Ignoring March
By Thu, Apr 23, 2020
Hey Scoopers,
The oil pierce stabilization rebounded the market while uncertainty is still driving financial analysts to imagine two possible extreme outcomes for the market. — More on that in the “Overall Market” section.
Beyond the overall market, investors decided to ignore March’s performance in companies’ quarterly earnings reports while getting annoyed at the FDA approval delays for non-COVID-19 applications. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, one social media company insists on calling itself a camera company. — 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 primary stock market indices rebounded into the green zone. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Similar to the stock market, Bitcoin had a green day too, and Bitcoin’s price surged above the $7,000 mark.
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Uncertainty
The stock market’s recovery on Wednesday was mostly due to the rebound in oil prices. Despite another 4.5 million expected new unemployment claims on Thursday, some analysts believe that the market is ready for a new bull market. At the same time, other analysts believe the market is still going to see a significant drop from the current level.
Uncertain times, uncertain financial analysts, volatile markets …
Let’s Ignore March
So, what happened?
Shares of Chipotle (Ticker: CMG) were up more than 13% on Wednesday. The company announced its Q1 quarterly earnings report and had an extraordinary 14.4% growth in its same-store sales in January and February. However, as expected, March brought significant headwinds for the Mexican food restaurant chain. For now, investors celebrated the company’s success in the transition to digital sales and ignored the short-term impact of COVID-19 on sales and margins. It is as if everyone knows that March was a bad month, and decided not to consider that in their analyses.
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Busy FDA
So, what happened?
Shares of Biogen (Ticker: BIIB) were down by more than 10% on Wednesday. Before COVID-19, the company was getting ready to submit an FDA approval request for its Alzheimer’s treatment, aducanumab. However, the approval request submission is now postponed to a later date. The company announced that it is unclear whether the approval committee would even get a chance to review the drug in 2020, as all FDA’s attention is now focused on COVID-19 treatment, vaccine, and testing kits.
Still A Camera Company?
So what happened here?
Folks, we have too much stock news today to ignore. So, the “Water Cooler” is also a stock-related section today. We do hope you are okay with it.
Shares of Snap (Ticker: SNAP) were up more than 37% on Wednesday. The unprofitable social media company managed to increase its revenue by 44%. The company discussed how the Snap platform helps friends and family stay connected during COVID-19. Clearly, investors loved what they saw and heard. What surprised us the most is that the company still calls itself a camera company, and is doubling-down on its augmented reality initiatives.
If we could have sent a message to Snap’s leadership, it would go something like this:
“It’s okay, stop calling yourself a camera company. You are doing great, and you don’t have to stick to your old camera plans.”
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
