Monday’s Headlines: Tesla’s Eurotrip Gets Started
Morning folks! Did anyone get Friday’s puzzle?
The answer was Earnings Per Share.
See if you can figure out today’s puzzle, and let us know on Twitter @MyWallStHQ if you think you’ve got it.
Aries Fort Topping
Hint: A certain American holding company reported huge growth in this metric during its recent Q4 earnings
We’ll reveal the answer in tomorrow’s headlines.
Here were the biggest movers in the MyWallSt shortlist on Friday:
Moving Up ⬆️
Square (SQ) +26.1%
Etsy (ETSY) +16.2%
Sea Limited (SE) +12.0%
MercadoLibre (MELI) +7.5%
Moving Down ⬇️
Planet Fitness (PLNT) -3.6%
Redfin (RDFN) -3.5%
IMAX (IMAX) -2.7%
Evolent Health (EVH) -2.5%
Airbnb (ABNB) -2.0%
1. Tesla’s (TSLA) much-maligned Giga Berlin factory looks set to finally open in the coming weeks. Originally announced in 2019, the Gigafactory has been notably held up by regulatory issues and opposition from environmental groups. However, last week German news outlet Tagesspiegel reported a brief meeting between the governments ‘Task Force Tesla’ that made it clear that no more challenges face the opening of the plant. A grand opening is now under preparation, with March 22nd being targeted for the event. This will represent a significant landmark in Tesla’s attempts to make inroads into the European market. It currently only has 2% of the market share, but native in-house production could see that number skyrocket in the coming years. Click here to find out more.
2. Berkshire Hathaway (BRK.B) reported soaring operating profits for the fourth quarter of 2021 on Saturday. The company, chaired by the much-celebrated Warren Buffett, announced quarterly profits of $7.3 billion — marking 45% year-over-year growth. The firm also bought back $6.9 billion worth of shares during the quarter, bringing its total buy-backs for 2021 to a record $27 billion. Even with this aggressive buy-back operation, Berkshire still maintains cash-in-hand of over $146 billion. Buffet expressed, however, that little excites him or his right-hand man Charlie Munger in terms of acquisitions, citing share repurchases as the best current way to deploy the funds. As the famed investor put it, “when the price/value equation is right, this path is the easiest and most certain way for us to increase your wealth.” Read more here.
3. On Friday, Zendesk (ZEN) shareholders rejected its proposed takeover of Momentive Global, the parent company of online survey tool SurveyMonkey. The all-stock deal, which was valued at approximately $4 billion, had been widely criticized as being overly risky. The vote was won in landslide fashion, with 91,677,121 voting against the deal versus just 9,334,851 voting for it. CEO Mikkel Svane appeared upbeat following the vote, sharing that “while we were excited by the potential of this transaction to transform the customer experience and create stockholder value, we respect and appreciate the perspectives of our stockholders.” However, certain institutional investors are now calling for wholesale changes in the Zendesk board, arguing that rehabilitative efforts are needed at the top level in the business. Find out more here.
There are two companies on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.