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.

VARIANTS AND NEW RESTRICTIONS

The emergence of new COVID-19 variants has caused governments to reintroduce curfews and other restrictions, including Japan which has prohibited spectators from attending Olympic events. The delta variant, first discovered in India, accounts for over 50% of new infections in India. The lambda variant, which was first discovered in South America, has now been found in over 29 countries over 5 different regions, accounting for majority of infections in Peru and Argentina. Early studies indicate the variants are more contagious than other strains; while vaccines, although beneficial in preventing severe illness, have been less effective in defending against infections. The uncertainty surrounding the new variants, paired with a spike in cases over multiple regions, may have economic implications as planned reopenings could stall or possibly even reverse course in the second half of 2021.

One of the industries Blue Room is especially interested in is biotechnology. We view it as one of the largest growth opportunities in the immediate and foreseeable future since many of today’s innovations are happening in this space, including gene editing, liquid biopsy and synthetic DNA, to name a few. Below is a high-level, non-comprehensive look at these sectors and a few of the companies within them.

Many of us have written about some of these companies in more depth in past Blue Room Newsletters — Mr. Sohn has written extensively about Precision Biosciences, Ian Carter has explored Regeneron, Nick Peart has taught us about Vertex, and Spencer Wootten and Jared Fenley have given us crash courses on the underlying technologies behind their respective companies as well, including Moderna and CRISPR Therapeutics. This overview leverages the team’s research — all credit goes to them — and if you’d like to learn more,

Please enjoy — I hope you learn something new.

ISSAQUAH, Wash., July 08, 2021 (GLOBE NEWSWIRE) -- Costco Wholesale Corporation (“Costco” or the “Company”) (Nasdaq: COST) today reported net sales of $18.92 billion for the retail month of June, the five weeks ended July 4, 2021, an increase of 16.9 percent from $16.18 billion last year.

For the forty-four weeks ended July 4, 2021, the Company reported net sales of $161.09 billion, an increase of 18.1 percent from $136.37 billion last year.

Vimeo is the world’s leading all-in-one video software solution, providing the full breadth of video tools through a software-as-a-service model. Vimeo’s comprehensive and cloud-based tools empower its users to create, collaborate and communicate with video on a single, turnkey platform. Our platform enables any professional, team, and organization to unlock the power of video to create, collaborate and communicate. We proudly serve our growing community of over 200 million users — from creatives to entrepreneurs to the world’s largest companies. It also provides Vimeo On Demand, an open self-distribution service that enables users to sell their works directly to their audiences and retain a share of the revenue after transaction costs; and Vimeo Create, a suite of tools for making social videos. In addition, the company offers professional video hosting solutions for small businesses. It provides solutions for creative professionals, small businesses, enterprises, education sector, fitness centers, and faith teams. The company was founded in 2004 and is based in New York, New York.

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BULLPEN FORUM

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How do you accumulate wealth when you have little to start with?

Tuesday
July 6, 2021
9:30 AM

BLUE ROOM
Investment Team Bullpen
__________ __________

Tune into the BLUE ROOM VIMEO channel

COMPANY PROFILE:

CHANGING LIVES, TOGETHER

Getting ahead of cancer is crucial no matter where people are in their cancer journey. From earlier cancer detection to treatment guidance and monitoring, we are helping people get the answers they need to make more informed decisions across the cancer continuum.

With a leading portfolio of products for earlier detection and treatment guidance, we help people face the most challenging decisions with confidence.

Our dedication to taking on the impossible fuels everything we do. We are continuously innovating, combining scientific rigor with an open-minded approach to deliver the next big thing.

OUR PURPOSE

We strive to change lives through earlier, smarter answers across the cancer journey.

OUR PROMISE

We relentlessly pursue life-changing answers in cancer that give people the clarity they need to take action, earlier.

A

R

T

2021 PARADE FOR THE PEOPLE

@MCA

The Second Annual Parade for the People celebrates the rich tapestry of Denver’s creative community. The parade is a human-powered parade (no-motorized vehicles) that celebrates the city of Denver and the many artists who call it their home. The Riverfront Park Neighborhood forms the backdrop for the parade, passing through Commons Park. The parade concludes at MCA Denver with food trucks, performances, and free admission to the museum. This event is free and open to the public.

The Parade for the People brings together artists, performers, dancers, musicians, and neighbors to parade through the Riverfront Park Neighborhood in a glorious celebration of human expression.

The parade is free, to get a ticket, rsvp here.

Activision Blizzard, a digital entertainment company based in Santa Monica, California, best known for producing video game franchises like Call of Duty, World of Warcraft, and Candy Crush, also operates esports leagues. Their Call of Duty League and Overwatch League are quickly becoming two of the world’s most popular esports leagues and focal points in Activision.

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DRY STORAGE

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The Market Responds to Dry Storage

"At Cured, a good loaf of bread is part of the foundation of every good meal. We feel beyond lucky to have Dry Storage as a partner and to share what we both love with our food community."

- Will Frischkorn, Cured, Boulder

===

Rogers learned about the importance of using high-quality flour from Colorado-based chef Kelly Whitaker, founder of Dry Storage. He was immediately intrigued and chose to partner with the company for Cathedral.

"Just like milk, flour has an expiration date,” Rogers says. “And so what we're looking for now is for the flour to have that flavor that it should have, and then also not hurt your stomach. There are people who have celiac, but if you're just like, ‘Ah, when I eat bread, it hurts,’ it's because of the flour. There are so many chemicals in it. So I'm getting all my flour for my pastas, my desserts, my breads, the pizza, everything is going to have this fresh, living flour."

- Chef Luke Rogers, The Dallas Observer

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"We love using Dry Storage AP Flour for our house made breads and pasta doughs. It gives the dough a depth of flavor that we hadn't had with any other flour. We use the Sonora flour in our gnocchi as well. Kelly and his team helped find us the right flour for our specific needs and it shows."

— Amos Watts, The Fifth String, Denver

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"It performs like a sifted flour but gives me the nutrition of whole grain. I could push the hydration and the crumb was still real open, but had a more robust flavor. It’s like zooming in on what I love about Yecora Rojo. It can feel creamy and extensible and elastic which are characteristics I don't typically associate w/ whole grain flour."

–Josh Sales, Pizza Jerk, Portland, OR

BLUE ROOM VIMEO CHANNEL

Thursday
July 8, 2021
12 PM Mountain

BLUE ROOM
MEETING NUMBER 56
__________ __________

This is the first Thursday meeting for the Summer 2021 Internship Class. Today's meeting is about everyone getting introduced to each other.

The first Roku Original “The Demi Lovato Show” is set to release on July 30th of this year and it will feature Demi Lovato as a celebrity host interviewing special guests in ten minute segments. The show will premiere on The Roku Channel, a library that currently provides more than 40,000 television programs and movies to its viewers and over 190 live linear channels. Demi Lovato and guests will speak about important topics, such as, activism, feminism, gender identity, sex and body positivity, and mental health amongst many others.

Stanley Dempsey is among the most accomplished individuals in the mining community. He is a geologist, lawyer, historian, author, investment banker, corporate executive, and a long-time leader for proactive environmental protectionism. Dempsey’s story begins in small uranium, tungsten, and gold mines in Montana, where he gained operating experience shortly after completing his geology degree at the University of Colorado in 1960.

Hey Blue Room community! My name is Melanie Gong, and I’m a rising sophomore at Columbia University studying Financial Economics and Hispanic Studies. I was born in Liaoning, China and moved to Denver when I was nine years old. Two weeks ago I officially became an American citizen (wooo)! I was a competitive dancer and competed in poms nationally. In my free time I like to travel, hike, read, play the piano, and hang out with my two dogs.I joined the Blue Room summer intern team last month, and I’ve loved every minute of it! Even from the first time I interviewed with Ian and Nick, I knew Blue Room is an incredible and supportive community making real impacts in the world. We often begin our Investment Bullpen Meetings with personal check-ins, and these are some of my favorite moments! Sharing our weekend stories and learning about each other has really brought us together even when we are scattered all over the world. One day I hope I will have the opportunity to meet everyone in-person, and until then, I’m very excited to spend the remainder of my summer learning and having fun!

CrowdStrike Holdings, Inc is a provider of cloud-delivered solutions for endpoint and cloud workload protection in the United States, Australia, Germany, India, Israel, Romania, and the United Kingdom. CrowdStrike offers 19 cloud modules on its Falcon platform through a software-as-a-service subscription based model that covers various security markets, such as corporate workload security, security and vulnerability management, managed security services, IT operations management, threat intelligence services, identity protection, and log management, The company primarily sells its platform and cloud modules through its direct sales team., CrowdStrike Holdings, Inc. was incorporated in 2011 and is headquartered in Sunnyvale, California.

Earlier this year, Comcast announced a $1 billion commitment over ten years to continue supporting digital equity. One of its main initiatives is Lift Zones, which complements Comcast’s Internet Essentials program and provides safe spaces fully equipped with Free Internet Access to those in need. Since 2011, Lift Zones has helped connect approximately 10 million low-income people to the Internet at home, including almost one million Texans.

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

—WEEKLY—

company updates
from the BR intern team.

Caroline Burnham

Ticker: ALLO
Name: Allogene Therapeutics
Number of Shares Outstanding: 1.17B
Market Capitalization: $343.91B

Stock Price History: 

June 24, 2021 $24.16

June 25, 2021 $24.18

June 28, 2021 $25.55

June 29, 2021 $25.19

June 30, 2021 $26.08

July 1, 2021 $26.55

July 2, 2021 $26.28

July 6, 2021 $24.91

July 7, 2021 $24.09

July 8, 2021 $23.59

July 9,2021 $24.10

Allogene Therapeutics Executive Summary

Allogene Therapeutics is a biotechnology company focused on using allogeneic CAR T therapy (AlloCAR TTM) to treat a variety of cancers. Their use of allogeneic T cells, coming from a healthy donor, rather than autologous T cells, which come from the cancer patient themselves, gives their product candidates a greater potential for manufacturing treatments, commercializing, and standardizing care. 

On June 30, 2021, the FDA granted Allogene Therapeutics Fast Track designation for one of its product candidates, ALLO-605. ALLO-605, unlike other product candidates from Allogene Therapeutics, utilizes TurboCARTM technology in the treatment of multiple myeloma. TurboCARTM T cell therapy specifically programs cytokine activation signaling and selectively engineers it into the allogeneic CAR T cells. In the treatment of multiple myeloma, this means that the CAR T cells used to attack the cancer cells will have improved function and potency due to the specific programming and activation. While the FDA specifically granted Fast Track designation to ALLO-605, TurboCARTM technology could potentially be utilized in other product candidates for Allogene Therapeutics. 

While ALLO-605 has been granted FDA Fast Track designation, several of Allogene Therapeutics’s product candidates are further ahead in their respective clinical trials. Executive Vice President of Research and Development and Chief Medical Officer Rafael Amado, M.D. reflected on the progress of the product candidates, saying “we are very pleased with the continued momentum of our anti-BCMA portfolio for patients with multiple myeloma and look forward to making allogeneic CAR T therapy a potential option for these patients. With studies now underway for ALLO-715 alone and in combination with a gamma-secretase inhibitor, as well as ALLO-605 as our next-generation CAR T, we are taking an aggressive three-pronged approach aimed at exploring the unique attributes of AlloCAR T therapies for patients with rapidly progressing disease.” While Allogene Therapeutics does not currently have any FDA-approved products, the development of these product candidates ensures continued progression towards making allogeneic CAR T therapies widely available.

Jackson Blaufeld

Ticker: QCOM
Name: Qualcomm, Inc.
Number of Shares Outstanding: 1.13 B
Market Capitalization: 159.307 B

Stock Price History:

June 25, 2021: $137.65

June 28, 2021: $139.72

June 29, 2021: $142.62

June 30, 2021: $142.93

July 1, 2021: $140.80

July 2, 2021: $142.58

July 6, 2021: $141.19

July 7, 2021: $139.97

July 8, 2021: $138.29

July 9, 2021: $139.44

Qualcomm, Inc. Executive Summary

Qualcomm, Inc. is a global leader in the semiconductor industry, headquartered in San Diego, California. Qualcomm specializes in the development and commercialization of technologies for the wireless industry. This group of engineers, scientists, and business strategists are focused on inventing breakthrough technologies that transform how the world connects, computes, and communicates. Qualcomm’s products are used in mobile devices and have been a key factor in the growth of smartphones.

This week, Qualcomm teamed up with ASUS to make a smartphone that contains mobile tech from Qualcomm. The phone is intended for the Snapdragon Insiders program which is about 1.5 million people, and the phone highlights the Snapdragon 888 5G chipset. Qualcomm states that this is one of the first phones to support Snapdragon sound, which has many features that enhance the audio experience. The phone, which costs almost $1,500, comes with some other Qualcomm products including headphones and chargers. The phone will initially be available in select countries including the U.S., U.K., Japan, and South Korea.

In other news, newly appointed president and chief executive officer Cristiano R. Amon was instrumental in acquiring NUVIA a few months ago and has now announced that the engineers, who formerly worked for Apple, will be key to some of his first plans at the helm of the company. Amon believes that Qualcomm can make the world’s best processor, which would put Qualcomm in a position to compete with Apple’s M1 processor. Qualcomm hopes to start selling Arm laptop chips in 2022. Ultimately, Amon believes that Qualcomm’s experience making 5G chips and smartphone processors will allow the company to become a dominant player in the laptop space. This will certainly be an interesting development to follow for the next several months, as Apple has yet to add 5G or any cellular capability for its computers over the years.

Uri Bonilla

Ticker WDAY
Name: Workday
Number of shares outstanding: 189 million
Market Capitalization: $57.82 billion

Stock Price History:

June 25, 2021 243.00

June 28, 2021 242.91

June 29, 2021 246.39

June 30, 2021 238.74

July 1, 2021 235.51

July 2, 2021 238.30

July 6, 2021 238.55

July 7, 2021 238.65

July 8, 2021 237.09

July 9, 2021 239.94

Workday Inc, Executive Summary

Workday is a leading provider in cloud applications for human resources and financial professionals serving more than 8,000 organizations. Workday provides organizations with software-as-a-service solutions to facilitate and navigate complex challenges in the business setting. The company’s services facilitate the management of finances in a constantly evolving environment. Workday’s innovative suite combines finance, human resources,  planning and analytics into one suite which allows Workday’s products to cater to a wide array of businesses and access several industries, from mid-sized companies to over 45%of Fortune 500 companies. Workday follows a core set of values: Employees first, customer service second, innovation third, followed by integrity, fun and profitability. Recently, Workday’s share price has taken a stumble. In the past few trading days, WDAY share prices have fallen from $246.40 on June 29 to $233.90 as of July 1, a change of 5.07%. The drop in share price could be related to many individual factors, including the recent release of Fiscal 2022 First Quarter Financial Results last month. Despite not posting a single quarter profit since its inception in 2005, Workday has continued to consistently grow. Recent Fiscal 2022 First Quarter Financial Results indicate that Workday increased its revenues 15.4% since last year to a total of $1.175 billion in revenue. Furthermore, it reported non-GAAP earnings of 87 cents per share, which outpaced estimates by 19.7%. Its business thesis is simple: Reinvest all earnings back into the company to stimulate growth, with the end goal of continued growth and market share acquisition. In recent news, Workday continues to demonstrate their aspiration for growth. On June 8, Workday announced the intent to introduce Workday Payroll for Australia and Workday Payroll for Germany. 

Elizabeth Chang

Ticker: TGX
Name: 10x Genomics, Inc. 
Number of Shares Outstanding: 87.27M
Market Capitalization: $20.855B

Stock Price History: 

June 28 $201.40

June 29 $201.33

June 30 $195.82

July 1 $189.94

July 2 $190.94

July 6 $192.14

July 7 $185.05

July 8 $188.25

July 9 $190.41

10x Genomics, Inc. Company Update

10x Genomics is a biotechnology company focused on producing genetic sequencing technology. A leader in the single-cell sequencing industry, its pioneering Chromium and Visium products and technologies have won numerous scientific accolades and helped to further societal understanding of biological structures. Chromium products allow for detailed analysis of hundreds of thousands of cells and biological units. Visium products are centered around spatial transcriptomics, which is genetic sequencing that uses detailed spatial resolution. Visium Spatial products therefore ensure greater understanding of biological units within the context of larger functional systems and processes. 

Within the past few weeks, 10x Genomics has received approval from the city council to expand its headquarters in Pleasantville, CA. There, it expects to add over 381,000 square feet of new buildings for research and development. The company plans to complete Phase 1 of construction by 2023 and finish Phase 2 and 3 by 2030 at the latest. This expansion is expected to benefit both the company and the surrounding community. 10x Genomics has additionally added Genuity Science, a Boston-based genomics biotechnology company, to its Certified Service Provider (CSP) program. In doing so, the company has expanded its plans to build upon its Chromium and Visium products related to single-cell immune sequencing and profiling. Recently, the company also announced that Q2 2021 financial results will be released on August 4. 

Aidan Fetterly

Ticker: TTWO
Name: Take-Two Interactive Software, Inc.
Number of Shares Outstanding: 116.17M
Market Capitalization: $20.50B

Stock Price History: 

June 25: $173.82

June 28: $178.09

June 29: $178.19

June 30: $177.02

July 1: $178.97

July 2: $177.30

July 6: $174.07

July 7: $173.69

July 8: $170.67

July 9: $170.37

Take Two Executive Summary

Take-Two Interactive Software, Inc. is an interactive entertainment and video game developer headquartered in New York, New York. Comprising five production labels, most notably Rockstar Games and 2K, Take-Two is known for its groundbreaking action-adventure, sports-simulation and role-playing products. Through award winning and record breaking legacy titles such as Grand Theft Auto and Red Dead Redemption as well as high-traffic, yearly releases such as NBA 2K, Take-Two has cemented itself as a pillar of the video game industry and holds substantial market share. At its core, Take-Two fundamentally endeavors to be the most creative, innovative and efficient company in the interactive entertainment industry. In recent weeks, Take-Two announced the acquisitions of mobile game developer Nordeus and video-based, facial animation firm Dynamixyz. The purchase of privately-held Nordeus, announced one June 6, represents an active attempt by the firm to enhance its mobile gaming portfolio which currently includes several titles from labels Social Point and PlayDots. Nordeus was acquired for $378 million, and brings its Top Eleven soccer management game with over 240 million active users to Take-Two. Announced on July 1, Take-Two's acquisition of Dynamixyz, a company who had previously partnered with the Take-Two on titles such as Read Dead Redemption 2 and NBA 2K21, brings in an industry-leading suite of proprietary motion-capture, facial-analysis and 3D processing technology to enhance future product offerings. As of writing, the financial terms of the deal have not been disclosed.

Melanie Gong

Ticker: CMCSA
Name: Comcast Corporation
Number of Shares Outstanding: 4.59B  
Market Capitalization: $259.19B

Stock Price History:

June 25: $56.42

June 28: $56.10

June 29: $56.54

June 30: $57.02

July 1: $57.75

July 2: $58.21

July 6: $57.66

July 7: $58.17

July 8: $58.23

July 9: $58.03

Comcast Corporation Executive Summary

Earlier this year, Comcast announced a $1 billion commitment over ten years to continue supporting digital equity. One of its main initiatives is Lift Zones, which complements Comcast’s Internet Essentials program and provides safe spaces fully equipped with Free Internet Access to those in need. Since 2011, Lift Zones has helped connect approximately 10 million low-income people to the Internet at home, including almost one million Texans. 

Through the Lift Zones initiative, Comcast aims to establish Wifi-connected safe spaces in 1,000+ community centers for students and adults by the end of 2021. This past week, Comcast has brought 16 Lift Zones to the Boys and Girls Club of Portland Metro Area, 50 to Houston and surrounding areas, and 6 to Lancaster. Comcast has also partnered with North Chicago School District 187, who will purchase 12 months of Comcast’s Internet Essential Services on behalf of every eligible North Chicago household in the district who enrolls by May 15, 2022. 

On June 30, 2021, Comcast announced its 10-year, $102.8 million contract with the United States Defense Information Systems Agency, which provides enterprise network and IT infrastructure to the U.S. Department of Defense. Comcast will provide Ethernet services to enhance connectivity and improve network performance while managing the overall cost through the Agency’s Defense Information Systems Network. The states this contract will be covering include Maryland, Washington, D.C., Virginia, West Virginia, Ohio, and Kentucky.

Elias Haynes

Ticker: RGLD
Name: Royal Gold 
Number of Shares Outstanding: 65.61M
Market Capitalization: 7.67B

Stock Price History: 

June 25, 2021: $112.40

June 28, 2021: $113.00

June 29, 2021: $114.02

June 30, 2021: $114.10

July 1, 2021: $114.53

July 2, 2021: $116.94

July 6, 2021: $116.94

July 7, 2021: $116.74

July 8, 2021: $114.89

July 9, 2021: $116.68

Royal Gold, Inc Executive Summary

Royal Gold is a Denver-based company focused on acquiring and managing precious metals royalties and streams that seeks to provide investors exposure to precious metals with lower levels of risk. Royal Gold owns interests in 187 properties on five continents, including interests in 41 production stage mines and 16 development stage projects. Managed by a team with extensive experience in the mining industry, Royal Gold has a longstanding reputation for diligence that has rendered it among the three largest precious metal streaming and royalty companies—which together control approximately 80% of the total value of streaming and royalty contracts. Royal Gold has established itself as a partner of choice for mining operators and a frontrunner in a space offering alternative forms of financing to mining companies. Royal Gold also adheres to sound ESG practices, taking time to contribute to the environment and local communities.

More recently, Royal Gold (RGLD), whose stock is closely and unsurprisingly tied to the price of gold, took a significant hit on June 16 likely as a result of statements released by the Federal Reserve indicating future interest rate increases—ultimately dropping to $109 per share on June 18 (-11.5%). The stock has since bounced back slightly to approximately $114 per share as Royal Gold’s ex-dividend date (June 30) drew nearer, as well as following news of its recent $100 million gold stream acquisition of NX Gold Mine in Brazil. The deal offers gold revenue, immediate cash flow, a large land package with significant exploration potential, underutilized installed processing capacity, and 25% of the gold produced from the NX Gold Mine until the delivery of 93,000 ounces (and 10% thereafter).

Joe Kramer

Ticker: VIAC
Name: ViacomCBS Inc.
Number of Shares Outstanding: 650.59M
Market Capitalization: $29.182B

Weekly Stock Price History

June 25, 2021: $43.82

June 28, 2021: $46.00

June 29, 2021: $44.63

June 30, 2021: $45.20

July 01, 2021: $44.95

July 02, 2021: $44.16

July 06, 2021: $42.87

July 07, 2021: $42.80

July 08, 2021: $41.46

July 09, 2021: $42.77

ViacomCBS inc. Executive Summary

After an initial merger in 2000, Viacom and CBS separated in 2006, and merged again in 2019. ViacomCBS Inc. is a global media and entertainment company that offers premium experiences and content for audiences around the world. Its portfolio includes CBS, SHOWTIME, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Smithsonian Channel, Paramount+ (formerly CBS All Access) and Pluto TV, among others. It operates through three primary segments: TV Entertainment, Cable Networks, and Filmed Entertainment. TV Entertainment and Cable Networks account for approximately 90% of consolidated revenues, with Filmed Entertainment rounding out the remaining 10%. These segments generate revenue mainly from advertising sales, content licensing and distribution, affiliate revenues and from the release and distribution of films. 

Bank of America sees ViacomCBS as capable of making significant strides in the coming weeks. This is following an uptick in its price following rumors of a merger between Comcast and ViacomCBS. Despite this merger being unlikely, BofA still sees value in ViacomCBS primarily in its streaming operations. In addition, ViacomCBS inc.’s content licensing and advertising revenues are expected to beat original projections. Even with expectations falling short in the Filmed Entertainment segment, ViacomCBS’s Cable Networks and TV Entertainment segments will be able to make up this difference and then some. Analysts believe that even with any difficulties lingering from Covid-19, that Paramount+ and Pluto TV should be relatively insulated - more so than Netflix or Disney+ who are older players in the game. Paramount's smaller subscriber base leaves more room for growth while Pluto TV is already growing steadily. BofA believes VIAC should be priced at around $53, implying a 26% upside. 

In other news, ViacomCBS President and CEO Bob Bakish was not invited to a media mogul meeting with representatives of most major streaming companies being present. He didn’t get invited due to previous bad blood with investment bank Allen and Company. He and Allen and Company had a falling out following Allen and Company’s decision to sell Scripps Networks Interactive to Discovery instead of Viacom. The two have not done business since, which could hurt ViacomCBS, as this meeting is where a large portion of intercompany deals are made. Given the rapid consolidation of the streaming industry, a merger or acquisition may be in ViacomCBS’s future, and a spot at that meeting could turn out to have been crucial down the line.

Lexi Linafelter

Ticker: PYPL
Name: PayPal Holdings Inc.
Number of Shares Outstanding: 1.17B
Market Capitalization: $343.91B

Weekly Stock Price History:

June 29, 2021 $292.76

June 30, 2021 $291.48

July 01, 2021 $289.00

July 02, 2021 $290.24

July 06, 2021 $292.64

July 07, 2021 $297.13

July 08, 2021 $295.05

July 09, 2021 $300.21

PayPal Executive Summary

PayPal Holdings Inc. is an international financial technology and payment processing company headquartered in San Jose, California. Its payment solutions allow customers to both send and receive payments through a global 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 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. In recent news, the announcement regarding the upcoming launch of in-store card reading technologies in the U.S. (known as Zettle), has received recognition from investors as a beneficial forward step for PayPal in becoming a more integral part of the payment operation of small businesses, and will be a fully integrated service within the PayPal business account model; this will allow merchants to access all in-person and online payments received through PayPal on one universal platform. Also this week,  PayPal has announced further financial commitment of $100 million to advance financial inclusion and economic empowerment of women and girls over the next five years. This includes both monetary contributions to organizations supporting financial education to girls in the US and internationally, partnerships to increase mircroloans for women entrepreneurs around the world, and drastically increased assessments within the company regarding pay equity, paid leave, and workplace sexual harassment prevention beginning in the US, soon to expand internationally. 

Ticker: SQ
Name: Square, Inc.
Number of Shares Outstanding: 392M
Market Capitalization: $113.33B

Weekly Stock Price History:

June 29, 2021 $248.87

June 30, 2021 $243.80

July 01, 2021 $241.85

July 02, 2021 $241.08

July 06, 2021 $246.70

July 07, 2021 $244.64

July 08, 2021 $235.84

July 09, 2021 $241.89

Square Executive Summary

Square, Inc. is an American financial services and digital payments company based in San Francisco, California. The company was founded in 2009 by Jack Dorsey and Jim McKelvey and launched its first platform in 2010 to build tools to empower small businesses and individuals to participate in the economy. Square, Inc. offers an array of payment acceptance and transaction operation services that allow sellers to use Square to reach buyers online and in-person, manage their business and access financing. Further, the Cash App platform can be used to spend, store and invest money. Square has offices in the United States, Canada, Japan, Australia, Ireland, Spain and the UK. Square earns revenue primarily through its P2P Cash App service; for consumers, transferring funds using the basic version of the platform is free, while for businesses, Square charges a 2.75% fee for every eligible transaction. Within the last week, Square announced that they will be offering an early access programme for French businesses, making all Square services available to French merchants for the first time. Thus far, this announcement has been received positively by investors, especially considering the announcement of PayPal’s soon-to-launch in-person card readers and payment solutions creating more potential competition within the industry. Square also reported a 121% year-over-year increase in gross payment volume within the beauty and personal care industry, despite being one of the most adversely affected sectors by the Covid-19 pandemic. This highlighted the success of the Square Appointments platform, specifically the recently launched services including Square Online, Commissions, and Gap time capabilities. 

Julia Martin

Ticker: TSLA
Name: Tesla, Inc.
Number of Shares Outstanding: 963.33 M 
Market Capitalization: $614.195B 

Stock Price History

June 24, 2021 $679.82 

June 25, 2021 $671.87 

June 28, 2021 $688.72 

June 29, 2021 $671.87  

June 30, 2021 $679.70 

July 1, 2021 $677.92 

July 2, 2021 $678.90 

July 6, 2021 $659.58  

July 7, 2021 $644.65 

July 8, 2021  $652.81

July 9, 2021  $656.95 

Tesla, Inc. produces electric vehicles and clean energy generation, storage, and consumption solutions. Tesla is focused on accelerating the integration of clean energy transportation and production into society in order to more quickly achieve a zero-emission future. Additionally, all of the new Automotive products include self-driving capabilities, and continuing to develop this Autopilot capability is at the core of Tesla. 

On July 2, Tesla announced their 2021 quarter 2 vehicle production and delivery numbers. Tesla produced 206,421 vehicles and delivered 201,250 vehicles, hitting a record for the first time by surpassing 200,000 deliveries in a quarterly period. Tesla had strong June sales in China, surpassing 30,000 vehicles sold in the month. China’s electric vehicle (EV) market overall surged this past quarterly period with 175% year over year increase of overall EV sales and Tesla’s competitors (Nio, Xpeng, Li Auto) also saw strong quarter 2 deliveries, showing that China will continue to be an important and emerging EV market. Additionally, Tesla has unveiled a cheaper, lower range Model Y in China. This Model Y is eligible for Chinese government subsidies and will thus be priced around 276,000 yuan ($42,600) after subsidies are applied. It will have approximately 20% less range than the longer-range, current Model Y, giving it a range of 326 miles. Tesla started taking orders for the new Model Y last Thursday and predicted to deliver the vehicle in the next month. 

Elon Musk shared that Tesla’s Full Self-Driving (FSD) Beta v9 will launch on Saturday, July 10. This latest version of FSD will be based on a “pure vision” approach in which the technology utilizes solely camera-vision, rather than camera and radar vision. While this version of FSD is not identified as completely autonomous driving (as the driver must be aware and attentive at all times), it allows the vehicle to perform all driving systems autonomously. The largest addition with this version of FSD is ability for “city driving” in which the vehicle can autonomously drive through intersections and on city streets. 

Maxwell McIntosh

Ticker: ROKU
Name: Roku
Number of Shares Outstanding: 115.2 M
Market Capitalization: $57.14B

Weekly Stock Price History:

June 25, 2021: $430.94

June 28, 2021: $440.33

June 29, 2021: $440.48

June 30, 2021: $459.25

July 1, 2021: $435.67

July 2, 2021: $430.32

July 6, 2021: $435.18

July 7, 2021: $419.01

July 8, 2021: $420.28

July 9, 2021: $431.61

Roku Executive Summary

After initially going public in 2017, Roku has ascended to becoming one of the leaders in the streaming industry. As consumers around the world decide to “Cut the Cord'' and move from traditional cable offerings, Roku aims to capture these audiences with their seamless streaming options. The company’s business is driven by its strong partnerships with Netflix, Amazon, Hulu and most recently Apple, which provide the platform with original content. As well as companies such as, TCL, Hisense and JVC, which have agreed to integrate the Roku Operating System into their hardware and sell branded Roku TVs. Additionally, after their acquisition of Dataxu in November 2019, Roku is focusing a portion of its business on utilizing targeted advertisements to drive revenue. Dataxu’s software allows for artificial intelligence to recognize the viewing patterns of consumers and recommend advertisements that are most applicable to their situation.

Roku’s stock has experienced a bullish move over the course of the last month gaining 25% of its current stock price within that time period. There have been several events fueling this move, beginning with the rumored acquisition of Roku by Comcast. Although it is unlikely this acquisition occurs, the possibility has led to speculation amongst investors. Additionally, Roku has pledged to invest a billion dollars into bringing original content to its platform and more specifically The Roku Channel. This would place Roku in direct competition with its partners – Netflix, Amazon and Hulu, among others – but allow it to manufacture an additional stream of revenue. Just this week, The Demi Lovato Show premiered on The Roku Channel as “the first of more than a dozen Roku® Originals programs,” according to the company’s most recent press release. This may lead to an increase in interest in the company and the possibility of greater financial prospects in the near future.

Mary Kate McIntyre

Ticker: NVDA
Name: Nvidia Corporation
Number of Shares Outstanding: 623M
Market Capitalization: $504.645B

Stock Price History:

June 25, 2021 $761.24

June 28, 2021 $799.40

June 29, 2021 $801.07

June 30, 2021 $800.10

July 1, 2021 $808.48

July 2, 2021 $819.48

July 6, 2021 $827.94

July 7, 2021 $814.87

July 8, 2021 $796.11

July 9, 2021 $802.01

NVIDIA Corporation Executive Summary

Nvidia, widely known for their graphics processing units, AI and machine learning capabilities, entered this Monday on the heels of its seventh consecutive week of gains, which had not happened to the stock since June of 2017. 

On Wednesday, Nvidia announced the launch of a $100 million dollar investment in a new supercomputer, the Cambridge-1, which will be the fastest supercomputer in the UK and the 12th fastest in Europe. The Cambridge-1 will be used to generate synthetic images of the brain from different MRI scans, uses AI to design new drugs, and improves the accuracy of examining genome sequencing. The supercomputer uses ieighty NVIDIA DGX A100 systems and NVIDIA HDR InfiniBand networking, and is powered by 100% renewable energy. 

Aside from facilitating innovations in disrupting biotechnologies, the Cambridge-1 Supercomputer is also a strategic launch in terms of the pending acquisition of Arm Holdings Ltd. Arm is headquartered in Cambridge, UK and specializes in software design. When the acquisition was announced in September 2020, Nvidia’s internal newsroom website stated its commitment to “build a state-of-the-art AI research center in Cambridge which will house one of Europe’s most powerful supercomputers”. The launch of Cambridge-1 seems to be a huge step in the direction of planning for a successful acquisition. The name of the new supercomputer, Cambridge-1, as well as the placement of its research partnerships located in close proximity to Arm’s headquarters, like King’s College London; GSK and AstraZeneca, British pharmaceutical companies; and Guy and  St. Thomas’ NHS Foundation, a hospital in London, revealed CEO Jensen Huang’s desire to make NVIDIA’s “future home in the U.K.”  If acquired, the Cambridge-1, as well as an expanded Research & Development in the UK, could advance the speed at which new diseases are discovered, diagnosed, and treated, creating medical breakthroughs with global impact, and giving opportunities to find innovation in other sectors as well.

Naia Morse

Ticker: LULU

Name: lululemon athletica, inc.
Market Capitalization: 49.224 billion
Shares Outstanding: 124.95 million

Stock Price History:

June 28 $363.79

June 29 $366.66

June 30 $364.97

July 1 $364.23

July 2 $368.47

July 6 $371.37

July 7 $377.82

July 8 $373.09

July 9 $373.53

lululemon athletica, inc. Executive Summary

lululemon athletica, inc. is a leading athletic apparel company for yoga, running, training and other athletics with more than 500 company-operated stores in 17 countries. In late October of 2020, lululemon released its first-ever Impact Agenda detailing their initiative to become a more environmentally friendly company. Focused on the Company’s people, communities, and products, this agenda emphasizes three main points: Be Human, Be Well, Be Planet, all of which target improving mental, physical, and environmental health in many regards. With this agenda, lululemon set twelve goals in hopes to achieve in the near future. These goals are diverse and range from internal and external measures of the company, such as employee pay equity to scale access, to working with different communities on social and environmental problems globally, like climate change and circularity. As of April 20, 2021, lululemon announced the launch of two new initiatives to underscore their agenda and deliver on these commitments. Like New, the brand’s first-ever recommerce program, and Earth Dye, a new collection made with earth-friendly dyes were both launched this past May and were the most recent efforts from the brand under its “Be Planet” pillar, which is focused on making products that are better in every way for people and the planet.

Kendall Smart

Ticker: MAC
Name: Macerich
Number of Shares Outstanding: 206.52M 
Market Capitalization: 3.83B

Stock Price History:

June 28, 2021: $18.49

June 29 2021: $18.36

June 30, 2021 $18.25

June 1, 2021: $18.50

June 2, 2021: $18.70

June 6, 2021: $17.58

June 7, 2021: $17.13

June 8, 2021: $17.19

July 9, 2021: $17.19

Macerich: Executive Summary

Macerich is a self-administered and self-managed real estate investment trust (REIT) that is involved in the acquisition, ownership, development, redevelopment, management and leasing of regional and/or community/power shopping centers. They own around 50 million square feet of real estate consisting mainly of interests in their 46 regional shopping centers. They have a strong presence on the West Coast, Arizona, and the Metro New York to Washington DC corridor, specializing in retail properties in the country’s most attractive, densely populated markets. Macerich is also a recognized leader in sustainability, achieving the #1 GRESB ranking in the North American Retail Sector for six consecutive years (2015-2020).  

All of the Macerich centers are now open and fully operational, and government-imposed restrictions due to the COVID-19 pandemic are continuing to relax over the past few months as vaccination levels continue to improve across the United States. During the first quarter of 2021, Macerich signed 181 leases for 700,000 square feet (excluding COVID workout deals), roughly the same amount of leased space that was signed during the first quarter of 2020. 

Macerich significantly reduced their planned development expenditures to conserve capital given uncertainties posed by COVID-19, but they continue to focus on many important developments in 2021.Their property One Westside in Los Angeles, a 548,000 square foot creative office redevelopment, continues on schedule with a planned development with Google in early 2022. They have executed a lease with Primark to replace JC Penney at Green Acres Mall in Valley Stream, NY. Additionally, Macerich has many near-term openings, including: Primark at Fashion District Philadelphia and Tysons Center, a second to portfolio location with Life Time Athletic at Broadway Plaza, Crunch Fitness at Deptford Mall in a portion of the former Sears store, Barbarie’s Fitness at Danbury Fair, Dave & Buster’s at Vintage Faire in a portion of the former Sear store, Kids Empire at SanTan VIllage, X-Lanes at Fresno Fashion Fair, Country of San Bernardino offices at Inland Center, Ross at Pacific view and ModelLand at Santa Monica Place.

David Kogan

Ticker: NXPI
Name: NXP Semiconductors
Number of Shares Outstanding: 275M
Market Capitalization: 56B

Stock Price History:

June 25, 2021: $204.17

June 28, 2021: $206.18

June 29, 2021: $207.70

June 30, 2021: $205.72

July 1, 2021: $201.86

July 2, 2021: $202.73

July 6 ,2021: $201.74

July 7, 2021: $198.35

July 8, 2021: $195.99

July 9, 2021: $200.68

NXP Semiconductors Executive Summary:

NXP Semiconductors is a global semiconductor company and a long-standing supplier in the industry. In addition to supplying chips, NXP manufactures and designs its own multichip modules, electronic products and software for its chips. The company has a combined portfolio of intellectual property, deep application knowledge, process technology and manufacturing expertise in cryptography, high-speed interface, radio frequency, mixed-signal analog-digital, power management, digital signal processing and embedded system design. End-market applications include automotives, industrial and Internet of things, mobile and communication infrastructure.

On june 30, 2021, NXP announced a partnership with Jio platforms that shows their intent to enter the booming 5G market in India. Jio Platform is the digital arm of India-based Reliance Industries. Through their partnership, Jio will integrate NXP’s Layerscape processors for developing 5G New Radio O-Ran small cell solutions  that will expand use cases of wireless services across India such as tele-health and tele-education. Furthermore, this strengthens NXP customer base in India and positions NXP well to capitalize off the growth and expansion of the 5G network, which should aid in revenue generation for the company. This also follows closely with management’s recent stated goals in their prior 2020 10K to expand into emerging markets and expand in the areas of 5G and IoT where they have seen sustained growth in YoY revenue. Overall this news is promising for NXP and suggests long term growth.

Alex Chang

Ticker: TTCF
Name: Tattooed Chef, Inc.
Number of Shares Outstanding: 81.94M
Market Capitalization: 1.717B

Stock Price History:

June 25, 2021: $20.00

June 28, 2021: $20.25

June 29, 2021: $21.03

June 30, 2021: $21.45

July 1, 2021: $21.40

July 2, 2021: $20.94

July 6, 2021: $20.60

July 7, 2021: $19.64

July 8, 2021: $19.95

July 9, 2021: $20.08

Tattooed Chef, Inc. Executive Summary

Tattooed Chef, Inc. is a leading plant-based food company with a wide range of sustainably sourced innovative products, ranging from ready-to-cook bowls, zucchini spirals, riced cauliflower, acai and smoothie bowls, Mexican-style street corn and cauliflower pizza crust, all available in the frozen food sections of many leading national food retailers across the country.  Aiming to meet the ever-evolving lifestyles and diets of not just vegetarians, but flexitarians, vegans and those seeking organic or gluten-free options, Tattooed Chef targets the younger demographics of Gen Z and Millennials looking for plant-based, great-tasting, nutritious and sustainably sourced frozen food.

The up-and-down movement and inconsistency of Tattooed Chef’s stock over the previous weeks and months may be a reflection of various news updates about the company, as well as  a certain level of uncertainty regarding the frozen and plant-based food industries in general. The release of Tattooed Chef’s Q1 earnings brought about a mix of positives and negatives. While the company’s revenue growth remains strong, outpacing the company’s own forecasts, the company still posted a net loss in Q1 of $7.9 million, owing to marketing and operating expenses. Tattooed Chef’s acquisition of New Mexico Food Distributors and their ongoing “Ink Your Greens” promotion (where customers can enter a draw to receive free plant-inspired tattoos from notable artists in New York and Los Angeles) are evidence of Tattooed Chef’s commitment to its strategies of providing a diverse range of products and targeting younger demographics. On the other hand, skeptics point to the company’s lack of investment into research and development compared to companies such as Beyond Meat and Impossible Foods. The sudden resignation of the company’s previous CFO back in April, and the subsequent drop of nearly 10% in its stock price, may suggest that the company’s management has not fully been solidified.

Regardless of the noise and various opinions surrounding Tattooed Chef, the company continues to expand its brand and build on its foundation. A relatively young company involved in two rapidly changing sectors of the food industry, Tattooed Chef, and the developing story unfolding around it, are worth keeping an eye on.

Logan Chang

Ticker: ATVI
Name: Activision Blizzard, Inc. 
Number of Shares Outstanding: 777.02M
Market Capitalization: $71.78B

Stock Price History: 

June 25: $92.26

June 28: $95.40

June 29: $95.61

June 30: $95.73

July 1: $93.90

July 2: $94.27

July 6: $94.40

July 7: $93.50

July 8: $92.18

July 9: $92.38

Activision Blizzard, Inc. Executive Summary

Activision Blizzard Inc. is a digital entertainment company known for producing video game franchises like Call of Duty, World of Warcraft and Candy Crush. The company operates in three segments: Activision Publishing, known for producing Call of Duty; Blizzard Entertainment, known for creating World of Warcraft and Overwatch; and King Digital Entertainment, known for the hit-mobile franchise Candy Crush. Although Activision Blizzard continues to profit from releasing new premium full-games, like Call of Duty: Modern Warfare and World of Warcraft: Shadowlands, its inherent business model has begun to evolve. Increasingly, Activision Blizzard has placed a greater focus on deepening player investment in its games with more frequent downloadable in-game content updates, free-to-play offerings and expanding compatible devices to mobile smartphones. The recurrent incremental release of content not only provides additional high-margin revenues but also increases player engagement, as opposed to the traditional “seasonality” of the video game industry driven by the timing of new premium full-game releases. In the second half of 2021, Activision Blizzard expects to deliver ongoing content for its various franchises. This includes continued in-game content releases for Call of Duty: Black Ops Cold War—which includes seasonal content updates for Call of Duty: Warzone and Call of Duty: Mobile—along with content updates for World of Warcraft, expansion packs and content updates for Hearthstone, and an ongoing focus on the Candy Crush franchise. Activision Blizzard also looks to improve their standing in the mobile gaming industry with the anticipated releases of Crash Bandicoot: On the Run! and Diablo Immortal.

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