When Deals Cry
Dig, if you will, the picture … of Echelon and Amazon.com Inc. (Nasdaq: AMZN) engaged in a tryst.
The sweat of Peloton Interactive Inc. (Nasdaq: PTON) investors covers them. Can you, dear reader? Can you picture this?
Dream, if you can, a video app — TikTok profits in bloom. Gen Z kids strike curious poses. They feel the heat — the heat between the U.S. and China.
What … wait … what? Have you gone and lost your mind, Mr. Great Stuff?
Don’t worry, I won’t leave you standing alone in a market so cold. We have a twofer in the “when deals cry” department today, and I felt … inspired. So, let’s start on deciphering my gibberish, beginning with Amazon.
Yesterday, Amazon supposedly took the wraps off its new collaboration with Echelon stationary bikes. At least, according to Echelon.
The product listing for Echelon’s new “Prime Bike” on Amazon.com looked awfully official as well, with phrases like “Amazon’s first-ever connected fitness product” and “developed in collaboration with Amazon.”
This bike is not an Amazon product or related to Amazon Prime. Echelon does not have a formal partnership with Amazon. We are working with Echelon to clarify this in its communications, stop the sale of the product and change the product branding.
Looks like Echelon has some ‘splaining to do, much to the relief of Peloton investors. PTON shares regained yesterday’s losses, while AMZN gave back yesterday’s gains.
Moving on to TikTok, the acquisition deal with Oracle Corp. (NYSE: ORCL) and Walmart Inc. (NYSE: WMT) ain’t happening. And, no, it’s not the White House or President Trump.
According to an editorial in the China Daily, China will likely not approve the “dirty,” “unfair” deal. The editorial called the entire premise of the deal “bullying and extortion.”
While this is just an editorial in a Chinese newspaper, said paper is the official English-language newspaper of the Chinese government. The China Daily is often used as a backchannel for China to “unofficially” take a stance on global matters without the government saying anything “officially” unpleasant. I mean, Chinese politics … am I right?
Maybe China’s just too demanding?
Maybe President Trump’s just like his father, too bold.
Maybe investors are just like my mother, she’s never satisfied. (Actually, she’s quite proud of me. Just saying.)
In the end, everyone’s kinda screaming at each other. This is what it sounds like … when deals cry.
But “crickets” is what it sounds like when you look in our inbox this week. Let’s fix that, Great Ones!
Here are a few conversation starters:
- Will there ever be a rival to match the Almighty ‘Zon? (Not you, Walmart…)
- What do you think about China clamping down on TikTok?
- What story is everybody sleeping on?
- If I go the speed of light in my car and turn the headlines on, do they do anything?
- Would it make a difference if my car was a Tesla?
Email us! Drop us a line at GreatStuffToday@BanyanHill.com and let us know!
Finally, I mentioned this earlier in the week — that’s code for “listen up, you slackers way in the back” — but last night, Paul pulled back the curtain on his Secret Portfolio.
Secret, secret? Paul’s got a secret?
The kinds of stocks he personally invests in! And you’ll learn about new technologies and industries on the rise that he believes are going to take the world by storm in the coming decade. (By the by, he’s not talking about the Internet of Things, artificial intelligence or 5G either.)
Aurora Cannabis Inc. (NYSE: ACB) released earnings this morning that were horrible enough to inspire our Poll of the Week.
How bad were they?!
Aurora lost more than $3.3 billion in its last fiscal year — in precious maple money, mind you. But still, how do you blow $3.3 billion on pot and not invite Great Stuff?
For shame, Aurora.
The company’s up to, what, its third CEO of 2020?
Revenue only dropped 5% on the quarter, surprisingly. But why is revenue dropping at all?
I mean, we’re all locked down and bored at home! It’s the perfect market for a pot stock comeback. Does Aurora only sell stems and seeds?
Apparently so, because the company guided revenue lower for the next quarter as well.
The market treated ACB like day-old skunky bong water, dumping the shares down the toilet for a more than 20% loss. In the past year, ACB is off more than 90%!
It’s enough to make Canopy Growth Corp.’s (NYSE: CGC) 41% drop in the same time frame look mellow by comparison.
So, where do pot stocks go from here? A few Great Stuff readers have asked if we’ve seen the sector’s stoned, rocky bottom and if it’s finally time to buy.
If you go by the creatively named Alternative Harvest ETF (NYSE: MJ) then no — peak pessimism was back in March — conveniently lumped in with the rest of the market’s pessimism. Granted, the real pessimism is thinking the worst is yet to come, which brings us to this week’s poll…
We want to hear what you think about pot stocks in this day and age. Have you ventured into the now-dirt-cheap pot sector? Or did you never cash out, getting ground up with the sector’s collapse?
Click below and let us know!
In last week’s poll, we brought up that old ghost still looming over the pandemic recovery battlefield — stimulus. We had one stimulus yes … but did you and your fellow Great Ones feel the need for a second stimulus?
Well, no, but also yes. Just over 52% of you were indifferent about the need for speed (and stimulus) but would take the money if it just so happened to land in your mailbox. I mean … why not? Free lunch, am I right?
Roughly 19% of you voted against a second stimulus, but for the 29% of you who are down with a second cache of cash, trust that you aren’t alone. We’ve mentioned “lack of consumer confidence” for how many weeks now? Since … July?
Maybe every time we ask you about stimulus, it sets us back a few more months. Hmm…
1 Order of Feedback — on the Double!
This is usually what the Great Stuff team and I look like by this time of the week — buried beneath a sea of your shining snark, criticisms and witticisms.
Usually. That’s the keyword here, seeing as we’re still waiting for our favorite reader to write in. (That’s you, by the way!)
So why not drop us a line and fill our mailbox with your rambling thoughts, questions or answers, crackpot conspiracy theories, geopolitical rants and whatever else makes you say: “YES! I need to share this with Joe!”
GreatStuffToday@BanyanHill.com. Show that inbox some love!
There’s but one day left to make sure your email reaches our inbox to be featured in this week’s installment of Reader Feedback. Of course, you can also follow along with social media in the meantime: Facebook, Instagram and Twitter.
Until next time, stay Great!
Joseph Hargett
Editor, Great Stuff