Tuesday’s Headlines: Tesla Races To Record Profitability
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Hasbro (HAS) +12.2%
Tripadvisor (TRIP) +6.6%
Nordstrom (JWN) +4.2%
Zoom Communications (ZM) +3.9%
Eventbrite (EB) +3.8%
Moving Down ⬇️
Huazhu Hotels Group (HTHT) -12.3%
Baozun (BZUN) -9.4%
Trip.com Group (TCOM) -6.9%
StoneCo (STNE) -4.4%
Twitter (TWTR) -4.2%
1. It seems Tesla’s (TSLA) run of bad luck is over after the EV maker sailed past $1 billion in quarterly net income for the first time. Tesla posted adjusted earnings of $1.45 per share on revenue of $11.96 billion, up 98% year-over-year. Notably, the firm didn't depend on selling regulatory credits in Q2, as these sales were only responsible for $354 million in revenue, helping to answer a major criticism from bears over Tesla's results. CEO Elon Musk also addressed chip shortage concerns, warning investors: "For the rest of this year, our growth rates will be determined by the slowest part in our supply chain." Read the full press release here.
2. Facebook (FB) appears to finally be realizing founder Mark Zuckerberg’s dream of creating a ‘metaverse’ of different virtual universes. The company is beefing up its executive team to achieve its goal of allowing multiple people to inhabit these worlds, much like what Roblox (RBLX) offers its users. These digital worlds will be a part of Facebook’s Reality Labs section as the social media firm tries to dominate the AR and VR space. Facebook has poured billions of dollars into these virtual technologies in the hopes it can control its own hardware platform instead of being controlled by Apple (AAPL) and Google’s (GOOG) app stores. See the full story here.
3. Ahead of its earnings report today, Starbucks (SBUX) confirmed that it is exiting its joint venture in South Korea. The region is the coffee chain’s fifth-largest market but it has decided to sell its stake to local partner E-Mart Inc and the rest to a wealth fund, GIC. According to Reuters, the entire business is worth $2.35 billion and GIC will pay over $700 million for its stake. Starbucks Coffee Korea has over 1,500 stores across 78 cities and operating profit jumped to 45.4 billion won ($39.5 million) in Q1, but the company said it knows that the success of its brand relies on knowing when to rely on local partners. More on the story here.
One more earning from last night:
The popular toymaker recorded better-than-expected results as its TV and film business bounced back, reporting a 54% jump to $1.32 billion in revenue fueled by rising sales for its “Dungeons & Dragons” game. Thanks to vaccine rollouts and easing restrictions, the Monopoly maker’s entertainment segment revenue, which includes its production studio and other movie businesses, jumped 47%. See the full press release here.
There are six companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.