Sep 16, 2022
📈 Sep 15 — Daily Stock Market Headlines 🚀 (Adobe, Figma, FedEx, and more)
Most important business news at a glance for busy investors
Macro
🔸 S&P 500 -1.13% Nasdaq -1.43% ➡️ Major averages were on pace toward their fourth losing week in five after the surprisingly hot CPI report.
🔸 Inflation ➡️ Bridgewater’s Ray Dalio said that the inflation rate would stay significantly above what Fed wants it to be.
- His guesstimate is that the inflation rate would stay between 4.5% to 6% for the next 10 years and an economic contraction would be required
- He also estimates such a rate would have a twenty-percent negative impact on equity prices.
🔸 Housing ➡️ 30-year fixed-rate mortgage averaged 6.02% for the week ending Sep 15, up from last week’s 5.89% average and from 2.86% average a year ago
Industry
🔸 Airline ➡️ Southwest Airlines noted business travel remains well below the 2019 level and narrowed revenue guidance for the third quarter.
- “July and August 2022 managed business revenues were down approximately 26% and 32%, respectively, both compared with their respective 2019 levels”
Stock
🔸 Adobe (ADBE) ➡️ Adobe released earnings results and announced the acquisition of Figma for $20B dollars.
- Figma is a great company with ~90% gross margin and >150% net dollar retention rate.
- Figma is expected to add $200M to $400M ARR to Adobe, which is only 1% — 2% of Adobe’s annual revenue.
- Adobe paid $20B for $200M — $400M annual revenue, equivalent to a 50–100 P/S ratio, which is too high under current market conditions.
- However, the Adobe-Figma deal will eliminate competition and remove the possibility of other SaaS giants such as Microsoft or Salesforce, acquiring Figma.
- 🔗 Press Release
- 🔗 Adobe’s Acquisition of Figma
🔸 FedEx (FDX) ➡️ FedEx dropped 15% after quarterly results that wildly missed estimates.
- Business is impacted by the softness and challenges in Asia and Europe.
- FedEx also withdrew its 2023 guidance and announced a cost-cutting plan including 90 office closures.
- This warning was dramatically different from the optimistic tune two months ago.
🔸 General Motor (GM) ➡️ General Motor plans to invest $491M to support EV production
🔸 Bed Bath and Beyond (BBBY) ➡️ Bed Bath and Beyond listed 56 locations slated for closure including locations in Stamford, Connecticut, Paramus, New Jersey, Tucson, Arizona and Sandusky, Ohio.
🔸 Roku (ROKU) ➡️ Roku’s SEC filing propped some investors to believe that a takeover offer may be coming.
- Roku updated its severance benefit plan, in the event of a change control, according to an 8-K filing.
🔸 Tesla (TSLA) ➡️ Tesla plans on closing some high-cost showrooms and focusing on expanding its services in China.
- Tesla’s job site has more than 300 service positions open right now.
🔸 Roblox (RBLX) ➡️ Roblox on Thursday reported August business metrics.
- Estimated revenue was between $208M and $211M, up 22% to 24% Y/Y.
- Estimated average bookings per daily active user was down 14% to 16% Y/Y.
- Daily active users in Aug. were 59.9M (+24% Y/Y) and hours engaged were 4.7B, up 18% Y/Y.
🔸 Disney (DIS) ➡️ Disney CEO said ESPN is looking for a partner to do the sports gambling business.
- He emphasized that Walt Disney Company would never enter the sports betting business by itself.
🔸 Texas Instruments (TXN) ➡️ Texas Instruments raised its dividend by 8% to $1.24 and authorized a $15B buyback
