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The Investing Week Ahead: 11/22/21

Highlighting the most important topics to attack the investing week ahead.

22 Nov

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As well as a giant heartful apology about getting this issue out so late in the day this Monday - as many of you read yesterday, I’ve been out of the office since Thursday afternoon and just sat down at my desk.

Finally, an even bigger thank you to Substack for featuring Rate of Return on their homepage - linked here. There are tens of thousands of incredible publications on this platform, and I’m honored that Substack’s team selected ours as a premier example - showcasing this achievement to over 25 million monthly readers.

If you’ve been with us since our launch in early-October, thanks for sticking around! Maybe one day you’ll be able to say “Oh, Rate of Return? I’ve been following them since they only had a few thousand subscribers!”

All jokes aside - I’m grateful for every single one of you. I know we’re backed up on content and I have every intention to publish daily throughout the week.

In this post, we’ll cover:

  • Hot IPOs taking place this week

  • Quarterly financial reports worth reading

  • Investor events to keep an eye on

  • Major economic releases

If you want to learn more about the companies mentioned in this post, consider using Unhedged to conduct your research.

The Investing Week Ahead - Too Long, Didn’t Read:

No IPOs this week. Zoom Video Communications, various retail chains, and Analog Devices report their financial earnings. Needham & Company is hosting a virtual investor conference with participation from Fiverr and Penn National Gaming. We’ll get some color regarding real estate and personal spending later this week from the Bureau of Economic Analysis.

IPOs to Watch this Week:

None! It’s Thanksgiving, y’all.

No one “big” is going to make their public debut during a short trading week (closed on Thursday). If you missed last week’s IPOs, however, we had both Sweetgreen (SG) and Braze (BRZE). 

Read all about their IPOs and my thoughts below.

Key Earnings Announcements:

Everyone’s favorite COVID stock, Zoom Video Communications (ZM), as well as a bunch of my retail favorites are reporting their Q3 earnings results this week. 

November 22: Zoom Video Communications (ZM)

November 23: Dell Technologies (DELL), Analog Devices (ADI), Best Buy (BBY), Dollar Tree (DLTR), Dick’s Sporting Goods (DKS)

November 24: Deere & Company (DE)

Heads up - Zoom Video Communications (ZM) already reported their earnings (again, sorry for publishing this so late) and they didn’t look half bad. Of course, everyone was looking at revenue growth - which slowed from quarter to quarter, but still spiked +35%. The good news? 2,500+ enterprise customers are now paying Zoom $100K annually, a +94% increase YoY.

Wall Street remains long-term bullish on the stock and are empathetic to the tougher comps the company experienced this quarter. They’ve also called out Zoom Phone as a “significant additional growth opportunity,” for the company.

I think Zoom, especially now that it’s trading lower than it was pre-COVID from a TTM EV/Sales multiple perspective represents a solid risk / reward outcome on a long-term timeline.

Investor Events:

One major event with a lot of participants - usually how things go. 

November 22: Needham & Company’s Annual Consumer Tech/Ecommerce Virtual Conference - presenters include..

  • CEO of Fiverr (FVRR), Micha Kaufman

  • CEO of Penn National Gaming (PENN), Jay Snowden

  • CEO of Petco (WOOF), Ronald Coughlin

  • CEO of 1stdibs.com (DIBS), David Rosenblatt

  • CEO of ThredUp (TDUP), James Reinhart

Honestly this could be interesting for Fiverr or Penn National Gaming - these two companies have been hot stocks recently. I’ll read around and see if there’s anything worth sharing.

Major Economic Updates:

Real estate and personal spending - my favorites. 

November 22: US Existing Home Sales for October 2021 from the National Association of Realtors

November 24: US New Home Sales for October 2021 from the Census Bureau, US Personal Income and Spending for October 2021 from the Bureau of Economic Analysis

We need to see personal spending show very bullish momentum or I’m afraid the stock market correction we’ve been experiencing over the last few weeks could get worse as investors begin to fear a slow down in the economy.

On my to-do list:

  • Updated valuation analyses on Affirm, Upstart, Roku, Shift Technologies, Hims & Hers Healthcare, Porch Group, SmartRent, and a few others.

  • My crypto-focused exit strategy

  • Wall Street’s favorite stocks right now

Anything else you’d like to see in the coming week? Drop a comment below or text me and I’ll do my best to accommodate!

Thank you, again, for riding with me from “ just launched” to “featured publication,” I’m so excited for what 2022 has in store for us all!

Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

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