Thursday’s Headlines: No Solution In Sight For Stimulus Cheques

Thursday’s Headlines: No Solution In Sight For Stimulus Cheques

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Tesla Motors (TSLA) +13.1%

Sea Limited (SE) +5.4%

Vail Resorts (MTN) +4.4%

Tripadvisor (TRIP) +4.0%

GoPro (GPRO) +3.5%

Moving Down ⬇️

StoneCo (STNE) -5.9%

Etsy (ETSY) -4.3%

IMAX (IMAX) -4.0%

Trupanion (TRUP) -3.9%

Chegg (CHGG) -3.2%

1. After days of no communications between Democratic congressional leaders and the White House over a new coronavirus aid package, the two sides talked by phone Wednesday — and came up with nothing. Talks on a package broke down Friday as Democrats and the White House were unable to bridge substantial differences in their approach to a follow-up to the $1.7 trillion CARES Act put into law in March. Stock futures have been up and down all week due to the uncertainty, with the S&P 500 (VOO) coming just short of all-time highs both on Monday and Wednesday, though it looks like it will fall upon today’s opening. Read the full story here.

2. Remember in yesterday’s Insight when our Head Analyst Rory said that a 5-to-1 stock split doesn’t change Tesla’s (TSLA) value at all? Well, somebody forgot to tell retail investors, as its share price closed 13.1% higher on Wednesday, bringing its total gains in the past year to 579% and giving it a market cap just shy of $300 billion. This leap is a result of Tesla’s very large retail investor following and although stock splits don’t create value per se, the psychological effect of a cheaper stock price will likely make buying shares far more enticing, giving it a sense of ‘affordability’. Get Rory’s full report here.

3. Warren Buffett-backed StoneCo (STNE) had a choppy Q2 after reporting EPS of $0.09, missing analyst estimates of $0.12. The ‘Square (SQ) of Brazil’ posted revenues of $124.39 million for the quarter ended June 2020, surpassing Wall Street estimates by 27.11%, though still significantly lower than last year’s $149.52 million. However, the company is reportedly in talks with Brazilian technology company Linx S.A. (LINX) over a possible merging of operations, with an announcement expected in the coming weeks. Get the official press release here.