...because Uber Eats can't deliver chicken-less sandwiches.
Monday, October 28th | Issue No. 124
S&P 500: 3,022.55 +12.26 (+0.41%)
Dow Jones: 26,958.06 +152.53 (+0.57%)
Nasdaq: 8,243.12 +57.32 (+0.70%)
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THIS FEEL LIKE MY MOMENT...
Everyone needs a fan.
Uber (NYSE: UBER) is testing out "experiences" called Moments similar to Airbnb so it can round up new fans for Uber Eats considering the company hasn't lived up to its expectations since it went public earlier this year.
WHY THIS IS HAPPENING...
Unless you’ve put the stock market in timeout, then you know that Uber hasn’t exactly been living its best life in the stock market as it continues to burn through cash prolonging the date that the company will become profitable. So what's Uber's plan? It wants to become a one-stop shop for everything on-demand from rides and food delivery to healthcare and home services while making monopoly money in the process. Not to mention the "eats business" makes crazy cash but also is expensive af to gain market share putting Uber even deeper in the hole financially.
This is prime growth stock status since blowin' money fast isn't a concern as opposed to value stocks which typically pinch pennies to protect their dividends and keep Kool-Aid smiles on investors' faces.
Uber stock is down 27% this year since its IPO.
FOR THE NEWB IN YOU...
A monopoly is a company that dominates a specific industry eliminating most if not all competition. (ex. AT&T used to be a monopoly when it was the sole telephone company until the early 1980's.)
Growth stocks are expected to increase in value faster than the regular market rate. They don't typically pay dividends because all the money made goes back into the company to help to grow bigger and better than before. (ex. Uber is a growth stock considering it pours all of its money back into the company and doesn't pay a dividend.)
Value stocks don't grow as fast as growth stocks and typically are at lower shares prices than investors would expect due to certain market conditions. As a result, their dividend yields tend to be pretty high. (ex. Exxon Mobil is considered a value stock, especially when the price drops during a recession.)
LOVE THAT CHICKEN FROM POPEYES...
Until it sells out in 2 weeks.
WHY THIS IS HAPPENING...
Popeyes was winning in a major way back when it dropped its spicy chicken sandwich that sold out in just a couple weeks but its connects for buns and chicken already are supplying its competitors like Chick-fil-A, KFC (NYSE: YUM), and Wendy's (NASDAQ: WEN) leaving Popeyes' November relaunch potentially bone dry. This has caused the stock to drop $10 per share after it was boomin' from the sandwich release.
The company plans for this to be a regular menu item and not just a limited release but unless it can secure product, the only thing Popeyes will be releasing is a statement saying "Eat Mor Chikin,"... somewhere else. For more on how the Popeyes and Chick-fil-A beef (no pun intended) got started, check out Issue No. 91.
Popeye (Restaurant Brands International) stock is up 23% this year while KFC (YUM! Brands) and Wendy's are up 19% and 32%, respectively.
FOR THE NEWB IN YOU...
Nothing to see here.
Follow the money with our stock market newsletter, PAPERTRAIL, your daily dose of Wall Street flavor.
ALL EYEZ ON...
Uber isn't the only publicly traded company that's delivering food when you get the munchies. There's another that's sticking around in plain sight while the rest are staying private.
Wanna hear it? Here it goes:
Please note that this may not be a complete list of food delivery stocks.
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Cannabis: Snoop Dogg wants you to grow your own weed
Culture: Meet the cast of Coming to America 2
DID YOU KNOW...
How many Americans make $100,000 or more annually? (answer below)
WHO'S GOT NEXT...
Companies reporting earnings today about how much paper they're stackin' (or losing) and new things to come:
AT&T (NYSE: T)
Beyond Meat (NASDAQ: BYND)
Shutterfly (NASDAQ: SFLY)
Spotify (NYSE: SPOT)
T-Mobile (NASDAQ: TMUS)
Texas Roadhouse (NASDAQ: TXRH)
Walgreens (NASDAQ: WBA)
WATCH ME WORK...
Stocks on my watchlist:
PAPERTRAIL Pro with monthly portfolio reports coming soon.
Disclosure: The author of this issue owns stock of AT&T, Caterpillar, Exxon Mobil, Microsoft, and Twitter.
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NOW YOU KNOW...
1 out of every 10.
Dr. Eric Patrick
Managing Editor | Uber Gold Achiever
Disclosure: This editorial is by no means a solicitation to buy or sell any of the above-mentioned securities. It is merely a means for educational purposes. All investors are subject to their own research and due diligence. This post may contain affiliate links and we may receive commissions for purchases made through links in this post.