Thursday’s Headlines: Tesla Blows Shareholders Away
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
American Tower (AMT) +3.4%
Ericsson (ERIC) +2.7%
The Home Depot (HD) +2.4%
GoPro (GPRO) +2.3%
Moving Down ⬇️
Netflix (NFLX) -35.1%
Shopify (SHOP) -13.3%
Peloton Interactive (PTON) -11.3%
Spotify (SPOT) -10.9%
Twilio (TWLO) -10.2%
1. It’s almost like investors had forgotten about Tesla (TSLA) amidst all the talk of Elon Musk buying Twitter (TWTR). The electric-auto manufacturer's first-quarter 2022 earnings call crept up on us unsuspectingly, before delivering some absolutely knockout numbers. The company reported earnings per share (EPS) of $3.22 versus an expected $2.26, on revenue of $18.76 billion versus an anticipated $17.80 billion. Automotive revenue jumped by 87% year-over-year to $16.86 billion, while gross margins reached an all-time high of 32.9% for the firm. Despite concerns over factory shutdowns in China, Musk still remains adamant that Tesla can continue to grow by at least 50% on 2021’s numbers. “It seems likely that we’ll be able to produce one and a half million cars this year,” stated Musk while discussing the recent loss of “build volume.” Find out more here.
2. Amazon (AMZN) is set to expand its Prime delivery services to online merchants in an attempt to compete with other shipping companies. The new service — labelled Buy with Prime — allows third-party merchants to make use of Amazon’s vast logistics base while also tapping into its network of over 200 million Prime customers. Sellers will now be able to benefit by offering expedited delivery at no charge to the consumer. As of now, Amazon is only extending invites for this new service to merchants already using Fulfilment by Amazon, but plans are in place to make it more widely available in the future. This will put the e-commerce titan into even more direct competition with companies such as FedEx and UPS, with Amazon currently on track to become the largest delivery service in the U.S. within the year. Read more here.
3. Athletic apparel company Lululemon (LULU) has announced the launch of a new membership program that will offer customers exclusive access to apparel, events, and even fitness classes. There will initially be two tiers — one free and one paid. The paid tier will cost members $39 per month and will allow them to access fitness content from a host of studios Lululemon is set to partner with. Chief Brand Officer, Nikki Neuberger, explained that “the goal here is to create one connected community across Lululemon and Mirror.” Mirror, the firm’s at-home fitness platform, costs the same as this new membership and all of its users will be added to the paid tier at no extra cost. Find out more about Lululemon’s plans here.
There are three companies on the MyWallSt shortlist that will report earnings today: