Weekend Update #020

Welcome to Blue Room's Weekend Update. Each week, we're sharing what companies we're researching and the what, the who and the how that we think makes the companies interesting and unique. This roundup is brought to you weekly by a group of interns, creative minds, artists and investors who believe that through best in class investing along with the democratization of financial education we can do great things together. Enjoy, Explore and Share.

Bitcoin blows past $50,000 this week

Hitting new all-time highs nearly every day as more institutions look follow in Tesla's footsteps by joining the crypto market, one Bitcoin = $56,356.00 as of today. This week MasterCard announced it would facilitate cryptocurrency transactions in 2021, while BNY Mellon — the nation's oldest bank — disclosed that it would store and trade cryptocurrency on behalf of its clients. With Bitcoin trading at $56,356 it is up over 90% year-to-date.

NATHANIEL RATELIFF

—THE SNL PERFORMANCES—

WE CONTINUE

PART THREE

On Friday, January 29, 2021, the silver spot price was trading at around $26.90 - almost $27.00 per troy ounce. Just a year earlier, it was trading at around $17.40. In a year’s time, silver had increased 55%.

For some perspective, on January 29th, 2021, gold was trading at $1,840 per ounce, representing a gold-to-silver ratio of 68.4. A year earlier, gold was trading at $1,570 - representing a gold-to-silver ratio of 90.2. Gold increased by only 17% in comparison to silver’s 55% annual increase. Further, the gold-to-silver ratio fell by about 24%. By any measure, silver has unquestionably appreciated in value over the past year.

Over the weekend, retail dealers of silver bullion such as APMEX reported unprecedented demand for physical silver, prompting them to raise their prices to as much as $35 per ounce and even halting selling altogether due to inventory shortages. First Majestic’s own online store experienced similar demand and only just recently resumed selling coins and bars after two weeks of stockouts (prices of physical silver are higher than futures prices due to the retailer’s mark-up and other related costs). In the Sunday evening that followed (January 31), silver futures shot up to $28.82 - an increase of 7.1%. On Monday, prices kept climbing, reaching as high as $29.15, before plummeting on Tuesday back down to $26.65 levels. The London Bullion Market Association, which oversees the silver market, said more than 1 billion ounces of silver was traded on Monday, more than three times the average towards the end of last year.

Record inflows into silver ETFs, including BlackRock’s iShares Silver Trust (SLV) certainly contributed to the sudden rise in silver spot prices. The CME deciding to raise margin requirements was a big reason why silver subsequently fell, raising margin requirements from $14,000 per 5,000 ounces to $16,500. Exchanges do this to ensure parties on both sides of a trade are able to fulfill it – if a party is unable to continue funding their position, they are “stopped out.”

Could it be that the likes of JP Morgan and HSBC sold silver futures short, flooding the market with bid orders, thus pressuring the prices down and “stopping out” traders? It’s possible — it wouldn’t be the first time.

November 2, 2010

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF NEW YORK

Eric Nalven, on behalf of himself and all others similarly situated [Plaintiff] 

vs 

JPMorgan Chase & Co., J.P. Morgan Clearing Corp., J.P. Morgan Securities Inc., J.P. Morgan Futures Inc., HSBC Holdings PLC, HSBC Securities (USA) Inc., and HSBC Bank USA, National Association [Defendants]

Plaintiff Eric Nalven, on behalf of himself and all others similarly situated, brings this action for damages against JPMorgan Chase & CO., J.P. Morgan Clearing Corp.; J.P. Morgan Securities Inc., J.P. Morgan Futures Inc. (collectively “JPMorgan”); HSBC Holdings PLC; HSBC Securities (USA) Inc.; and HSBC Bank USA, National Association (collectively “HSBC”), for violations of the Section 22(a)(1) of the Commodity Exchange Act (“CEA”), 7 U.S.C. § 25(a)(1), and Section 1 of the Sherman Act, 15 U.S.C. § 1. Plaintiff alleges:

NATURE OF CLAIM

1. This action arises from defendants’ conspiracy to intentionally and unlawfully suppress and manipulate the price of Commodity Exchange, Inc. (“COMEX”) silver futures and options contracts between at least June 1, 2008 through March 31, 2010 (“Class Period”), in violation of Section 22(a)(1) of the CEA, and Section 1 of the Sherman Act, 15 U.S.C. § 1.

2. During the Class Period, the defendants engaged in a scheme to manipulate and suppress the market for COMEX silver futures and options contracts. In connection with its acquisition of Bear Stearns & Co., Inc. (“Bear Stearns”) in March 2008, defendant JPMorgan acquired massive short positions in the silver futures market. Thereafter, JPMorgan, with HSBC, artificially depressed the price of silver dramatically downward. The conspiracy and scheme was enormously successful, netting the defendants substantial illegal profits.

3. The conspiracy and scheme has been corroborated by a 40-year industry vetran and former employee of Goldman Sachs (the “Informant”) who was told by representatives of the defendants about the conspiracy and scheme. The Informant has stated that he had been told first hand by traders at JPMorgan that JPMorgan manipulates the silver market. The JPMorgan traders would brag to the Informant about how much money they were making as a result of such manipulation.

4. The Informant reported the defendants’ activities to the U.S. Commodity Futures Trading Commission (“CFTC”), which has opened an investigation into the manipulation of the silver market. On October 26, 2010, CFTC Commissioner Bart Chilton announced that there have been “violations of the Commodity Exchange Act in the silver market.” Specifically, Commissioner Chilton concluded, “There have been fraudulent efforts to persuade and deviously control” prices in the silver market, which “should be prosecuted.”

5. In addition to the CFTC, the Antitrust Division of the United States Department of Justice is conducting a criminal investigation into the manipulative activities of defendants in the silver market.

The Relevant Market

18. The relevant market, which was the target of defendants’ anticompetitive and unlawful scheme, is COMEX silver futures and options contracts.

19. On the COMEX, contract rollover occurs each month when a futures contract holder exchanges (rolls over) an expiring contract position for a contract position which expires at a later date.

20. On the COMEX, the expiration date of an options contract, or “Options Expiry,” is the day on which an options contract is no longer valid and therefore, ceases to exist.

[...]

31. The communications among defendants was done at least on a monthly basis on or around the dates of certain key events, including the United States Department of Labor’s issuance of non-farm payroll reports, which are released during the first week of each month; at the time of Options Expiry on the last four business days of each month; and during COMEX silver futures contract roll-over.

Mr. Nalven has not been the only individual to file suit against banks for alleged market manipulation in the precious metals market. Below is a timeline of a few more additional accusations against JP Morgan (I suspect part of the reason they keep finding themselves as defendants in these types of cases is their size – they play such a large role in these markets that they can’t help it. Just my opinion). 

TIMELINE

• 2015 - spoofing lawsuit filed against J.P. Morgan in U.S. District count in Manhattan for allegedly manipulating the silver futures market from 2010 through 2011 through spoofing trades

• 2016 - the bank denied the allegations, and in 2016 succeeded in getting the plaintiffs’ claims dismissed by a judge.

• 2017 - David Kovel, attorney for the three plaintiffs, appealed this decision and succeeded in having the case reopened

• 2018 November - the case was pending; a guilty plea in a criminal case related to spoofing trades by John Edmonds, a former precious metals trader at J.P. Morgan, drew the attention of Kovel.

  • Edmonds admitted that he, along with other “unnamed conspirators” at the bank, manipulated the prices of gold, silver, platinum and palladium futures contracts from 2009 to 2015

  • They used spoofing, a bogus trade orders strategy, hundreds of times with knowledge and consent of supervisors

  • The guilty please in this case allowed Kovel to reopen depositions he had taken as part of the case from two former J.P. Morgan traders, including Edmonds, as well as from Michael Nowak, who at the time still was the bank’s global head of base and precious metals trading.

  • Shortly after Kovel made the request, the Justice Department asked the judge in the civil suit to put the case on hold as criminal investigations into J.P. Morgan’s precious metals desk continued. Prosecutors said the depositions, if reopened, could interfere with their probe.

  • That stay was granted last Nov. 30, and multiple extensions were granted over the following months. The settlement of the civil case this summer came before Kovel got another crack at questioning the former traders in reopened depositions.

• 2019 May 31 - Prosecutors ask for delays in civil cases against JP Morgan as criminal probe into metals market manipulation continues

  • The judge overseeing the proposed class action, John Koeltl, granted the request to pause proceedings through Oct. 31.

  • The criminal investigation is related to conduct already admitted to by former J.P. Morgan trader John Edmonds.

  • The 37-year-old Manhattan resident pleaded guilty in Connecticut federal court in October to working with other “unnamed co-conspirators” to manipulate the prices of gold, silver, platinum and palladium futures contracts over a seven-year span while employed at the bank

• 2019 September - federal prosecutors charged Nowak and two other former J.P. Morgan precious metals traders, Gregg Smith and Christopher Jordan, with participating in racketeering conspiracy in connection with a multiyear scheme to manipulate the markets and defraud customers, as well as other crimes related to alleged spoofing.

• 2019 November - Superseding indictment was filed in the criminal case two months later, adding another defendant, ex-J.P. Morgan executive Jeffrey Ruffo, who had worked in hedge fund sales on the firm’s precious metals desk.

  • All four defendants have pleaded not guilty. Trial in that case is scheduled to begin in April in Chicago federal court.

• 2020 Summer - case was settled; details of the settlement were not disclosed in court filings

• 2020 September 29 - CNBC Article - J.P. Morgan settles lawsuit that accused firm of ‘spoofing’ precious metals markets trades

  • J.P. Morgan settled for an undisclosed amount a lawsuit that accused the firm of “spoofing” trades in the precious metals market

    • Spoofing - the act of placing a buy or sell order with no intention to actually execute the transaction

  • The suit by hedge fund manager Daniel Shak and two commodity traders accused J.P. Morgan of manipulating the silver futures market, costing plaintiffs $30 million in losses

    • The three plaintiffs accused J.P. Morgan of manipulating the silver futures market from 2010 through 2011 through spoofing trades

  • The bank is also nearing a settlement of $920 million to resolve government investigations for similar alleged conduct in the precious metals and Treasury futures markets, CNBC has learned

    • $436.4 million criminal monetary penalty

    • $172.0 million “criminal disgorgement amount”

    • $311.7 million is for victim compensation

  • Although Shak’s lawsuit has been settled, J.P. Morgan still faces a class action lawsuit related to alleged spoofing in the precious metals markets

  • Proceedings in that suit, which is pending in Manhattan federal court, have been suspended until at least May 31 at the request of federal prosecutors, who wanted to avoid interference with the criminal trial in Chicago

To summarize:

• The suit brought by Daniel Shak against JP Morgan was settled in the summer of 2020; details were undisclosed

• The suit against Michael Nowak, Gregg Smith, Christopher Jordan and Jeffrey Ruffo is pending until April in Chicago federal court

• A separate class action lawsuit is pending in Manhattan federal court against JP Morgan, again, for alleged spoofing in precious metals markets

• JP Morgan recently settled for $920 million with the Department of Justice, Securities and Exchange Commission and Commodity Futures Trading Commission, admitting it had manipulated precious metals futures and US government bond markets over eight years

So what’s next?

I am of the opinion that, regardless of whether JP Morgan or HSBC or any other big banks are continuing to suppress silver prices through selling naked futures short and/or spoofing any other methods, given the supply-demand situation of silver- at some point, no amount of paper contracts will change the fact that when Tesla goes to place an order for silver to input into its EV components, a supplier of silver will be receiving similar orders from many other customers. When this happens, an auction scenario takes hold where the supplier begins raising prices to consummate a deal with whoever is willing to pay the most. If this happens across the silver marketplace, spot silver prices will have nowhere to go but up. Whether this happens this weekend, next week, next month, or next year, is anyone’s guess, but it’s going to happen (the only way it doesn’t is if we discover a cheaper, easier-to-get alternative to silver, but that’s doubtful). 

Despite shenanigans that happen in silver markets (they happen, as we’ve seen), as well as the current precarious investing environment, what with loose monetary and fiscal policy and never ending search for yield and exorbitant equity valuations, I still believe there is a silver lining here, and that is, of course, silver.

*Always consult your financial advisor when making investment decisions. Everyone has different risk/reward profiles and investing goals, so please discuss these with your FA to determine the suitability of any investment.

1 https://www.ft.com/content/77e6fef6-37ff-4f8e-abd6-4c2d65ac120c

2 https://finance.yahoo.com/news/silver-plummets-gold-sells-off-083725463.html

3.https://www.cnbc.com/2018/11/12/ex-jp-morgan-silver-traders-guilty-plea-could-boost-manipulation-suit.html

P L E A S E E N J O Y T H E

—WEEKLY—

company updates
from the BR intern team.

Stock Price History

February 1, 2021                       $134.14

February 2, 2021                       $134.99

February 3, 2021                       $133.94

February 4, 2021                       $137.39

February 5, 2021                       $136.76

0.205 Dividend

February 8, 2021                       $136.91

February 9, 2021                       $136.01

February 10, 2021                     $135.39

February 11, 2021                    $135.13

February 12, 2021                     $135.37

February 16, 2021                     $133.19

February 17, 2021                     $130.84

February 18, 2021                     $129.71

February 19, 2021                     $129.87

Over the last week, shares of Apple, Inc. have fallen approximately 3.7% since trading opened Tuesday morning. After disclosure reports were released this week, it was announced that Berkshire Hathaway and Vanguard had trimmed their stakes in AAPL since the last report, decreasing their ownerships by 57.16 million and 25.51 million, respectively. Following the news, the company's stock fell below its 50-day moving average for the first time since November, leaving many investors wary. Apple's presence and power are undeniable with a customer base that few, if any, can compete with retention-wise, and with new innovation and pivots for the company on the horizon, the stock must be followed closely.

Ticker: MRK
Name: Merck & Co., Inc.
Number of Shares Outstanding: 2.53B
Market Capitalization: $189.02B

Stock Price History

February 1, 2021                       $77.36

February 2, 2021                       $77.77

February 3, 2021                       $77.32

February 4, 2021                       $76.03

February 5, 2021                       $75.80

February 8, 2021                       $75.04

February 9, 2021                       $75.04

February 10, 2021                     $74.89

February 11, 2021                    $74.74

February 12, 2021                     $75.00

February 16, 2021                     $74.25

February 17, 2021                     $75.54

February 18, 2021                     $75.41

February 19, 2021                     $74.31

Over the recent weeks, shares of Merck & Co., Inc. have faced a marked decline as the company demonstrated disappointing fourth-quarter and full-year earnings two weeks ago. With the pandemic impacting Q4 revenue by roughly $400 million and full-year revenues by nearly $2.5 billion, the share price faced a downward slide, one that was further accelerated by the company's reported diventure in Moderna, Inc. (MRNA). With a beta value of only 0.44, it is infrequent to see MRK shares face massive movement, leading an immediate return to its 2021 high of $85.00 to remain unlikely. However, Merck still serves as a foundational pillar of the pharmaceutical industry, one whose moves should be closely followed, particularly in relation to other biotech, drug, and life science firms. 

Ticker: TTWO
Name: Take-Two Interactive Software, Inc.
Number of Shares Outstanding: 115,18M*
Market Capitalization: $22.44B

Stock Price History

February 1, 2021                       $200.94

February 2, 2021                       $207.11

February 3, 2021                       $202.40

February 4, 2021                       $201.49

February 5, 2021                       $207.49

February 8, 2021                       $213.34

February 9, 2021                       $200.31

February 10, 2021                     $199.82

February 11, 2021                    $197.12

February 12, 2021                     $199.86

February 16, 2021                     $195.79

February 17, 2021                     $195.93

February 18, 2021                     $196.23

February 19, 2021                     $194.86

Over the last week, Take-Two Interactive Software, Inc. (TTWO) saw further regression from their all-time high documented on February 8, as investors seemingly continued to pull capital after the record earnings report that Monday. That being said, the fundamentals of the company remain firmly grounded, presenting strong future upside. With their staple, open-world title Grand Theft Auto V surpassing 140 million copies sold this winter, 10 years after its initial release. This user base, along with the strong player engagement across other titles, allows Take-Two to sit as a digital media mogul at a fraction of the cost, given its $22.44B market cap. With such momentum generated by the Grand Theft Auto legacy title and its awaited successor, the recent release of next-generation consoles, and the ever growing and evolving world of interactive media, TTWO holds immense potential going forward. 

Claire McKenna

Ticker: CSGP
Name: CoStar Group, Inc. 
Number of Shares Outstanding: 39.42M
Market Capitalization: 36.26B

February 1, 2021 $925.00

February 2, 2021 $920.41

February 3, 2021 $917.36

February 4, 2021 $920.41

February 5, 2021 $908.18

February 6, 2021 $900.38

February 8, 2021 $905.34

February 9, 2021 $924.99

February 11, 2021 $924.89

February 12, 2021 $939.76

February 16, 2021 $900.37

February 17, 2021 $910.75

February 18, 2021 $919.83

February 19, 2021 $914.88

CoStar Group, Inc., is a company known for acquiring strategic companies and transforming their organic growth rates. For example, CoStar Group acquired LoopNet, the leading commercial real estate information company, in April 2011. Before the acquisition, LoopNet’s revenues grew about -2.3% a year. CoStar invested in the company and introduced their business to larger markets, and for the past two years, LoopNet’s revenues have grown almost 20% per year. CoStar is currently in a bidding war to acquire CoreLogic, one of the largest residential real-estate data companies in the US. On Tuesday, February 16th, CoStar offered a new unsolicited bid for CoreLogic. CoStar group offered to acquire CoreLogic for $95.76 per share, offering approximately 6.9 billion in total to compete against Stone Point Capital LLC and Insight Partners. The new offer represents a 20% improvement to the value of CoreLogic’s current transaction with two private-equity firms. In the new deal, CoStar Group would acquire 100% of the equity interests of CoreLogic and CoreLogic shareholders would receive 0.1019 shares of CoStar Group common stock. CoStar’s current deal gives shareholders a $15.76 per share improvement from the previous deal. The premium that is now being offered will cause the CoreLogic board to reconsider CoStar’s proposition.

Ticker: DASH
Name: DoorDash
Number of Shares: 317.66M outstanding
Market Cap: 65.37B

Stock Price History

February 1, 2021                       $194.59

February 2, 2021                       $191.95

February 3, 2021                       $184.66

February 4, 2021                       $181.38

February 5, 2021                       $189.57

February 8, 2021                       $183.45

February 9, 2021                       $177.71

February 10, 2021                     $190.66

February 11, 2021                     $208.50

February 12, 2021                     $213.03

February 16, 2021                     $205.60

February 17, 2021                     $213.82

February 18, 2021                     $194.30

February 19, 2021                     $200.07

These past few weeks have been volatile for DoorDash. Some would say this is due to the upcoming earnings call that is scheduled for February 25th. However there was some big news that caused a major shift in the price of the stock. On February 8th, DoorDash announced that they had acquired Chowbotics. The price of the acquisition has not yet been disclosed, but this company deals with robotics as a means of food delivery. Chowbotics operates vending machines that can create meals from salads to poke bowls. This acquisition resulted in a flux in the price of the stock. As a result DoorDash reached an all time high of $226 a share. The move to acquire chowbotics is inline with the CEO’s vision to expand the business model of DoorDash as to not solely depend on restaurant and food delivery services alone. This is a trend that has been shown in the industry, when UberEats acquired Drizzly, an alcohol delivery app. It will be interesting to see how the stock performs after the earning call next week. Furthermore the health of the company will depend on a steady business model spearheaded by new acquisitions like Chowbotics.

Exact Sciences is a leading cancer company developing tools for early detection, guidance, and monitoring. With a team of over 4,000 employees, including a 400 person R&D team, Exact Sciences develops technology for life science tools and integrated systems for large-scale analysis of genetic variation and function. The company’s leading product, Cologuard, is a non-invasive sDNA screening test for colorectal cancer, which is the leading cause of cancer death in the United States among nonsmokers. Using that sDNA, Cologuard can detect mutations in specific genes by purifying, amplifying, and detecting increased levels of methylation. Cologuard received FDA approval in August 2014, and along with OncotypeDX and OncotypeMAP, more than 4 million people have been tested by Exact Sciences products. The company aims to increase screening and early diagnosis of colorectal cancer, which would increase the survival rate to 90% if the disease is diagnosed early compared to the five-year survival rates of stages 3 and 4 at 71% and 14%, respectively. Utilizing resources from its acquisitions of Thrive Earlier Detection Corp., Base Genomics, and Genomic Health, Exact Sciences is currently developing a multi-cancer liquid biopsy screening test, with preliminary results of 86% sensitivity and 95% specificity in detecting six6 cancer types, that has the potential to revolutionize early cancer screening going forward. 

Lexi Linafelter

Ticker: PYPL
Name: PayPal Holdings Inc.
Number of Shares Outstanding: 1.17B
Market Capitalization: $333.82B

PayPal Holdings Inc. is an international financial technology and payment processing company headquartered in San Jose, California. Their payment solutions allow customers to both send and receive payments through a global, two-sided network that connects merchants and consumers with 305 million active accounts across more than 200 markets. PayPal is committed to secure, timely and easy-to-use payment services, and operates through multiple subsidiaries including Gopay, Braintree (Venmo), Xoom, Hyperwallet, Simility, CyActive, FraudSciences and Honey to foster a positive consumer and merchant experience. PayPal primarily earns revenues through charging fees for completing payment transitions and other payment-related services that are typically based on the volume of activity on the Payments Platform. 

PayPal reported earnings for the fourth quarter and full-year of 2020 on February 3, 2021.

Ticker: CRM
Name: Salesforce 
Number of Shares Outstanding: 917.73M 
Market Cap: $221.39B

Salesforce is a software-as-a-service company based in San Francisco, California, and is the leader in the Customer Relationship Management (CRM) space with a market share of nearly 20%, more than double its closest competitor SAP at 8%. As businesses have been increasingly looking to digitize their business models, accelerated by the pandemic, Salesforce looks to give businesses an end-to-end software that unifies their sales, marketing and customer service teams all interfaced on one platform. Generating over 20% year-over-year revenue growth for the past decade, Salesforce looks to expand their reach in the CRM market by making moves, such as the acquisition of Slack in December 2020, that allow it to be a one-stop shop for all businesses looking to move their workflow to the cloud.

Sarah Korb

Ticker: SDGR
Name: Schrödinger
Number of Shares Outstanding: 56.32M
Market Cap: 7.267B

Stock Price history

February 1, 2021 $91.20

February 2, 2021 $93.99

February 3, 2021 $94.84

February 4, 2021 $98.49

February 5, 2021 $99.80

February 8, 2021 $100.00

February 9, 2021 $104.81

February 10, 2021 $105.46

February 11, 2021 $106.07

February 12, 2021 $108.49

February 16, 2021 $111.10

February 17, 2021 $109.61

February 18, 2021 $103.00

February 19, 2021 $102.00

Schrödinger Inc. is a life science and materials science company with a focus on developing state-of-the-art chemical simulation software for use in pharmaceutical, biotechnology, and materials research. Their physics-based software platform is transforming the way therapeutics and materials are discovered. This past week, Schrödinger’s market value reached an all-time high of $117.00 on February 22nd, 2021; this marks a growth of 154.62% from its original IPO value on February 26th, 2020. Despite this, the past week also showcased major pullbacks in Schrödinger’s market value given current market fluctuations and investors’ concerns over rising bond yields. Schrödinger announced that it expanded its partnership with Google cloud, increasing its original 3-year commitment (since 2019) to a 5-year commitment. As a result, Schrödinger will receive hundreds of millions of graphics processing unit (GPU) hours, effectively tripling their previous throughput and greatly expanding the power of their computational platform. This Friday, February 26th, Schrödinger is due to present at SVB Leerink’s Annual Global Healthcare Conference, which engages and showcases public companies, private companies, and industry experts that are shaping the future of healthcare.

Naia Morse

Ticker: ULTA
Name: Ulta Beauty, Inc.
Market Capitalization: 18.162 billion
Shares Outstanding: 56.34 million

Stock Price History:

February 1, 2021 $282.03

February 2, 2021 $284.21

February 3, 2021 $287.83

February 4, 2021 $289.73

February 5, 2021 $297.90

February 8, 2021 $302.69

February 9, 2021 $314.59

February 10, 2021 $318.27

February 11, 2021 $315.65

February 12, 2021 $320.11

February 16, 2021 $319.82

February 17, 2021 $328.88

February 18, 2021 $321.79

February 19, 2021 $320.12

Ulta Beauty, Inc. (ULTA), the nation's largest beauty retailer, offers more than 25,000 products from approximately 500 well-established and emerging beauty brands across cosmetics, fragrance, skin care products, hair care products, and salon services. On February 4, 2021, the CEO of e.l.f. Beauty (a partner of Ulta Beauty), Tarang Amin, joined Yahoo Finance to discuss their third quarter fiscal year 2021 results, mentioning their sales in beauty grew 10% in a market that is down 20% for the year. He disclosed that they invested 15% of their net sales in marketing and digital (3% more than the previous year), as well as investing in the launch of Alicia Keys’ new skincare and wellness brand, Keys Soulcare, and acquiring W3LL People. This release yielded positive results for Ulta Beauty as demonstrated in their growing market value.

(https://finance.yahoo.com/video/e-l-f-beauty-ceo-170607379.html)

Megan Tao

Ticker: ETSY
Name: Etsy Inc
Number of Shares Outstanding: 126.09M
Market Capitalization: $28.04B

Stock Price History 

February 1, 2021 $203.77

February 2, 2021 $210.07

February 3, 2021 $220.84

February 4, 2021 $231.12

February 5, 2021 $229.87

February 8, 2021 $225.65

February 9, 2021 $229.87

February 10, 2021 $225.65

February 11, 2021 $226.05

February 12, 2021 $233.86

February 16, 2021 $228.32

February 17, 2021 $222.41 

February 18, 2021 $220.82 

Etsy, Inc. operates online marketplaces where people around the world connect, both online and offline, to make, sell and buy goods. The company’s marketplaces include Etsy.com and Reverb.com, a marketplace for new, used, and vintage music instruments. While ecommerce is a competitive industry, Etsy distinguishes itself from other online marketplaces by selling “one of the kind” items that are custom and handmade. This past year, Etsy achieved significant growth as sellers were able to meet the increased demand in face masks during the mask supply shortage. However, even when excluding face masks purchases, Etsy’s core business flourished, sustaining 93% growth in GMS in Q2 and Q3. Looking forward, Etsy is scheduled to release Q4 2020 earnings next week on Thursday 2/25. Taking into account a reasonable decline in face masks sales and new buyer numbers, the company estimates consolidated GMS to be in the range of $2.7 billion to $3.1 billion, up 65% to 85% to Q4 of last year, and estimates revenue to be between $459 million to $513 million, up 70% to 90% from last year. It will be exciting to see whether or not Etsy continues this upward momentum and how these predictions match up with the actual earnings report.

Despite the fact that most of my family have lived in multiple countries and are defined by their transnational experiences and identities, I personally have lived a life without much travel outside of my Pacific Northwest abode. However, I’m acutely aware of how the global experiences of my elders and peers have shaped them into the people whose thinking and points of view I benefit from as well as admire.

I remember my childhood home as a pit stop for people from all over the world. My parents have always taken great pride in embracing even the most distant relatives as they looked for better opportunities in America. Witnessing my parents strive to render our home a welcoming place for people who were often effectively strangers, both to my parents and to myself, forced me to think deeply about kindness and sacrifice.

My own role in accommodating family members was miniscule compared to the burden shouldered by my parents, but from an early age I followed their lead and tried to make sure that every person in my house felt welcome. This took the form of regularly giving up my bed and making sure every morning before school that I turned the channel to “Al Jazeera” to make it easier on my great uncle. 

During my freshman year, I was called upon to assume the role of host in the full sense that my parents exemplified. 

“Hassan!” My dad called, one morning, “your two cousins from Ethiopia and Djibouti are moving in.” I was ecstatic! It was now my responsibility to look after my cousins and extend to them the kindness I’d grown up around. This mandate covered activities ranging from keeping track of my cousins’ grades and helping them with their homework to simply listening to their stories of hardships they experienced during the journey of their lives. The demands of my responsibilities as a host and mentor paled in comparison to the reward of my cousins’ friendship and trust. I came to a better understanding of my parent’s sacrifices for their guests over the years and it became clear to me the ways in which acts of kindness and sacrifice give our lives meaning.

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