Wednesday’s Headlines: Tesla Launches Another $5 Billion Share Sale
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Stitch Fix (SFIX) +39.2%
Smartsheet (SMAR) +11.0%
Etsy (ETSY) +4.5%
Twilio (TWLO) +3.7%
Sea Limited (SE) +3.7%
Moving Down ⬇️
Coupa Software (COUP) -2.9%
Evolent Health (EVH) -2.8%
Spotify (SPOT) -2.7%
1. While many seemed fixated on Elon Musk’s personal rehousing news — he’s moving to Texas — Tesla (TSLA) managed to casually slip out on Tuesday that it was hosting its second $5 billion share sale in three months, though no timeline has yet been given. The company hit yet another all-time high yesterday, closing at $649.88 per share, while its market cap now sits at $616 billion, further cementing its position as the most valuable auto company in the world despite production that is a fraction of rivals. The $5 billion sale will be a welcome boost to ease its future debt pressures as the company seeks to massively expand the production of its existing vehicles and plans to launch new lines of products. Tesla shares have soared 670% year-to-date. Read more here.
2. Take your pick of an Apple (AAPL) story from yesterday: new, overpriced AirPods, a launch date for its Peloton (PTON) competitor, Fitness+, or the fact that it has threatened to remove apps from its App Store if they don’t comply with upcoming privacy features. Let’s go with the news that the iPhone-maker has teamed up with Cloudflare (NET) to shore up one of the biggest holes in internet privacy that many don’t know even exists. Dubbed Oblivious DNS-over-HTTPS, or ODoH for short, the new protocol makes it far more difficult for internet providers to know which websites you visit. Basically, Apple and Cloudflare have just made it much harder for internet providers to track your activity and sell your data to advertisers, so good news all around. Both companies saw their stock price rise on Tuesday, Read more here.
3. Bad news for Tripadvisor (TRIP) and Trip.com (TCOM) investors as developments in China sent shares of both falling on Tuesday. The Cyberspace Administration of China (CAC) announced it has banned 105 mobile apps for violating Chinese internet regulations, including U.S.-based Tripadvisor, of which Trip.com owns a 40% stake of its Chinese operations. Though the CAC did not specify exactly what each app was banned for, the list of illegal activities included spreading pornography, incitements to violence or terrorism, fraud or gambling, and prostitution. The Chinese firm, Trip.com, entered into an agreement with Tripadvisor in 2019, thus gaining access to the American firm’s abundant overseas travel reviews. Read the full story here.
You may have noticed that Stitch Fix (SFIX) shares soared almost 40% on Tuesday thanks to a knockout Q3 earnings report that saw it eke out a profit of $0.09 per share on revenue of $490.4 million. You can read the full story in yesterday’s headlines here.
Some more earnings from last night:
Brown Forman (BF.B)
The popular alcohol brand reported flat sales year-on-year of $985 million in its Q3 report last night, while earnings per share fell 15% to $0.50. President and CEO Lawson Whiting was pleased with the company’s top-line growth in the first half of the fiscal year and noted the strong resilience of its headline brands in the latest quarter, which helped with the unprecedented nature of the pandemic. Read the official press release here.
Casey’s reported better-than-expected second-quarter fiscal 2021 results, with EPS of $3.00 on revenue of $2.2 billion beating analyst estimates. The company cited strong fuel and store sales, as well as its 94-store Bucky’s chain acquisition as positive signs of growth going forward, and should protect against further COVID-related volatility. Read the official press release here.
Get this week’s full earnings calendar here.