July 23, 2020

Facebook Responds... Finally

After a horde of companies announced they were boycotting the use of Facebook Ads (NASDAQ: FB), the company finally declared that they are going to investigate racial discrimination that may be built into its algorithms.

This announcement comes just after Disney (NYSE: DIS), Facebook’s largest advertiser, made it known that they would be cutting back on all ads run on the site. After spending an ungodly amount over the first half of 2020, this move was definitely one of the leading factors in the internal investigation. 

Shares of Facebook fell 3% to 232.60. Facebook hasn't traded this low since early July.

The SPY Started To Cry

This week The S&P 500 (NYSE: $SPY) broke through key resistance at $320. Investors kept the momentum going all week... Well until today, The S&P 500 broke its 4 day winning streak. The decline was mainly led by Microsoft earnings and guidance from Goldman Sachs warning investors on Apple's near-term prospects. Key economic date was also reported that showed 30 million workers still collecting jobless benefits. 

EVO has been heavily focused on the key level around $320. Investors will watch if SPY can bounce off this past key level of resistance and use it as support.

Tesla heads to the Lone Star State

After an electric announcement of a profitable quarter last night, Tesla (NASDAQ: TSLA) confirmed this morning that they will be building a new Gigafactory outside of Austin, Texas.

The factory will be used to produce the new CyberTruck, Model Y, and keep up with demand for the

Model 3. The factory will also aim to create nearly 10,000 new jobs in Texas.  

Even with the news and the run up last night, TSLA managed to find its way down 5% today--some analysts are beginning to second guess the strength of the earnings.

Twitter Making Moves

Twitter (NYSE: TWTR), after facing a massive breach of large accounts last week, announced that they are planning on removing nearly 150,000 accounts associated with the QAnon movement. 

The QAnon *conspiracy theory* states  an alleged "deep state" is working against U.S. President Donald Trump and his supporters.

Yeah…. read that again. Its weird. Very weird.

Twitter announced they would be doing this in an effort to regain the trust of their constituents. Jack Dorsey said “twitter is extremely sorry.” On behalf of all Twitter uses, we thank you for the apology, Jack. 

Flying High

Despite reporting losses of more than 80% of revenue in Q2, airlines are starting to fly higher once again. There’s a few factors keeping these guys in the sky, but some of the most clear has to be the reduction of burn rate combined with access to capital from the government and new investors.

From puts in March to calls in April to puts in June to calls in July, airlines really have had a bumpy run at it. Could this be the end of there troubles, or are there stormy skies still ahead?

Wassup With Whatsapp?

The latest move from the global messaging application owned by Facebook (NASDAQ: FB) has been to become a bank? 

FB plans on leveraging the already global service to reach those yet to be financially empowered, particularly in India, by offering credit, pensions, and insurance. 

The announcement certainly raised our analysts’ eyebrows. Now all that we’re asking is what business FB won't be able to get into.