Tuesday’s Headlines: Tesla Finally Nabs Its Golden Goose
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Nordstrom (JWN) +10.9%
Lemonade (LMND) +9.0%
Chuy's (CHUY) +7.0%
Eventbrite (EB) +6.8%
Under Armour (UAA) +5.8%
Moving Down ⬇️
Nautilus (NLS) -10.9%
Baozun (BZUN) -4.6%
Duluth Trading (DLTH) -4.3%
Chegg (CHGG) -3.5%
Teladoc (TDOC) -3.3%
1. Tesla (TSLA) is getting an early holiday gift this year after it was confirmed on Monday that it will finally be added to the S&P 500 (VOO) prior to trading on December 21. Tesla was snubbed in September after it met the criteria to be included but was ultimately not picked by the S&P 500 Index Committee, but its inclusion now, based on Monday’s closing prices, would place it in the 10 most valuable companies on the list. Tesla shares have spiked close to 13% after-hours, and it’s no surprise considering the benefits of inclusion, which include a potential reduction in stock price volatility, a wider following of investors (if that’s possible), prestige, and more. For a full read up on the benefits of this inclusion to Tesla, read our Insight on the topic from earlier this year here.
2. Make sure you’ve got cash in your portfolio over the coming weeks because Airbnb finally released its prospectus to debut on public markets yesterday. The short-term rentals and experiences company made a rare profit in Q3 after massively reducing costs due to COVID-19, posting $219 million in net income on revenues of $1.34 billion last quarter. Despite enduring a tough 2020 alongside many COVID-effected industries, Airbnb is estimated to be valued at $30 billion upon its IPO, and though shares outstanding have not been announced yet, it could price between $25 and $35 per share. One thing we do know is that it will trade on the Nasdaq (QQQ) under the ticker symbol ‘ABNB’. You can find Airbnb’s prospectus filing here, or read more on our thoughts from when Airbnb first filed to go public here.
3. Warren Buffett-owned Berkshire Hathaway (BRK.B) revealed its latest holdings in a filing with the SEC after the closing bell Monday, which showed that it bought new shares in pharmaceutical companies AbbVie (ABBV), Bristol-Myers Squibb (BMY), Merck (MRK) and Pfizer (PFE) during the third quarter — I guess nobody told them about Moderna’s 94% effective vaccine, huh? Berkshire also acquired a new stake in wireless telecom leader T-Mobil (TMUS) and sold off its position in retail giant Costco (COST). It’s been a year of uncharacteristic decisions from the Oracle of Omaha, after he sold his airline holdings back in April, bought a stake in Barrick Gold in August, and then invested in Snowflake ahead of its IPO. 2020 has been a strange year, but Buffett’s actions have been just as odd. Read more here.
There are 2 companies on the MyWallSt shortlist that will report earnings before the market opens today:
Get this week’s full calendar here.