Tesla reported earnings after the bell, showing a record for quarterly revenue but lower margins thanks to price cuts and incentives.
The stock price remained flat after the initial report, but began dropping during the earnings call as CEO Elon Musk and other executives failed to deliver precise specs and start of delivery dates for the Cybertruck, and for a robotaxi-ready vehicle. Musk and other execs also said during the call that vehicle production would slow down during Q3 due to shutdowns for factory improvements. The stock was down as much as 5% after hours. $TSLA Tesla Q2 FY23: • Revenue +47% Y/Y to $24.9B ($200M beat). • Gross margin 18% (-7pp Y/Y). • Operating margin 10% (-5pp Y/Y). • Capex +19% Y/Y to $2.1B. • Free cash flow +62% Y/Y to $1.0B. • Non-GAAP EPS $0.91 ($0.09 beat). • Deliveries +83% Y/Y to 466,140. Source: App Economy Insights, CNBC
Total Put/Call Ratio drops to lowest level since November 202
Source: barchart
Interesting charts by Chartr on US consumers cash buffer
When the pandemic hit, many of us instinctively reigned in our spending — partly out of choice, and partly because there weren’t a lot of fun things to splurge on. That set of circumstances coincided with stimulus checks and tax credits in April 2021, leading to many Americans building up healthier-than-usual cash balances in their bank accounts. However, new data from JPMorgan reveals that much of the buffer has now disappeared. Although US households still hold approximately 10% to 15% more cash in their savings accounts than before the pandemic, analysis of 9 million Chase customers reveals that the median account balance has dropped significantly in the last 2 years. That could help explain why the much-feared recession has yet to materialize, as consumers have had strong reserves to combat rampant inflation and rises in borrowing costs. Interestingly, the trend is seen across all income brackets. The nation's top quarter of earners have seen their savings accounts decline from a median high of nearly $12,000 to $9,000, as of March this year — though their 25% decrease is a smaller relative drop than that experienced by lower earners. Indeed, people in the lowest income quartile — who likely have to allocate a larger portion of their income to essentials — have seen a 41% decline since their savings peaked.
Apple is developing the equivalent of “AppleGPT” and other generative AI tools to rival OpenAI and Google. Apple is testing the chat bot internally and it’s code name is “Ajax"
Apple's stock jumped after Bloomberg reported the #ai news and hit a new ATH. Apple was caught flat-footed in the past year with the introduction of OpenAI’s ChatGPT, Google Bard & Microsoft’s Bing AI. Its main AI product, the Siri voice assistant, has stagnated recently. Source: HolgerZ, Bloomberg
Société Générale subsidiary becomes the first fully-licensed crypto provider in France
Société Générale subsidiary becomes the first fully-licensed crypto provider in France. Forge will have a right to custody digital assets, to purchase and sell them for legal tender, and to trade them against each other. Forge, a subsidiary of Société Générale — the third-largest bank in France — became the first company to obtain the highest access license for providing crypto services in the country — a prerequisite for numerous service activities (PSAN). The provider will have a right to custody digital assets, to purchase and sell them for legal tender, and trade them against each other. So far, around 90 companies have already been on the AMF list of licensed providers. For example, the subsidiary of Société Générale’s powerful competitor, Crédit Agricole, got approval for digital custody in June 2023. However, Forge became the first to receive the highest approval for numerous services from the regulator. As the French radio station Business FM stated, such stringent requirements for this level of approval give an obvious advantage to large traditional banks over smaller crypto companies. Source: cointelegraph
Timing the market has proven to be impossible
A simple dollar cost average strategy is the best way to go about investing. Consistent contributions made every week/month regardless of whether stocks are up or down. Source: Mark Wlosinski
M2 money supply has declined at the fastest rate ever recorded since the Fed began collecting data in 1959
Probably has helped cool inflation but could it usher in a new set of problems? Source: Fred, Barchart
The "soft landing" of the US economy is the new consensus.
Source: BofA survey