foxex: JUST DID IT!

Insight after the bell

By Caleb Silver, Editor in Chief

US Markets Today: DJIA slides 0.26% - Blame rising oil or Fed hike fears… or just more sellers than buyers.

3 For Tuesday:

Nike shares fall post-earnings, but it's still #winning
Amazon wants to build your next home and power everything in it
Qualcomm's lawsuit v. Apple is a bigger deal than you think

#1 JUST DID IT!

Nike just reported Q1 FY 2019 earnings, exceeding analysts' estimates on the top and bottom line. The stock is selling off in after-hours, down about 5%, but the NKE story is bigger than this quarter or next, for obvious reasons. The Colin Kaepernick ad gamble did not create the shareholder backlash that many expected. Quite the opposite, actually. The stock was up 5.5% since the ad dropped, adding at one point more than $6 billion in market cap to the Beaverton, Ore.-based athletic company. It's the best performing stock in the DJIA, by the way.

Why it Matters: We know better than to give the Kaepernick ad all the credit, although it does show that taking a stand on social issues is not kryptonite for stocks. Nike's had some great moments over the past few weeks, too. Tiger Woods' victory last weekend–his first in five years–didn't hurt, and Serena Williams–arguably the greatest athlete of all time–sporting the swoosh through her US Open run amid wardrobe controversy she brilliantly dismissed–also helps. When the best athletes wear your brand and win, it helps. Nike figured that out a long time ago.

What's Next: Could NKE go higher from here? Of course–anything is possible. The company announced a $1.2B share buyback program last quarter (who didn't?) and it's well underway. But, keep in mind, the stock is trading at a lofty multiple given its historic range and against its competitors. On the other hand, the NBA season is about to start, and LeBron's new Lakers jersey has a decent chance of moving units–especially in China.

Top Nike Shareholders

Read Nike's press release

#2: There's no place like Home!

Amazon announced on Sept. 25 that it was using its Alexa Fund to help finance Plant Prefab. The Alexa Fund is exactly what it sounds like: A fund devoted to increasing Alexa's IOT (internet of things) reach.

Why it matters: Oh boy, does it matter. Right now, Alexa is comparable to Google Home. But if Amazon actually gets into the house-building business, Alexa is like Google Home… plus the actual home. Talk about seamless integration.

What's next: If homes made with Amazon intervention sync up seamlessly with people's homes, it would be hard to go back. Everyone would have to pick a side: Amazon or Google, but not both. Otherwise it's like having an iPhone and a Samsung computer or vice versa.

Amazon Invests in Pre-Made Homes, Takes Another Step Towards World Ownership

Amazon: 10 Secrets You Didn't Know

#3 Qualcomm vs. Apple is the story of Silicon Valley

The ongoing saga of Qualcomm vs. Apple dragged in Intel last November; on Sept. 25, news emerged of a court filing that ups the ante. Qualcomm's filing accuses Apple, Inc. of stealing "vast swaths" of information for the purpose of passing it on to the Santa Clara, Ca.-based Intel. You can see why Qualcomm might be upset about that.

Why it matters: This time, Qualcomm is essentially accusing Apple of outright theft of its intellectual property. You see, Apple announced this past summer that it was exclusively using Intel modems for iPhones, effectively pushing out Qualcomm. Even though this is just an incremental change in Qualcomm's suit against Apple, which was originally filed in Nov. 2017, this is the most explicit accusation so far.

What's Next: Any lawsuit involving Apple ultimately touches on pretty much ever major electronics player. Every company from Samsung to Texas Instruments has some Apple DNA and vice versa. Expect other players to either step forward or be involved in separate but related suits.

Apple Traders Bet Stock Will Soar To New Record

Demand for Apple's Priciest iPhone Is Better Than Expected

Chart of the day: Will Insta Founders' Departure Hurt Facebook's Cash Cow?

Instagram founders Kevin Systrom and Mike Krieger announced they're leaving Facebook. The social media platform that Facebook acquired in 2012 for $1 billion, is now worth more than $100 billion according to Bloomberg Intelligence.

This is not the first time that founders of a company Facebook acquired have moved on. WhatsApp founders Jan Koum and Brian Acton, left the company earlier this year after disagreements. Palmer Luckey, the co-founder of virtual reality company Oculus, departed in 2017.

Nearly 98% of Facebook's 2017 revenue came from advertising, and Instagram is crucial to it. Insta's been winning the advertising game over rival Snap, and its year-over-year ad growth has been exceeding even that of Facebook. Will these departures change anything for Insta? Only time will tell.