McRib, McDonald’s Oct 30 Financial News: Big Tech, McRib is Back, Walmart being Pro Active, Q4 GDP Growth?, Taiwan
Remember stay calm, don’t make any drastic decisions this week. Is this week’s been choppy uh? I expect to be delivering the same message next week. Uh. We just got to get through this we’re going to get through it together, we’re not going to be any rash decisions. Nothing emotional! I think a lot of people are gon na set themselves up this weekend to go flat again kind of take. You know options and take winnings off the table, probably see a lot of that on monday and uh we’ll see what happens next week, it’s going to be interesting so again, again, kind of being consistent here, stay calm. Another thing we do these daily financial news shows every every day, around 7 30, except sometimes on thursdays, given jonathan’s schedule or not. But again you will get these every day. They are live. So if you want to get your daily financial news, do me a favor hit that subscribe, hit, that notification button just realize. If you do hit the notification button, you will probably get three or four notifications a day. I do create a lot of original content. Every day is new. I do it to help people i’m trying to tackle topics that are interesting to you. I do all of these live, no editing, uh it’s a lot more efficient, and i think you just deserve reality. Right i don’t want to edit it and make it all look perfect. I have no interest in any of that, so at the end of the day, if you like that, if you want an honest assessment, uh go ahead and hit subscribe.
Of course, thumbs up are great. Graham stefan tells me the earlier you do that the better this video does so a thumbs up is always greatly appreciated, but at the end of the day, i’ve been doing these for over a year now, so you can go back and look at any day that You would like and kind of figure out what was going on. Maybe you want to look at your birthday. Maybe you want to look at your mother’s day father’s day. Don’T know you know, go back and take a look, see how we did uh as for today you know we’ll, summarize big tech. If you want to know the details, earnings per share revenue. All of that i did a video yesterday after hours, so that that conversation would not dominate this morning. If you’re interested in big tech go look at that video yesterday, it’s eight or nine minutes long. It goes through all of the earnings per shares in in revenue and things of that nature, but in short, uh, twitter and facebook kind of reported reported disappointing user growth, twitter added 1 million when they were expected at 10 million facebook actually lost 2 million folks in The u.s in canada it’ll be interesting to see if that netflix special social dilemma, i think it is called uh picks up steam and more and more people unplug from what has become. Arguably a very toxic platform. Uh amazon beat gave what i consider.
Conservative guidance for q4 did highlight four billion dollars in uh; basically, health and cleaning costs uh and then apple missed, iphone sales uh. I don’t know what you think about missing iphone sales. I think it was predictable right. Their release schedule was a little delayed this year, so the year on year, compare is tough plus they may they’ve been advertising that this was that one technology jumped to 5g, so there’s, probably lots of reasons people didn’t buy last quarter. I think this will be a makeup quarter for them, but we shall see so that’s kind of you know big tech. In a nutshell, if you want the history, go back and check yesterday’s video out again continuing the theme of retail uh accounts or stocks doing well. Uh under armor uh finally came out with a decent quarter. They’Ve been suffering quite a bit. They beat top and bottom line. They made 26 cents a share when they expected 3 cents. They they made 1.4 billion instead of 1.1, so again beat top and bottom line. Uh no shock here: uh strong sales in work, workout attire, like you, i’m working out at home, not a gym, uh and you know there’s, just a stronger need, for you know the workout gear and they also identified footwear. That was a surprise to me. I don’t know if you’ve seen uh under armour’s shoe game if you will, but it has not always been the uh the best designed, if you will so it’s interesting to see that they had a positive comp on footwear, so much so that they brought it up.
On earnings plus 19 uh starbucks released yesterday, we talked about it. A touch in yesterday’s news, so i’ll leave that earnings and revenue there, but really what they’re talking about is some pretty fantastic growth in 2021. Starbuck is actively looking to kind of pivot. Their kind of cafe style, you know where you sit, read books, newspapers whatever it is your tablet, uh they’re gon na have a lot more kind of pickup locations uh. They are talking about starbucks in the suburbs versus only big cities. So a lot of kind of important changes coming out at starbucks and they’re forecasting 30 growth next year, um in the world of under promise over deliver. That seems like an awful big number. I mean starbucks is no joke right, it’s, a billion dollar company. So to to put the bar at 30 percent might have been a step too far, but who knows uh? We got a couple of reports from oil companies no shock here: exxon chevron, both taking it on the chin oil, i think, was down again yesterday down to 36 after spending some time above 40. uh. Both of them lost a ton of money. Exxon lost 680 million dollars, chevron lost 207 million dollars. Exxon is looking to cut employees. I think what you’re going to see in the oil industry is kind of what you would expect one summer shrinking i.e. Exxon is cutting head, counts up to 15 percent, so quite significant and others are going to do what we’ve talked about.
I think it was one this week and one the previous week where they’re going to kind of grow, grow to survive and grow via acquisition. I do expect all the acquisitions, like the two we have talked about recently, to be all stock. I do not imagine. A oil company would be using their cash in such a reckless way. They’Ve got to get through the other side, which could mean all the way into 2022, so that’s, five more quarters so that’s pretty interesting. I am happy to report that mcdonald’s is bringing back the mcrib nationwide for the first time. I remember the first mcrib i had all those years ago and it was uh. It is kind of sweet, but it was definitely a different sandwich from mcdonald’s. Never never saw that. All those years ago, uh first time, it’s been nationwide. Since 2012. uh it is brought back every year, but not nationwide. So i don’t know about you, but hey. At least 2020 gave us the mcrib, and just so you know it comes back december, 2nd nationwide. So still a little bit over a month away, but hey got ta. Look for some silver lining, something i found about new york city. New york city actually has 45 movie theaters, at least they did before the health crisis. Do you know how many of them are open today, one uh theaters are in in trouble, so um again it’s another industry that’s going to be smaller on the other side of this and i can’t imagine new york city, having only one theater open, something i saw From walmart i don’t know if you saw this, but walmart is actually pulling guns and ammunition from their stores.
They are doing this because they are afraid of civil unrest um. First off, i guess i applaud walmart for being proactive. I mean the last thing you would want is a you know, somebody breaking in or rushing the store grabbing the guns and doing bad things, so i guess good for them. Second, how crazy, how disappointing how un american, if you will that a company needs to take that action? We are seriously looking at social unrest post election and i just can’t fathom that that’s um. That just goes to show you how extreme some of this is and again i think most people are in the middle. I think it’s a bell curve, but unfortunately, the voices on the left and the right are loud and consistent and um passionate. I guess is another word for it and that’s just that makes me sick. You know when you’re arming yourself when you’re intimidating folks when you’re killing people when you’re burning things down, i mean it’s, just not not good uh. So i think it’s interesting. That walmart took the proactive step it’s just one of those things uh we we are now starting to see what i’ve been calling uh, suburbia and urban. Rent growth is happening. We are seeing rent close fall, uh nationwide in urban areas, down an average of five percent with outliers like san francisco down 30 in new york, down 18. uh, but nationwide. The top 30 urban markets are down five percent already and i think, are going lower.
But suburbia within an hour to 90 minute drive of each of those locations are up. This is uh going to be interesting. Um it is, it is investible. I keep telling you i keep. I keep sharing my opinions and it is interesting to see that suburbia rents are up while urban is down and again take that one step further. I think this is clearly investable single family homes in the suburbs are going to go up. There is no chance for a 2021 crafts nationwide. We just need to take that off the table. So as prices go up, eventually people will be priced out and rents will come in behind it. So we are going to see values in suburbia go up. We are going to see rent growth follow and if you are a buy and hold one rental at a time landlord. This is going to be a great year to have single family homes. Space is good work from home. You know it’s just i’ve, never seen the setup like this, so expect your net worth to go up and expect your bottom line cash flow to go up if you own single family rentals. This is why, as i shared yesterday with blackstone and american homes, i think it was or no invitation homes with jonathan. You need to check that video out, but the hedge funds, deep pockets, they’re buying homes, folks they’re buying homes, because they know values are going to go up and they know rents are going to go up.
So if you need a signal to learn your market watch the smart money, they are getting ready, they are ready now and they’re taking action now and then i just wanted to give a little shout out to taiwan. I don’t know if you’ve seen this again. Just so you know i spent some time in taiwan. My wife is from taiwan so appreciate, i have a slanted view, but i think they deserve a shout out. They’Ve had 200 days of zero say that again, zero local cases of this health crisis. So, for those that say you can’t shut it down. You should give up taiwan 200 days, that’s no joke. It is possible, obviously much smaller population much smaller island. I get it mask wearing. You know kind of standard there which shocked me. The first time when i saw it years ago, but again it can be done so. The last thing i want to close with is a question for you. We talked about q3 record gdp economy coming back jonathan and i talked about a new concept. Yesterday, called the 90 economy check that video out it was pretty interesting, it’s something i’d, never thought of. But what do you think about? Q4 q4 gdp was originally forecast to grow right around five percent five to five and a half is what i’ve seen. I think, with the lack of stimulus, i think, with the um the rising cases uh, we just saw uh.
You know a pretty heavy lockdown in el paso, texas, yeah we’re, going to have some some reasons to think a positive gdp growth in q4 might be uh. Might not be there, consumers might save, go back and look at q2. Can consumers save when they get scared? So what do you think qtq4 gdp is and i’ll put the number at five? Do you think it will be above five percent positive or below? And if you’d like you know, you can say above or below and if you feel uh, if you’re feeling good, why don’t you give a number right? Do you feel it’s still positive? Do you feel it’s negative i’d love to hear from you i’ll share my thoughts. Maybe over the weekend i want to read up on a little bit more uh. But, yes, i think it is interesting to think about what had happened in q4. Is it the setup for the w? You know the double dip recession. What is coming? We need to watch these things as investors cost of capital. What is going on so that’s? What i got for you today, uh october 30th, friday um tomorrow’s, halloween man, halloween’s gon na be different. Huh man, halloween is gon na, be different.