Today we are watching…
1. Dollar General (#dollarg)
Shortly, variety store chain Dollar General (DG) will open its books to investors in a third-quarter earnings release. Not to be mistaken for Dollar Tree, which literally only sells items at a buck-a-piece, Dollar General’s 42% stock market upside this year is partly down to a hot streak of good business decisions. Doubling down on low prices, introducing self-checkout, adding more private-label goods, and bringing outsourced services back in-house, has led to some steep earnings expectations today. Keen to show Dollar Tree who’s the boss, Dollar General is shooting for an earnings per share target of $1.39 on revenue of $6.9 billion.
2. Peloton Interactive (#pton)
Peloton is an unprofitable start-up giving investors one hell of a workout. Since its slipshod initial public offering (IPO) in September, the volatile stock has kept investors guessing. You buy $32 Peloton shares if you believe folks will buy $2,500 Peloton treadmills for social workouts, where they get live access to great trainers and the promise of a real spin class at home. However, the firm has somehow managed to offend people with a Christmas ad! The all-smiles commercial shows a husband buying a Peloton treadmill for his wife, who then happily uses it for a year to lose weight while vlogging her progress back to the husband. Hmm, ten years ago that wouldn’t have gotten Peloton in hot water. Watch it for yourself and let us know whether you think that in today’s world, it could bring the billion-dollar unicorn crashing down!