There was no trade news, and the stock market remained flat on Tuesday.
Beyond the overall market, at last, shares of one of the 2019 IPOs that also has one of the best ticker symbols ever traded in the history of the stock market got more than a 16% boost. While that was happening, shares of one of the top cannabis stocks couldn’t help but fall as sharply as a knife. Even a celebrity partnership wasn’t able to save the stock.
Oh, and by the way, one more war is taking its toll. You may have never heard of this one. It’s the milk war that is taking its toll this time. More on that in the “Water Cooler” section.Also, don’t forget to scroll down to the “Overall Market,” “What’s Up?” and “What’s Down?” sections to read more.
- U.S. markets: The Dow remained flat, and the other two indices inched up just slightly. Scroll to the “Overall Market” section to learn more.
- Cryptocurrency: Bitcoin’s price didn’t move much on Tuesday. As a side note, Alibaba (Ticker: BABA) is offering U.S. shoppers a chance to earn a small amount of Bitcoin as they use the company’s platform to do their shopping. Have an eye on Alibaba’s growth of eCommerce in the U.S.
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There was a speech, but no trade deal.
What happened in the stock market?
The stock market stayed flat. Literally, the Dow didn’t move. The other two indices inched up slightly. It’s a wait-and-see mode, again. President Trump gave a speech and didn’t provide any update on the trade deal’s progress. And, instead, he bashed the Feds. There wasn’t anything new for investors to decide what to do.
Nothing! Business as usual in the U.S. until there is more to know about the trade war.
Meanwhile, China is busy signing trade deals with other countries. Asia-Pacific is pressing on to gain more power in the global economy, and they have a trade deal in the works that can empower them with more economic growth leveraging each others’ markets.
The best ever ticker symbol in the stock market jumped up.
So, what happened?
Shares of Datadog (Ticker: DDOG) were up more than 16% on Tuesday. We get to the company’s quarterly earnings report in a second. But first, how cool is that ticker? Read it like DEEE-DOG?! Anyhow, Datadog is a recent IPO that offers a technology platform that helps companies in financial services, manufacturing, and infrastructure sectors monitor the performance of their technology platforms without interruption. It has more than 8,000 customers. Not only these customers keep coming back to Datadog year after year, but they also buy more of Datadog’s products and solutions. With a net retention rate of 146%, Datadog has managed to create an extremely sticky product that keeps growing.
In its first quarterly earnings report as a publicly-traded company, Datadog managed to impress investors with better than expected performance. On the revenue of $95.9 million, and GAAP operating loss of $(4.2) million, the company is distinguishing itself widely different from some of the billion-dollar-losing IPOs of 2019. What may be even more impressive is that the company has about $800 million in cash, and just lost $(3.7) million in negative free cash flow. Combined almost-efficient operations with the growing number of customers using the product, this is an exciting stock to have on your radar.
As sharp as a falling knife.
So, what happened?
Shares of Canopy Growth (Ticker: CGC) were down almost 5% on Tuesday. Canopy Growth is one of the most prominent and largest producers of medical and recreational marijuana in the world. It is also a $5-billion bet by Constellation Brands (Ticker: STZ) in this sector. However, similar to all other its rivals, the stock price is declining day after day, as investors are turning their back to the cannabis sector.
The stock price decline on Tuesday doesn’t even make any logical sense. The company is set to announce its quarterly earnings later in the week. Even a partnership with the pop star, Derek, to open a wellness center in Toronto hasn’t managed to rescue the stock. While the stock has no earnings, after losing almost half of its value in 2019, the stock price is still considered overvalued. At the current 27X price to sales ratio, the stock company has to grow its sales by 27 times to justify the current valuation. That’s still very expensive, and render this investment to more speculations in the coming months.
The milk war is already taking victims.
So, what happened?
You’ve heard of so many wars. The trade war is a classic one. The streaming war, the delivery war, and war on cash are some of the other most talked-about topics. But, what about the milk war?
You’ve seen it at your local grocery store and coffee shop. Soy milk, almond milk, cashew milk are some of the soldiers of this war. Even oat has its own milk. The milk war has gone so cut·throat that America’s largest milk producer is going bankrupt. Dean Foods (Ticker: DF) stock has lost 80% this year, and it’s just going bankrupt now.
Dean Foods has a mountain of debt, and can’t afford its employee’s pension costs, and as such, it is filing for bankruptcy. It’s sad because some retired people had put all their lives in serving America with fresh milk, and they may be losing their pension now. War is never good, even if it’s just a milk war.