ResearchThree Things (3/20)

Three Things (3/20)

Mar 20, 2024

Nordstrom in talks of going private

Nordstrom’s stock jumped more than 10% following the announcement that the company is looking to go private. Prior to this week, the stock had fallen ~7% due to its weak sales outlook and declining revenue. Although the market reacted positively to the recent news, the Nordstrom family attempted to go private in 2018 and failed. It is possible we see the deal fizzle once again.

This year we have seen Nordstrom’s challenges reflected in the likes of its competitors, such as Macys which plans to dramatically downsize its retail footprint. Department stores have certainly dealt with their fair share of challenges: higher interest rates, declining consumer spending, and the pandemic-boosted transition to online shopping. Some attribute the recent issues to department stores’ failure to evolve with the changing needs of its client base. Budget friendly companies like Walmart and luxury brands like Prada have done well, but Nordstrom and Macy’s sit in the highly competitive space where companies need to innovate in order to keep pace with consumer demand.

Google deploys AI through Fitbit

Google announced plans to deploy artificial intelligence through Fitbit. The team is building a new AI feature, powered by Gemini, that can draw data from Fitbit wristbands and empower users with personal health information. Google acquired Fitbit back in 2019 and came under antitrust scrutiny given the user data it acquired through the transaction. 

The healthcare sector has long been left behind from the innovation cycle seen in other corners of the economy. Google integrating AI into Fitbit is another step towards pushing the boundaries of what’s possible. While many of the biggest competitors in the AI space have used the technology to enhance productivity, we think the market will see value in companies who deploy AI towards ethical causes, as well.

Fisker pauses production

The EV company, Fisker, announced that it will pause production for six weeks to avoid potential bankruptcy. The company reportedly hired restructuring officers and have expressed concerns about not being able to meet obligations to service its debt. They raised an additional $150 million, to seemingly help prevent or delay bankruptcy, through a deal with an existing investor. Prior to the additional capital injection, Fisker reportedly had $273 million in sales last year with more than $1 billion in debt. 

Fisker’s story highlights the struggles of the EV industry in a slowing demand environment. Other Tesla challengers like Rivian and Lucid are feeling the effects too. Inflation has made charging stations and upfront costs associated with EVs less attainable for consumers, leading both manufacturers and dealerships to slash prices. We don’t think the EV industry is going anywhere, and although some major players may struggle, the cost to produce these vehicles should continue to drop as input costs decrease and EV adoption broadens.


Disclosures:

As of writing, GOOGL is a holding in Titan’s Flagship strategy. As of writing, TSLA is a 1.32% holding in the ARK Venture Fund.

Titan Global Capital Management USA LLC (“Titan”) is an SEC registered investment adviser. Titan’s affiliate, Titan Global Technologies LLC (“TGT”), is a registered broker-dealer and member of FINRA/SIPC. Newsletters provided by Titan reflect the opinions of only the authors who are associated persons of Titan and do not reflect the views of Titan, or any of its subsidiaries or affiliates. They are meant for educational and informational purposes only, are not intended to serve as a recommendation to buy or sell any security and are not an offer to buy or sell a security. They are also not research reports and are not intended to serve as the basis for any investment decision. The information provided does not take into account the specific objectives, financial situation, or particular needs of any specific person. Any third-party information provided therein does not reflect the views of Titan or any of its subsidiaries or affiliates. All investments involve risk, and the past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not ensure a profit or protect against loss. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. The price of a given security may increase or decrease based on market conditions and clients may lose money, including their original investment and principal. Any rewards or free trials offered through Titan's client referral program are subject to full program terms & conditions.

Titan newsletters are curated digests of business news stories delivered daily. Titan newsletters’ goals are to make business and financial news accessible to all. The Titan newsletter team has editorial independence. Authority over all news decisions that appear in Titan newsletters, including what news we cover, our tone, and any accompanying media, lies with the Titan news team. Titan newsletter editors conduct daily research through a variety of primary (e.g., press releases, financial reports, public statements, economic data, social media accounts, interviews, etc.), and secondary sources (e.g., Fortune, The Wall Street Journal, The New York Times, Bloomberg, CNBC, TechCrunch, Jalopnik, Business Insider, Fox Business, etc.). The editors then determine the stories to be featured, covering a mix of headline news as well as less reported, yet relevant stories. Titan can’t cover everything, but the Titan newsletters aim to deliver a well-rounded serving of news. Titan newsletters make every attempt to report the facts fairly and accurately and provide “Takeaways” based on our understanding of the trends, our business experiences, and our personal opinions. We deliver the crucial information and our unique perspective so you can assess the news critically.

Various Registered Investment Company products (“Third Party Funds”) are offered by third-party fund families and investment companies on the platform as one of many potential investment options available to Titan’s clients, that may or may not be recommended based on an individual client’s investment objectives and risk tolerance. Certain Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Certain Third Party Funds that are available on the platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund. Please review the Third Party Fund’s prospectus, available on www.titan.com, in its entirety for a full list of risks associated with investing in the Third Party Fund before making any investment decision.

Cryptocurrency trading is provided by Apex Crypto LLC. Apex Crypto is not a registered broker-dealer or a member of SIPC or FINRA. Cryptocurrencies are not securities and are not FDIC or SIPC insured. Apex Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Titan Global Technologies LLC. Please ensure that you fully understand the risks involved before trading: apexcrypto.com/legal.

If there are substantive errors when published, corrections will appear in the following day’s material or within a business day of discovery of the error. When Titan, the author or household member of an author of a news story owns stock in a company mentioned, we’ll disclose it at the bottom of our newsletter.

Cash Management

Smart Cash

Smart Cash FAQs

Cash Options

Get Smart Cash

InstagramTwitterYoutubeLinkedIn

© Copyright 2024 Titan Global Capital Management USA LLC. All Rights Reserved.

Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept and agree to Titan’s Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities or investment products. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections are hypothetical in nature and may not reflect actual future performance. Account holdings and other information provided are for illustrative purposes only and are not to be considered investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.

Please refer to Titan's Program Brochure for important additional information. Certain investments are not suitable for all investors. Before investing, you should consider your investment objectives and any fees charged by Titan. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested, including principal. Brokerage services are provided to Titan Clients by Titan Global Technologies LLC and Apex Clearing Corporation, both registered broker-dealers and members of FINRA/SIPC. For more information, visit our disclosures page. You may check the background of these firms by visiting FINRA's BrokerCheck.

Various Registered Investment Company products (“Third Party Funds”) offered by third party fund families and investment companies are made available on the platform. Some of these Third Party Funds are offered through Titan Global Technologies LLC. Other Third Party Funds are offered to advisory clients by Titan. Before investing in such Third Party Funds you should consult the specific supplemental information available for each product. Please refer to Titan's Program Brochure for important additional information. Certain Third Party Funds that are available on Titan’s platform are interval funds. Investments in interval funds are highly speculative and subject to a lack of liquidity that is generally available in other types of investments. Actual investment return and principal value is likely to fluctuate and may depreciate in value when redeemed. Liquidity and distributions are not guaranteed, and are subject to availability at the discretion of the Third Party Fund.

The cash sweep program is made available in coordination with Apex Clearing Corporation through Titan Global Technologies LLC. Please visit www.titan.com/legal for applicable terms and conditions and important disclosures.

Cryptocurrency advisory services are provided by Titan.

Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.

Contact Titan at support@titan.com. 508 LaGuardia Place NY, NY 10012.