Today is Thursday, January 27, 2022.
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Tesla Snubs Cybertruck In 2022
Shares of Tesla (Nasdaq: TSLA) dipped 0.80% in after-hours trading on Wednesday after the electric vehicle company posted positive earnings mixed with supply chain woes.
Financials: Tesla reported earnings per share of $2.52 and revenue of $17.7 billion; both were better than expected.
Trouble: While the financials looked good for Tesla, including an impressive 29.2% ex-credits automotive gross margin, many investors wanted more from the company. Tesla also said that it experienced challenges related to supply chain, labor, and manufacturing.
Priorities: CEO Elon Musk said during the earnings call on Wednesday that the chip shortage has resulted in the company prioritizing deliveries of current vehicles this year instead of developing new vehicles. That means the company will not roll out its highly-publicized new Cybertruck in 2022.
Final Thoughts: How will Tesla balance demand and supply chain issues in 2022? The company is a giant in the electric vehicle space, but the valuation of the stock is still too high for some investors.
Notable Earnings Today: Apple (Nasdaq: AAPL), Mastercard (NYSE: MA), Robinhood Markets (Nasdaq: HOOD), Nucor (NYSE: NUE), McDonald's (NYSE: MCD), Visa (NYSE: V), Valero Energy (NYSE: VLO), U.S. Steel (NYSE: X), Western Digital (Nasdaq: WDC), Blackstone (NYSE: BX), Atlassian (Nasdaq: TEAM), JetBlue Airways (Nasdaq: JBLU), Dow (NYSE: DOW), High Tide (Nasdaq: HITI), Southwest Airlines (NYSE: LUV), KLA (Nasdaq: KLAC), Tractor Supply (Nasdaq: TSCO), Oline (NYSE: OLN), A.O. Smith (NYSE: AOS), Alaska Air Group (NYSE: ALK), Altria Group (NYSE: MO), Boot Barn (NYSE: BOOT), Beazer Homes USA (NYSE: BZH), Canadian Pacific Railway (NYSE: CP), Celanese (NYSE: CE), CNX Resources (NYSE: CNX), Comcast (Nasdaq: CMCSA), Danaher (NYSE: DHR), Deutsche Bank (NYSE: DB), Eastman Chemical (NYSE: EMN), HCA Healthcare (NYSE: HCA), International Paper (NYSE: IP), Juniper Networks (NYSE: JNPR), LVMH Moet Hennessy Louis Vuitton (OTCMKTS: LVMUY), Marsh & McLennan (NYSE: MMC), McCormick (NYSE: MKC), Mondelez International (Nasdaq: MDLZ), MSCI (NYSE: MSCI), Northrop Grumman (NYSE: NOC), Rockwell Automation (NYSE: ROK), STMicroelectronics (NYSE: STM), Stryker (NYSE: SYK), T. Rowe Price (Nasdaq: TROW), Textron (NYSE: TXT).
Notable IPOs Today: PIMCO Access Income Fund (NYSE: PAXS), Motive Capital Corp II (NYSE: MTVC), APx Acquisition Corp. I Class A Ordinary Share (Nasdaq: APXI), Credo Technology Group Holding Ltd (Nasdaq: CRDO), iShares MSCI China Multisector Tech ETF (Nasdaq: TCHI), Knightscope, Inc. Class A Common Stock (Nasdaq: KSCP).
Notable Equity Crowdfunding Campaigns Ending Today: LearnDay (Wefunder), Guardian Athletics (NetCapital).
Notable Economic Events Today: Jobless claims (8:30 a.m. ET), Core durable goods (8:30 a.m. ET), Gross domestic product (8:30 a.m. ET), Pending home sales (10:00 a.m. ET).
Netflix Jumps Due to Bill Ackman Backing
Photo by Giordano Rossoni / Unsplash
Shares of Netflix (Nasdaq: NFLX) increased 3.70% in after-hours trading on Wednesday after Bill Ackman announced that Pershing Square Capital Management acquired over 3.1 million shares of Netflix and is now a top-20 shareholder in the company.
Details: In a letter, Ackman wrote that he liked the new valuation of Netflix and highlighted several favorable characteristics about the business.
Background: Shares of Netflix are down 30% in the past week due to poorly-received earnings.
Final Thoughts: On Monday, an analyst from Jefferies downgraded his rating on Netflix. Still, for Ackman to jump in, the company could bounce back eventually.
3 Numbers Behind the Stock Market Correction
Yes, the three major indexes are down to start 2022, but it is not time to panic, according to three important numbers.
Up In Arms: The New York Stock Arms Index and the Nasdaq Arms Index, two measurements used to determine selloffs, are both currently under 1, which suggests that we are not seeing panic-selling from investors.
Value: The FTSE 100, which measures the overall price-to-earnings ratio of stocks, was 14.86 at the end of 2021. This means equities are not overvalued.
Fear vs. Greed: The Fear and Greed Index, which measures fear and greed among investors, is currently at 52. This suggests that there is no widespread fear.
Final Thoughts: Look, there’s no denying the early January selloff in stocks, but these three numbers indicate that it is not time to panic.
Trends to Watch
Coming Soon: Coinbase Close to Listing Solana Ecosystem Tokens (CoinDesk)
March Madness: Fed Interest-Rate Decision Tees Up March Increase (The Wall Street Journal)
Mixed Bag: Intel Earnings Beat Expectations. Why the Stock Is Sliding. (Barron’s)
Relax: Don’t let crypto mayhem spook retail investors (Fortune)
Gamble: Las Vegas Sands slips after earnings miss as pandemic pain continues (Seeking Alpha)
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