Today is Thursday, October 20, 2022.
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Tesla Supply Chain Bottlenecks
Shares of Tesla (Nasdaq: TSLA) declined 6.25% in after-hours trading on Wednesday after the electric vehicles company posted mixed financial earnings.
Financials: Tesla reported earnings of $1.05 per share, which was better than expected. Revenue hit $21.45 billion, which was below estimates.
The Bad: Tesla said that it is experiencing headwinds from raw material cost inflation and that transportation is becoming expensive as well as difficult to secure. Supply chain bottlenecks are still causing problems, including battery supply chain constraints.
The Good: Operating margins hit 17.3% in the quarter. The company also had a $2.2 billion increase in cash and marketable securities.
Stock Price: Tesla’s stock is down 44% this year, including a 28% drop in the last 30 days.
Final Thoughts: One interesting note from the earnings report is that Tesla made no changes to its Bitcoin holdings in the quarter.
Notable Earnings Today: AT&T (NYSE: T), Snap (NYSE: SNAP), American Airlines (Nasdaq: AAL), CSX (Nasdaq: CSX), Nokia (NYSE: NOK), Boston Beer (NYSE: SAM), Nucor (NYSE: NUE), UFP Industries (Nasdaq: UFPI), Blackstone (NYSE: BX), Whirlpool (NYSE: WHR), Freeport-McMoRan (NYSE: FCX), Tenet Healthcare (NYSE: THC), Dow (NYSE: DOW), Silicon Valley Bank (Nasdaq: SIVB), Philip Morris International (NYSE: PM),, Ericsson (Nasdaq: ERIC), Western Alliance Bancorporation (NYSE: WAL), Alaska Air (NYSE: ALK), BJ’s Restaruants (Nasdaq: BJRI), ABB (NYSE: ABB), Danaher (NYSE: DHR), Fifth Third (Nasdaq: FITB), Marsh & McLennan Companies (NYSE: MMC), NVR (NYSE: NVR), Pool (Nasdaq: POOL), Quest Diagnostics (NYSE: DGX), Tractor Supply (Nasdaq: TSCO), Union Pacific (NYSE: UNP).
Notable IPOs Today: Prime Medicine, Inc. (Nasdaq: PRME), ASP Isotopes Inc. (Nasdaq: ASPI), Alopexx, Inc. Common Stock (Nasdaq: ALPX).
Notable Equity Crowdfunding Campaigns Ending Today: Boomerang Bike (Silicon Prairie), Flora Grubb Gardens (SMBX), Arepa Zone (SMBX), Arepa Zone (SMBX).
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 Produces Strong Results
Shares of IBM (NYSE: IBM) jumped 2.91% in after-hours trading on Wednesday after the tech giant posted positive financial earnings results.
Financials: IBM reported earnings of $1.81 per share and revenue of $14.1 billion; both were better than expected.
Big Growth: Software revenue increased 14%, consulting revenue grew 16%, infrastructure revenue soared 23%, and hybrid cloud revenue jumped 15%.
Outlook: IBM raised its revenue guidance in the mid-single digits and now expects $10 billion in free cash flow.
Challenge: The company sees foreign exchange rates as a 7% headwind.
Final Thoughts: IBM’s stock is down 9% this year, which is better than most tech stocks. IBM might be one of the safest playest in tech right now.
Las Vegas Sands Hit by Travel Restrictions
Shares of Las Vegas Sands (NYSE: LVS) ticked down 0.28% in after-hours trading on Wednesday after the casino and resort company posted bad financial earrings.
Financials: Las Vegas Sands lost 27 cents per share in the quarter and had revenue of $1 billion; both were below estimates.
Final Thoughts: The company blamed travel restrictions in Macao and China for its problems.
Trends to Watch
Withdrawn: F.D.A. Panel Recommends Pulling Preterm Birth Drug From the Market (The New York Times)
Long and Short: Investors’ Time Horizons Will Determine Their Bitcoin Positions (CoinDesk)
Wake Me Up When September Ends: New home building retreated in September as rising mortgage rates scare off buyers (CNN)
Lower Demand: Procter & Gamble’s earnings beat as higher pricing offsets drop in volume (CNBC)
Welcome Back: Retail investors are the most bearish they've been in months after September's inflation shock, but a rebound in the S&P 500 would spark new buying spree, research firm says (Business Insider)
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