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- 👉 The Investing Week Ahead: Bezos is Unloading AMZN
👉 The Investing Week Ahead: Bezos is Unloading AMZN
$595 million tax savings in Miami...
Welcome to your new week.
If you’re a Chiefs fan — congrats on your victory.
What a Super Bowl that turned out to be.
Football season is officially over, Valentine’s Day is on Wednesday, economic data like the CPI (inflation) and the Home Builder Confidence Index come at the end of the week, DraftKings will be formally discussing their Barstool Sports partnership, Bezos is cashing out on $2B of Amazon stock, and much more.
Key Earnings Announcements:
Airbnb, Cisco, Coinbase, Datadog, DraftKings, Marriott, Monday.com, Roku, Shopify, and Waste Management highlight the week.
Monday (2/12): Arista, Avis Budget Group, Cadence, Monday.com, Waste Management, ZoomInfo
Tuesday (2/13): Airbnb, Biogen, Coca-Cola, Datadog, Hasbro, Instacart, Lyft, Marriott, MGM Resorts, Restaurant Brands International, Robinhood, Shopify, Upstart, Zillow
Wednesday (2/14): Albemarle, Barrick, Cisco, CME Group, Fastly, Generac, HubSpot, Kraft Heinz, Occidental Petroleum, QuantumScape, Sony, Twilio, Upwork
Thursday (2/15): Applied Materials, Coinbase, Crocs, DoorDash, DraftKings, EPAM Systems, John Deere, Opendoor, Penn National Gaming, Roku, The Trade Desk, Wendy’s, Yeti
Friday (2/16): Air Canada, Arbor Realty Trust
What We’re Watching:
Immediately after the Super Bowl ended, DraftKings announced the rekindling of an old partnership — Barstool Sports.
You may remember that Barstool Sports was sold back to Dave Portnoy for $1 by Penn National Gaming (PENN). This is because Penn was pretty much going to become the backend for ESPN Bet: The Official Sportsbook of ESPN. The sports betting non-compete clause on Barstool’s contract with Penn expired at the end of the football season — so the second the game ended… DKNG x Barstool was announced. Expect to hear more about this during the DKNG earnings call.
Monday.com reported their Q4 results this morning and the stock is down quite aggressively in premarket trading (-11% at the time of writing). The main issue for analysts appears to be with wanting an even higher guidance. Stay tuned as we analyze their earnings and share our updated perspective on Sunday.
Investor Events / Global Affairs:
Another massive energy merger, Bezos is cashing out big time, and gamers are eager to hear Xbox updates from Microsoft.
$50B Oil-and-Gas Merger
Diamondback Energy (FANG) and Endeavor Energy Resources have merged to form an oil-and-gas company worth over $50 billion — driven by high oil prices and a competitive rush for prime real estate in the energy sector.
The deal, valued at around $26 billion for Endeavor, positions the combined entity as a dominant force in the Permian Basin — competing closely with industry giants like ConocoPhillips (COP) in terms of acreage and production.
This merger is part of a broader trend of consolidation in the oil and gas industry, following significant deals by Exxon Mobil (XOM) and Chevron (CVX). Diamondback's acquisition of Endeavor — a company with a coveted land position and a significant inventory of top-tier oil acreage — most notably marks a strategic expansion of its rapidly growing fracking operations.
Bezos Unloads $2 Billion of Amazon (AMZN) Stock, Plans Much More
Jeff Bezos, Amazon's executive chairman, sold nearly 12 million shares of Amazon stock (AMZN) — valued at more than $2 billion. The sale occurred on Feb. 7 and Feb. 8, with the stocks grouped in five blocks ranging from 1 million to over 3.2 million shares.
A separate SEC filing around Feb. 7 showed the proposed sale of 50 million Amazon shares by Bezos — valued at $8.4 billion. Bezos has moved from Seattle to Miami — a transition that will save him an estimated $595 million in capital gains taxes.
Gamers Await Microsoft’s (MSFT) Xbox Event
The CEO of Microsoft Gaming, Phil Spencer, announced that a business update event is coming this week for Xbox. Rumors have been swirling that Microsoft will be bringing Xbox first-party games to different consoles like PlayStation.
Analysts also expect updates surrounding the full implementation of Activision Blizzard games now that the MSFT <> ATVI merger has officially gone through.
Major Economic Events:
Interest rate speculation will return to the forefront this week.
Monday (2/12): Monthly U.S. Federal Budget, Speeches by Fed Governor Bowman and Minneapolis Fed President Kashkari
Tuesday (2/13): Consumer Price Index
Wednesday (2/14): Speeches Fed Vice Chair Barr and Chicago Fed President Goolsbee
Thursday (2/15): Capacity Utilization, Empire State Manufacturing Survey, Home Builder Confidence Index, Import Price Index, Industrial Production, Philadelphia Manufacturing Survey, Retail Sales
Friday (2/16): Building Permits, Consumer Sentiment, Housing Starts, Producer Price Index
What We’re Watching:
Headline inflation is expected to come in at +2.9% YoY after rising to +3.4% YoY in last month’s reading. This week’s release is very much expected to show if inflation is flatlining or if it’s returning in a more substantial manner.
Home builder confidence came in at 44/100 in January 2024 — up +25.71% YoY from 35/100 in January 2023. Last month’s report was highlighted by falling interest rates improving affordability conditions and bringing some buyers back to the market.
“As home building expands in 2024, the market will see growing supply-side challenges in the form of higher prices and/or shortages of lumber, lots and labor.” — Robert Dietz, Chief Economist at the NAHB
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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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