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
Despite weak US retail sales, yesterday was another strong session for us stocks after Microsoft $MSFT announced new pricing for its AI offerings...
For context, $MSFT and $NVDA have added $175BN market cap today, more than the mkt cap of 462 S&P companies, and more than the value of Nike, Wells Fargo, Walt Disney, Morgan Stanley, Intel, etc This ai related news drove value back near its record lows relative to growth... Source: Bloomberg, www.zerohedge.com
Nice look at just how powerful the "Super 7" stocks have been to $SPY and $QQQ, contributing to 75% of their YTD gains.
This has sparked a torrent of flows into equal-weighted SPX ETF $RSP, which has blown away all other smart-beta #ETFs in flows this summer w/ +$6b, Sourc: Eric Balchunas, Bloomberg via JSeyff
The S&P 500 is up 17.5% year-to-date. In the last 20 years only 2019 had a better start. $SPX
Source: Charlie Bilello
Speculation is Back
Source: Bloomberg
The S&P 500's 25% gain since last year's low has been driven by valuation expansion rather than rising earnings
The S&P 500's 25% gain since last year's low has been driven by valuation expansion rather than rising earnings. There is hope that earnings will start recovering in Q3 and through 2024. Source: Edward Jones
Bullish sentiment on equities is getting even more bullish
Bullish sentiment on equities is getting even more bullish. Source: TME, Goldman Sachs
Since 1941 strong first half S&P 500 performance has been associated with further gains in the second half of the year, though with more volatility
Since 1941 strong first half S&P 500 performance has been associated with further gains in the second half of the year, though with more volatility. Past performance does not guarantee future results... Source: Edward Jones
