📊 Porsche Loses €1B

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Happy Sunday!

Over the last few years, Novo Nordisk has gone from market darling to market disappointment.

• Shares are down more than 60% from their highs, a stunning reversal for a company that remains a leader in one of the fastest-growing industries in the world.

• Despite operating in a duopoly and holding regulatory advantages across multiple indications, sentiment is at an all-time low.

For those that missed it, I put together a 7,000+ word report breaking down the full story and analyzing the company in depth.

• Feedback is always welcome, and as always, thank you for reading!

Some key data bites from this week that you should know:

• Barrons shared a list of 11 stocks that are probably in a bubble.

• Morgan Stanley shared 61 stocks with strong earnings revision momentum.

• Best fund managers have these 5 non-tech stocks in their portfolios.

• September inflation rate increased 3.0% annually, lower than expected.

• China’s economy grew 4.8% in Q3, in line with expectations.

• Apple's new iPhone outsells previous model by 14% in U.S. and China.

• Microsoft CEO Satya Nadella saw his pay jump 22% to $96.5M for FY 2025.

• Grindr has received a buyout offer valuing the firm at nearly $3.5B.

• OpenAI is paying ex-investment bankers $150/hr to train its AI.

• OnlyFans has paid creators $25B since 2016.

• Blackstone and TPG will acquire medical device maker Hologic in $18.3B deal.

• U.S. and Australia sign critical $8.5B minerals agreement.

• Uber and Nebius are investing up to $375M into robotaxi firm Avride.

• Google and Anthropic sign cloud deal estimated to be worth $50B.

• Vantage Data Centers aims to raise $38B in debt to fund Oracle and OpenAI data centers.

• U.S. to buy 1M barrels of oil for strategic petroleum reserve.

Earnings & Financial Results:

• Intel posted a $4.1B profit, up 124% YoY.

• Deckers saw Hoka and UGG post 11.1% and 10.1% sales growth.

• CapitalOne saw total net revenue increase 23% to $15.4B.

• Lockheed Martin reached a record backlog of $179B.

• RTX reached a record backlog of $251B.

• Super Micro downgraded its revenue forecast to $5B from $6.5B.

• Philip Morris said its smoke-free business accounted for 41% of total net revenues.

• Intuitive placed 427 da Vinci surgical systems, a 13% increase YoY.

• IBM saw its AI book of business surpass $9.5B.

• T-Mobile added 1M postpaid phone net subscribers, best in industry.

• Blackstone now has $1.24T total AUM, up 12% YoY.

In today’s newsletter:

• 🥤 Coca-Cola vs Pepsico

• 🍿 Netflix Hit By Tax Shock

• 🪫 Tesla’s Profit Plunge

• 💥 Porsche Crashes Hard

• 🐍 The Death Of Gucci?

Let’s jump right in.

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Coca-Cola continues to sizzle.

The company beat both earnings and revenue estimates in Q3.

• Adjusted EPS came in at $0.82, while organic revenue rose 6% to $12.41B.

• Unit case volume increased 1% globally, led by a 4% gain in Europe, the Middle East, and Africa.

• Volumes were flat in North and Latin America and down 1% in Asia Pacific.

Despite pressure from lower-income consumers cutting back, the company reaffirmed full-year guidance, expecting EPS growth of 3% and organic revenue growth of 5.5% at the midpoint.

• Coke also noted strong demand for its zero-sugar drinks, a growing focus in its product mix.

PepsiCo also beat estimates and reiterated guidance, with organic revenue up 1.3% in Q3.

• International growth offset declining North American volume, though global food and drink sales fell 1% overall.

• Pepsi has struggled with higher costs, shifting preferences toward healthier options, and market share losses.

Over the past five years, Coca-Cola shares are up 63%, more than double PepsiCo’s 28% gain.

• But zooming out, PepsiCo has outperformed over the last 40 years.

• A $10,000 investment in 1985 with dividends reinvested would now be worth $1.73M, compared to $1.51M for Coca-Cola.

Netflix’s earnings had a plot twist.

Shares dropped 6% after the company reported Q3 2025 earnings that missed expectations.

• Operating margin came in at 28.2%, below the 31.5% forecast, due to a $619M expense tied to an ongoing dispute with Brazilian tax authorities.

• Netflix said that without this charge, it would have exceeded its margin guidance and doesn’t expect a lasting impact on future results.

Earnings per share came in at $5.87, below estimates of $6.97, while revenue rose 17% to $11.5B, a new all-time high and in line with expectations.

• Growth was driven by membership gains, pricing increases, and strong ad revenue.

• Engagement also remains healthy, with Netflix reaching its highest quarterly view share ever in both the U.S. and U.K.

Looking ahead, the company expects 17% revenue growth and an operating margin of 23.9% in the next quarter, up two points YoY.

Tesla’s profits continue to go downhill.

The company reported Q3 earnings that beat on revenue but missed on profit.

• Revenue rose 12% to $28.1B, above expectations and a new quarterly record, after two consecutive quarters of revenue declines.

• Tesla delivered a record 497K vehicles in the quarter, boosted by a wave of demand before the federal EV tax credit expired at the end of September.

While revenue beat estimates, adjusted EPS came in at $0.50, missing the $0.54 estimate.

• Net income plunged 37% due to lower EV prices and higher spending on AI and other R&D projects.

• On a trailing-twelve-month basis, Tesla’s operating profit now stands at $4.5B, down 67% from its $13.7B peak in Q4 2022.

Still, there were some bright spots.

• Energy generation and storage revenue climbed 44% to $3.4B, with Tesla seeing record deployments across residential, industrial, and utility segments.

• Services and other revenue rose 25% to $3.5B.

• The company also generated $4B in free cash flow and saw its total cash balance reach $42B.

Despite declining profits, investors remain confident in Elon Musk’s long-term vision, keeping Tesla trading relatively near record highs.

Porsche just hit a wall.

The German luxury automaker posted its first quarterly loss as a public company.

• Operating income fell to -€966M in Q3, missing estimates of -€611M.

• Losses were driven by a pullback in its electric vehicle push, tariffs, and weaker demand in China.

The company’s decision to move away from its EV strategy will result in an estimated €3.1B profit hit for the year.

U.S. tariffs are set to cost Porsche about €700M this year, prompting price hikes across the U.S. market in the coming months.

That said, the company is optimistic for 2026.

• Porsche is eyeing its profit margin to recover to a high single-digit percentage next year.

• Additionally, CEO Oliver Blume, who also serves as the CEO of majority owner Volkswagen, will step down.

• Former McLaren Automotive CEO Michael Leiters will take the rein at the beginning of next year.

The snake is still not rattling.

Kering, the parent company of Gucci, posted third-quarter results showing early signs of stabilization but still faces a long road to recovery.

• Sales for Gucci fell 14%, marking the brand’s ninth consecutive quarter of revenue declines.

• It was also the seventh straight quarter of double-digit drops, though an improvement from the 20%+ declines seen earlier this year.

• Gucci remains the group’s core brand, generating about two-thirds of total profits.

Outside of Gucci, Kering’s total revenue declined 5%, better than analyst expectations for a nearly 10% fall.

• Kering also owns Yves Saint Laurent, Bottega Veneta, and Balenciaga, which all performed better than expected.

Management noted that conditions in China are getting better, a key market that has struggled in recent years.

New CEO Luca de Meo said that while results are improving, performance “remains far below that of the market.”

• As one of his first major moves, Kering announced plans to sell its beauty division to L’Oréal for $4.7B.

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Notable Companies Reporting Earnings Week of October 26th, 2025:

Buys

• Scott Franklin (R)

  • Company: Union Pacific Corp ($UNP)

    • Amount Purchased: $52K - $130K

  • Company: iShares Core S&P 500 ETF ($IVV)

    • Amount Purchased: $52K - $130K

• Lisa McClain (R)

  • Company: Seagate Technology ($STX)

    • Amount Purchased: $15K - $50K

Sells

• Eleanor Holmes Norton (D)

  • Company: Berkshire Hathaway ($BRK.B)

    • Amount Sold: $15K - $50K

• Tom Suozzi (D)

  • Company: Walmart ($WMT)

    • Amount Sold: $15K - $50K

Buys

• Summit Therapeutics ($SMMT)

  • Insider: Xia Yu (Director)

    • # of Shares Purchased: 533,617

    • $ Amount: $9,999,983

    • SEC Forms: [1]

  • Insider: Mahkam Zanganeh (Co-CEO)

    • # of Shares Purchased: 26,680

    • $ Amount: $499,983

    • SEC Forms: [1]

  • Insider: Robert Duggan (Co-CEO)

    • # of Shares Purchased: 26,689

    • $ Amount: $499,983

    • SEC Forms: [1]

• CSX Corp ($CSX)

  • Insider: Stephen Angel (President & CEO)

    • # of Shares Purchased: 55,000

    • $ Amount: $2,027,850

    • SEC Forms: [1]

Sells

• Robinhood ($HOOD)

  • Insider: Baiju Bhatt (Director)

    • # of Shares Sold: 418,338

    • $ Amount: $55,683,454

    • SEC Forms: [1]

🤝 Review of the Week