Tesla Dumps $936M in Bitcoin
Plus, Carnival's new offering.
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Tesla Dumps $936M in Bitcoin
Shares of Tesla (Nasdaq: TSLA) increased 1.45% in after-hours trading on Wednesday after the automotive company posted mixed financial earnings.
Financials: Tesla reported earnings per share of $2.27, which was better than expected. Revenue of $16.9 billion was in-line.
Goodbye, Bitcoin: Towards the end of the second quarter, Tesla sold 75% of its Bitcoin, which was worth $936 million. This news caused the price of Bitcoin to drop 1% on Wednesday.
Margin Call: Tesla’s automotive gross margin was 27.9% in the quarter, which was below estimates.
Challenges: Although Tesla achieved record production rates in the quarter, the company faced numerous challenges. This included global supply chain disruptions, labor shortages, and other logistics issues.
Final Thoughts: Tesla’s stock is down 38% this year as investors worry about the current state of electrical vehicles. Can the stock tick up in 2022? The company said it is focused on a record-breaking second half of the year.
Notable Earnings Today: AT&T (NYSE: T), Snap (NYSE: SNAP), American Airlines Group (Nasdaq: AAL), Intuitive Surgical (Nasdaq: ISRG), Nokia (NYSE: NOK), Boston Beer Company (NYSE: SAM), Freeport-McMoRan (NYSE: FCX), Capital One (NYSE: COF), Blackstone (NYSE: BX), Mattel (Nasdaq: MAT), Nucor (NYSE: NUE), Tenet Healthcare (NYSE: THC), Dow (NYSE: DOW), Svb Financial Group (Nasdaq: SIVB), D.R. Horton (NYSE: DHI), Seagate Technology Holdings (NASDAQ: STX), Domino's Pizza (NYSE: DPZ), Western Alliance Bancorporation (NYSE: WAL), Philip Morris International (NYSE: PM), PPG (NYSE: PPG), ABB (NYSE: ABB), Alaska Air Group (NYSE: ALK), AutoNation (NYSE: AN), Danaher (NYSE: DHR), Dover (NYSE: DOV), Fifth Third Bancorp (Nasdaq: FITB), KB Financial Group (NYSE: KB), Roche Holding (OTCMKTS: RHBBY), SAP (NYSE: SAP), Travelers Cos. (NYSE: TRV).
Notable IPOs Today: Virax Biolabs Group Ltd (Nasdaq: VRAX).
Notable Equity Crowdfunding Campaigns Ending Today: RKS Off-Road (StartEngine), TMJ Relax (StartEngine), Pattern (Republic).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Philadelphia Fed Manufacturing Index (8:30 a.m. ET), Philly Fed Employment (8:30 a.m. ET), US Leading Index (10:00 a.m. ET).
Carnival Sinks Due to New Stock Offering
Shares of Carnival (NYSE: CCL) dropped 9.29% in after-hours trading on Wednesday after the cruise line announced a new offering of common stock.
Details: Carnival will offer an additional $1 billion in common stock. The proceeds from the sale will be used for general corporate purposes, including debt maturities.
Numbers: Carnival’s stock is down 48% in 2022 and 83% in the past five years.
Final Thoughts: Cruise stocks have been hit this year due to recession fears and debt problems. For some investors, it might be a buy-the-dip opportunity.
Equity Crowdfunding Spotlight: Really Good Boxed Wine
Briefly describe your business. Really Good Boxed Wine is reimagining boxed wine to disrupt the $420 billion wine industry’s reliance on bottles. We partner with award-winning winemakers from around the world to make super premium wine, and put it in the boxed wine format.
What are the terms of the investment for your campaign? It is a seed round. The valuation is $6.7 million pre-money. The target raise is $1.8 million. The post-money option pool is 10%. There are pro-rata rights and an anti-dilution clause. See SeedInvest for details.
What makes your startup special? Why will it succeed? The problem with bottles is they only stay fresh for 1-2 days after opening. Really Good Boxed Wine is solving that problem by making high-end wine that costs the consumer 50% less and keeps wine fresh 20x longer vs. bottles.
Trends to Watch
No Jobs Here: Google pauses hiring for two weeks to ‘review our headcount needs’ (The Verge)
Rough Landing Through 2023: United Airlines posts profit on travel surge but holds back on flight growth (CNBC)
Merge: What’s next for the future of Ethereum? Mihailo Bjelic from Polygon explains (Cointelegraph)
Creator Economy: FaZe Clan goes public via $725 million SPAC (Axios)
Can’t Stop, Won’t Stop: Coinbase Had No Financial Exposure to Troubled Celsius, Three Arrows Capital, Voyager (CoinDesk)
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