Thursday's Headlines: Tesla Tops Earnings Estimates

Thursday's Headlines: Tesla Tops Earnings Estimates

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

DraftKings (DKNG) +5.2%

Microsoft (MSFT) +2.8%

Duolingo (DUOL) +2.6% (BILL) +2.6%

Datadog (DDOG) +2.3%

Moving Down ⬇️

Peloton Interactive (PTON) -6.7%

Sea Limited (SE) -6.4%

Hasbro (HAS) -6.1%

Pinterest (PINS) -6.0%

Baozun (BZUN) -5.7%

1. Tesla (TSLA) reported Q4 2021 results last night that came in well ahead of estimates. The automotive segment, which makes up the majority of Tesla’s revenue, soared 71% year-over-year (YoY) to $15.97 billion and total revenue — which includes services and energy — rose 65% YoY. Net income increased significantly to $2.32 billion, a 760% bump from the year prior, and gross margins also expanded from 26.6% to 27.4% YoY. Tesla touched on difficulties in acquiring parts which have led to the decision to delay the production of its coveted Cybertruck and other proposed models until 2023. Driver assistance and self-driving technologies were mentioned as a focal point for the coming year with Tesla noting “software-related profit should accelerate our overall profitability.” Read the full report here.

2. Apple (AAPL) now has the largest market share of China’s smartphone market at 23%, according to Counterpoint Research. There was an overall 9% decline in the market for 2021, but Apple actually increased iPhone sales by more than 32% in the region during Q4 2021. The gain, in part, has been attributable to a more competitive pricing strategy enacted by Apple compared to previous releases, as well as updates to its 5G offering. The report speaks volumes about Apple’s globalization efforts and superior tech, considering it is even outperforming domestic brands such as Xiaomi and Huawei. Despite lengthening replacement cycles for phones in China and dampened consumer spending from economic uncertainty, Apple has once again proven that it’s still ahead of the curve. Read the full story here.

3. ServiceNow (NOW is giving some hope for software stocks as the company reported earnings well ahead of estimates and gave a positive outlook for the coming year which projects a 26% growth rate. ServiceNow generated $1.6 billion in total revenue for the quarter, which was a 29% YoY increase, but gross margins did slide slightly from 85% to 82%. The company launched ServiceNow Impact in January, which is an AI-powered platform aiming to advance the digitalization of the company’s enterprise customers through recommendations and insights. During the call, CEO Bill McDermott noted “Customer demand for ServiceNow’s innovative platform is stronger than ever.” Read the full press release here.

Four companies on the MyWallSt shortlist will report earnings today:

Atlassian (TEAM)
Axos (AX)
Mastercard (MA)
Apple (AAPL)

Get this week’s full earnings calendar here. 

David GranahanDavid Granahan

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