Elliott Mgmt Heads West

Sponsored By May 4, 2022 Good morning traders, Welcome back to The Daily Setup. Markets were up again yesterday, but we’ll see what happens today as the Fed will conclude their May meeting where a 50 point rate hike is expected. Here’s what’s on the docket: - Chegg gets bullied - AMD crushes its earnings - Elliott is after Western Digital Nick PS: [I fudged up yesterday]( and had old copy from Netflix in the Biggest Mover section. Hand up, that’s on me. How’d the markets look? Market Outlook Chegg Inc Biggest Mover [Activision Blizzard, Inc. ]( [CHGG $17.42 (▼30.07%) Chegg Inc | Google Finance]( The school bully met Chegg on the playground at lunch and gave it an atomic wedgie, sending shares down more than 30% on Tuesday. The education company [cut its outlook]( for the rest of the year on the basis that inflation and stagnant wages will [reduce demand for online classes](. For the full year, Chegg cut guidance from $830-$850M down to $740-$770M. The company did report that subscribers were up 12% from last year though, which is a silver lining, kind of like being valedictorian of the [Derek Zoolander Center for Kids who Can’t Read Good](. Nothing Micro About This (AM)D Street Stories [Cycling Downhill] Advanced Micro Devices ([AMD]() scoffed at Wall Street’s estimates and [reported a smashing quarter]( after the bell on Tuesday, sending shares up 6% in initial after hours trading. - Revenue came in at $5.89B vs. expectations of $5.52B and was up 71% YoY. EPS of $1.13 was up 17% over last year and easily beat the estimated $0.91. - Every business unit grew by double digits during the quarter with cloud server sales especially strong, up 88% to $2.5B. - AMD had been having a dismal 2022 so far, down about 39% YTD but maybe the company has hit an inflection point and will start heading from 6 to 12 on the proverbial sundial. [Intel gave a dour outlook]( for Q2 last week, so AMD’s raised guidance gave INTC a Dikembe-eque finger wag. Inflation may be hurting everything these days, but AMD is whipping the competition like everyone is whipping the Cincinnati Reds. Meeting with the Bobs [other news] Welcome to [Meeting with the Bobs](. Click one of the links below to vote. On Monday we asked - What should Berkshire do about Warren? 87% of you voted to keep him as head honcho. Nice to see he has job security. Today’s question: What do you think of Chegg’s stock movement yesterday? - [I’m a nerd and miss reading books from Chegg]( - [They got what they deserved after I spent half my tuition renting their books]( Sponsored By: The Best in Men's Grooming! On a mission to help men level up, [MANSCAPED]( specializes in men’s grooming and hygiene products, including premium tools, formulations, and accessories that introduce a whole new self-care routine for men. 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Try out [MANSCAPED's]( all-in-one men’s grooming kit complete with [The Lawn Mower®]( 4.0 electric trimmer, the [Weed Whacker®]( nose and ear trimmer, anti-chafing groin deodorant, groin toner spray + 2 free gifts. [Get 20% off & free shipping now](. [GET 20% OFF NOW!]( *See Disclaimer Below The SEC is out for blood Token Talk [Token Talk] The SEC is rolling up its sleeves and ready to take on crypto. Which coin you ask? All of them. The No Fun League of Business said that it’s [planning to double the size]( of its task force and rename it the “Crypto Assets and Cyber Unit.” Nothing like a rebrand to get the people on your side before raining on their parade. The SEC’s new unit will have [50 dedicated positions](, which doesn’t seem like enough considering everyone you know has been talking about crypto for the last two years. The goal of the group is to “police wrongdoing” in the crypto market. The SEC is no stranger to stifling crypto crooks. Earlier this year, BlockFi paid the group a $100M settlement after the SEC accused it of selling to investors without listing as a security. Now I see where the SEC got its funding for those new job openings. Elliott goes West Deals and Rumors [Deals and Rumors] There’s no hiding from Elliott Management once you’re on its naughty list. This time, Western Digital is in the crosshairs. The activist investors called for Western Digital to spin off its flash memory business from its hard drive sector, which should unlock “significant value.” WD [says]( that it would “carefully” consider Elliott’s proposal. Corporate translation: We’re out of ideas and don’t know what else to say. So what do I have to do if I’m an investor? Nothing but sit tight and enjoy the ride- as shares [jumped 14.47%]( on the day. If Western Digital listens to Elliott’s advice, Elliott says it could take WD’s share price north of $100 by the end of the year. See? Elliott’s just here to help (as long as I have Western Digital shares). Link Roundup Other News + I like to think I had a helping hand in that - Molson Coors beats earnings estimates ([link]() + Take all of the jobs and shove them - Resignations and job openings hit record high ([link]() + These staples won’t be replaced by crypto.com - Consumer staple stocks look strong in the face of inflation ([link]() + I changed the bulb in my car’s headlight, which is just as impressive - Rocket Labs caught a rocket in mid-air with a helicopter ([link]() + The gift that keeps on giving - Pfizer beats estimates on strong ‘rona vaccine and pill sales ([link]() Meme of the day Crypto Bros be like, [via @The_Law_Boy]( [other news] 62 Calef Hwy #233 Lee, New Hampshire 03861 United States Questions or concerns about our products? 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