Today is Tuesday, October 26, 2021.
Zuckerberg Responds to Leaked Docs During Earnings Call
Shares of Facebook (Nasdaq: FB) increased 2% in after-hours trading following the company’s earnings release on Monday, despite a media leak of internal documents that criticized the social media giant’s practices.
Numbers: Facebook’s earnings per share of $3.22 slightly beat expectations, but its revenue of $29.01 billion fell short of the projections.
Changes: The company also unveiled a new reporting structure for future quarters, with Facebook Reality Labs (the company’s augmented and virtual reality business) in a different segment than its normal business of Facebook, Instagram, Messenger, WhatsApp, and other services.
Headwinds: Facebook also warned investors that it will face uncertainty in the fourth quarter to the iOS changes and other economic issues.
Public Scrutiny: CEO Mark Zuckerberg addressed the recent whistleblower and internal document leak during the earnings call. Zuckerberg said that although “larger organizations should be scrutinized,” the recent criticism is painting “a false picture of our company.”
Final Thoughts: Will there be more whistleblowers? Will there be new regulations against Facebook? Will investors care about these headwinds?
Notable Earnings Today: Alphabet (Nasdaq: GOOGL), United Parcel Service (NYSE: UPS), Microsoft (Nasdaq: MSFT), AMD (Nasdaq: AMD), Visa (NYSE: V), Twitter (NYSE: TWTR), General Electric (NYSE: GE), 3M (MMM), JetBlue (Nasdaq: JBLU), Raytheon Technologies (NYSE: RTX), Waste Management (NYSE: WM), Hasbro (NASDAQ: HAS), Eli Lilly (NYSE: LLY), Robinhood (Nasdaq: HOOD), Texas Instruments (Nasdaq: TXN).
Notable IPOs Today: Augmedix, Inc. Common Stock (Nasdaq: AUGX), Loyalty Ventures Inc. Common Stock When Issued (Nasdaq: LYLTV).
Notable Equity Crowdfunding Campaigns Ending Today: The Good Kitchen (Republic), A Fresh Wind Catering (Honeycomb), Fisher Wallace Laboratories (StartEngine), Hey Mama Wines (StartEngine).
Notable Economic Events Today: S&P Case-Shiller home price index (9:00 a.m. ET), Consumer confidence index (10:00 a.m. ET), New home sales (10:00 a.m. ET).
Tesla Hits $1 Trillion Market Cap Due to Hertz Deal
Shares of Tesla (Nasdaq: TSLA) jumped 12.66% on Monday and the company achieved a $1 trillion market cap after rental car business Hertz announced a deal with the electric car giant.
Details: Hertz is getting 100,000 electric vehicles from Tesla by the end of 2022, with some delivered by early November. The deal results in $4.2 billion in revenue to Tesla.
Safety Issue: But it’s not all good news for Tesla. On Monday, the chair of the National Transportation Safety Board called out Tesla for failing to implement safety recommendations.
Supply Issue: And even though demand is strong for Tesla, the company is still struggling to catch up with its supply. New factory locations for Tesla could help.
Final Thoughts: Despite the issues, most analysts are still bullish on Tesla.
Investing In Crypto to Avoid Supply Chain Challenges
As supply chain malfunctions hurt both the economy and many companies, investors are looking at cryptocurrency as a hedge.
Details: In essence, the price of cryptocurrencies is mostly not impacted by problems in the supply chain that other companies are dealing with.
Blockchain: While it is true that some shipping companies rely on blockchain technology, that does not impact the price for most cryptos.
Numbers: As supply chain woes have pilled up recently, trading volumes for cryptos have increased.
Final Thoughts: Cryptocurrency is increasingly seen as a reliable alternative investment.
Trends to Watch
Talking, Talking: China's Vice Premier Liu He speaks with U.S. Treasury Secretary Yellen (Reuters)
No Surprises Here: Telsa hints it may soon resume support for crypto payments (CoinTelegraph)
Investors May or May Not Agree: SEC's Gensler: Meme stock trading restrictions 'not good' for retail investors (Yahoo! Finance)
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