Your A.M. Deep Thought
Just like that, most everyone thinks the market correction is done. Three straight days of gains after big drops and wild swings will drive that type of thinking. To that, I raise this question: If we are done going down, why have shares of Amazon, Netflix (NFLX) and Action Alerts Plus holding Facebook (FB) lagged the S&P 500 the last two sessions? Shouldn't these high-flyers be leading us out of the dungeon? Top tech performer is the new safe-haven utility stock, and Action Alerts Plus holding, Apple (AAPL) . Amid the carnage of the past two weeks, Apple's stock has outperformed as investors sought any form of safe haven. With Apple's cash pile and steady stream of recurring service revenue, the stock was seen as the ultimate safe pick. But money should be coming out of Apple and into faster growing tech names if the correction was over, no?
Please Save Chipotle, Brian Niccol
It seems like it was only yesterday when I walked into this new fast-food place called Chipotle (CMG) after hearing friends voice their resounding pleasure. I walked inside and much to my surprise the restaurant didn't feel like a fast-food joint. There were no scary machines like the ones seen behind the cashiers at McDonald's (MCD) . Smiling workers made my food in an assembly line manner. The portion sizes were huge. The food tasted as if I made it at home, but much better. Prices were a little high, but not too high where I thought twice about visiting the next day. I left full, but not gross fast-food full. Those were the good old days before Chipotle's E. coli crisis. Now, Chipotle is a flat-out mess, from its operations right on down to communications. The portion sizes have shrunk. The food is bland. Workers look depressed. Prices are up a good bit. The menu seems stale in an age of fast-food innovation. Executives still don't seem to get it. In short, incoming Chipotle CEO Brian Niccol -- the game-changing executive that overhauled Yum! Brands' (YUM) Taco Bell -- has a huge task on his hands to revive the struggling chain. I have talked with Niccol on several occasions through the years while covering Yum! and there is no doubt he is the right guy for the job. On RealMoney, I offered Niccol some helpful advice on what he must do immediately as soon as walking into Chipotle's HQ on March 5. Brian, make Chipotle great again.
On the Ground at the Goldman Tech Conference
TheStreet's Eric Jhonsa had a jam-packed first day at the Goldman tech conference on Tuesday, Feb. 13. Reading Jhonsa's takeaways on Alphabet's (GOOGL) cloud CEO's presentation one can't help but to think the company has a huge untapped opportunity. Right now, Google cloud is playing second fiddle to Amazon (AMZN) Web Services and Microsoft (MSFT) Azure. Alphabet and Microsoft are holdings in Jim Cramer's Action Alerts Plus. Meanwhile, Action Alerts Plus holding Nvidia held a solid presentation from Chief Financial Officer Colette Kress. Most interesting takeaway from Jhonsa out of the presentation: "Kress sounded cautiously optimistic about demand from cryptocurrency miners, which have led to major graphics card shortages. Though admitting the market is likely to remain volatile -- and the recent cryptocurrency selloff could make it more so -- she reiterated that Nvidia believes mining-related demand grew sequentially last quarter, and predicted demand will continue for some time. Kress also observed that some GPUs being sold end up being used for both gaming and mining, thus making it hard to cleanly place those sales in one category or another." Long live bitcoin. Jhonsa is still on the ground at the conference Wednesday, Feb. 14, so be sure to follow him on Twitter here.
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