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🍺 Hold My Beer
Sam Adams earnings shine a spotlight on the alcohol vs. cannabis debate. Plus, why Intel's turnaround story is a work in progress.
Brooks Dyroff
April 26, 2024
Happy Friday, Zingernation! When you’re going to a concert, chances are you don’t want to hear the artist perform some new experimental album. No, you’re there for the hits. Well, sometimes, the market needs to just play the hits too. The S&P 500 closed higher today, following strong earnings reports from Google and Microsoft — a.k.a. the usual suspects.
Will Apple and Amazon follow suit next week? Or will it be all setlists full of deep cuts and stages slick with rotten tomatoes?
–Aaron Bry and Nic Chahine
Today’s Price Action:
$SPY: +.95%
$QQQ: +1.54%
$DIA: +.36%
Plus, check out the lithium company helping power the EV boom.
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TODAY’S MOST VOLATILE STOCKS
TODAY’S TOP STORY
Briefly: Sam Adams-maker Boston Beer Company isn’t seeing its cannabis-infused beverage segment tap revenue from its flagship lager.
What Happened: The company disclosed its financial results for the first quarter, with its performance exceeded analyst expectations.
Specifically: The company reported a net revenue of $426.1 million That’s more than 3.1% higher than analyst estimates of $413.21 million. Earnings per share (EPS) of $1.04 was above the analyst estimate for EPS of 9 cents.
Why It Happened: Sam Adams likely owes some of its success to the backlash Anheuser-Busch Inbev faced from right-wing boycotts after the Bud Light parent’s promotional campaign with transgender influencer Dylan Mulvaney.
Why It Matters: THC’s so-called cannibalization of alcohol doesn’t seem to resonate at Sam Adams. Tilray Brands’ performance also supports this hypothesis. The Florida-based cannabis company, which purchased craft beer brands from AB Inbev, saw alcohol revenue spike 117% to $47 million.
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PRESENTED BY ATLAS LITHIUM
The global push to reduce carbon emissions has fueled a surge in the electric vehicle (EV) industry, with the global EV market projected to reach $951.9 billion by 2030. This growth is underpinned by the increasing demand for lithium-ion batteries that power EVs, which has led to concerns about supply chain risks. With Australia, Chile, China, Argentina, and Brazil being major contributors to global lithium production, the development of new lithium projects in regions with large reserves has become crucial.
Atlas Lithium (NASDAQ: ATLX) is focusing on Brazil's lithium valley, aiming to capitalize on its extensive reserves. The company has secured strategic partnerships with key industry players, guaranteeing the sale of 80% of its phase 1 production capacity. With ambitious targets and a competitive edge in low capital expenditure to production, Atlas Lithium could be poised to emerge as a leading supplier in the Brazilian market amidst the expanding EV industry's demand for lithium.
ONE TRADE IDEA FOR NEXT WEEK
Briefly: Intel’s stock fell after reporting a first-quarter revenue miss and weak Q2 EPS guidance.
So Basically: The company’s quarterly earnings of 18 cents per share beat the consensus estimate by 28.57%. However, sales of $12.72 billion missed estimates by 0.44%.
So Then: CEO Pat Gelsinger remains confident in company’s future, proclaiming “Intel is back.” But analysts aren’t so sure.
So What? Wedbush analyst Matt Bryson said Intel is “still a work in progress,” noting below-expectations guidance, despite prior commentary suggesting a larger backlog and increased AI accelerator spending.
What Next: JPMorgan Chase analyst Harlan Sur reiterated Underweight on Intel stock, reducing the price target from $37 to $35 a share, while Goldman Sachs analyst Toshiya Hari maintains his Sell rating on the stock, reducing the price target from $39 to $34.
PRESENTED BY ATLAS LITHIUM
The global push to reduce carbon emissions has fueled a surge in the electric vehicle (EV) industry, with the global EV market projected to reach $951.9 billion by 2030. This growth is underpinned by the increasing demand for lithium-ion batteries that power EVs, which has led to concerns about supply chain risks. With Australia, Chile, China, Argentina, and Brazil being major contributors to global lithium production, the development of new lithium projects in regions with large reserves has become crucial.
Atlas Lithium (NASDAQ: ATLX) is focusing on Brazil's lithium valley, aiming to capitalize on its extensive reserves. The company has secured strategic partnerships with key industry players, guaranteeing the sale of 80% of its phase 1 production capacity. With ambitious targets and a competitive edge in low capital expenditure to production, Atlas Lithium could be poised to emerge as a leading supplier in the Brazilian market amidst the expanding EV industry's demand for lithium.