HAPPY FRIDAY TO THE STREET
While G20 stokes debates about the exciting technology of the present, Berlin's IFA show is quietly pitching a pretty boring future.
So far, the most notable product announcements include a $1,199 iRobot (IRBT) robovac that drops a skirt to boost suction, a laptop you can crack open and upgrade yourself, and a Dell (DELL) MacBook Neo rival.
Meet the new ideas, same as the old ones.
🟥 | US stocks slid today on a better-than-expected jobs report, which markets read as another sign pointing toward a rate hike this month.
📈 | One Notable Gainer: AMC Entertainment (AMC) rose after its CEO blasted Robinhood's stock tokens as "contemptible."
📉 | One Notable Decliner: Lululemon (LULU) tumbled on a weak current-quarter forecast.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
ADOBE, SANDISK, TESLA
📉 | Adobe (ADBE) fell after naming Anil Chakravarthy its next CEO.
📈 | Sandisk (SNDK) climbed as semiconductors rallied ahead of the long weekend.
📉 | Tesla (TSLA) drew an NHTSA investigation into whether its Cybercab meets federal safety standards.
📈 | Quanex Building Products (NX) beat Q3 earnings and revenue estimates.
📉 | Fair Isaac (FICO) slid after the FHFA director said credit bureaus have overcharged Americans for too long.
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FEES THE DAY
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Contempt Aside
AMC's CEO may have called Robinhood's stock tokens are “contemptible”. But Deutsche Bank just called them a “Buy”.
Analyst Brian Bedell raised his price target on the trading app and lifted his EPS estimates, pointing to a sharp acceleration in fee revenue from Robinhood Chain.
Links In The Chain
Robinhood Chain, launched earlier this year, is a blockchain that supports crypto buying and selling. Robinhood collects a cut of every trade that runs across it.
Using public DeFiLlama data, Bedell notes daily chain revenue sat below a roughly $200K run rate through mid-August, then jumped to nearly $500K in late August and more than $4M to start this year.
The analyst cautions that visibility into how long the momentum holds is limited. But the data he does have suggest nearly $11M over five days, roughly $5.4M of fees to Robinhood, against his prior full third-quarter estimate of $4.6M.
Street Cred
Of the 29 analysts covering Robinhood, 24 rate it a Buy or Strong Buy. Shares are firmly in the green over the past three months and rallied again this week on prediction-market enthusiasm.
The stock tokens may be contemptible. The fee stream, evidently, is not.
Do you own any shares of Robinhood Markets (HOOD)?
OVERHEARD ON THE STREET
💼 The US economy added 162K jobs in August, more than double the 65K economists expected.
👩💼 Women accounted for 158K of August's 162K job gains, roughly 98% of the total.
⛽ US diesel hit a record $5.85 a gallon average, lifting freight costs across the grocery aisle.
🏦 The US sanctioned Turkish lender Golden Global for moving Iranian oil revenue from China into cash and gold.
🚗 Volkswagen's (VWAGY) board approved a plan to double job cuts to 100K and halve its model lineup.
THURSDAY'S POLL RESULTS
Do you own any shares of Broadcom (AVGO)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “It continues to generate remarkable cash flow and is still the dominant player in its field. The company is innovative and flexible; it will remain so in the near future.”
🐂 Yup, I’m holding — “I'm holding this stock for the long term. It's in the penalty box right now but will be back in the game soon.”
🐻 Nope, not interested — “Not looking at this sector at this time.”
