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- 🔋Tesla Is Out Of Battery
🔋Tesla Is Out Of Battery
1) Tesla’s Out Of Battery 2) Netflix Hits A New Record, 3) Visa Swipes Success, and more!
Carbon Finance
January 26, 2024
Happy Friday!
This morning, American Express announced earnings and raised their quarterly dividend to $0.70 from $0.60, representing a 16.67% increase.
Warren Buffett owns 151,610,700 shares of American Express, valued at $22.62B as of the last 13F filing.
American Express will now be paying him an estimated $424,509,960 in annual dividend income, a substantial pay raise for the legendary investor.
Some key data bites from this week that you should know:
Johnson & Johnson $JNJ has tentatively agreed to pay $700M to settle U.S. state probes over misleading talc safety claims.
Meta's $META market cap has returned to over $1T, rejoining the trillion dollar club.
Apple's $AAPL Vision Pro quickly sold out in pre-orders, with estimated sales of up to 180,000 units, exceeding initial predictions.
China is considering a $278B stabilization fund to boost its stock market.
In today’s newsletter:
🔋Tesla Is Out Of Battery
🍿 Netflix Hits A New Record
💳 Visa Swipes Success
Let’s dive right in!
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🔋Tesla Is Out Of Battery
The Numbers:
Earnings: 🔴 $0.71 Misses $0.74 Est.
Revenue: 🔴 $25.17B Misses $25.6B Est.
Analyst estimates from LSEG.
The Quarter:
On Wednesday evening, Tesla released its fourth-quarter 2023 earnings results, missing analysts' expectations on both revenue and profits.
Both auto revenue and overall revenue saw modest increases of 1% and 3%, respectively, compared to the previous year.
Additionally, profitability was under pressure. Tesla’s operating margin declined significantly, falling to 8.2% from last year's 16.0%.
A notable point was Tesla's net income, which doubled for the quarter. This surge, however, was largely due to a one-time, non-cash tax benefit of $5.8B.
Given this, the operating income, which decreased by 47% year over year, presents a more accurate picture of the company's performance.
The reduced average selling price of Tesla's vehicles and increased operating expenses, driven by investments in R&D initiatives, were key factors behind these figures.
Looking ahead, Tesla anticipates lower vehicle volume growth in 2024.
🍿 Netflix Hits A New Record
The Numbers:
Earnings: 🔴 $2.11 Misses $2.22B Est.
Revenue: 🟢 $8.83B Beats $8.72B Est.
Analyst estimates from LSEG.
The Quarter:
Netflix was another big name that reported earnings this week, releasing their fourth-quarter 2023 earnings results.
While the company missed on earnings, revenue surpassed analyst estimates and grew 13% year over year.
This growth was complemented by a notable rise in operating margins, which increased from 7% in the previous year’s quarter to 16.9%.
The company achieved an all time record global streaming paid memberships, reaching 260.28M subscribers, representing 13% growth.
The quarter itself saw an impressive addition of 13.12M paid subscribers.
Guidance:
Looking forward, Netflix paints an optimistic picture for 2024.
The company is expecting double-digit revenue growth in 2024, driven by membership increases and price adjustments.
They also will place a focus on building a strong ads business for future revenue.
Full-year 2024 operating margin forecast was raised from 22-23% to 24%, reflecting a weaker US dollar and execution of continued strong performance.
📚 Recommended Reading
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Delivered on Friday afternoons, they are read by top space VCs, companies and organizations - including Space Capital, Seraphim Space, Blue Origin, Planet, Nanoracks and NASA.
💳 Visa Swipes Success
The Numbers:
Earnings: 🟢 $2.41 Beats $2.34
Revenue: 🟢 $8.63B Beats $8.56B
Analyst estimates from FactSet.
The Quarter:
Visa has kicked off Fiscal 2024 with a strong start, surpassing expectations in its Q1 earnings report.
Highlighting this robust performance, CEO Ryan McInerney noted the resilience in consumer spending.
The company reported a 9% increase in net revenue and an impressive 17% surge in net income.
This growth was fueled by considerable growth in key areas: payments volume, cross-border volume, and processed transactions.
Total processed transactions soared to 57.5B, marking a 9% rise from the previous year, illustrating Visa's expanding reach.
Looking ahead to the full-year 2024, Visa is projecting low double-digit growth in both net revenues and earnings per share.
🇮🇳 India Boom. India's stock market has surpassed Hong Kong's for the first time, reaching $4.33T - BB
🌯 Burrito Hiring Spree. Chipotle $CMG aims to hire 19,000 new employees for its busy spring season - CNBC
🏠 Home Sales Drop. U.S. home sales in 2023 fell to the lowest since 1995, dropping 19% to 4.09M due to high mortgage rates and limited supply - WSJ
🇨🇳 Insiders Buy Alibaba. Alibaba $BABA shares have risen following reports that insiders like Jack Ma and Joe Tsai have been buying shares - B
🤼 Netflix-WWE Partnership. Netflix $NFLX has partnered with TKO Group $TKO to stream WWE's Raw in 2025 - YF
Notable Companies Reporting Earnings Next Week:
Monday (1/29):
Nucor $NUE, Super Micro Computer $SMCI
Tuesday (1/30):
Microsoft $MSFT, Alphabet $GOOG, AMD $AMD, Pfizer $PFE, UPS $UPS, Starbucks $SBUX
Wednesday (1/31):
Novo Nordisk $NVO, Mastercard $MA, Novartis $NVS, Thermo Fisher $TMO, Qualcomm $QCOM, Boeing $BA
Thursday (2/1):
Apple $AAPL, Amazon $AMZN, Meta $META, Merck & Company $MRK, Altria $MO, Ferrari $RACE
Friday (2/2):
Exxon Mobil $XOM, AbbVie $ABBV, Chevron $CVX, Regeneron Pharmaceuticals $REGN
All of the companies that are reporting earnings next week can be viewed here.
Major Trades Published 01/19 - 01/25
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