SuffelStocks™ Day 22

By Brandon Suffel Founder Breakfast at Midnight May 4, 2000

Chairman and CEO of Berkshire Hathaway, Warren Buffett, had a lot to say at the most recent annual Berkshire Hathaway meeting–usually a crowd filled with thousands–however this time, it wasn’t. Even Vice Chairman, Charlie Munger, was absent. As for the ER this week, today both Chegg and Shake Shack reported their earnings, after the closing bell.

MAY THE 4TH BE WITH YOU

Twitter: @SuffelStocks
Stocktwits: @SuffelBMS

Is Warren Buffett fearful?

Warren Buffett says the coronavirus cannot stop America, or ...

One key takeaway from the Berkshire Hathaway annual meeting from this last Saturday, May. 2, was Mr. Buffett’s initiative, selling his airline stock: all four of these airlines, $AAL $DAL $LUV $UAL.

Mr. Buffett (89 years old) spoke for over 4-1/2 hours, straight. And in those 4-1/2 hours, he frequently brought up American history. He mentioned the American stock market hadn’t recovered from the 1929 crash; not until 1951. He also made a striking inquiry. He likes to allude America as a train on tracks. Sometimes the train slows down; and sometimes the train speeds up. With our current predicament–the coronavirus pandemic–and an unpredictable future ahead–the train hasn’t slowed down, or sped up either. The train has been taken off its tracks and laid to rest. Meaning, we’re closing down parts of the greatest economy ever.

Fun fact from the meeting: Warren Buffett (89) and Charlie Munger (96) are both 182 year old combined. The United States of America is over 231 years old, when George Washington was unanimously elected president.

Charlie Munger - W. Buffett's right hand - worried about the ...

All in all, Warren Buffett doesn’t know what’s bound to happen. We’ve never seen anything like it before. We feared a recession, before it became an economic depression, in 1929. We made it through the Spanish Flu, which took over 50 million lives world wide.

And, as for now, Warren Buffett will always be an influential figure. He’s like Yoda from Star Wars!

Omaha Oracle Blindsided - Berkshire Hathaway Reports $49.7 Billion ...

$AAL: $9.82 (-7.71%) trading hours. $9.95(+1.32%) after hours.
$LUV: $27.56 (-5.71%) trading hours. $27.80 (+0.87%) after hours.
$DAL: $22.57 (-6.34%) trading hours. $22.87 (+1.33%) after hours.
$UAL: $25.26 (-5.11%) trading hours. $25.51 (+0.99%) after hours.

$BRK-A: $267,080.00 (-2.52%)

Hotdogs?

Indianapolis restaurants: Shake Shack coming to Fishers

If you like shakes, burgers, and fries, you best give Shack Shake a try! Once a hotdog cart on the wild streets of New York City; Shake Shack would eventually become a prominent casual-restaurant in America.

I haven’t visited the new fast food chain in almost a year… But, from what I remember from past experience, I was never disappointed. Although their prerogative revolves around a high-end, trendy, modern burger joint, their good tasting food outweighs their high-priced menu.

Shake Shack announced their Q1 earnings today. After the results came in, we found out their same-store sales fell a horrendous 12.8% vs 3.6% YoY (year of year). How can you blame them? The economy fell into shambles when a nationwide economic close-down erupted. Restaurants, like Shake Shack, were forced to close their doors to the general public. Near me, the Shake Shack restaurant is open, although it’s take-out only.

$SHAK shares did what most stocks with poor estimated earnings have done, they went up. In trading hours, $SHAK finished overall with a gain of $1.07 (+2.07%). After the earnings report was released, the momentum continued. Shares have gone up $0.87 (+1.65%).

“Just ‘Chegg’ it.”

11 Case Study: Chegg - Gibson Biddle - Medium

This is for you students, if you’ve ever had trouble with a math problem, how did you plan to solve it? Well, if there’s any more modern solution than searching it up online, Chegg is the website you want to use.

I personally don’t use Chegg, but I have many peers who do! And when our statistics class turned from in-person lecture to an online course, Chegg was always there. I understand some college professors are against the use of websites like Chegg; Websites like Chegg are designed to help students learn, comprehend, and understand the material they’re having trouble with.

Chegg also reported their first quarter 2020 financial results. And, without a doubt, the results were magnificent. The CEO of Chegg Inc., Dan Rosensweig, said “In these difficult times, Chegg performed ahead of our expectations, and we are grateful to have helped so many students.”

  1. Total Net Revenues of $131.6 million, an increase of 35% year-over-year
  2. Chegg Services Revenues grew 33% year-over-year to $100.4 million, or 76% of total net revenues, compared to 77% in Q1 2019
  3. Net Loss was $5.7 million
  4. Non-GAAP Net Income was $29.0 million
  5. Adjusted EBITDA was $31.8 million
  6. 2.9 million: number of Chegg Services subscribers, an increase of 35% year-over-year
  7. 235 million: total Chegg Study content views

Businesswire – Chegg Reports First Quarter 2020 Financial Results

$CHEG shares in trading hours sought to reach a new high, and finished at $45.79 (+3.38%). And once the ER was released after the bell, shares jumped to $50.82 (+16.05%).

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