Rivian's Early Sales Estimate

Plus, Clorox's cybersecurity damage.

Today is Thursday, October 5, 2023.

The Early Bird Index today is 52.51.

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Rivian's Early Sales Estimate

Shares of Rivian Automotive (Nasdaq: RIVN) sank 7.85% in after-hours trading on Wednesday after the electric vehicle company posted preliminary financial results.

Details: Rivian estimates that its revenue will be between $1.29 billion and $1.33 billion in the quarter that just ended. The problem is that Wall Street expected more revenue.

Also: To make up for the revenue shortfall, Rivian also announced a $1.5 billion green convertible senior note offering on Wednesday. The offer is for qualified institutional buyers.

Definition: As the name suggests, green notes are for projects that are environmentally friendly, such as cars that don’t produce emissions.

Background: It’s been an interesting week for Rivian. The company released numbers about car deliveries that were better than expected. Analysts also upgraded Rivian before the preliminary financial results.

Stock Price: Rivian is up 36% this year. In the last 30 days, the stock is only up about 1%.

Final Thoughts: There was some thought that the recent strike involving other automakers could benefit EV companies such as Rivian. But these results show that the stock is far from perfect.

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Notable Earnings Today: Levi Strauss (NYSE: LEVI), Constellation Brands (NYSE: STZ), Aehr Test Systems (Nasdaq: AEHR), Conagra (NYSE: CAG), Lamb Weston (NYSE: LW), CalAmp (Nasdaq: CAMP).

Notable IPOs Today: Maison Solutions Inc. Class A Common Stock (Nasdaq: MSS), La Rosa Holding Company Common Stock (Nasdaq: LRHC), JPMorgan U.S. Tech Leaders ETF (Nasdaq: JTEK), Goldman Sachs ETF Trust (NYSE Arca: GSC).

Notable Equity Crowdfunding Campaigns Ending Today: LIFT Aircraft (StartEngine), Smart Cups (StartEngine).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Trade Balance / Exports / Imports (8:30 a.m. ET).

Clorox's Cybersecurity Damage

Clorox (NYSE: CLX) dropped by 2.91% in after-hours trading on Wednesday after the company revealed the financial hit from a previously disclosed cyberattack.

Details: As a result of the recent cyberattack, Clorox now expects net sales to decrease from 28% to 23%. And instead of a higher gross margin, Clorox now expects the gross margin to decrease.

Background: In August, Clorox announced that it suffered a cyberattack that caused a disruption in operations, including processing delays and product outages.

Also: Clorox anticipates ongoing, but lessening, operational impacts from the cyberattack this quarter.

Final Thoughts: Already down 7% this year, Clorox needs to turn things around. The company reports earnings in November.

BlackBerry to IPO IoT Business

BlackBerry (NYSE: BB) announced Wednesday that it will separate its IoT business away from its cybersecurity business, sending shares up by 4.22% in after-hours trading. This includes a plan to hold an initial public offering for the new IoT subsidiary.

Final Thoughts: This is a great way to get more value for investors. In last week’s earnings, it was clear that the IoT business was headed in a different direction than the cybersecurity business. BlackBerry is up 29% this year.

Trends to Watch

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