Daily Update

Daily Brief 12/2 – Lackluster Cyber Monday

Cyber Monday: Per Barrons, “According to Adobe, Cyber Monday sales reached $10.84 billion, rising more than 15% year over year. That is at the low end of the 15% to 35% range the firm projected, but still makes it the largest online shopping day in U.S. history. Adobe now expects online sales to reach $184 billion for the holiday season as whole, down from a prior estimate of $189 billion.”

Is this a case of Cyber Monday not really being a cultural force anymore or is shopping traffic not hitting the expectations purely? Time will tell, but Amazon did capture nearly 20% of Black Friday-Cyber Monday long weekend spend according to Numerator data.

Also according to Sensormatic Solutions, 2020 Black Friday weekend store traffic was down 49% compared to 2019.

US Bankruptcy tracker: There was just one company with more than $50 mm in liabilities filing Chapter 11 in the week ended Nov 28. This makes November the lightest month of the year with only 11 filings. However there have been 228 bankruptcy filings year-to-date by companies with more than $50mm in liabilities, the highest since 2009 when it was 275.

Kelly Conlan, managing director at Duff & Phelps LLC said, “The next wave of filings will come from the companies which continue to be impacted by the pandemic, even after a vaccine is distributed.” Providers of travel products and services are most at risk as work-from-home measures become entrenched and their clients transition to video communication, according to Conlan. She goes on that retail, minus Amazon and Walmart, will also struggle after another disappointing shopping season.

Zoom zooms down: Zoom feel 15.06% after reporting blockbuster earnings yesterday. The market is beginning to question whether the momentum in results like these can be sustained once we go back to ~normal. Zoom has surged over 500% this year.

This is indicative of the theme we highlighted yesterday, did some companies have a brief moment in the sun because of Covid or was their growth and secular story genuinely accelerated. The market is beginning to distinguish between the two.


Tweets and charts we like:

This is more about Greeks and dark pool trading, but take a dive if you’re interested!

Moderna’s vaccine is currently the most expensive

Bill Ackman on what makes a great investment

Online ad revenue index skyrocketing

Millions set to lose jobless aid as federal programs expire.

That’s your millennialmkts daily debrief. Thanks for reading, if you like this content please consider following this blog and following us on twitter @millennial_mkts

Posts are not investment advice or endorsements.

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