Wednesday’s Headlines: Good Morning Giga Berlin
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Baozun (BZUN) +15.2%
Yext (YEXT) +12.9%
Cloudflare (NET) +10.0%
Sea Limited (SE) +9.0%
Moving Down ⬇️
Bumble (BMBL) -1.2%
Texas Roadhouse (TXRH) -1.2%
American Tower (AMT) -0.8%
FactSet (FDS) -0.4%
TrueCar (TRUE) -0.3%
1. Tesla (TSLA) finally opened the doors of its long-awaited Giga Berlin factory yesterday. Founder Elon Musk was in jubilant mood as the firm delivered the first 30 vehicles built in the factory to some of its clients. The factory, which is years in the making, is expected to begin producing 1,000 vehicles per week within six weeks. The end goal is 500,000 vehicles per year, but questions still linger about the effect this level of production will have on the area’s water supply. Tesla hopes its new $5.5 billion plant will help offset some of the lengthy delays for its cars across the world. With its Shanghai plant having to temporarily close last week due to COVID fears, Giga Berlin’s opening may have come at the perfect time. Read more here.
2. Buzzfeed’s inaugural earnings call threw up yet another curveball for Meta (FB). The media and entertainment company highlighted the continued exodus of consumers from Facebook. Buzzfeed CEO, Jonah Peretti, outlined that “at this point in the quarter, we continue to see audiences spending less time on Facebook.” This may come as no surprise to Meta, with the company reporting its first-ever quarterly decline in daily active users in its latest earnings report. However, its continued impact on other companies could be cause for concern — especially if they begin to explore alternative avenues of driving traffic. Buzzfeed already announced plans to extend to faster-growing platforms, “thereby reducing our dependence on any one platform over the next couple of years.” Should this transition be fruitful, Facebook could see business partners begin to leave along with its users. Click here to find out more.
3. Baozun (BZUN) saw its stock soar by over 15% yesterday following the announcement that the firm has repurchased over $166 million in Convertible Senior Notes. Some are speculating that this note repurchase could pave the way for a potential stock repurchase, which would give shareholders a considerable boost. Added to this, the Chinese government has announced plans to loosen certain policies that have been wreaking havoc on Chinese companies since last year. This shift in policy has caused Chinese stocks to bounce back, with companies such as Nio and Alibaba surging recently. All of this bodes well for Baozun as it looks to recoup some of the losses that have seen in down over 40% this year to date. Find out more here.
There is one company on the MyWallSt shortlist that will report earnings today:
Get this week’s full earnings calendar here.