum could continue into 2022. The company cited growth in the U.S. and Chinese markets, suggesting that people around the world are ready to leave their homes and that they need to look and smell good once again. These results could be a harbinger of broader strength in the consumer goods space as well, so as shoppers venture back into the malls, expect to find perfume counter employees empowered to spray first and ask questions later. Sharing is(n't) caring Rumor Has It Shares of Tesla dropped [nearly 5%]( yesterday thanks to a Saturday tweet in which Musk asked his followers to vote on whether or not he should [sell 10% of his Tesla stock](. 58% of his followers voted yes #StopTheCount. Musk appears to make this offer [in response]( to the Democrats’ proposed billionaire tax plan, because as a man who [earns no salary](, he can only be taxed on realized gains, i.e. by selling stock. - This isn’t quite the charitable offer it seems. Musk has about [$28B in stock options]( that were given to him in 2012 that expire next year. He has to sell them if he doesn’t want to lose them, and the tax on these options is a whopping $15B. The money for that bill’s gotta come from somewhere, so why not the $21B he’d get from selling 10% of his Tesla stock? Although Musk [famously goes back on his word](, his own best interest makes the sale look likely. A share dump of this magnitude would likely lower the value of TSLA stock, as well as exacerbate the stock’s famous volatility. That said, many are still optimistic in the long term about Tesla stock for multiple reasons, such as the apparent success of the Hertz deal, the passage of Biden’s EV-friendly infrastructure plan, and the general surging demand for electric vehicles. Ethereum, Pot Stocks, and a 50 year Treasury Other News Ethereum, more like Upthereum (Sorry, my dad wrote that joke) Second-fiddle crypto Ethereum hit record highs on Monday after surging more than 4% in 24 hours [past $4,700](. Bitcoin had a great day, too, creeping up towards its late-October record of [$66.9K](. Some of ETH’s other competitors have had a pretty solid 2021 as well, with Solana [up a casual 12,000%]( YTD. - The combined crypto market fast approaches [$3T](- which in cryptobull speak roughly translates to three Elons. Cryptocurrencies are doing so well in the wake of the SEC’s approval of Bitcoin futures that many think a bona fide, fully-fledged Bitcoin ETF is just on the horizon. - There’s another way to look at it, though. No one can deny that this new wave of investment is unpredictable and speculative, and particularly volatile periods tend to precede government crackdowns. It’s reasonable to think that one might be coming, since just last week the [government asked Congress to regulate stablecoins.](Of course, given our lawmakers’ tech awareness, that probably means they’ll pass a bill about horses. Where There’s Smoke… Cannabis stocks were ablaze on Monday thanks to a bongload of [legislative action](... their words, not ours. A big marijuana reform bill is reportedly making its way through the House led by wait, what…Republicans? Suddenly the GOP appears to be down with THC as the proposed legislation would remove marijuana from the controlled substances list, essentially decriminalizing it at the Federal level. Cronos and Tilray rose 25.6% and 15.6% respectively on the day. - A House committee vote passed another bill that would require the Department of Veteran Affairs to explore the use of cannabis as treatment for veterans through clinical trials. - Federal decriminalization would open up the banking system to cannabis companies and allow for regulation at the state level, much like alcohol. Surely, marijuana regulation won’t be as screwed up as the byzantine labyrinth of booze laws among the states, right? You’d have to be high to believe that. - For the weed reform charge to be led from the right is a bit baffling, and the thought of Kevin McCarthy and friends passing around a joint listening to Dark Side of the Moon while watching [Half Baked]( is a lot to process right now. And Dave Ramsey Wept Well, this doesn’t seem concerning at all. The San Francisco branch of the Federal Reserve is exploring [50 year Treasury Bonds]( as a way to keep financing costs low as the country’s debt continues to climb. The current 30-year Treasury Bond is yielding 1.88%, so maybe by adding a couple decades until maturity investors would be able to get a 2% return on their capital? Boggles the mind. - Fed Chair Janet Yellen brought the subject up during her Senate confirmation hearings after it had been dropped by predecessor Steve Mnuchin due to lack of interest. Pun not intended. - The [research paper]( suggested that additional borrowing costs would be negligible compared to the 30 year, and pointed out that the country’s debt rose almost 25% in a single year from $16.7T at the end of 2019. Seems like a sustainable pace. - Somebody should probably check on Ron Paul, as the concept of a 50 year debt instrument might trigger a Fred Sanford style heart attack in the old libertarian. [Image] RagingBull, LLC 62 Calef Hwy. #233, Lee, NH 03861 [Unsubscribe from all RagingBull emails]( Questions or concerns about our products? Call or text us on your mobile: 1.800.123.4567 © Copyright 2020, [RagingBull]( - [Refund Policy]( - [Privacy Policy]( - [Terms & Conditions]( DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at [(. FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any RagingBull Service offered is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. 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