Aug 27, 2021 Sign Up

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"I've been a jerk on the internet since the internet started." – Martin Shkreli

Good morning and Happy Friday! The world of hackers keeps getting weirder. The T-Mobile hacker who stole data on 50 million T-Mobile customers said he did it to gain attention and also trolled the company by adding: "Their security is awful." 

We hope everyone has a great weekend and do not get hit with the "pls fix" at 6pm today. If you have not subscribed to Short Squeez yet, now is the time and this is the link.

1. Story of the Day: Peloton Down Bad

Peloton stock, once the darling of the pandemic, is tumbling after its latest earnings release. Its loss widened as the pace of revenue growth slowed dramatically and costs associated with a treadmill recall mounted. The shares fell as much as 15% to $97 following the release of its quarterly results and a worse-than-expected outlook for fiscal 2022.

Growth tapered off due to Peloton recalling both its Tread and Tread+ treadmill products in May, and temporarily halting sales of the machines. It is also facing stiffer competition from other at-home fitness businesses, such as Hydrow, Tonal and Lululemon-owned Mirror. Churn rate ticked up to 0.73% from 0.52% a year earlier, after hitting a 6-year low in the prior quarter.

Peloton slashed the price of its bike by 20% and announced a disappointing sales outlook number for Q2 of $800 million from $1 billion that analysts had estimated.

Even before Thursday’s slide, the shares were down 25% this year. Peloton had benefited from consumers exercising at home during the pandemic but as restrictions eased, the stock went in the opposite direction.

Short Squeez Takeaway:  With competition rising, Peloton discounting the bike and upping marketing is a clear signal that the cost to acquire customers is going up after being pretty much the only player in the pandemic. Peloton is working on other products such as rowing machines and wearable gadgets and might need them to save the day because the bikes and treadmills are not cutting it at the moment.

Source: Bloomberg & CNBC

2. Markets Rundown

• US stock indexes fell slightly on Thursday, snapping a five day win streak, after investors weighed data on second quarter economic growth and weekly jobless benefit claims, a day ahead of a speech by JPow

Movers & Shakers

• (+) Ascendis ($ASND) +21% after getting FDA approval for an important drug.
• (+) Coty ($ALC) +15% on strong fiscal Q4 earnings.
• (–) Abercrombie & Fitch ($ANF) -10% after a disappointing earnings report.
  

3. Top Reads

A Message from Roadway Moving: Elevate Your Moving Experience

Let’s face it, moving is one of the most dreaded life events. But it doesn’t have to be. Roadway Moving has brought the joy back to moving day. There’s a reason so many people are using Roadway Moving for their local and long distance moves. Their team works hard to make your move as stress-free as possible. That means no surprises on price. Always on time (OK, 99.3% on time). Clear communication before, during and after your move. Careful packing, unpacking and storage. They can even dismount your TV, pack your fine art, and carefully wrap that expensive Peloton!  And of course, they offer contactless moving along with industry leading safety protocols. So, whether moving across town or across the country, moving your home or business, Roadway Moving is a nicer way to move.

We’ve teamed up with Roadway Moving to offer you 10% off your local and 5% off your long distance moves. Check them out here and use code: OWS10.

4. Book of the Day: The Every: A Novel

When the world’s largest search engine/social media company merges with the planet’s most dominant e-commerce site, it creates the richest and most dangerous—and, oddly enough, most beloved—monopoly ever known: The Every.

Delaney Wells is an unlikely new hire at The Every. A former forest ranger and unwavering tech skeptic, she charms her way into an entry-level job with one goal in mind: to take down the company from within. With her compatriot, the not-at-all-ambitious Wes Makazian, they look for The Every's weaknesses, hoping to free humanity from all-encompassing surveillance. But does anyone want what Delaney is fighting to save? Does humanity truly want to be free?

Studded with unforgettable characters, the book blends satire and terror, while keeping the reader in breathless suspense about the fate of the company.

5. Daily Visual: OnlyFans Financial Overview

Source: Statista

6.  Daily Acumen: Different Games

An idea that’s obvious but overlooked is that investors on the same field play different games. We buy the same companies, read the same news, talk to the same people, are quoted the same market prices – but we’re everything from day traders to endowments with century-long time horizons. Even investors who think they’re playing the same game – say, stock pickers – have wildly different goals and risk tolerances.

Most investing debates do not reflect genuine disagreement; they reflect investors playing different games talking over each other, upset that people who don’t want what you want can’t see what you see. Understanding your game, without being swayed by people playing different games, is a rare investing power.

Source: Morgan Housel

7. Memes of the Day

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