“This is why I always use a burner account, even for video calls.” – Jeff

 

Hey there carnivores,

 

Before we get into discussing the shitstorm that is the market, we’ve got a very important announcement… 

We’ve put together a stimulus package for readers of The Beef ONLY.

(Seriously, no one else in the RagingBull universe will be eligible.)

It’s not a $1,200 check… it’s something better.

All month we’ll be dropping $5 flash deals for some of our best products. You’ll have a chance to get your hands on trading products that usually cost hundreds and thousands of dollars for just FIVE BUCKS.

This isn’t an April Fool’s Joke, guys… keep an eye out for deals coming in hot all month.

 

Keep raging,

Jeff & Jason

It’s a lawzoot

Zoom has been caught on camera… 

The San Jose based company is facing a class-action lawsuit out of California for allegedly sharing customer information with third parties. So much for “sharing is caring.”

The video conferencing company was caught getting in bed with Zuck. Facebook was allegedly provided with Zoom users’ personal data and info about the customers’ device model whenever they would log in to a conference (which as of late, has been a lot). FB would also receive the customers’ device’s unique advertising identifier, which if you can’t guess by the name, allows a company to target the user with ads. 

Seems legit

Once company officials were ‘made aware’ of the device information-sharing issue on March 25, they removed the Facebook software developer kit on Apple devices and reconfigured the login for the browser to stop the share sesh. 

However, that claim flies in the face of the lawsuit, which states that Zoom was paid by third parties for providing customer information, unbeknownst to users. Zoom does not disclose what information it shares with FB in its Terms and Conditions.

What goes up must come down

Zoom, the Cinderella story of the past three months, has seen its stock skyrocket 113% YTD as companies have figured out that employees can WFH and hold meetings via Zoom (… and your mom found out she can have virtual wine nights utilizing the platform). 

So the pullback yesterday was quite the surprise, as Zoom’s stock fell more than 3% following the lawsuit announcement. 

The bottom line…

Zoom’s privacy practices are also being looking into by the New York Attorney General. The AG is questioning if Zoom’s security measures have been properly beefed up to handle the increase in traffic.

But at least Zoom can look back at the end of the day and be happy it’s not Houseparty. Its video conferencing competitor is fighting rumors that it was allegedly hacked. Some pranksters are posting online that their Spotify, PayPal, and Snapchat accounts have all been hacked after installing HP. 

Houseparty is claiming this is a smear campaign (Zoom is that you?!) and offering up a $1M reward if someone IDs the perp. They do know it’s Zoom… right?

☑️Hit the pass line.

It isn’t all doom and gloom in the M&A space… just mostly. Casino operators Caesars and Eldorado are seeing through the plan to create a mega-gambling company that will help you blow your stimulus money in grand fashion.

The $17B deal was initially expected to close in April, but analysts expect it to be pushed back to June.

As much as the delay is due to social distancing, Caesars also sold the Rio in Las Vega for $460M that resulted in a change to the deal price. Ahh, some good, clean dealmaking is oddly refreshing during these odd times.

☑️I’ll have a slice.

Yesterday Papa Johns and Dominos had very (and I can’t stress that enough) different days. The Papa saw its stock rise 7.62% during trading after announcing same-store sales growth estimates of 5.3% for Q1. All this, while fast food restaurant transactions overall dropped 34% in the week ending on March 22. I guess that’s what happens when you’re eating 40 entire pizzas in 30 days. 

Elsewhere, Dominos reported US same-store sales growth of only 1.6%, which caused $DPZ to fall almost 7%. Both pizza parlors withdrew their 2020 outlooks. Join the club.

☑️Let’s make a deal.

Remember when tariffs were our biggest concern? Yesterday, rumors surfaced that POTUS will announce that he is granting a 90-day deferral of some tariff payments. No word on if Anthony “The Real MVP” Fauci advised El Pres on the matter.

But don’t expect the US to stop collecting tariffs on Chinese goods. In fact, the President came out and said that “China is paying us.” The deferred import taxes would reportedly only be applicable to “most-favored-nation duties” which includes items like footwear and jetskis.  

☑️ Mr. Worldwide.

Jerome Powell is at it again. In an unprecedented move, the Fed will allow central banks from around the world to convert their Treasury securities into straight cash homie. The first of its kind lending facility will be open to foreign central banks and other international monetary authorities that maintain accounts at the New York Fed and are in good standing with Uncle Sam. Sorry, North Korea.

“Why the f*ck is J-Pow thinking about other countries at a time like this?!” – you, a proud American

Have no fear, Jerry Interest Rates has the US best interest in mind. This option will keep foreign governments from selling Treasury securities on the open market, thus keeping supply (and interest rates) lower. Higher interest rates mean steeper borrowing costs, which, last time we checked, is bad for biz.

 

Author: Jeff Bishop

One of the best traders anywhere, over the past 20 years Jeff’s made multi-millions trading stocks, ETFs, and options. He is renowned as an incredible trader with a deep insight and a sensitive pulse on the markets and the economy. Jeff Bishop is CEO and Co-Founder of RagingBull.com.

Even greater than his prowess as a trader is his skill and passion in teaching others how to trade and rake in profits while managing risk.

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