Shohei Ohtani just made worldwide sports history by signing the single largest contract of all time by signing a 10-year, $700mn deal. [The Daily Peel... ](=) December 11, 2023 | Peel #603 In this issue of the Peel: - The U.S. economy added 199k jobs last month, while economists had estimates pegged at 190k.
- Paramount Global and Lululemon had a ripe day, while RH and CRISPR Therapeutics saw their share price decline.
- Shohei Ohtani just made worldwide sports history by signing the single largest contract of all time by signing a 10-year, $700mn deal. Market Snapshot Happy Monday, apes. You might not have signed a $700mn contract this weekend, but we hope it was a good one for you anyway. Just not as good as it was for Shohei Ohtani (more below). This kind of wage growth in the MLB and sports contracts will hopefully drive markets higher today in hopes of a nice continuation of Fridayâs gains. The Russell 2k led with a 0.76% gain, while the Dowâs respectable 0.36% gain brought up the rear. Utilities, real estate, and staples were the only vibe killers on the day as well. Unsurprisingly, to say the least, the room temps at WSO Alpha drastically underperformed with just a 0.17% gain on the day. I gotta run over to that part of the office to deliver them a knuckle sandwich, so if anyone else has any choice words theyâd like me to pass along to them, feel free to let me know. Treasury yields, in the meantime, spiked as well, largely in response to Fridayâs stronger-than-expected jobs report. The 2-year spiked to ~4.75% while the 10-year moved higher towards 4.25%. Letâs get into it. The Ultimate Program to Land a 6-figure Job in High Finance [image](=) With over 17 years of experience, 900k+ members, and an insane network, WSO has cracked the code to making 6 figures right out of undergrad. Weâve helped over 1k students from all backgrounds break into these careers. WSO Academy is a 12-week program (with many lifetime benefits) that puts everything weâve learned on a silver platter for youâto dramatically improve your odds at landing a high finance offer. The waitlist for WSO Academy just opened again, and weâre only accepting 20 students into the next cohort. So if youâre serious about breaking into high finance, you need to sign up for the waitlist asap because we are opening applications next week (people on the waitlist will be the first to know). [Get on the waitlist -> Applications opening next week and capped at 300]() (so we can review all of them carefully). No reason for you to be sleeping on this. Banana Bits - Macyâs is having a great week already with a [$5.8bn rumored buyout offer](=), a 17.4% premium to Fridayâs close.
- The U.S.âs weekly fundraising rounds are still making [investors nervous.](
- Ukrainian President Zelensky is once again on his way to DC in a [fundraising campaign of his own.](
- Check out the November [jobs report](=) from Friday here. Macro Monkey Say Jobs Day Finally, the wait is over, and we have some actual economic releases that matter to talk about. Plus, itâs not like weâve been hyping up Fridayâs drop for literal weeks or anything⦠Before rolling into this wonderful weekend, the Bureau of Labor Statistics (BLS) wanted to make sure we stayed entertainedâIâm sure most of you set your alarms to make sure you were awake right on time for the release, but we finally got the nonfarm payrolls (a.k.a. jobs) report for November. Letâs check it out. Turns out it was worth the wait, as hiring numbers came in better than expected. The U.S. economy added 199k jobs last month, while economists had estimates pegged at 190k. Plus, that figure was well ahead of the 150k jobs added in October, but keep in mind both of those additions are still âunrevised.â With the 199k fellow Americans who made their parents proud last month, the unemployment rate fell back down to 3.7%, with the labor force participation rate continuing its ever-so-gradual upward creep. "The U.S. economy added 199k jobs last month ..." But of course, this wasnât all too impressive to markets or onlookers in general. The numbers were boosted heavily by government hiring along with the return of workers from labor strikes, primarily in the auto sector. Fortunately, shareholders wonât have to worry about that after those jobs get automated away, of course. Anyway, the headline takeaway is that it wasnât exactly a big surprise in either direction. But looking under the hood, it got even better for those of us on the 9-5 #grindset. Wages continued to grow as well, and they even came in roughly in line with expectations. Earnings growth of 4% annually translated to a monthly jump of 0.4%, with each reading coming in line and slightly ahead of expectations respectively. Using Octoberâs CPI report as a reference, thatâs 0.8% growth in real wages annually and pure 0.4% real growth on the monthly side. Not bad apes, weâre getting more jobs and paid more for doing them. If there was someone else in the room with me right now, Iâd say thatâs worth a celebratory dap. "The man may actually be steering us right down the path of a soft landing ..." We know one guy is dapping himself up for sure, however: JPow. The man may actually be steering us right down the path of a soft landing, as weâve been crossing our fingers for over the past few weeks and months. The updated CPI report for November will drop tomorrow (and hopefully, the numbers will, too), however, so donât get too excited in case we get a spike and the inevitable tantrum thrown by traders and their HFT bots in the aftermath. Strangely enough, department store retailers cut jobs at some of the highest rates among sectors. Look, I like myself a good challenge too, but cutting your workforce before the busy part of the season is a ballsy move, to say the least. Canât wait to see how that one works out once these Q1 earnings reports start to roll out early next year as well. After all, isnât it our portfolios that matter way more than anything else anyway? Clearly, our ~5k worth of random âpositionsâ and a few blue chips mixed in will get us to retirement much quicker than a 9-5 would. Just ask your local âself-helpâ scam artist. But before you âescape the matrix,â keep in mind we also have the next FOMC meeting on Wednesday of this week. Itâs gonna be a fun and packed one, apes, and I guess Vladimir Lenin was right when he said, âThere are decades where nothing happens,â clearly speaking of the last few weeks, âand there are weeks where decades happen.â Always a tough person to quote, but hey, game respect game. What's Ripe Paramount Global (PARA) $16.85 (â 12.11% â) - Unhinged family drama behind the scenes of massive companies like that in Succession is some classic entertainment we can always get behind. Unfortunately, the family that controls this media empire seems way too stable.
- I mean, theyâre so stable it seems like they might even eat dinners together⦠without any screens. Sounds wild, but with the passing of the man, myth, and legend Sumner Redstone (dope name) last Tuesday, control of the firm is up for grabs.
- And thatâs because the would-be equivalent of Kendall Roy (if she was that crazy), Shari Redstone, has floated a sale of the firm, leading to the rip in share price seen on Friday as RedBird and Skydance are reportedly ready to spend way too much money in order to take control of this giant.
- With the stock down ~65% in the past 5 years, itâs like Sumner decided to peace out to make sure these acquirers get a sweet deal. RIP, though. We sure hope his passing was a lot better than (spoiler alert) Logan Royâs. Lululemon (LULU) $489.64 (â 5.37% â) - Itâs hard to miss on earnings when you wildly overcharge every customer for every product you sell, and Lulu proved that once again.
- But damn, outside the price tag, you canât deny their clothes are sick. And obviously, so is their stock, especially on Friday, as the firmâs revenue just barely beat expectations at $2.2bn while EPS dominated at $2.53/sh vs $2.28/sh.
- Itâs hard to imagine management wasnât nervous going into this one, however, given the marketâs cliff-dive-style response to any slip-ups in sales this quarter.
- Then, the party really got started with guidance as Lulu jacked up its full-year guidance to $9.55bn-$9.58bn while analysts had been expecting as low as $8.11bn. What's Rotten RH (RH) $242.01 (â 14.00% â) - It is safe to say that the company formerly known as Restoration Hardware has a lot to restore after Friday.
- But, thereâs really nothing they can do, at least according to the firmâs quarterly report, as they cite JPowâs rate hiking nuclear bombs for their problems. Blaming someone else is, of course, always the solution, but in this case, it might actually be true.
- The luxury, mostly furniture retailer that sells some other Pinterest board nonsense relies on new household formation to actually make money. Thanks to JPow destroying the housing market, theyâre in a tough spot.
- Needless to say, third-quarter results saw a big swing and a miss. The firm reported a surprise loss of $0.42/sh vs the $0.91/sh in actual earnings that was expected. Sales didnât miss by quite as much, but they sure didnât hit either. CRISPR Therapeutics (CRSP) $64.54 (â 8.08% â) - Donât worry, apes, weâre finally all savedâweâll soon be able to edit those garbage genes our parents gave us. Our saving grace is here.
- The FDA has officially gone into future mode with the approval of the nationâs first gene-editing treatment. And for now, itâs only relevant to patients with sickle cell disease.
- The Switzerland-based company, whose tech is based on Nobel Prize-winning achievements, is partnering with Vertex Pharmaceuticals for the launch, and although the treatment takes months, it could be life-saving for 16k Americans, according to Vertexâs estimates.
- Shareholders and patients shook hands on this one, an all too rare sighting on Wall Street, but hey, weâll take it. Thought Banana Shohei The Money What would you do for $700mn? Or maybe a better question: what wouldnât you do for $700mn? Something tells me that, for most of us, that list is pretty short⦠If âplay baseball for the Los Angeles Dodgersâ was on your list of answering that first question, then youâre gonna pretty peanut-butter-and-jealous after this one. "To be clear from the get-go, this is an absolutely ridiculous amount of money ..." Shohei Ohtani, a 29-year-old MLB phenom, just made worldwide sports history by signing the single largest contract of all time by signing a 10-year, $700mn deal with the LA Dodgers. To be clear from the get-go, this is an absolutely ridiculous amount of money, but compared to the other largest contracts of all time, this one averages out to a good bit less. For reference, hereâs the size and average annual amount of the next five largest contracts in the history of global sports: - Lionel Messiâ$674mn for 4-year with FC Barcelona; Average = $168.5mn/yr
- Christiano Ronaldoâ$536.3mn for 2.5-years with Al-Nassr; Average = $214.5mn/yr
- Pat Mahomesâ$450mn for 10-years with the Kansas City Chiefs; Average = $45mn/yr
- Karim Benzemaâ$436.33mn for 2-years with Al-Ittihad Club; Average = $214.5mn/yr
- Mike Troutâ$426.5mn for 12-years with the Los Angeles Angels; Average = $35.5mn/yr Isnât it crazy how a list like that makes $35mn/yr seem small? Shohei is gonna be pulling double that per year, before the IRS, of course, which, as this [beautiful tweet]() points out, is also a $364mn 10-year deal for the tax authority. Speaking of tweets (or posts?), other MLB players and athletes in general were trying to act non-jealous [here, too.](=) I mean, if anyone in the NFL was gonna command that kind of cash, itâs Ohtani. There is no debate whether or not this guy is the greatest baseball player on Earth right nowâhe isâbut heâs certainly making a case for all-time GOAT as well. He will be, but then again, heâs only been in the league for 6-years. We gotta see if the longevity is there. Clearly, cigarette-addicted, fat alcoholics like Babe Ruth should still be considered some of the best athletes of all time, even today. "... if anyone in the NFL was gonna command that kind of cash, itâs Ohtani." Just to shoutout some of Ohtaniâs absolute ridiculousness, this dude has: - Heâs all-time levels of exceptional on both sides of the plate, being selected as an all-star as both a pitcher and hitter (âposition playerâ) in 2021.
- The first MLB player in history to have 10+ home runs and 100+ strikeouts in a season.
- First Japanese player to hit for the cycle in a game (2019), the fastest pitch ever by a Japanese player (101.1mph, 2021), and the most home runs in a season by a Japanese player (46, 2021)
- Needless to say, after the above, he was the AL MVP in 2021 And we could go on, but one of the most important stats to keep in mind is that he did hit a home run off of [Trevor](, too. Crazy, I know. Sports are becoming an even bigger and bigger money business, but that probably goes without saying after reading the above. There are just 4 athlete billionaires in history (so far), too, including: - Lebron James, at 37 years old in 2022, was the first active NBA player to become a billionaire
- Michael Jordan, at 53 years old in 2014, was the first-ever athlete billionaire
- Tiger Woods at 46 years old in 2022
- Magic Johnson at 64 years old just a few weeks ago Yeah⦠something tells me Ohtani wonât be too long behind. The Big Question: How much bigger can the sports business become? Is there any way for us apes to make money off this? Are there any stocks in this industry that are worth investing in? Banana Brain Teaser Friday â If yesterday's tomorrow was Thursday, what day is the day after tomorrow's yesterday? Answer Friday Today â Each child in a family has at least 4 brothers and 4 sisters. What is the smallest number of children the family might have? Shoot us your guesses at vyomesh@wallstreetoasis.com Wise Investor Says âA great business at a fair price is superior to a fair business at a great priceâ â Charlie Munger How would you rate todayâs Peel? [All the bananas]() [Decent]() [Rotten AF]() Happy Investing, Patrick & The Daily Peel Team Was this email forwarded to you? [Be smart like your friend](=). [ADVERTISE]() // [WSO ALPHA]() // [COURSES]( // [LEGAL](=) Don't want The Daily Peel? [Unsubscribe here](. Click to [Unsubscribe]( from ALL WSO content IB Oasis Corp. (aka "Wall Street Oasis")
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