No Backsies
By Thu, Sep 10, 2020
Hey Scoopers,
Investors bought the dip, and the market reversed its direction on Wednesday. — More on that in the “Overall Market” section.
Beyond the overall market, new buy ratings pushed one stock upward, and lower profitability dragged a successful retailer down in the short term. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, a luxury retailer filed a “no backsies” lawsuit against its former acquirer. — 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: The green arrows return to the stock market indices on Wednesday. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: The stock market reversal didn’t extend to the cryptocurrency market, and Bitcoin’s price hovered slightly above the $10,000 mark.
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Bought The Dip?
The stock market reversed course and ended Wednesday in the green. There wasn’t any significant news to justify the rebound. Perhaps, investors bought the dip, and the pause of one of the COVID-19 vaccine trials turned out to be a pretty common occurrence in a typical trial.
New Buy Ratings
So, what happened?
Shares of eGain Corp (Ticker: EGAN) were up more than 18% on Wednesday. This contact center platform provider has been among the enablers of our collective digital lives. While being around for a long time, the company has only recently become that of Wall Street. The stock price jump on Wednesday is mostly due to the new Buy ratings and price target increases by analysts from various research firms.
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Path To Higher Profitability
So, what happened?
Shares of Lululemon Athletica Inc (Ticker: LULU) were down by more than 7% on Wednesday. The company announced its latest quarterly earnings call, and revenue was up by 2%. The crazy part of the earnings report was that more than 60% of LULU’s revenue is now from its online store. The stock price drop is due to lower expected earnings in the current quarter due to higher marketing expenses. However, with this stellar transition to online, the question is whether LULU needs its stores anymore. This can be a path to much higher profitability in the long run.
No Backsies
So what happened?
Luxury retailer LVMH (Ticker: LVMHF) is pulling out of the $16+ billion acquisition of Tiffany & Co (Ticker: TIF) due to troubles caused by the trade disputes between the U.S. and France.
Tiffany & Co. didn’t like the decision and argued back with a lawsuit. No backsies, LVMH, no backsies.
Our email address is members@tradestocks.com. Let us know if you have any questions, feedback, or ideas.
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
