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What A Twisted Internet We Tweet
I’ve been dazed and confused by Tesla’s (Nasdaq: TSLA) earnings for thus lengthy, it’s not true. Needed an EV maker, by no means bargained for you…
Umm, what was so complicated about Tesla’s report?
Effectively … nothing. That’s probably the most stunning half, in the event you’ve tuned into actually every other quarterly report from the Huge Pink T.
All through Tesla’s time within the earnings confessional final night time, there was no Elon-related lunacy. No Musky memes. No attention-seeking shenanigans clouding Tesla’s quarterly financials — for as soon as.
For all intensive porpoises, Tesla reported a totally regular report. And what a banger of a report it was!
Tesla ended up beating estimates throughout the board. Car deliveries are at document ranges, bringing automotive income up 87% yr over yr.
Complete income hit $18.8 billion on the quarter, beating expectations by about $1 billion and notching a brand new gross sales document. Even earnings per share got here in at a document $3.22, topping analysts’ expectations for simply $2.26.
In truth, Tesla was so bullish that it supplied giddy ranges of steerage. Whereas the corporate didn’t give precise expectations for future automobile deliveries, Musk and co. nonetheless anticipate 50% to 60% progress in automobile manufacturing in comparison with 2021.
It’s a daring declare contemplating Tesla nonetheless faces the specter of plant closures, with the Shanghai manufacturing facility simply now resuming manufacturing “at restricted ranges.” However when have Musk’s daring claims ever not come to fruition?
I hope you’re being sarcastic…
Me? Be sarcastic? Why, I by no means!
I simply need to know: How’d Tesla do it? How did the Musk Man pull off such a powerful beat, all of the whereas bettering Tesla’s margins?
I imply, costs for every thing are skyrocketing, not to mention costs for battery supplies. The combo of metals that goes into your typical EV battery was 70% costlier final quarter than within the quarter prior.
It’s easy: Tesla simply began utilizing a distinct mix of battery supplies.
Half of the Teslas shipped final quarter use “LFP batteries” — lithium-ion batteries with out the costlier cobalt or nickel of different batteries. Tesla claims these LFP batteries nonetheless have the identical vary as different Tesla batteries, whereas additionally bringing down the overall price per automotive.
Wait, was this about constructing higher batteries the entire time?
Welcome to the present! That is what everybody from Nice Stuff to Charles Mizrahi to Paul Mampilly have been speaking about for … effectively, ever since we began speaking about EV batteries within the first place.
For TSLA shareholders, this report is the stuff of desires. A double beat and lift rally? Don’t thoughts if I do!
So … what’s the catch? After following Musk’s misadventures for years now (willingly or lower than willingly), a part of me has to surprise when the opposite shoe is gonna drop. Why is Elon enjoying near the vest unexpectedly?
Is it — oh, proper. In fact it needed to be Twitter (NYSE: TWTR).
With all that boring, company earnings enterprise stuff out of the way in which, Elon can now refocus his attention-grabbing antics on, you guessed it, shopping for Twitter.
Tesla’s excellent but business-as-usual report was nonetheless scorching off the digital presses when, this morning, information broke that Mr. Musk is considering a young provide to outright purchase TWTR shareholders’ stakes.
In line with the filings, Elon has the likes of Morgan Stanley, Financial institution of America, Barclays and others prepared to supply $46.5 billion in funding.
Are you saying funding’s … secured?
Sigh. Sure, sure certainly. However with Twitter poison-pilling itself as an alternative of negotiating with Elon, this provide is unlikely to get anyplace. Strive once more subsequent week, bucko.
So the place are we on the finish of all this hubbub?
For Tesla traders, the one actual menace you must fear about is your CEO’s consideration slipping increasingly over to the Twitter-sphere. It didn’t work for Jack Dorsey, and it received’t work for Musk.
In any other case? Tesla’s enterprise is in primo form — and you might do with a couple of extra “boring” reviews like this one.
For Twitter traders … possibly you’ll have your shares purchased for a premium value when Elon tries this routine once more for the umpteenth time.
For the remainder of you? Effectively, try the different different factor that Elon Musk is obsessive about proper now:
Musk, Dalio and Cuban are all loading up on this one crypto coin. It’s referred to as the Subsequent Gen Coin, and the monetary elite say it might be 20X greater than bitcoin.
Mark Cuban proclaimed this coin “will dwarf bitcoin.” Billionaire hedge fund supervisor Ken Griffin stated it’s “superior to bitcoin and can ultimately substitute it.” That’s as a result of, as this presentation explains, this coin has the flexibility to “energy the rails of worldwide finance.”
As you’ll see on this particular interview, crypto skilled Ian King reveals the total particulars on this coin … and why it is best to make investments earlier than the improve date. Click on right here to see extra…
Optimus Prime Supply
As if Amazon (Nasdaq: AMZN) wanted one other feather in its already-cosmic cap, the e-commerce big apparently fancies itself the brand new FedEx (NYSE: FDX) of the delivery achievement world.
Within the wee-early hours of the morning, Amazon introduced that it could pimp out its supply providers to “Purchase with Prime” members. Purchase with what now?
Basically, “Purchase with Prime” is a brand new function that lets third-party retailers use Amazon’s huge delivery and logistics community usually reserved for Prime clients.
Sellers can piggyback off Prime’s expedited delivery and even put Prime badges on their web sites to let customers know they take part in this system.
However as with all issues Amazon, the function doesn’t come free for sellers.
The brand new service is offered by invitation just for now — and pricing will range relying on cost processing, achievement wants, storage and different charges. One can solely think about how shortly these “different charges” might stack up…
Similar to how Amazon Internet Providers began, vice chairman of Amazon Prime Jamil Ghani hopes “Purchase with Prime” grows right into a device to assist third events leverage their very own companies with ultra-fast delivery.
The transfer additionally places an infinite quantity of strain on opponents FedEx and UPS (NYSE: UPS), which have been at struggle with Amazon’s delivery providers for years now.
So … mainly, Amazon’s simply doing Amazon issues once more? Taking up the entire world and whatnot?
You higher imagine it! Thanks once more, Bezos.
Carvana’s Wheels Come Off
Carvana (NYSE: CVNA) simply can’t appear to seize that pre-pandemic car-buying profitability it so desperately craves.
The corporate simply posted a lack of $260 million this final quarter, or $2.89 per share, making final yr’s $36 million loss appear to be peanuts.
Factor is, used-car demand doesn’t appear to be Carvana’s major drawback. Whereas income hit the skids this quarter, Carvana nonetheless managed to promote 105,185 vehicles to retail clients within the new yr. That’s up 14% from the identical quarter in 2021.
So, what provides?
Does it begin with “i” and finish in “flation?”
Proper you might be, Nice Ones! Carvana stated rising rates of interest and an uptick in used-car costs have been partially responsible for this quarter’s income quagmire.
Including to the ache, Carvana preps its used-car capability six to 12 months upfront — that means it deliberate for this yr’s stock quantity with out budgeting for inflation and is now paying the value.
Seeking to the longer term, Carvana stated it isn’t offering any “particular numeric near-term steerage” for the remainder of the yr. Translation? The used-car trade has turn out to be so unsure that Carvana can not take inventory of the present scenario.
This isn’t an enthralling signal to shareholders that issues will quickly get higher, which is why I wasn’t shocked to see CVNA inventory down 6% on the day.
Come Fly With Me
On the other facet of the inflation dialog sits — erm, soars? — American Airways (Nasdaq: AAL).
In contrast to a few of its different high-flying foes within the airline trade, American stated that March was the primary month because the begin of the pandemic that income surpassed 2019 ranges.
Whereas the corporate nonetheless hasn’t reached cruising altitude but when it comes to profitability — it reported an adjusted lack of $2.32 per share in Q1 — American says that issues are wanting up for the second quarter. It now expects Q2 gross sales to climb 8% greater than 2019 figures despite the fact that it’ll fly far much less planes than three years in the past.
Has it solely been that lengthy? These three years have felt like an eternity, I inform you.
To make up for its capability headwinds, American will take a web page out of its opponents’ guide and lift the price of its flights to offset rising inflation. In contrast to fellow journey firm Carvana, nonetheless, American has extra pricing flexibility and may change course simpler based mostly on present market circumstances.
And adaptability, it appears, is the title of as we speak’s inflationary sport. As such, AAL inventory jumped almost 5% following as we speak’s information.
Time After Time Warner
It’s been about two complete weeks since AT&T (NYSE: T) and WarnerMedia — now Warner Bros. Discovery (Nasdaq: WBD) — went their separate methods, and I have to say, the preliminary breakup doesn’t look too unhealthy for the broadband telecom firm.
AT&T reported first-quarter earnings this morning that noticed income hit $38.1 billion — simply shy of Wall Road’s consensus estimate. This determine consists of AT&T’s ex, WarnerMedia, but it surely’s the final time the mass media firm will present up on AT&T’s monetary filings.
The best way AT&T tells it, the now-divested media section weighed closely on the corporate’s revenue margins this quarter after launching CNN+ (which has already been killed off within the time it took to ship this to you) within the U.S. and HBO Max in a number of worldwide streaming markets.
With out WarnerMedia, AT&T made an adjusted per-share revenue of $0.63 — beating the Road’s $0.61 per-share projection. Postpaid subscribers additionally grew by 965,000 customers final quarter, effectively forward of Wall Road’s 573,000 estimate.
In different phrases, AT&T’s funding into the 5G and fiber optic markets appears to be paying off. It continues so as to add new clients at a wholesome clip — and it’s made important strides to maintain present clients by means of improve packages and promotions.
Neat. So, what’s the catch?
Effectively… AT&T’s subscription progress seems to be growthy till you evaluate it to the variety of new customers who signed up for HBO Max the previous three months: a whopping 3 million. That marks a 12.8 million improve in HBO Max customers yr over yr.
Issues is, HBO Max is now a part of Warner Bros. Discovery, which AT&T simply spun off — so that is the final time that AT&T can boast about HBO’s booming market earlier than it falls underneath Discovery’s monetary disclosures. Confused but?
I knew I shouldn’t have eaten that fourth brownie final night time…
Principally, HBO is wanting like a robust contender within the cutthroat streaming market and has now turn out to be the third-largest streaming platform within the U.S. (Technically, Disney+ and Hulu are owned by the identical firm, however we’ll save that may of worms for an additional day).
Had AT&T held on to HBO, its inventory most likely would’ve skilled a a lot greater pop as we speak. However hey, them’s the breaks once you streamline your corporation … and nobody can say they weren’t Warnered.
That’s all, of us!
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Till subsequent time, keep Nice!
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