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Trader's Diary

Economic calendar

Jun
2025
Definition of terms:
Earnings
IPOs
Splits
Week 26

Adidas managed to sell Yeezy shoes

Date: 24.7.2023

For quite some time I was following the saga between Kanye West (Ye) and Adidas about the latter terminating the contract with worldwide known rapper. Problem was that Adidas had Ye’s Yeezy shoes in stock, which were worth a few hundred million USD, but after the termination, they said they will not sell them. In this case, Adidas was set to receive a very big loss. However, today’s article on Investing informed me, that they have finally resolved the issue and not only that, but they also even managed to get more money out of it as they initially planned.

Article said that Adidas has received orders exceedingly approximately 565 million USD for 4 million pairs of unsold Yeezy shoes, surpassing the company's most optimistic projections. The strong demand for the initial batch of online sales has potentially prevented the German sportswear company from taking a significant write-down on its remaining stock. After rapper Kanye West made a series of antisemitic comments, Adidas discontinued selling Yeezy shoes from its defunct partnership with him in October. The loss of the highly profitable line had a negative impact on the company's first-quarter sales, decreasing by around 440 million USD. Nevertheless, the robust demand for the unsold sneakers has alleviated concerns at Adidas' headquarters that Ye's outbursts and reduced marketing efforts in the recent past would have rendered the Yeezy brand too toxic.

So far so good. I have decided to check also what has been happening in the near past regarding Yeezy shoes. Article on Reuters wrote that in May, the company had announced its plan to contribute a portion of the sales proceeds to organizations combating antisemitism and racism. The specific allocation to individual charities is still under discussion, with Adidas having identified five charities in the United States and China as an initial step. The total amount donated from the sales is expected to be significantly higher as Adidas is prepared to allocate a substantial portion of the profits generated from the Yeezy inventory. Prior to announcing its intention to sell the remaining Yeezy stocks, Adidas had anticipated a loss for the current year.

As far as the stocks go, it looks quite promising, at least in my opinion. The price is currently at 174 EUR per stock, after the major correction, when it fell from 315 EUR to 99 EUR.* Company is also expected to announce financial report in the beginning of August. If they will be positive, I can expect the stock to have some momentum. Nevertheless, it has a lot of space for movement. [1]  

Picture1

Movement of Adidas stocks in the last five years. (Source: Investing) *

* Past performance is no guarantee of future results.

[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.

Date: 26.2.2025
Super Micro Averts the Threat of Delisting and Rises Sharply

After analyzing the quarterly results of Super Micro Computer Inc. (NASDAQ: SMCI), I noticed a sharp increase in the price of their shares. In extended trading, they rose by about 22% after the company filed its late financial statements on time to meet the Nasdaq exchange's requirements to remain in the index. The move removed the threat of delisting that hung over the firm due to financial reporting issues and the loss of an auditor in 2023. At the same time, Super Micro announced that the new BDO auditor confirmed the compliance of the results with GAAP accounting principles, which managed to stabilize the situation. What awaits us next?

Date: 19.2.2025
Intel and Speculation About a Possible Company Split

Today, I noticed that Intel's stock has risen by nearly 50% from its February low, clearly indicating that the price is reacting to ongoing speculation about a potential company split.* Intel has been struggling with the loss of its technological edge and market share, with its performance lagging behind competitors like Nvidia, which dominates the AI chip segment. Ongoing negotiations between TSMC, Broadcom, and the Silver Lake investment group suggest that Intel's leadership is actively exploring ways to regain its market position and restore investor confidence.

Date: 12.2.2025
Alibaba and Apple Forge AI Partnership in China

This morning, I noticed a sharp increase in Alibaba shares – almost 8%1 since last week. The stock thus continues the bullish trend that we last saw in September last year.* I immediately started to find out what was behind it, and I came across an interesting piece of news. Apple is reportedly working with Alibaba to develop AI features for iPhones in China. This news immediately caught my attention, so I started looking for ways to benefit from it.

Date: 5.2.2025
AMD Slips After Earnings Report

For us investors following the semiconductor sector, today was very significant. AMD announced its results for the fourth quarter of 2024, beating expectations in terms of both sales and profit. Nevertheless, the shares fell by more than 9% after the end of regular trading hours.* This decline subsequently raised questions that I also dealt with. Is this an overreaction of the market, or is it a legitimate warning sign?

Date: 29.1.2025
ASML Exceeds Expectations: A Buying Opportunity?

Today's trading day was very interesting for me as I focused on the results of ASML, a leading player in chip manufacturing equipment, which published its results for the fourth quarter. ASML reported orders worth €7.09 billion, well above expectations. This order intake is a significant indicator that the demand for advanced equipment, driven by the growth of the AI field, remains strong.

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