Tesla's Volume Growth Rate

And, IBM's free cash flow objective.

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Today is Thursday, January 25, 2024.

The Early Bird Index today is 63.76.

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Tesla's Volume Growth Rate

The financial results from Tesla (Nasdaq: TSLA) on Wednesday disappointed investors, causing the electric vehicle giant’s stock to drop 5.96% in after-hours trading.

Financials: Tesla reported earnings of 71 cents per share in the past quarter and revenue of $25.16 billion; both were lower than expected.

Details: Auto revenue grew by only 1% in the quarter. Total revenue only increased by 3%.

Powering the Story: Tesla said that in 2024 its “vehicle volume growth rate may be notably lower than the growth rate achieved in 2023,” which is bad.

Final Thoughts: Tesla, down 19% in the last 30 days, is struggling to grow due to lower demand for EVs. Even after slashing its car prices, Tesla can’t increase sales.

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Notable Earnings Today: Intel (Nasdaq: INTC), Comcast (Nasdaq: CMCSA), American Airlines (Nasdaq: AAL), NextEra Energy (NYSE: NEE), NextEra Energy Partners (NYSE: NEP), Levi’s (NYSE: LEVI), Visa (NYSE: V), T-Mobile US (Nasdaq: TMUS), Western Digital (Nasdaq: WDC), McCormick (NYSE: MKC), Alaska Air (NYSE: ALK), Northrop Grumman (NYSE: NOC), Arthur J. Gallagher (NYSE: AJG), KLA Corp (Nasdaq: KLAC), Sherwin-Williams (NYSE: SHW), Western Alliance Bancorp (NYSE: WAL), Capital One (NYSE: COF), Southwest Airlines (NYSE: LUV), Valero Energy (NYSE: VLO), Dow (NYSE: DOW), Blackstone (NYSE: BX), L3Harris (NYSE: LHX), Union Pacific (NYSE: UNP), Humana (NYSE: HUM), CNX Resources (NYSE: CNX), Cullen/Frost (NYSE: CFR), Eagle Materials (NYSE: EXP), Fair Isaac (NYSE: FICO), Federated Hermes (NYSE: FHI), Marsh & McLennan (NYSE: MMC), Mobileye Global (Nasdaq: MBLY), Murphy Oil (NYSE: MUR), Olin (NYSE: OLN), RPC (NYSE: RES), Virtu Financial (Nasdaq: VIRT), Weyerhaeuse (NYSE: WY), Xcel Energy (Nasdaq: XEL).

Notable IPOs Today: CG Oncology, Inc. Common stock (Nasdaq: CGON), Perfect Moment Ltd. Common Stock (Nasdaq: PMNT), WisdomTree U.S. SmallCap Quality Growth Fund (Nasdaq: QSML), WisdomTree U.S. MidCap Quality Growth Fund (Nasdaq: QMID), Defiance Treasury Alternative Yield ETF (Nasdaq: TRES), Planet Image International Limited Class A Ordinary Shares (Nasdaq: YIBO).

Notable Equity Crowdfunding Campaigns Ending Today: Belly’s Sliders and Wings (Honeycomb), Sage Elizabeth Waxing (Honeycomb), Wellness Sushi (SMBX), Life Magnetics (Wefunder), Fuel Healthy Kitchen (Honeycomb), River Glen Cocktails (Netcapital).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), GDP (8:30 a.m. ET), Core Durable Goods Orders (8.30 a.m. ET), Goods Trade Balance (8:30 a.m. ET), Building Permits (8:30 a.m. ET), Retail Inventories (8:30 a.m. ET), New Home Sales (10:00 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

IBM's Free Cash Flow Objective 

IBM (NYSE: IBM) jumped 8.20% in after-hours trading on Wednesday after reporting better-than-expected financial earnings results.

Powering the Story: CEO Arvind Krishna said that IBM exceeded its free cash flow objective thanks to growth in hybrid cloud and artificial intelligence.

Final Thoughts: IBM is only up 7% in the past year. Given all the AI hype, the stock should be higher. IBM’s stock still has a low valuation.

Paramount Global Reportedly Becomes Acquisition Target

Paramount Global (Nasdaq: PARA) ticked up 2.69% in after-hours trading on Wednesday after a Bloomberg report said that media CEO David Ellison made an offer to buy National Amusements, the majority shareholder in Paramount.

Final Thoughts: Paramount, down 39% in the past 12 months, has faced lower revenue and layoffs in the past year. A deal to get acquired might sound appetizing. 

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