- Carbon Finance
- Posts
- 🚨 Elon Musk's Warning
🚨 Elon Musk's Warning
1) P&G’s Earnings Visualized 2) Netflix Bounces Back, 3) Tesla’s Earnings Visualized, and more!
It’s Friday.
Some data bites we learned this week: Pfizer will begin selling its Covid-19 drug Paxlovid for nearly $1,400, Disney disclosed that ESPN generated over $16B in revenue in 2022, and OpenAI is looking to sell shares at an $86B valuation.
In today’s newsletter:
🧼 P&G’s Earnings Visualized
đź“ş Netflix Bounces Back
🏎️ Tesla’s Earnings Visualized
Let’s dive right in!
Not subscribed yet? Sign up today!
🧼 P&G’s Earnings Visualized
Procter & Gamble (P&G) exceeded analysts’ expectations by reporting core earnings of $1.83 per share on $21.9B revenue in its first quarter of fiscal 2024. Despite strong results showcasing consumer resilience, with a 6% sales increase from the previous year, P&G issued a caution for investors, hinting at the negative impacts of a stronger U.S. dollar. The rising strength of the U.S. dollar can negatively affect multinational companies’ profits and revenue earned in foreign currencies.
Despite raising prices on products for about two years, P&G has seen minimal pushback from retailers but noticed some consumers shifting to cheaper alternatives, leading to "pricing-related volume declines" in various brands. While most segments reported volume drops, the health-care division witnessed growth due to strong demand for products like Vicks.
đź“ş Netflix Bounces Back
Netflix saw a substantial increase in Q3 subscriber numbers, adding nearly 9M new subscribers, and announced price hikes for its Basic and Premium plans in the US, UK, and France. The company's Q3 revenue reached $8.54B, slightly surpassing expectations, driven by new initiatives like its crackdown on password sharing. Despite the growth in subscribers, average revenue per membership fell by 1%, but profitability metrics like operating margin and free cash flow exceeded forecasts.
Netflix’s price hikes in the US are as follow: the "Basic" plan, which is no longer available, has increased from $9.99 to $11.99 per month. The "Premium" plan, which offers 4K streaming, is now priced at $22.99 per month, up from its previous $19.99. New subscribers will see these prices immediately, while existing members will experience the hike in the coming weeks.
🏎️ Tesla’s Earnings Visualized
Tesla's Q3 results fell short of Wall Street expectations, reporting adjust earnings of $0.66 per share versus the expected $0.73, and revenue of $23.4B against the expected $24.1B. This was the first earnings and revenue miss since Q2 2019. Elon Musk expressed major concerns about the high-interest rate environment and emphasized the need to make Tesla cars more affordable.
Elon also highlighted “enormous challenges” ramping up production of the long-awaited Cybertruck, with concerns about profitability in upcoming quarters due to complexities in vehicle production. To add icing on the cake, Tesla is now facing increasing competition in the EV market, such as a competitive pricing war in China’s electric-vehicle sector.
🧑‍💻 LinkedIn Layoffs. LinkedIn is laying off 668 employees, 3% of its workforce, as part of broader cuts by parent company Microsoft $MSFT. [AP]
🛍️ Retail Sales Still Strong. U.S. retail sales grew by 0.7% in September, with consumers continuing to spend despite economic challenges and inflation concerns. [CNN]
đź‘» Snap Growth. Snap $SNAP shares surged after CEO Evan Spiegel's optimistic 2024 outlook, including over 20% ad revenue growth and 475 million daily active users. [B]
⚽️ ManU For Sale. Sir Jim Ratcliffe is nearing a deal to buy a 25% stake in Manchester United $MANU, potentially leading to full club control. [ESPN]
đź’ľ Chip Restriction. The U.S. is intensifying restrictions on AI chip sales to China, impacting chip stocks such as Nvidia $NVDA, Broadcom $AVGO, Marvell $MRVL, AMD $AMD, and Intel $INTC, to prevent China's potential military AI advancements. [NBC]
Notable Companies Reporting Earnings Next Week:
Monday:
Cadence Design Systems ($CDNS), Brown & Brown ($BRO), Logitech ($LOGI)
Tuesday:
Microsoft ($MSFT), Visa ($V), Coca-Cola ($KO), Novartis ($NVS), Texas Instruments ($TXN), Verizon ($VZ), Waste Management ($WM), 3M ($MMM), Spotify ($SPOT), Snap Inc. ($SNAP)
Wednesday:
Meta Platforms ($META), Thermo Fisher ($TMO), T-Mobile ($TMUS), IBM ($IBM), ServiceNow ($NOW), Boeing ($BA), ADP ($ADP), Moody’s ($MCO)
Thursday:
Amazon ($AMZN), Mastercard ($MA), Merck & Co ($MRK), Linde ($LIN), Comcast ($CMCSA), Intel ($INTC), UPS ($UPS), Altria ($MO), Ford ($F)
Friday:
Exxon Mobil ($XOM), Chevron ($CVX), AbbVie ($ABBV), Charter ($CHTR), Aon ($AON)
All of the companies that are reporting earnings this week can be viewed here.
Major Trades Published 10/16 - 10/19
Buys
Cerevel Therapeutics ($CERE)
Insider: Adam Koppel (Director)
# of Shares Purchased: 5,480,052
$ Amount: $124,999,986
SEC Forms: [1]
Insider: Christopher Gordon (Director)
# of Shares Purchased: 5,480,052
$ Amount: $124,999,986
SEC Forms: [1]
Insider: Perceptive Advisors (Director)
# of Shares Purchased: 876,808
$ Amount: $19,999,990
SEC Forms: [1]
Delta Airlines ($DAL)
Insider: David Taylor (Director)
# of Shares Purchased: 10,000
$ Amount: $330,900
SEC Forms: [1]
Sells
United Health Group ($UNH)
Insider: Stephen Hemsley (Director)
# of Shares Sold: 121,515
$ Amount: $65,688,591
SEC Forms: [1]
DoorDash ($DASH)
AutoZone ($AZO)
Insider: Domingo Hurtado (Sr. VP)
# of Shares Sold: 2,950
$ Amount: $7,790,474
SEC Forms: [1]
GitLab ($GTLB)
Insider: Sytse Sijbrandij (CEO)
# of Shares Sold: 155,000
$ Amount: $7,281,489
SEC Forms: [1]
Cola-Cola ($KO)
Insider: James Quincey (CEO)
# of Shares Sold: 92,029
$ Amount: $4,956,489
SEC Forms: [1]
How was today's newsletter?We value all of feedback we receive. Let us know how we did so we can continue to make this the best investing newsletter available! |
Disclaimer: The publisher does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author.
Carbon Finance is a publisher of financial information, not an investment or financial advisor. We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.
The information contained on this website/newsletter has been crafted with the assistance of an AI language model to enhance the content of this newsletter. We have made efforts to ensure the quality and reliability of the information presented, but we cannot guarantee its absolute accuracy. Therefore, readers are advised to exercise their own judgment and seek additional sources if necessary.
THE INFORMATION CONTAINED ON THIS WEBSITE/NEWSLETTER IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
The publisher, its affiliates, and clients of the publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.
The views and opinions expressed in this newsletter are solely those of Carbon Finance and do not reflect the official policy or position of any other agency, organization, employer or company.
By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.