January 4, 2022

Good morning traders,

Welcome back to The Daily Setup. Markets were up Monday to start the new year off right. Here’s what’s on the docket today:

  • Apple hits $3T in market cap
  • Tesla crushes Q4 delivery estimates
  • Airline stocks gain amid flight cancellations

Let’s get to work.


How’d the markets look?

Market Outlook 👀

DOW 36,585.06 +0.68%
S&P 500 4,796.56 +0.64%
NASDAQ 15,832.80 +1.20%
BITCOIN $46,283 -2.22%


Genprex, Tesla deliveries, and 🍎


Genprex is besties with the FDA

The Doctor is In Genprex Inc (GNPX) traded seriously high on Monday after the company announced they had received FDA Fast Track Designation (FTD) for their primary asset, REQORSA. This is really great news for the gene-therapy company, but less good news for Merck & Co (MRK) since Genprex has been approved to test REQORSA in non-small cell lung cancer patients whose disease progressed after treatment with MRK’s own Keytruda. If they pull this off, GNPX could be laughing all the way to the bank as they move with confidence into their Acclaim – 2 Trials for REQORSA.

  • The stock saw +167% growth by market close on Monday, the most growth since February 2021.
  • GNPX is looking to be the FDA’s golden boy as this is the second time they’ve received FTD for REQORSA. Previously they had received FTD to follow up on the shortcomings of Astrazenaca’s Tagrisso treatment in patients with unresectable stage III.
  • FDA Fast Track Designation status also indicates that Genprex has a closer connection to the administration and that if they see success with their REQORSA trails, further developmental milestones and possibly its approval could be fast-tracked as well.

There is no doubt that the news of gaining their second FDA Fast Track Designation puts the wind into Genprex’s sails, signaling there’s confidence in REQORSA’s ability to tackle niche cancers. With that in mind, Genprex’s stock history does reveal a series of rises and dips so of course nothing is a guarantee. That being said, receiving their second FTD is a serious milestone in their development and could signal a healthy future for the company.


Elon adds a record number of


Shares of Tesla (TSLA) rallied 13.53% on Monday following a record Q4 delivery report that blew away analysts’ estimates by more than 17%. Big numbers aside, quarterly delivery reports are a strong gauge of the company’s financial health and performance. While Tesla is the most well-known, Chinese EV makers NIO, XPEV, and LI also reported record delivery numbers in the fourth quarter.

  • Tesla’s Q4 deliveries came in at 308,600 vehicles vs. the average analyst estimate of 263,000.
  • The quarterly delivery numbers include all Tesla models and have increased in six consecutive quarters.
  • While vehicle manufacturers across the globe felt the impact of chip shortages, and not the kind my kids cry about when there’s no more Cool Ranch Doritos in the pantry, Tesla reprogrammed software to use less scarce chips like Pringles…I assume.

Tesla could continue to see growth as their Austin and Berlin factories ramp up with new technology and teams in 2022. That said, the increase in competition from other startup EV makers as well as old stalwarts like GM and Ford could cause a slowdown in that growth. TSLA took a hit starting in early November when Elon started selling a 10% stake in the company but has quickly rebounded over the last two weeks. The stock’s ATH of $1243.49 put in on November 4th is within sight and could be a pivotal price for both buyers and sellers alike.


Eden 2.0 – Apple Hits 3T Market Cap

It may have been for just a fleeting moment but during Monday trading, Apple (APPL, if you didn’t already know) became the first US company to hit a market cap of $3T. “Tim Apple” must be laughing on a throne of melted blackberries (RIP In Peace) as Apple beats Microsoft, Amazon, and Google all to the punch. This moment reveals how big tech has emerged from the Covid years as the biggest leaders in the market.

  • Apple has always been treated as a safe investment (at least in the 21st century) but their sales growth in Q4 of 2021 was seriously robust. The iPhone franchise has maintained its relevance and their services have grown exponentially with 25% growth YoY, delivering over $18B in Q4.
  • Investors are also potentially bullish on Apple’s ability to grow into new markets, with their plays for the VR/AR and EV markets hopefully bearing fruit as those technologies become the standard.

While hitting $3T market cap for an instant is largely symbolic, this does demonstrate Apple’s dominance in tech while heralding the staying power in the face of market uncertainty (no duh). Sure, the Fruit is facing some of the biggest regulatory pressure in its history and significant competition in VR and EVs, but they’re freakin’ Apple… unless the iPhone becomes the most hated phone in the world, they’ll still be on top.

Fake Realtors Needed For Fake Land Sales

Token Talk

In case 2021’s growth of non-fungible tokens (NFTs) wasn’t bizarre enough for you, 2022 is looking to offer you real estate in the metaverse. You hear that millennials…. You can finally own property.

Let’s first back up and make sure we’re all on the same page. NFTs are, “a unit of data stored on a digital ledger, called a blockchain, which can be sold and traded.” One example would be a collection of sh*tty drawings from a 10-year old that somehow has made them a millionaire and has caused my self-esteem to sink even lower than it already was. The metaverse is, “defined as a unified 3D virtual world where users can conglomerate via their digital selves (i.e., avatars that are more attractive than they really are) and perform complex interactions.”

  • The idea of virtual real estate isn’t new, but has gained in popularity since Facebook rebranded itself as Meta.
  • Investors will be able to deploy their money to purchase land in the metaverse via NFTs.
  • According to DappRadar, sales of virtual land since the start of December have garnered $105M. Gaming platform Sandbox led the charge by bringing in $86M of that total.
  • The most popular tokens to buy land in the metaverse are Ether, Axie Infinity, Sandbox, Gala, Enjin Coin, and Decentraland. Curious naming on the last one…

The old tried and true methods of investing have been turned on their head over the last few years. We can all be cynical and say that digital currency, NFTs, and the metaverse will all fail. However, I think it’s time to recognize that while many companies, tokens, etc associated with NFTs and the metaverse will indeed go by the wayside, there will be plenty that will thrive. Have no fear because we at The Daily Setup will continue to keep you apprised of all things related to this new frontier.

Jana Partners Looking at the Zendesk Deal…

Rumor has it

Jana Partners, the activist investor that has been stirring sh*t up with Macy’s and Nordstrom, was back on their bullsh*t Monday with customer service platform Zendesk (ZEN). ‘New year, same me’ I suppose. On November 2nd, we wrote about Zendesk’s plans to buy Momentive Global (MNTV), noting that it was possible for both companies to finish lower on the news because investors either felt that the deal did not make sense or was too expensive. Well, yesterday Jana Partners told us how they really feel about the deal.

  • Jana criticized Zendesk for deciding to issue equity at an “artificially depressed” price prior to reporting strong earnings.
  • They believe if the deal goes through, the payoff would be minimal and would add a “meager 1% to Zendesk’s top line growth and about 10% to (its) future stock price”
  • Jana expects shareholders to eventually vote against the deal and has asked for the company to terminate the deal immediately so they can focus on more profitable opportunities.

Zendesk and Momentive are both down roughly 8% since the deal was announced nearly 3-months ago. In response to the Jana news, Zendesk fell by 0.73%, while MNTV gained 0.43%. Based on its successful track record, it seems that what Jana Partners wants, Jana Partners gets. The question is, if the deal is terminated, do both companies go on an extended rally just as they went on an extended selloff following the October announcement? Keep both ZEN and MNTV in your watchlist as we wait for clarity on the situation.

Link Roundup 📿

Other News

Other News Link Roundup

  • Bad Medicine – Bayer Investors Begin $25B Class-Action (link)

  • Soaring to New Heights – Airline Stock Surges Despite Canceled Flights (link)

  • Thanks Obama – Obama-Era Labor Policies to Return (link)

  • “I’m MEEEEELTING” – Gold Hits New Lows (link)

  • Fifty-Fifty – 50% Chance There’s a Rate Hike in March 2022 (link)


Be careful what you buy, via @loganbartlett


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