We scour the net for great ideas, so you don't have to
Claim this username to collect earnings from this post, and the portfolio!
So this week we had multiple earnings that in my -30% ytd opinion (fucking tesla), revealed a shit ton about macroeconomics.
Study #1 Coca Cola, Chipotle & Dominos Pizza
All of these boys had earnings this week.
Coca cola beat revenue by a BILLION. A billion. For reference, Coke makes 9 billion a quarter. Restaurants are booming. Inflation has not harmed as much as the media feared. (ex. Oh no big mac costs 30 dollars I won't eat out anymore)
CMG popped 8% on earnings then ran another 8%. Dominos did 14%. The pace of recovery is surprising wallstreet and stocks are responding. You know who directly benefits from booming sales? Payment processors. $SQ, $V, $PYPL
Square in particular has been punished for buying imaginary money with their own money. Long runway when they report unprecedented growth in their core business, CashApp and payment processing.
Study #2 Snapchat & Twitter
It is not surprising that when demand is robust, businesses are spending a ton to capture as much of that demand as possible. Snapchat announced today that they expect to grow 50% YOY. Fucking nuts. Tik Tok is also growing massively but they are not public. Twitter says their ad revenue is growing literally 7x in certain cities. You fucking know it that google and facebook have good news too. $ROKU and $TTD in particular is sitting way way below ATH.
If my retarded ass can deduce this, you know big boys are already on it.
Be ware that Fed speaks next week. Volatility should be expected.
Disclosure: Author is FOMOing bigly into earning calls tomorrow and typing this up to hype himself up. This may be a portfolio eulogy. Going ham into 5~10% otm calls no more than 1 month to expiration. The larger the pre-earning run, the less likely author will hold calls into actual earning report.
Starbucks ($SBUX) 7/27 - recovery sales surprise
Paypal ($PYPL) 7/28 - payment processer leech
Facebook ($FB) 7/28 - ad play
Shopify ($SHOP) 7/28 - e commerce & recovery spending
Amazon ($amzn) 7/29 - e commerce & ad play & cloud growth that comes with any growth & below ATH
Square ($SQ) 8/5 - payment processor leech & recovery surprise & below ATH
TradeDesk ($TTD) 8/5 - ad play & below ATH