Tuesday's Headlines: Tesla Tops the Trillion-Dollar Mark
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Tesla Motors (TSLA) +12.7%
Upstart Holdings (UPST) +5.0%
Etsy (ETSY) +4.7%
Cloudflare (NET) +4.4%
Square (SQ) +3.5%
Moving Down ⬇️
Pinterest (PINS) -12.7%
Ericsson (ERIC) -4.7%
Evolent Health (EVH) -4.6%
Trip.com Group (TCOM) -4.4%
Boston Beer Co. (SAM) -3.7%
1. Tesla (TSLA) has broken the trillion-dollar mark, surpassing Facebook to become the fifth-largest U.S. company. The milestone was reached following reports that rental car company Hertz (HTZZ) has submitted an order of 100,000 vehicles for its fleet. The news led to a 12% share price spike, with Tesla ending the day at $1,024.86 per share. Tesla has already surpassed its total revenue and profit from 2020 in the first three quarters of 2021, so it’s good news on top of good news for the EV manufacturer. Some commentators say its valuation is extended, but with 24,600 Model 3’s sold in September, Tesla is outperforming legacy automakers’ best sellers’ like the Renault Clio and Volkswagen Golf in Europe too. Check out the full story here.
2. Despite ongoing allegations and a costly system outage, Facebook (FB) managed to post a solid earnings beat yesterday. Steady monthly user growth of 12% should keep investors convinced of the companies relevance, while adjusted earnings per share (EPS) of $3.22 beat estimates of $3.19. However, underperforming revenue numbers could be cause for concern. Making $29.01 billion against an estimated $29.45 billion, Facebook has been hit by the same Apple (AAPL) iOS change that saw Snap’s (SNAP) revenue underperform last week. Q4 revenue estimates of $31.5 billion to $34 billion also underperformed expected sales of $34.8 billion. CFO Dave Wehner called the iOS changes the “largest headwind” faced by the company this quarter. Read more here.
3. Mastercard (MA) has announced a new expansion into the world of cryptocurrency. The payments giant will soon allow any of the banks and merchants in its global system to integrate crypto into their products. This comes as a result of the company's partnership with crypto firm Bakkt. Shares of the recently publicly traded Bakkt rose by 234% following news of the planned partnership. This announcement should be very welcome to Mastercard’s many merchants and banks, as it will hopefully encourage customers to stay within their platforms instead of migrating to other crypto exchanges. According to Mastercard's Sherri Haymond, “We want to offer all of our partners the ability to more easily add crypto services to whatever it is they’re doing.” Read more here.
There are 4 companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.