Oct 27, 2021 Sign Up

Together With

"Don’t avoid eye contact and don’t be late." ― Jack Dorsey

Good morning! Tropicana, the orange juice maker, is running out of ideas and is releasing a limited edition Tropicana Toothpaste on Nov. 1st. Meanwhile, things are getting weird over at Chipotle too. The company is opening a new restaurant on a gaming platform. It will open a virtual location on Roblox later this week, where fans can get a code for a free burrito (more proof that we're living in a simulation?). 

Want to play like pro athletes? Send your sports clips to the pros to get 1-on-1 private coaching videos.

Forwarded email? Subscribe here.

1. Story of the Day: Peloton or Gym?

Peloton or the gym? Most people are choosing both. Investors had made a bet that consumer fitness was an either or choice. Either people would return to the gyms or they won't go all in on an expensive Peloton. 

The pandemic is causing people to workout more and use a more hybrid approach to their fitness than just being tied to the gym or their peloton bike e.g. you’re working out at home three days a week, going to your local studio one day, and the next day you are going for a run with friends.

The stocks of Peloton and Planet Fitness reflect this thinking. Last year, Peloton shares surged more than 440%, while Planet Fitness’ stock eked out a 4% gain. This year, Peloton shares are down 36% to date, while Planet Fitness is up about 2%.

Brands are increasingly focusing on building community in the post-pandemic era, which will be key for brands competing in the next few years of transition. “When you see someone wearing Peloton, you realize you’re part of that community together, and there’s something sweet about it, it’s really powerful,” said Jill Foley, vice president of apparel at Peloton.

Short Squeez Takeaway: People realized in the pandemic they don't have to go to the gym to stay healthy. Flexibility is the need of the hour, with all the remote work and increasing travel people are doing. That means that home fitness and gyms can continue to co-exist for the foreseeable future.

Source: CNBC, Bloomberg

2. Markets Rundown

• Stocks rose modestly yesterday with tech and healthcare stocks doing the heavy lifting for the market, ending the day with solid gains
  

Movers & Shakers

• (+) NVDIA ($NVDA) +7% after analysts on Wall Street viewed Facebook's planned spending on data and network infrastructure as a positive for chipmakers.
• (+) United Parcel Service ($UPS) +7% following the company's better-than-expected quarterly earnings and revenue.
• (–) Lockheed Martin ($LMT) -12% after it reported a quarterly revenue miss and lowered its expectations for next year.
  

3. Top Reads

A Message from Masterworks: The Unexpected Way Millionaires Invest in Alternatives (And How You Can Too)

“Inflation is transitory.” 🚩🚩🚩🚩

Even 1st-year analysts know that inflation could turn your $100K savings into $95K very soon.

But millionaires aren’t worried. Why? Because they allocate ~30% to alternatives like art. 

Their thesis:

1. Contemporary Art returned 23.2% during periods with 3%+ inflation (aka now) 

2. S&P 500 returned 3.8%

3. Doing nothing could turn your cash into trash

But if you can afford to invest in art you dgaf about cash.

For the rest of us, there’s Masterworks.io, NYC’s newest $1B unicorn. You can access this unexpected and potentially lucrative asset class thanks to them. 

They use data to identify key works by artists like Picasso, Banksy, and Basquiat—then securitize and issue shares of those paintings on their revolutionary technology platform.  

They have over 230,000 users, many of whom are Short Squeez subscribers.

And hundreds of investors already got a 32% return in 2020. 

Why not join them? Click this link for priority access*

4. Book of the Day: Dune

Frank Herbert’s classic masterpiece—a triumph of the imagination and one of the bestselling science fiction novels of all time.

A mythic and emotionally charged hero’s journey, Dune tells the story of Paul Atreides, a brilliant and gifted young man born into a great destiny beyond his understanding, who must travel to the most dangerous planet in the universe to ensure the future of his family and his people.

As malevolent forces explode into conflict over the planet’s exclusive supply of the most precious resource in existence—a commodity capable of unlocking humanity’s greatest potential—only those who can conquer their fear will survive.

5. Short Squeez Picks

• The iPod and iPhone were not successes right out of the gate
  
• Dune: now a major motion picture (Trailer)
  
• Crypto fund inflows hit record $1.5B
  

6. Daily Visual: The Gender Pay Gap

Source: Statista

7.  Daily Acumen: Entitlement

“A feeling of entitlement is hard won. You suffered to get to this spot. You were mistreated. You worked hard. You paid your dues. You were treated unfairly. It’s your turn.

Our entitlement isn’t helpful. Feeling entitled doesn’t make it more likely that others will listen to you, do what you ask or respect you. Feeling entitled doesn’t get you a sale or make it easier to merge into moving traffic, no matter how long you’ve been waiting.

So yes, you’re entitled. We all are, sooner or later. But feeling that we’re entitled and demanding that others realize that we’re entitled is completely useless and might even get in the way of the work we hope to do.”

Source: Seth's Blog

8. Memes of the Day

Love Short Squeez? Share it with your friends!

*See important disclosures