Tuesday’s Headlines: Will Tesla Pay A Dividend?
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Tesla Motors (TSLA) +8.0%
Lovesac (LOVE) +6.6%
Atlassian (TEAM) +6.4%
Square (SQ) +6.0%
Cloudflare (NET) +5.6%
Moving Down ⬇️
nCino (NCNO) -5.6%
Yext (YEXT) -2.6%
Calavo Growers (CVGW) -2.2%
Farfetch (FTCH) -2.1%
1. According to a filing with the Securities and Exchange Commission on Monday Tesla (TSLA) wants to undergo a stock split. The filing highlighted that the EV maker would ask at its annual shareholder’s meeting “for an increase in the number of authorized shares of common stock ... in order to enable a stock split of the Company’s common stock in the form of a stock dividend.” This is a dividend paid to shareholders in the form of additional company shares instead of cash, and while it does not affect the value of a company, it will dilute its share price. Investors were pleased with the news, however, as Tesla shares popped 8% last night. Read the full story in MyWallSt here.
2. Southeast Asian juggernaut and MyWallSt favorite, Sea Limited (SE), has suffered a blow to its budding e-commerce arm. The company announced its decision yesterday to immediately shut down its Indian Shopee unit, which it only launched back in October of last year. Sea Limited’s announcement comes one month after India banned Free Fire, which was then Sea’s top-performing game, though this is allegedly unrelated to the decision, with the company instead citing “global market uncertainties.” Sea was quick to iterate that this will not impact its global expansion aims, as it continues to expand in Brazil, Poland, Mexico, Colombia, Chile, and more. Get the complete breakdown here.
3. Apple’s (AAPL) unstoppable juggernaut has hit a bumpy patch after worrying reports regarding its iPhone SE range emerged yesterday. The tech giant is reportedly cutting production of its 2022 iPhone SE and telling suppliers to scale back production by 2 million to 3 million units, or about 20%, for the upcoming quarter. The decision is said to be the result of lesser than expected demand for the $429 model, which was only announced on March 8th and has been on the market less than three weeks. Inflation, COVID-19 restrictions in China, and supply constraints due to the conflict in Ukraine, are all factors believed to be impacting tech companies’ ability to get products into consumers’ hands. Read more here.
There are 3 companies on the MyWallSt shortlist that will report their earnings today:
Get this week’s full earnings calendar here.