The Next 10 Bagger MEME Stock : wallstreetbets

You might want to say: “Retard, there have been at least a dozen posts about RKT already.” Well, there is some itsy bitsy tiny bit of new information…

Hold on to your butts 🚀

Yes, you might have seen the stock price climb to ~$26 after IPO and fall back to $19 and not listened to this brilliant retard telling you not to sell the GODDAM stock. Maybe because you have read the “sEeKinG alPhA aNaLysT” giving it a “meh” rating.

Well, in an effort to give you another chance on those sweet tendies, Rocket announced pre-earnings numbers, before the actual earnings date of September 2. This is what it looks like:

  • Quarterly earnings are up by 125% from the previous year with quarterly revenue of $5.31 billion. On an adjusted basis revenue is up by 300% over last year. The full report is here.

  • Adjusted net income is $2.8 billion, which is an increase of $2.2 billion compared to the first quarter of 2020 and $2.6 billion compared to the second quarter of 2019. For the accountants among you, the full set of numbers are here.

  • To put numbers into perspective this is a company with $2.4 billion float according to Google.

  • The stock was up 11.22% today and trading at around $23.8 at market close.

What does this all mean?

  • This is the parent company of Quicken Loans, it is essentially a FinTec company for mortgage refinancing, etc. Some argue that it is actually a tech company. They handle pretty much everything electronically via their website and app. This is important because of COVID-19. According to online reviews, they have one of the best-streamlined and user-friendly interfaces. You can do pretty much everything regarding financing your home without having to sit in a crowded office in your facemask.

  • Because of how user-friendly their apps are, they have sweet sweet margins: “Who is going to do DD on home mortgages when you can do everything on an app. Am I right?”

  • Interest rates are extremely low due to Fed intervention and it is to remain low for a very long while. Remember the famous quote from our lord and savior JPow: “We’re not thinking about raising rates, we’re not even thinking about thinking about raising rates.” For this reason, everyone and their mum are doing refinancing, buying homes, etc.

  • With a float of $2.4 billion, the company can have VERY significant price changes in a short time.

  • RKT is the ultimate meme ticker. “RKT to the moon 🚀” and “REKT 🔥” memes will keep us entertained for years to come while providing free advertisement for the company.

  • This is basically TurboTax of mortgages which is a multi-trillion dollar market.

Read about:   Advances - FHLB Des Moines

FAQ for 🌈🐻

Q: But what if the interest rates go back up tomorrow?

A: It won’t, as that would collapse the S&P 500 overnight. They have to keep interest rates low so that the money stays in the stock market.

Q: This sounds like the next subprime mortgage crisis. What if people start defaulting on their mortgages?

A: They are not the ones lending the money, so they don’t care. They package the mortgages and hand it to someone else. They keep mortgages for only 3 weeks on average during the process, then they are off the hook.

Q: Aren’t there other mortgage companies with online services?

A: Yes, but nothing this streamlined and easy to use. And they have very good brand recognition with the Rocket brand and Quicken Loans. Again, it is like TurboTax: yes there is other tax software out there, but who cares?

Q: But the stock price does not reflect the fundamentals. Didn’t it crash last week and then stall?

A: Yes there was some price discovery after IPO and you would have been right up until Monday of this week. But since the pre-earnings announcement, the stock price is picking up some serious steam. Once the mainstream media catches on and price exceeds the ATH (probably tomorrow), this will go to the moon. If this does not look like a RKT platform I do not know what does:

The Play

Just stop reading and load up the cart already.

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