Bye Bye, Zico
By Wed, Oct 7, 2020
Hey Scoopers,
The stock market faced a cliff around 3:00 PM after President Trump requested Congress to halt the stimulus discussion. — More on that in the “Overall Market” section.
Beyond the overall market, a revised forecast brought excitement back to a tech stock’s investors. In contrast, an athleisure company seems to be doing too much for investors’ liking. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, Coca-Cola dumped Zico. — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
Market Recap
- U.S. markets: All three indices ended Tuesday in the red, quite differently from how it started the day. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price also had a red day, like the stock market indices, and still managed to hover in the mid-$10,000 range.
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The Cliff
Up until 2:45 PM or so, the stock market was doing just fine, and then came a cliff. President Trump asked Congress to focus on the Supreme Court nominee and stop exploring a bi-partisan agreement about the second stimulus cheques. The stock market tends to overreact to everything, and it ended the day falling off the overreaction cliff.
Good News
So, what happened?
Shares of Alteryx (Ticker: AYX) were up by more than 27% on Tuesday. The company had a somewhat disappointing outlook in its latest quarterly earnings report. Since then, it altered its forecast, painted a better and more positive growth picture, and introduced a new CEO. The upward alteration of the outlook has been extremely encouraging to the company’s investors, and the stock had a chance to recover quite nicely.
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Doing Too Much
So, what happened?
Shares of Lululemon Athletica Inc (Ticker: LULU) were down by more than 3% on Tuesday. The company has fallen a long way from its $400+ price tag. LULU’s stock had a difficult time after the company announced its latest quarterly earnings in August. The company plans to open more stores. It has acquired and wants to focus on Mirror, the fitness startup. Moreover, it plans to launch an athleisure shoe line up. All those new plans have got investors worried about LULU’s ability to execute. It seems LULU is trying to do too much, and that is scary to investors.
Coca-Cola Dumping Coconut Water
So what happened?
In this world, with an ongoing war against sugar, you’d think coconut water is just a slam dunk for CPG companies. But, not really!
Coca-Cola (Ticker: KO) is saying goodbye to its unsuccessful brands. And, Zico coconut water is among the unfortunate brands getting dumped by the company. Is it Coca-Cola that just can’t be healthy, or is the war on sugar reversing?!
If you have any questions, or suggestions let us know by emailing us at members@tradestocks.com. We look forward to hearing from you.
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
