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- 💰 Scared Money Don't Make Money
💰 Scared Money Don't Make Money
Intel is eating losses now in hopes that it pays off down the road, ULTA Beauty needs a makeover and more
Brooks Dyroff
April 03, 2024
Happy Wednesday Zingernation! Sometimes you gotta spend money to make money. At least that’s what I tell myself when I log into my sportsbook app. But that usually turns into ‘sometimes you need to spend money to lose money.’
Intel hopes to have a better ROI on its money spent as the tech giant lost $7 billion on its foundry business last year (its chip-making arm). But that’s just a drop in the bucket compared to the $100 billion Intel plans to spend on chip manufacturing infrastructure in the U.S. in four different states. You know how the saying goes, “Scared money don’t make money.”
Today’s Price Action:
$SPY: +.11%
$QQQ: +.22%
$DIA: -.09%
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TODAY’S MOST VOLATILE STOCKS
TODAY’S TOP STORY
Briefly: Disney announced a resounding victory against activist investors Wednesday at its annual meeting.
The Details: The company’s entire slate of 12 directors won “by a substantial margin” against the candidates proposed by investment firms Trian and Blackwells, the House of Mouse said.
Why It Matters: The shareholder vote comes at a critical juncture and marks a significant endorsement of Disney’s strategic direction and leadership.
I’m Not Leaving: Shareholders overwhelmingly endorsed CEO Bob Iger, who secured 94% of the votes cast, according to The Wall Street Journal, citing sources familiar with the matter. Disney director Maria Elena Lagomasino garnered 63% of the vote, while Nelson Peltz, the nominee from Trian, received 31% of the votes cast.
Quoted: "While we are disappointed with the outcome of this proxy contest, Trian greatly appreciates all of the support and dialogue we have had with Disney stakeholders. We are proud of the impact we have had in refocusing this Company on value creation and good governance,” Trian said in a press release.
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FIVE MOVERS
SoFi’s stock looked SoGood today after some bullish analyst coverage from Needham, closing up more than 4%.
Tilray, one of the leading companies in the cannabis space, got pretty high today, closing up more than 15%.
Ulta Beauty’s stock got crushed today, trading down nearly 15%, unable to make up the losses after the company reported slowing growth.
Citi Bank’s stock took a hit today as analysts appear wary of the financial stock ahead of its upcoming earnings report.
Ocugen’s stock moved higher today by about 9% after the company reported bullish financial data and business activities.
ONE TRADE IDEA FOR TOMORROW
Briefly: Truist Securities analyst William Stein reiterated Tesla with a Hold and lowered the price target from $193 to $176.
Some Context: Yesterday Tesla reported first-quarter 2024 deliveries 15.4% below FactSet consensus, citing various factors. This, combined with Stein’s proprietary ASP analysis, led him to reduce his annual unit delivery, revenue, & EPS estimates for calendar year 2024 & calendar year 2025.
Down The Road: Longer-term, he noted Tesla as a significant supplier of AI tech. Unfortunately, pricing & demand dynamics diminish the value of the automotive business and AI updates continue to disappoint.
Some Setbacks: A press release blamed the decline in volumes as partially due to the early phase of the production ramp of the updated Model 3 at its Fremont factory, combined with factory shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin.
Click here to read the full breakdown.
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