Happy hump day, readers. I’m senior reporter Phil Rosen.
FTX made massive sponsorship deals with sports leagues and star athletes like Tom Brady. Here’s what experts say could happen after the crypto exchange’s implosion.
One of FTX’s most visible partnerships is with Miami Heat. Its home court was renamed FTX Arena in June 2021.
FTX has been the “Official Cryptocurrency Exchange brand of MLB” since June 2021. All Major League Baseball umpires wear a patch with FTX’s logo as part of the deal
In December 2021, The Golden State Warriors announced a “first-of-its-kind” cryptocurrency partnership in professional sports, naming FTX its “Official Cryptocurrency Platform and NFT Marketplace.”
FTX had several celebrity endorsers, mainly from the sports world. Football star Tom Brady appeared in commercials for the platform.
Stephen Curry also appeared in FTX commercials and signed a deal with the company. Here are some other celebrities who had deals with FTX:
FTX didn’t stop with the pros, though. The crypto company even invested in college sports. UC Berkeley signed a $17.5 million deal with FTX to sponsor its athletic department – and agreed to be paid entirely in crypto.
FTX even invested in a Formula One racing team called Mercedes-AMG Petronas
This time last year, the S&P 500 was coming off its all-time closing high, which had arrived on 2022’s first day of trading. That didn’t exactly happen yesterday.
Stocks showed early promise Tuesday, but by the close they had turned as red as Santa’s garb, carrying on December’s sluggishness.
Of course it’s still early, but if 2023 doesn’t see a rebound, then history tells us that we could be in for more pain than last year.
It’s only happened four times, but when the S&P 500 sees back-to-back losing years, the second is always worse.
1. Stocks are coming off their worst year since 2008 and a massive macro storm is rocking markets — but there’s no shortage of bullish calls coming out of Wall Street.
To Oppenheimer chief investment strategist John Stoltzfus, current conditions aren’t as bad as they were in 2008 and stocks have as much as a 15% upside ahead.
“We continue to see ‘the glass half full’ as the end of a period of ‘free money’ and overstimulation of the economy suggest better times ahead,” Stoltzfus wrote in a note on Tuesday. “Indeed 2022 was the S&P 500’s worst year since 2008 but stemming from a very different underlying cause.”
Remember, last year brought both blistering inflation and the Fed’s aggressive policy response, as well as lingering pandemic snags and plenty of geopolitical tensions with Russia, Ukraine, and China.
But the Oppenheimer strategist highlighted that stocks are facing much different headwinds than they did during the Great Recession, which could imply they fare better.
And if you look at Bank of America’s Sell Side Indicator, a year in the green for the S&P 500 seems to be in the cards.
BofA strategists are forecasting 16% returns for the index in 2023, and their key contrarian signal is part of that calculus.
It’s inching toward a “Buy” signal, which may just be reason enough for investors to cheer.
3. On the docket: Unifirst, Landec Corp., and more, all reporting.
4. Morgan Stanley just revamped a nine-stock list that’s beaten the S&P 500 by 18% over time. Even as the market outlook for 2023 remains gloomy, the firm sees big gains for certain names. See their full list here.
5. Sam Bankman-Fried asked a judge to keep secret the identities of two people who helped secure his $250 million bail. The disgraced crypto king’s lawyers argued there was “no need for public disclosure” of names, and that it would save the individuals from public scrutiny. Meanwhile, in New York federal court yesterday, Bankman-Fried entered a plea of not guilty.
6. Twitter is worth half as much as it was when Elon Musk bought it, according to Fidelity. The firm cut the carrying value of its investment in the social media platform by 56% in November. It now assigns a value of $8.64 million to its stake — down from $19.66 million in October.
10. Tesla stock plunged on 2023’s first day of trading. Shares of the electric-vehicle maker had lost 65% last year, but that fall continued on Tuesday. Between its fourth-quarter deliveries shortfall and production snags in China, dig into what’s driving the collapse.