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Today is Thursday, April 20, 2023.
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Tesla Keeps Slashing Prices
Ugly financial results caused shares of Tesla (Nasdaq: TSLA) to drop by 6.06% in after-hours trading on Wednesday.
Financials: Tesla reported earnings of 85 cents per share in the past quarter, which was expected. Revenue was $23.3 billion, which was better than expected.
Details: Total revenue jumped 24%, including an 18% increase in total automotive revenue.
But: Gross margins fell to 18.3%. Net income also dropped by 24%. Tesla had to implement price reductions during the past quarter and the company expects “ongoing cost reduction” for its vehicles.
Stock Price: After a bad 2022, Tesla is up 67% so far in 2023.
Final Thoughts: How much lower can Tesla slash prices? There are some serious questions about margins and demand, but at least Tesla is still profitable.
Notables
Notable Earnings Today: American Express (NYSE: AXP), Taiwan Semiconductor Manufacturing (NYSE: TSM), PPG Industries (NYSE: PPG), Seagate Technology (Nasdaq: STX), Rite Aid (NYSE: RAD), CSX (Nasdaq: CSX), AT&T (NYSE: T), Knight-Swift (NYSE: KNX), Nokia (NYSE: NOK), Bank OZK (Nasdaq: OZK), Alaska Air (NYSE: ALK), First Financial (), Blackstone (NYSE: BX), W.R. Berkley (NYSE: WRB), Union Pacific (NYSE: UNP), Valmont Industries (NYSE: VMI), D.R. Horton (NYSE: DHI), OceanFirst Financial (Nasdaq: OCFC), Philip Morris International (NYSE: PM), Plus Therapeutics (Nasdaq: PSTV), AutoNation (NYSE: AN), Fifth Third (Nasdaq: FITB), Genuine Parts (NYSE: GPC), Huntington Bancshares (Nasdaq: HBAN), KeyCorp (NYSE: KEY), Marsh McLennan (NYSE: MMC), Nucor (NYSE: NUE), Pool (Nasdaq: POOL), Truist Financial (NYSE: TFC), Watsco (NYSE: WSO).
Notable IPOs Today: Wang & Lee Group, Inc. Ordinary Shares (Nasdaq: WLGS), U Power Limited Ordinary Shares (Nasdaq: UCAR), U.S. GoldMining Inc. Common stock (Nasdaq: USGO).
Notable Equity Crowdfunding Campaigns Ending Today: Bombarda Rum (StartEngine), SuperPhone (Republic), HiveSkill (Netcapital), Fanbase (StartEngine).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Philadelphia Fed Manufacturing Index (8:30 a.m. ET), Existing Home Sales (10:00 a.m. ET).
IBM’s Hybrid Cloud Platform
Photo by Sigmund / Unsplash
Despite mixed financial results, shares of IBM (NYSE: IBM) ticked up by 1.73% in after-hours trading on Wednesday.
Financials: IBM reported earnings of $1.36 per share in the past quarter, which was better than expected. But revenue only reached $14.3 billion, which was below estimates.
Quote: “Our first quarter results demonstrate that clients continue turning to IBM for our unique combination of an open hybrid cloud platform, enterprise-focused AI, and business expertise to unlock productivity and drive efficiency in their operations.” - Arvind Krishna, IBM chairman and CEO.
Final Thoughts: After a great 2022, IBM is down 10% in 2023. But the financial results for the past quarter were good, including an 8% jump for Red Hat. IBM is a stable tech company.
Las Vegas Sands Sees a Recovery
Shares of Las Vegas Sands (NYSE: LVS) climbed by 4.87% in after-hours trading on Wednesday after the casino and resort company posted positive financial earnings.
Financials: Las Vegas Sands reported earnings of 28 cents per share in the past quarter and revenue of $2.12 billion; both were better than expected.
Final Thoughts: Macao gaming revenue hit $1 billion for the first time since 2019, signaling a travel recovery.
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Trends to Watch
More Inventory Issues: Lam Research revenue declines, and that is not expected to change (MarketWatch)
Big Drop: Bitcoin Hovers Near $29.3K After Binance Sell Order, UK Inflation Data (CoinDesk)
Grab Your Tickets: SeatGeek Files Confidentially for IPO (The Information)
Any Day Now: Bed Bath & Beyond Preparing for Bankruptcy Filing Within Days (The Wall Street Journal)
Not Magical: Disney Is Set to Eliminate Thousands of Jobs Starting Next Week (Bloomberg)
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