- Carbon Finance
- Posts
- đ Richest People In The World
đ Richest People In The World
1) Most Profitable Automakers 2) The Fed Cuts Rates 3) Can Intel Bounce Back? and more!
Happy Sunday!
This week was packed with big headlines, and as always, Iâve got you covered.
Before we dive in, if youâre not already, follow me on Instagram for even more content!
Iâm closing in on 400K followers, and your support means everything!
Some key data bites from this week that you should know:
iPhone 16 $AAPL first weekend pre-sales fell 13% compared to the iPhone 15.
US retail sales were stronger than expected, rising 0.1% in August.
China has seen five consecutive quarters of deflation.
Goldman Sachs $GS says the S&P 500 $SPX could reach 6,000 in 12 months.
In the first half of 2024, Netflix $NFLX users watched 94B hours of content.
MLS team values have jumped $3.2B since Messi joined Inter Miami.
FedEx $FDX saw its net profit fall 27% in the most recent quarter.
In todayâs newsletter:
đ° Richest People In The World
đïž Most Profitable Automakers
âïž The Fed Cuts Rates
đž Microsoftâs Dividend Increase
đŽââ ïž Can Intel Bounce Back?
Not subscribed yet? Sign up today!
The rich keep getting richer.
One person in particular is having an exceptional year: Larry Ellison.
Oracleâs founder and current CTO saw his net worth surge by a record $14B in a single day.
This happened after the companyâs recent earnings release, pushing him past Bill Gates and Bernard Arnault.
Hereâs an interesting fact:
Ellison consistently owned around 20% of the company.
But as Oracle ramped up its share buybacks, that changed.
According to FinChat, the companyâs weighted average shares outstanding diluted dropped from 5.1B in 2012 to 2.83B in 2024, a 44% decline.
Thanks to these buybacksâand Ellison holding onto his sharesâhis stake has roughly doubled, now sitting at 41.3% of the company.
If there was ever a prime example to show the magic of buybacks, this is one of them.
Based on the Bloomberg Billionaires Index, Ellisonâs net worth has climbed by roughly $57B in 2024.
Other billionaires are seeing rapid growth as well.
Nvidia CEO Jensen Huangâs fortune has skyrocketed by $58B to $102B.
Similarly, Mark Zuckerbergâs net worth has spiked $71B to $1199B.
On the flip side, Bernard Arnault lost his position as the worldâs richest person earlier in the year, with his net worth dropping by $30B this year to $177B.
His company, LVMH, is grappling with a tough macro environment and declining sales in China.
The wheels seem to be coming off the automobile industry.
This shouldnât come as a major surprise.
With interest rates still at their highest levels in decades, demand for cars naturally declines as the cost of financing a vehicle becomes more expensive.
We're already seeing the impact.
In its latest earnings, Tesla reported just 2% revenue growth.
At Volkswagen, layoffs may be on the horizon after the company exited a labor agreement that protected workers, signaling the need for restructuring.
Meanwhile, unrelated to higher rates, BMW is facing its own set of challenges, recalling 1.5M vehicles due to a faulty braking system.
One company, however, seems immune to the industryâs struggles: Ferrari.
In its most recent quarter, Ferrariâs net revenues soared 16.2% and net income jumped 23.7%.
Per CNBC, analysts estimate that Ferrari could easily sell two to three times its current production, demonstrating how scarcity and exclusivity have bolstered the brand.
This aura surrounding Ferrari has directly translated into industry-leading operating profit margins of 27.4%, based on the last twelve months.
To add icing on the cake, raised guidance and buybacks show that the Italian luxury sports car manufacturer continues to race ahead of the competition.
This week, we finally got the news weâve all been waiting for.
The Fed announced at its September meeting a 50 bps rate cut, lowering the Fed Funds Rate to a range of 4.75% to 5.00%.
This move exceeded the consensus of 25 bps. One interesting note?
JPMorgan was one of the few major firms predicting the 50 bps cut.
As a result, all three major indices rallied to all-time highs on Thursday, before stabilizing on Friday.
So, whatâs next?
The Fedâs dot plot projections indicate another potential half-point rate cut by year-end.
And the grass is looking greener. According to a Bloomberg analysis, in years without a recession, the S&P 500 has historically risen an average of 13% within six months after a rate cut.
đŁ A Message From Betterment
Ease into investing
Ease being the key word. With automated tool like portfolio rebalancing and dividend reinvestment, Betterment makes investing easy for you, and a total grind for your money.
John D. Rockefeller famously said:
âDo you know the only thing that gives me pleasure? It's to see my dividends coming in.â
Microsoft shareholders can certainly relate to this.
This week, the company increased its quarterly dividend by 10%, raising it to $0.83 per share.
On top of that, the board of directors approved a considerable $60B share repurchase program.
With Microsoftâs market cap at $3.24T as of 9/21, this buyback represents about 1.85% of the total market cap.
The company made other big moves this week as well.
Microsoft announced a partnership with BlackRock and others to raise $30B for AI data centers and energy infrastructure, with a long-term goal of up to $100B in investments.
This week was a rollercoaster of news for Intel.
Currently the worst-performing Dow Jones stock, down 57% this year, Intel started the week with a big win.
On Monday, the company confirmed it had secured up to $3B in grants from the Pentagon to manufacture chips for the U.S. military.
Next, Intel announced a major restructuring of its Foundry business, creating an independent subsidiary which would enable it to raise outside funding and establish its own operating board.
The same announcement revealed an expansion of its partnership with Amazon Web Services to produce custom AI chips, aiming to compete more directly with Nvidia.
Then, on Friday evening, rumors surfaced that Qualcomm had approached Intel about a potential takeover, sending shares soaring.
With Intelâs market cap at $93B, this deal would mark the largest tech acquisition in history.
While no formal offer has been made and the deal remains uncertain, it certainly raises big questions about Intelâs future direction.
âïž Hiring Halt. Boeing $BA has implemented a hiring freeze in an effort to cost cut - CNBC
đȘ Liberty Launch. Donald Trump has revealed his new Crypto business World Liberty Financial - AX
âïž Veteran CEO. Nike $NKE announced a new CEO, who started as an intern and has been at the company for 30 years - FT
Notable Companies Reporting Earnings This Week:
Tuesday (9/24):
AutoZone $AZO
Wednesday (9/25):
Micron Technology $MU, Cintas Corporation $CTAS, Jefferies Financial Group $JEF
Thursday (9/26):
Costco $COST, Accenture $ACN
All of the companies that are reporting earnings next week can be viewed here.
đŁ A Message From 1440 Media
Seeking impartial news? Meet 1440.
Every day, 3.5 million readers turn to 1440 for their factual news. We sift through 100+ sources to bring you a complete summary of politics, global events, business, and culture, all in a brief 5-minute email. Enjoy an impartial news experience.
Major Trades Published 09/16 - 09/20. Trades may be those of family members. [Source: 2iQ]
Buys
Michael McCaul (R)
Company: Stifel Financial Corp ($SF)
Amount Purchased: $301K - $765K
Company: Intel ($INTC)
Amount Purchased: $250K - $500K
Company: Meta Platforms ($META)
Amount Purchased: $150K - $350K
John Hickenlooper (D)
Company: Atlanta Braves Holdings ($BATRA)
Amount Purchased: $100K - $250K
Description: Exercised Stock Option; Strike Price $26.36; Expires 12/10/2027
Sells
Michael McCaul (R)
Company: Vanguard S&P 500 ETF ($VOO)
Amount Sold: $1.85M - $6.75M
Company: Amazon ($AMZN)
Amount Sold: $230K - $600K
Company: Monster ($MNST)
Amount Sold: $200K - $500K
John Hickenlooper (D)
Company: Atlanta Braves Holdings ($BATRA)
Amount Sold: $250K - $500K
Company: Atlanta Braves Holdings ($BATRA)
Amount Sold: $50K - $100K
Description: Vested RSUs
Major Trades Published 09/16 - 09/20
Buys
Zenas Biopharma ($ZBIO)
MBX Biosciences ($MBX)
Sells
How was today's newsletter?I value all of the feedback that I receive. Let me know how I did so I can continue to make this the best investing newsletter available! |
đ€ Review of the Week
Disclosure: I am long $MSFT, $AMZN
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, paid advertiser, or partner and do not reflect the official policy or position of any other agency, organization, employer or company.
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 INVESTORSâ 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.
Some of the links in this newsletter are affiliate links. This means that if you click on the link and purchase the item, we will receive an affiliate commission at no extra cost to you. All opinions remain our own.
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.