Tikked Off | Long $GOGO

Well folks, we hope your Monday set the tone for a solid week yesterday…despite the market being a bit of a letdown. That said, one of our analysts, Alex Ponte, has been hard at work co-authoring a piece on the healthcare industry alongside former Mednow CEO, Karim Nassar – check out the full special report here and read on for your daily dose of market inspiration within this 226th Coachman’s Report!

Markets in Review

Following yesterday’s light start to the week, indices are marginally up in the premarket again with the Dow, S&P and Nasdaq respectively +14, +12 and +2 bps at time of writing. Today is sure to be a volatile one, with multiple economic prints throughout the session – we’ll be focussing most on the consumer confidence index update at 10 AM EST, which is forecasted to come in at 108.5, check these numbers out as they’re announced in real-time here. Lastly, we’d just like to draw your attention to the UST curve, which has been on the move recently, with both the long and short ends moving up about 2bps in yield since the start of last week alone, meaning investors can now earn a 5% risk-free return over the next year.
Long: Gogo Inc. (GOGO-NASDAQ) | Timeline: 2 days
Gogo Inc. (GOGO), which provides broadband connectivity services to the aviation industry in the United States and internationally, reported a record quarterly and yearly earnings report this morning before market open. The company beat earnings and revenue expectations by 40% and 2.31%, respectively, as the company “met extraordinary demand for inflight connectivity and delivered a 50% increase in equipment shipments despite global supply chain constraints in 2022,” says Oakleigh Thorne, CEO. (Full Story)
Turning to the chart, GOGO has had quite a volatile last 12 months, falling from highs of just over $23, while recovering from its low of $12. That said, as the stock continues on this upward trend towards recovery, it’s now coming to retest the lower level of this broadening wedge – and as Stochastic RSI begins to turn bullish from extremely oversold levels, traders should expect a bounce.
Zooming Out…
Airfield Attack
An attack on a Belarussian airfield has left one of Russia’s nine $330M Beriev A-50 early warning surveillance planes inoperable. The assault was launched by members of BYPOL, a group of former law enforcement officials with the aim of countering Lukashenko’s rule in Belarus. While a devastating blow, this hasn’t stopped recent Russian advances into Bakhmut, which according to reports is on the verge of capitulation. Around the same time, a US State Department spokesman has issued a statement claiming that through the PRC’s support to Russia, China has clearly taken a side in the war.
Tikked Off
In an update to our continued coverage (here, here and here) of the anti-TikTok wave sweeping the Western world, Canada and the EU have followed the US government’s lead and have banned the app from government devices. While some Canadian Members of Parliament have utilized the app for prior campaign promotions, all have been quick to step away in the wake of the controversy. Moreover, multiple Canadian privacy regulators have launched investigations into TikTok’s handling of personal data, and treatment of younger users. Neither jurisdiction has announced plans of a public restriction, however, it would be the natural next step.

Making Headlines…

Visa, Mastercard pause crypto push in wake of industry meltdown
  • U.S. payment giants Visa and Mastercard are slamming the brakes on plans to forge new partnerships with crypto firms after a string of high-profile collapses shook faith in the industry, people familiar with the matter told Reuters. (Full Story)
Oil Set for Fourth Monthly Loss as Fed Tightening Eclipses China
  • Oil headed for a fourth consecutive monthly decline as concerns over tighter monetary policy and swelling stockpiles in the US eclipsed optimism about rising demand in China. (Full Story)
EU antitrust regulators scrap investigation into Coca-Cola, bottlers
  • EU antitrust regulators on Tuesday scrapped an investigation into potential anti-competitive practices by The Coca-Cola Co and its bottlers, Coca-Cola Europacific Partners and Coca-Cola Hellenic, citing insufficient ground for the case. (Full Story)
Russia has just one tank factory churning out 20 tanks a month, with demand outstripping production by a factor of ten
  • In the 1940s the Soviet Union was able to produce 1,000 tanks a month. Today, Russia can produce just 20, with a single factory struggling to keep pace with outsized demand caused by the war in Ukraine. (Full Story)
Chart of the Day: Housing affordability in the US is near all-time-lows…
“The standard you walk past, is the standard you accept.”
— David Hurley