I love Monday mornings on Wall Street: Here's an old trick from a former stock analyst: If you want to get eyeballs on your work and raise the prospects of getting on TV, drop an outrageous call on Monday morning when newsrooms are yearning for content. In this regard, hat tip to my dude Brian Nowak at Morgan Stanley for coming out with a note Monday valuing Amazon (AMZN) at $1 trillion. Damn, that just sounds sexy and clickable and that's why I'm writing about it this morning). Nowak does a sum-of-the-parts analysis on Amazon (textbook term for pulling apart each business and valuing it separately inside a 100-page spreadsheet) and determines: (1) Amazon's core retail business is worth $600 billion; (2) Amazon Web Services is worth $270 billion; (3) Prime revenue is worth $70 billion and (4) Amazon's ad business is worth $55 billion. Nowak's $1 trillion Amazon call would have the stock trading at about $2,000 a share. Amazon's market cap right now: a paltry $542 billion. While I applaud Nowak for his boldness, he is late on the call -- this former stock analyst predicted Amazon is worth $1 trillion in October. PUT ME ON TV BABY!
The fear is in the air ahead of General Electric's big day: As I wrote on Sunday, new General Electric (GE) CEO John Flannery is about to take a hammer to the industrial giant's business at the company's investor day on Monday. The WSJ reported around midnight (lift off that embargo!) that Flannery is expected to unveil a plan that focuses GE on its aviation, power and healthcare businesses. A radical breakup of GE doesn't look to be in the cards, which some beleaguered investors may view as unfortunate. Also unfortunate is that GE said Monday it will slash its dividend by 50%. Sad day for widows and orphans who have held GE's stock since 1970. Here is one of the best indicators that investors remain terrified about GE's future: The cost of protecting against declines in GE's stock stock has tripled over the last three months, according to Bloomberg data.
Bears have more blood to drink: Those bears looking for more fodder for their views other than last week's market whipping have it to kick off the week. Key overseas markets are showing some weakness. For example, the Nikkei 225 posted its biggest decline in seven months on Monday and has lost ground in four straight sessions. The Topix Index notched its third straight losing session.
Welcome to Dealers, Dodge Demon
With the insane Dodge Demon reportedly now hitting dealerships, I thought it would be worthwhile to remind everyone the craziness factor of this car.
The Dodge Demon has a mind-blowing 840 horsepower. In effect, Dodge, a Fiat Chrysler (FCAU) brand, has developed a street legal race car. That caught the ire of Automotive News, which penned a story in April saying the Demon should not be street legal. Nevertheless, the Demon goes 0 to 60 mph in 2.3 seconds. Quarter-mile time is 9.65 seconds on first-ever for a production car street legal drag tires.
If you see one of these on the road, I want a pic tweeted to me at @BrianSozzi.
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