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Today's big stories

DoorDash’s stock market debut met with a positive response from investors
Saxo Bank has laid out some "outrageous" predictions for 2021, as well as how to profit from them – Read Now
Campbell Soup announced stronger-than-expected quarterly results

What A Buzz

What’s Going On Here?

DoorDash will start next year feeling reinvigorated: the food delivery service hit the stock market on Wednesday, and investors initially sent its shares up 80%.

What Does This Mean?

Just like Deliveroo, Just Eat Takeaway.com, and Uber Eats, DoorDash delivers meals straight to the homes of hungry diners. And with 50% of the US food delivery market to its name, the company’s done well from a pandemic that’s had people ordering more than they might’ve if restaurants were open. In the first nine months of 2020, in fact, DoorDash processed food orders worth $16.5 billion – three times more than the same time last year. That means it’s earned a lot more in commission, as well as laid the groundwork for a successful initial public offering (IPO).

And that’s exactly what it got: DoorDash raised $3.4 billion from its IPO after having hiked its starting share price twice in the last week. That put the entire company’s valuation at $38 billion – making it one of the US’s biggest IPOs this year.

Why Should I Care?

The bigger picture: ‘Tis the season.
December is typically a quiet month for stock markets, but this year is anything but typical. DoorDash will be followed onto the stock market on Thursday by Airbnb – whose shares are looking increasingly expensive – and next week by ecommerce platform Wish. And before the year’s out, they’ll be joined by fintech Affirm and children’s game company Roblox too.

For you personally: Room for a small one?
The privilege of buying into a company before it’s public is almost exclusively reserved for venture capital and private equity firms. But there are a couple of ways you can get ahead of the game too (tweet this): you could “angel invest” in the next big thing through personal connections or crowdfunding platforms, or find a broker that offers “grey markets”, which let you speculate on a company’s share price before it lists.

You might also like: Get prepared for Airbnb’s IPO on Thursday.

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2. Analyst Take

Saxo’s “Outrageous” 2021 Calls (And How To Trade Them)

What’s Going On Here?

Even after 2020 defied just about everyone’s predictions, the brave folks at Denmark’s Saxo Bank are going ahead with 10 market predictions for the year ahead.

For instance, the bank thinks a return to normal life could cause a spike in inflation. That would cause bonds to surge, and companies struggle to stay on top of debt.

Maybe, it says, artificial intelligence will finally solve the technical challenges of nuclear fusion and unleash abundant free energy on the world.

Or maybe accelerating inflation and surging demand from solar cell makers will dramatically push up the price of silver, spelling good news for the metal’s investors.

Saxo haven’t just laid out their predictions: they’ve recommended how to invest in them too. That’s all in today’s particularly “outrageous” Insight.

Read or listen to the Insight here

💪 Be ready to take on 2021

If this year’s proved anything, it’s that you never know what’s around the corner. But at least with Schwab, you’ll keep calm when markets are volatile.

Because let’s face it, we’re not out of the woods yet: volatility’s still likely as we head into 2021, with countries still dealing with the pandemic and new governments coming into play.

That’s why it’s useful to know you’ll have access to Schwab’s advanced trading platform, custom screeners, and free proprietary research that’ll help you identify your next smart move.

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Expiry Date

What’s Going On Here?

Campbell served up stronger-than-expected quarterly earnings on Wednesday, but the soup-maker left a suspicious aftertaste in investors’ mouths.

What Does This Mean?

Ordinarily, investors might’ve been happy with an update like this one. Campbell’s profit, after all, beat investors’ forecasts last quarter, thanks in part to lower-than-expected marketing expenses. Its revenue did too: sales came in ahead of expectations partly because Campbell reduced its promotional offers, forcing customers to pay more.

On this occasion, though, analysts were worried that the “quality” of the update suggested weak earnings could be on the way. For one, Campbell had previously promised to increase, not cut back, its marketing spend relative to its sales. And for another, its decision not to invest in promotions was a dubious one, considering a resurgent coronavirus was making shoppers prioritize cost-effectiveness once again. And that could mean it’ll struggle both to hold onto customers and win over new ones…

Why Should I Care?

For markets: Look on the bright side.
Campbell’s shares fell 2% on Wednesday, even as US stocks overall rose to a record high. But that drop might’ve been worse if Campbell hadn’t announced a higher-than-expected dividend. Spare a thought, then, for wholesale grocery distributor United Natural Foods, whose shares fell 11% on Wednesday after it revealed lower-than-expected quarterly earnings – with no dividend-colored lining to speak of.

The bigger picture: Flavor of the month.
Investors are increasingly eyeing up smaller companies’ shares, as well as those of “cyclicals” like autos and construction that tend to do well in an economic recovery. And as we move into said recovery and away from recession, it’ll likely be consumer staples like Campbell – which are generally expected to thrive when the going’s rough – that are scrubbed off the “flavor of the month” chalkboard.

You might also like: Why a company’s earnings news isn’t the be-all and end-all.

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🙋 Ask a question

💬 Quote of the day

“Dare to be naive.”

– Buckminster Fuller (an American philosopher, systems theorist, architect, and inventor)

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🤜🤛 You’ve got a friend in Schwab

There may be plenty of ups and downs still to come in 2021, but Schwab helps you prepare for them all.

You’ll work with their trading specialists to explore new opportunities. You’ll team up with their options and futures specialists to build new strategies and put them into action. And you’ll unlock fresh and actionable perspectives with Schwab Live Daily.

And you can even get started with $0 online stock, ETF, and base options commissions, plus $0.65 per options contract. Get all of this and a Satisfaction Guarantee when you join Schwab today.

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💻 What we're browsing

Sponsored: Quick, affordable fertility tests in your own home (Modern Fertility)
Crypto is funding movies now (Unforkable)
What was it like to report John Lennon’s death? (The Daily Beast)

🌎 Finimize Community

🙄 Stocks are so 2019

Stocks? Pfft. Bonds? Pssh. Next Tuesday is all about alternative investments like rare cars, comic books, sneakers, and other collectibles – and who better to talk us through it than the founder of alternative investment platform Rally Rd? No one, that’s who.

🚘 Rally Rd Founder on Alternative Investing: 1pm New York Time, December 15th
💊 Are Psychedelics the New Weed Stocks? w/ ex-Canopy CEO: 1pm New York Time, December 17th

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Finimize - 🥘 DoorDash’s IPO delivers

Today's big stories

What A Buzz

What’s Going On Here?

What Does This Mean?

Why Should I Care?

Saxo’s “Outrageous” 2021 Calls (And How To Trade Them)

💪 Be ready to take on 2021

Expiry Date

What’s Going On Here?

What Does This Mean?

Why Should I Care?

🤜🤛 You’ve got a friend in Schwab

🙄 Stocks are so 2019

Older messages

📈 BlackRock can’t wait for 2021

🇨🇳 China just keeps winning

😭 Dreadful US job numbers

🎉 Thanks for everything Reader - get 70% off Premium today

🚀 China's stocks are taking off

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