Traders shorting Beyond Meat and weed stocks helped TD Ameritrade's quarter, CEO says

Business Insider 3 weeks ago

beyond meatFacebook/Beyond Meat

  • Traders betting against Beyond Meat and weed stocks boosted TD Ameritrade's fiscal fourth-quarter earnings, CEO Tim Hockey told Bloomberg News in an interview.
  • The earnings boost came at a time when brokerages are looking to offset revenue lost from cutting commissions on trading to zero. 
  • Hockey told Business Insider that he's looking to technology such as using the public cloud to make up for some of the revenue lost. 
  • Read more on Business Insider.

Traders betting against Beyond Meat and weed company stocks gave TD Ameritrade a boost, the brokerage's CEO Tim Hockey said in an interview with Bloomberg News. 

There were enough people who wanted to place short bets on cannabis stocks and Beyond Meat that shares were a hot commodity, which boosted fees, Hockey said. 

The bump to TD Ameritrade's stock loan businesses helped fiscal fourth-quarter 2019 earnings Tuesday, when the company reported earnings per share of $1.05, higher than Wall Street's consensus estimate of 98 cents. Shares of the company rose as much as 3% on the news. 

Hockey told Bloomberg that he can't forecast that short selling will boost TD Ameritrade again in the future. Beyond Meat is currently the most expensive stock to short, according to S3 Partners, a financial analytics firm. In addition, a number of cannabis stocks including Tilray, Aurora Cannabis, and Canopy Growth top S3's list, Bloomberg reported. 

Still, the help on quarterly earnings comes at a good time for the brokerage. In October, TD Ameritrade stock plunged as much as 25.7% when Charles Schwab announced that it would cut commissions on stock, ETF, and options trades to zero. TD Ameritrade announced that it would also slash fees to zero on the same day, and Etrade followed a day later. 

Now, brokerages are looking for ways to offset the lost revenue from those commissions, Hockey told Business Insider's Dan DeFrancesco and Rebecca Ungarino in an interview. Based on TD Ameritrade's 2019 revenue, zero commissions will mean roughly $900 million lost, Hockey said. 

While making up that much lost revenue won't happen overnight, Hockey said, he's looking at measures like moving to the more efficient public cloud, which could cut costs and allow increased innovation.

Source link
Read also:
Business Insider › Finance › 1 month ago
Beyond Meat executive chairman Seth Goldman isn't trying to hawk another veggie burger. Instead, he said Beyond Meat is looking to redefine the entire food category with its plant-based "meat" products. "Meat is protein from an animal: that's defining...
Business Insider › Finance › 3 weeks ago
Tim Hockey, TD Ameritrade's outgoing president and CEO, sees big benefits in using the public cloud as it looks to make up for the revenue lost from dropping trading fees. Currently, TD Ameritrade uses the public cloud for non-core applications, but...
CBC › Finance › 1 month ago
Beyond Meat has dropped from its website statistics about the health risks of eating meat. The move follows criticism from experts about the company's health claims, but Beyond Meat said it's simply updating its site.
Business Insider › Finance › 1 month ago
Beyond Meat executive chairman Seth Goldman said that the "balance of power" in the meat industry has shifted in favor of consumers. He said that consumers have seen "diminishing returns" as the meat industry strives to lower costs — and they're...
Business Insider › 1 month ago
TD Ameritrade announced on Tuesday that it would cut fees to zero for online stock and exchange-traded-fund transactions. Charles Schwab had said earlier in the day that it was cutting fees. TD Ameritrade said its price change would go into action this...
Business Insider › 1 month ago
Beyond Meat's success is due in part to numerous high-profile partnerships with restaurant chains and food-delivery services. As demand for plant-based meat alternatives booms, having the right network is important for Beyond Meat and its competitors...
CNN › Finance › 1 month ago
Beyond Meat can do more than save the planet and improve people's health. It can help American farmers, according to the company's CEO.
CNBC › 1 month ago
Future Meat Technologies is trying to do for lab-grown meat what Beyond Meat and Impossible Foods have done for plant-based meat.
Business Insider › Finance › 2 months ago
Brian Holland, the latest analyst to initiate coverage of Beyond Meat, likes the company but thinks it's overvalued at currently. He's only the second analyst to recommend selling the stock. He thinks Beyond is overshooting its forecasts for how much...
Business Insider › 2 months ago
Brian Holland, the latest analyst to initiate coverage of Beyond Meat, likes the company but thinks it's overvalued at currently. He's only the second analyst to recommend selling the stock. He thinks Beyond is overshooting its forecasts for how much...
Sign In

Sign in to follow sources and tags you love, and get personalized stories.

Continue with Google
OR