Tesla’s "Record Quarter"

Today is Thursday, October 21, 2021.

Tesla’s "Record Quarter" Smashes Earnings

Electric vehicle maker Tesla (Nasdaq: TSLA) reported its quarterly earnings on Wednesday, which the company called a “record quarter,” including its best-ever net income and gross profit.

Numbers: Tesla’s earnings per share of $1.86 beat expectations. Its revenue of $13.76 billion was also better than what most analysts expected.

Good Margins: The company reported an operating margin of 14.6%, which exceeded its prior expectations for the quarter. Its total gross margin of 26.6% was a record for the company.

Half Glass Empty: Despite the good earnings, shares of Tesla dipped 1.64% in after-hours trading. The company cited numerous challenges during the quarter, including the chip shortage and congestion at the ports.

Missing: Tesla said that its new Cybertruck is still in development and offered no new updates.

Final Thoughts: Shares of Tesla are up 17% in the past month. It’s still one of the most polarizing stocks for investors.

Notables

Notable Earnings Today: Chipotle (NYSE: CMG), AT&T (NYSE: T), Southwest Airlines (NYSE: LUV), Whirlpool (NYSE: WHR), Alaska Air Group (NYSE: ALK), American Airlines Group (NASDAQ: AAL), AutoNation (AN), Barclays (BCS), Intel (INTC), KeyCorp (KEY), Mattel (MAT), Quest Diagnostics (NYSE: DGX), SAP (NYSE: SAP), Snapchat (NYSE: SNAP), Union Pacific (NYSE: UNP).

Notable IPOs Today: P10, Inc. (NYSE: PX), Enfusion, Inc. (NYSE: ENFN), Winc, Inc. (NYSE: WBEV), Ventyx Biosciences, Inc. (Nasdaq: VTYX), Vita Coco Company, Inc. (Nasdaq: COCO), Portillo's Inc. (Nasdaq: PTLO), Biofrontera Inc. Common Stock (Nasdaq: BFRI), Runway Growth Finance Corp. Common Stock (Nasdaq: RWAY).

Notable Equity Crowdfunding Campaigns Ending Today: Solutions Vending International (StartEngine), BeWell Digital (Wefunder), COLORS Worldwide (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).

PayPal Might Buy Pinterest in Mega Deal

Shares of social media website Pinterest (NYSE: PINS) jumped 12.77% on Wednesday after Bloomberg reported that PayPal (Nasdaq: PYPL) might acquire the company, which could be the biggest tech deal of the year.

Details: The reported acquisition values Pinterest at $45 billion, which comes out to a price of $70 per share.

High Price Tag: If this deal happens, it would be PayPal’s biggest acquisition. At this price tag, it is a 26% premium to what the company is currently worth. PayPal’s stock dropped 4.91% on the news, showing that PayPal’s investors don’t like the price tag.

Bigger Picture: Both Pinterest and PayPal experienced big growth during the pandemic, but that growth has slowed down lately. The acquisition would also show how the lines between e-commerce and social media are blurring.

Final Thoughts: The deal is not finalized and another suitor could acquire Pinterest.

Top Crypto Dog: Dogecoin vs. Shiba Inu

While Dogecoin has become the ultimate meme cryptocurrency with its incredible price surge in 2021, Shiba Inu seems to be the next dog-based crypto to be favored by investors.

Let’s examine the differences between both coins.

Origins: Dogecoin is the original meme crypto, which was pretty much created just for that purpose. Shiba Inu was similarly created for the same purpose, but some people have already referred to it as the “Dogecoin Killer.”

Technical Differences: Dogecoin is based on the Scrypt algorithm, which allows for faster creation. Meanwhile, Shiba Inu was built on the Etherum blockchain, which makes it stand out.

Supply: Dogecoin is constantly being created and there is no limit in the supply of it. Meanwhile, Shiba Inu is capped at a supply of 500 trillion.

Market Cap: Dogecoin has been around longer and has a $31 billion market cap. Shiba Inu’s market cap is around $11 billion.

Final Thoughts: Shiba Inu’s price is way less than Dogecoin, but that could change in the future.

Trends to Watch

Going Down: IBM shares drop on weaker-than-expected quarterly revenue (CNBC)

Touching the Sky: After Bitcoin’s All-Time High, What’s Next? (Coin Desk)

Falling: Novavax Stock Sinks on Report of Covid Vaccine Manufacturing Problems (Barron’s)

What’s in a Name: Facebook is planning to rebrand the company with a new name (The Verge)

Essential Oil: Oil extends gains as U.S. crude inventory draw points to strong demand (Reuters)

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