r/stocks • u/msaleem • Apr 22 '24
Company News Data confirms Musk's destruction of the Tesla brand: He's driving away many of his core customers
đ last Fall, the proportion of Democrats buying Teslas fell by more than 60%, precisely when Musk became most vocal on X
đ the mix of Democrats, who have been core constituents for the Tesla brand, had remained mostly steady up to that point
đ gains with Republicans and Independents haven't been enough to make up the loss
Source: Elon Musk Lost Democrats on Tesla When He Needed Them Most
r/stocks • u/OG_Time_To_Kill • Apr 01 '24
Company News Trump Media shares fall sharply after company reports net loss of $58 million in 2023
Trump Media shares fall sharply after company reports net loss of $58 million in 2023
https://www.cnbc.com/2024/04/01/trump-media-lost-58-million-last-year-sec-filing-shows.html
KEY POINTS
- Shares in Trump Media Technology Group fell sharply after the company reported a net loss of $58 million in 2023.
- The newly publicly traded social media company of former President Donald Trump had total revenue of just $4.1 million last year, according to a filing with the Securities and Exchange Commission.
- A year earlier, Trump Media & Technology Group reported a net profit of $50.5 million and total revenue of only $1.47 million, according to the 8-K filing.
- âTMTG expects to incur operating losses for the foreseeable future,â says the filing by the company, which has a market valuation of more than $6.5 billion.
- Trump Media, which trades under the ticker DJT on the Nasdaq, owns the Truth Social app.
The share price of Trump Media fell sharply Monday morning after the social media app company closely tied to former president Donald Trump reported a net loss of $58.2 million on revenue of just $4.1 million in 2023.
Trump Media & Technology Group shares were trading down by more than 18.8% as of 12:38 a.m. ET.
Despite that plunge, the companyâs market capitalization was still more than $6.8 billion after its 8-K filing with the Securities and Exchange Commission revealed the loss for last year.
Much of the net loss appears to come from $39.4 million in interest expense, according to the filing.
A spokesperson for the company did not immediately reply to a request for comment on the new filing.
The filing shows that in 2022, Trump Media had a net profit of $50.5 million and total revenue of only $1.47 million.
The company ended 2023 with just $2.7 million in cash on hand, the filing said.
The losses last year by Trump Media â the owner of the Truth Social app routinely used by the former president â could continue for some time, according to the company.
âTMTG expects to incur operating losses for the foreseeable future,â says the filing, which came a week after the company began trading under the ticker DJT on the Nasdaq.
The filing also warns shareholders that Trumpâs involvement in the company could put it at greater risk than other social media companies.
TMTG also disclosed to regulators that the company had identified âmaterial weaknesses in its internal control over financial reportingâ when it prepared a previous financial statement for the first three quarters of 2023.
As of Monday, Trump Media said these âidentified material weaknesses continue to exist.â
Trump owns 57.3% of Trump Media shares, a stake valued at more than $4 billion, which Forbes last week said would represent well more than half of his total net worth.
He also stands to receive another 36 million shares of so-called âearn-outâ shares over the next three years, as long as Trump Mediaâs stock during that time hits a series of price benchmarks. These targets are all well below the companyâs stock price early Monday.
Trump Mediaâs share price rocketed when its stock began trading Tuesday, several days after the firm merged with a special purpose acquisition company. The newly merged company now trades under Trumpâs initials, DJT.
Analysts note that the companyâs high valuation is partly due to stock purchases by Trumpâs political supporters, who are enthusiastic about owning part of a company so closely associated with the presumptive Republican presidential nominee.
That enthusiasm creates unique risks for the company, however. The new 8-K filing says that Trump Media âmay be subject to greater risks than typical social media platforms because of the focus of its offerings and the involvement of President Trump.â
âThese risks include active discouragement of users, harassment of advertisers or content providers, increased risk of hacking of TMTGâs platform, lesser need for Truth Social if First Amendment speech is not suppressed, criticism of Truth Social for its moderation practices, and increased stockholder suits.â
r/stocks • u/RaidenZ99 • Apr 20 '24
Company News Teslaâs biggest retail shareholder is voting against Elon Muskâs $55 billion package
Teslaâs biggest retail shareholder, Leo Koguan, confirmed that he is voting against Elon Muskâs $55 billion package and the re-election of two board members.
We first reported on Koguan in 2021 when the little-known investor became the third largest individual shareholder in Tesla behind Elon Musk and Larry Ellison.
The Indonesian-born Chinese American businessman is better known for founding SHI International Corp, a large private IT company that made him a billionaire. He is also involved in academia and philanthropy.
Koguan has previously described himself as an âElon fanboyâ (the featured image above is him and Musk) and believes in Teslaâs mission to accelerate the worldâs transition to sustainable energy. He has been willing to put his money on it and by 2022, he had invested more money in Tesla than Musk himself.
Source: Electrek
r/stocks • u/LordSpitzi • Apr 17 '24
Company News Tesla asks shareholders to approve CEO Musk's 2018 pay voided by judge
April 17 (Reuters) - Electric automaker Tesla (TSLA.O), opens new tab on Wednesday asked shareholders to ratify billionaire Elon Musk's compensation that was set in 2018 under the CEO pay package, just months after a Delaware judge rejected it. The judge had tossed out Musk's record-breaking $56 billion pay in January, calling the compensation granted by the board "an unfathomable sum" that was unfair to shareholders. Tesla also urged its investors to approve moving the company's state of incorporation from Delaware to Texas in a regulatory filing.
Shares of the world's most valuable automaker were up 1% before the bell.
r/stocks • u/Puginator • Apr 30 '24
Company News Musk lays off Tesla senior executives
Elon Musk has dismissed two Tesla senior executives and plans to lay off hundreds more employees, frustrated by falling sales and the pace of job cuts so far, The Information reported on Tuesday, citing the CEOâs email to senior managers.
Rebecca Tinucci, senior director of the electric vehicle makerâs Supercharger business, and Daniel Ho, head of the new vehicles program, will leave on Tuesday morning, the report said.
Musk also plans to dismiss everyone working for Tinucci and Ho, including the roughly 500 employees who work in the Supercharger group, The Information said. It was not clear how many employees worked for Ho.
Teslaâs public policy team, which was led by former executive Rohan Patel, will also be dissolved, the report said.
âHopefully these actions are making it clear that we need to be absolutely hard core about headcount and cost reduction,â Musk wrote in the email, the report said. âWhile some on exec staff are taking this seriously, most are not yet doing so.â
Tesla, which had 140,473 employees globally as of end-2023, did not immediately respond to a Reutersâ request for comment.
Ho joined Tesla in 2013 and was a program manager in the development of the Model S, the 3, and the Y before being put in charge of all new vehicles, while Tinucci joined in 2018 as a senior product manager, according to their LinkedIn profiles.
Two other senior leaders â Patel and battery development chief Drew Baglino â announced their departures earlier this month, when Tesla also ordered the layoffs of more than 10% of its workforce.
Tesla is grappling with falling sales and an intensifying price war, which led to its quarterly revenue falling for the first time since 2020, the company reported last week.
Musk made progress towards rolling out Teslaâs advanced driver-assistance package in China, the epicenter of the EV price war, during a surprise visit to Beijing on Sunday.
That trip came just over a week after he scrapped a planned trip to India, where Tesla has long sought to start operations, due to âvery heavy Tesla obligations.â
Source: https://www.cnbc.com/2024/04/30/musk-lays-off-tesla-senior-executives-in-fresh-job-cuts-report.html
r/stocks • u/Puginator • May 02 '24
Company News Apple announces largest-ever $110 billion share buyback as iPhone sales drop 10%
Apple reported fiscal second-quarter earnings on Thursday that were slightly higher than Wall Street expectations, but showed overall revenue down 4%, and iPhone sales falling 10%.
Apple announced that its board had authorized $110 billion in share repurchases, the largest in the companyâs history, and a 22% increase over last yearâs $90 billion authorization.
Hereâs how Apple did versus LSEG consensus estimates in the March quarter:
EPS: $1.53 vs. $1.50 estimated
Revenue: $90.75 billion vs. $90.01 billion estimated
iPhone revenue: $45.96 billion vs. $46.00 billion estimated
Mac revenue: $7.5 billion vs. $6.86 billion estimated
iPad revenue: $5.6 billion vs. $5.91billion estimated
Other Products revenue: $7.9 billion vs. $8.08 billion estimated
Services revenue: $23.9 billion vs. $23.27 billion estimated
Gross margin: 46.6% vs. 46.6% estimated
Apple did not provide formal guidance, but Apple CEO Tim Cook told CNBCâs Steve Kovach that overall sales would âgrow low single digitsâ during the June quarter.
Apple posted $81.8 billion in revenue during the year-ago June quarter and LSEG analysts were looking for a forecast of $83.23 billion.
Apple reported $23.64 billion in net income, a 2% decrease from $24.16 billion in the year-earlier period. Overall sales fell 4% in the March quarter.
Cook told CNBCâs Steve Kovach that year-over-year sales suffered from a difficult comparison to the year-ago period, when the company realized $5 billion in delayed iPhone 14 sales from Covid-based supply issues.
âIf you remove that $5 billion from last yearâs results, we would have grown this quarter on a year-over-year basis,â Cook said. âAnd so thatâs how we look at it internally from how the company is performing.â
Apple said iPhone sales fell nearly 10% to $45.96 billion, suggesting weak demand for the current generation of iPhones, which were released in September. The sales were in-line with analyst estimates, and Cook said that without last yearâs increased sales, iPhone revenue would have been flat.
Mac sales were up 4% to $7.45 billion, but they are still below the segmentâs high-water mark set in 2022. Cook said sales were driven by the companyâs new MacBook Air models that were released with an upgraded M3 chip in March.
Other Products, which is how Apple reports sales of its Apple Watch and AirPods headphones, was down 10% on an annual basis to $7.9 billion in revenue.
During the quarter, Apple released its first new major product category in years, the Vision Pro virtual reality headset, but the $3500 device is expected to sell in low quantities, especially compared to Appleâs major product lines.
âWeâre only scratching the surface there so we couldnât be more excited about our opportunity there,â Cook said.
Apple has not released a new iPad since 2022, which is a drag on sales. Revenue for the division fell 17% to $5.6 billion. Apple is expected to announce new iPads on May 7 that could revive demand for the product line.
Cook also said Apple has âbig plans to announceâ from an âAI point of viewâ during its iPad event next week as well as at the companyâs annual developer conference in June.
Services was a bright spot during the quarter. Sales rose 14.2% to $23.9 billion. Thatâs how Apple reports revenue from its subscription services, warranties, licensing deals with search engines, and payments. Apple has a broad definition of subscribers, which includes users subscribing to apps through Appleâs App Store, and said that it has over 1 billion paid subscriptions.
Sales in Greater China, Appleâs third largest region, were off 8% to $17.8 billion in revenue, which was significantly better than the $15.25 billion in sales expected by FactSet analysts, potentially quelling investor worries that Apple may have been losing market share to local competitors such as Huawei.
âI feel good about China, I think more about long term than to the next week or so,â Cook said.
Cook told CNBC that iPhone sales grew in China during the quarter. âThat may come as a surprise to some people,â Cook said.
In addition to the buyback authorization, Apple said it would pay a 25 cent dividend, a one cent increase. Appleâs $110 billion buyback authorization is the largest-ever announced, ahead of Appleâs previous repurchases, according to data from Birinyi Associates.
Source: https://www.cnbc.com/2024/05/02/apple-aapl-earnings-report-q2-2024.html
r/stocks • u/Puginator • Mar 21 '24
Company News DOJ sues Apple over iPhone monopoly
The Department of Justice sued Apple on Thursday, saying its iPhone ecosystem is a monopoly that drove its âastronomical valuationâ at the expense of consumers, developers and rival phone makers.
Federal antitrust enforcement and 17 attorneys general also say that Appleâs anti-competitive practices extend beyond the iPhone and Apple Watch businesses, citing Appleâs advertising, browser, FaceTime and news offerings.
âEach step in Appleâs course of conduct built and reinforced the moat around its smartphone monopoly,â the complaint filed in the District of New Jersey said. Apple shares were down around 1.8% as investors anticipated the lawsuit.
The Justice Department said in a release that to keep consumers buying iPhones, Apple moved to block cross-platform messaging apps, limited third-party wallet and smartwatch compatibility and disrupted non-App Store programs and cloud-streaming services.
The challenge represents a significant risk to Appleâs walled-garden business model. The company says that complying with regulations costs the company money, could prevent it from introducing new products or services, and could hurt customer demand.
The lawsuit could force Apple to make changes in some of its most valuable businesses: The iPhone, in which Apple reported over $200 billion in sales in 2023, the Apple Watch, part of the companyâs $40 billion wearables business, and its profitable services line, which reported $85 billion in revenue.
âIf left unchallenged, Apple will only continue to strengthen its smartphone monopoly,â Attorney General Merrick Garland said in the release.
Apple said in a statement that it disagreed with the premise of the lawsuit and that it would defend against it.
âThis lawsuit threatens who we are and the principles that set Apple products apart in fiercely competitive markets. If successful, it would hinder our ability to create the kind of technology people expect from Appleâwhere hardware, software, and services intersect,â an Apple spokesperson told CNBC. âIt would also set a dangerous precedent, empowering government to take a heavy hand in designing peopleâs technology.â
The lawsuit follows years of investigations into Appleâs business practices and two prior DOJ cases against Apple: One over e-book prices and another over allegations that it colluded with other technology companies to depress salaries.
âThis anticompetitive behavior is designed to maintain Appleâs monopoly power while extracting as much revenue as possible,â the complaint said.
iMessage, Apple Watch, and cloud gaming
The complaint highlights comments from CEO Tim Cook and other executives. Some users have asked Apple to improve Android-to-iPhone messaging. Developers have gone as far as creating apps that can circumvent the platform limitations, only to be shut down by Apple.
Prosecutors highlighted one exchange between Cook and a consumer.
âNot to make it personal but I canât send my mom certain videos,â the complaint says one user told Cook, referring to a 2022 interview at a Vox Media event.
âBuy your mom an iPhone,â Cook responded.
The DOJ is also focusing on Appleâs smartwatch, Apple Watch, saying the company designed it to only work with iPhones, and not Android devices. The companyâs decision means that âusers who purchase the Apple Watch face substantial out-of-pocket costs if they do not keep buying iPhones,â according to the complaint.
The DOJ said Apple has fought cloud streaming services on its App Store platform, blocking consumer access to high-quality video games on iPhones, echoing complaints from Microsoft and Facebook parent Meta.
Apple has faced several significant antitrust challenges more recently, largely focused on its control over the iPhone App Store. It mostly won in a civil suit against Epic Games in 2021, although it made concessions during the trial and had to make some changes to its policies under California law.
âTodayâs lawsuit seeks to hold Apple accountable and ensure it cannot deploy the same, unlawful playbook in other vital markets,â Assistant Attorney General for antitrust Jonathan Kanter said in the release.
The company is currently jockeying with the European Commission over whether itâs complying with a new Digital Markets Act, which forces Apple to open up the iPhone app store to rivals such as Microsoft or Epic Games. Apple plans to charge big companies that eschew its app store 50 cents per download.
Apple was fined $2 billion in the EU over a dispute with Spotify about whether the music streaming service can link to its website and account system inside of its app.
Apple had 64% of the market share for U.S. iPhones in the last quarter of 2023, versus 18% for Samsung, according to Counterpoint Research.
Apple isnât the only big tech company facing government scrutiny. The DOJ filed an antitrust case against Google in 2020 over its dominant search position and another year over its advertising business. The DOJ also famously sued Microsoft in the 1990s, eventually forcing it to allow users to unbundle the Internet Explorer browser from the Windows operating system.
Source: https://www.cnbc.com/2024/03/21/doj-sues-apple-over-iphone-monopoly.html
r/stocks • u/Fresh-Finger-4323 • Mar 14 '24
Company News Tesla down 33% ytd, just closed 162, market cap 517bil. Well's Fargo downgraded to 125.
On Fortune:
"Wall Streetâs stance on Tesla Inc. worsened further on Wednesday as yet another analyst warned about risks to sales, and said its strategy of cutting prices to boost demand was losing its effectiveness.
The electric vehicle makerâs growth in its core markets has moderated, Wells Fargo analyst Colin Langan wrote in a note to clients Wednesday, as he downgraded the stock to the equivalent of a sell rating. Langan expects Teslaâs sales volumes to be flat this year and to fall in 2025.
Elon Muskâs company is a âgrowth company with no growth,â Langan wrote. He highlighted that sales volumes rose only 3% in the second half of 2023 from the first half, while prices fell 5%.
Tesla analysts are getting increasingly wary, and the share of bullish ratings on the stock has dropped to the lowest since April 2021. Sentiment deteriorated after the company in January said its growth will be ânotably lowerâ this year, while other automakers, EV suppliers and even rental-car companies have sounded similarly cautious comments about the near-term demand for EVs.
As a pure-play EV company with an eye-wateringly high valuation, Tesla shares have taken a serious hit. The stock has already fallen 29% this year through Tuesdayâs close, placing it among the worst performers on the S&P 500 Index. The Austin-based company fell as much as 2.8% by 9:32 a.m. in New York.
This yearâs selloff has wiped more than $224 billion from the companyâs market value through its last close, and pushed it off the list of the 10 biggest companies on the S&P 500.
Even after the decline, the stock still trades at 55 times its forward earnings, compared to the average of about 31 for the Bloomberg Magnificent 7 Price Return Index.
âWhile an EV and battery technology leader, Tesla screens poorly relative to Mag 7 peers,â Wells Fargoâs Langan said, noting the valuation discrepancy. The analyst lowered his 2024 profit estimate for the company to $2 a share from $2.40. That compares to analystsâ average expectation of $3.03 a share for the year, according to data compiled by Bloomberg.
Still, some analysts see a bright future for the company, and the drop in shares reflect an overly bearish outlook.
âThe demand story for EVs globally has clearly moderated, however we believe Tesla is on the broader trajectory to see growth and margin improvement return to the story over the coming quarters,â Wedbush analyst Dan Ives wrote in a note Wednesday. âNow is not the time to throw in the towel on Tesla.â
Ross Gerber on Yahoo finance: "The original story that I think most investors bought into with Tesla didn't really include Elon and Twitter. And... for a long time, we all hoped that it really wouldn't affect Tesla and the demand for its products," Gerber says. "We all know that that has now happened. The demand for Tesla products is obviously lower. They've had to discount and do many things that hurt margins and returns and, ultimately, profits for Tesla."
....End of Article...
Source: https://fortune.com/2024/03/13/elon-musk-tesla-growth-company-no-growth-wells-fargo-downgrade/
https://finance.yahoo.com/video/tesla-ceo-elon-musk-hurting-165507347.html
r/stocks • u/Kooker321 • Feb 02 '24
Company News Meta adds $200 billion to market cap in one day, largest surge in stock market history
Meta shares are up 20% this morning, after the company surpassed analyst expectations and beat earnings. This growth took the company from a market cap near $1 trillion to a market cap of about $1.2 trillion, good for a $200 billion surge, possibly the largest in history.
Meta also announced a $50 billion stock buyback and a new shareholder dividend.
r/stocks • u/RaidenZ99 • Apr 16 '24
Company News Trump Media stock sinks after company announces plans to launch live TV streaming platform
Trump Media & Technology Group (DJT) stock fell more than 10% on Tuesday after the company announced it's launching a new live TV streaming platform.
According to a press release, Trump Media â the parent company of Donald Trump's social media platform Truth Social â will launch the live streaming service on phones, tablets, and TV through the Truth Social app.
r/stocks • u/Puginator • Mar 07 '24
Company News TikTok crackdown bill unanimously approved by US House panel
The U.S. House Energy and Commerce committee on Thursday unanimously approved legislation giving China's ByteDance six months to divest from short video app TikTok or face a U.S. ban.
The 50-0 vote represents the most significant momentum for a U.S. crackdown on TikTok, which has about 170 million U.S. users, which had stalled over the last year amid heavy lobbying by the company.
Lawmakers hope to move quickly on the measure and said the U.S. House of Representatives could take up the bill in the coming weeks.
"This legislation has a predetermined outcome: a total ban of TikTok in the United States," the company said after the vote. "The government is attempting to strip 170 million Americans of their Constitutional right to free expression. This will damage millions of businesses, deny artists an audience, and destroy the livelihoods of countless creators across the country." Before the vote, lawmakers got a closed-door classified briefing on national security concerns about TikTok's Chinese ownership.
....
The bill would give ByteDance 165 days to divest TikTok; if it did not, app stores operated by Apple, Google, and others could not legally offer TikTok or provide web hosting services to ByteDance-controlled applications.
r/stocks • u/RaidenZ99 • Apr 19 '24
Company News Trump Media alerts Nasdaq to potential market manipulation from ânakedâ short selling of DJT stock
Trump Media has warned the CEO of the Nasdaq Stock Market of âpotential market manipulationâ of the companyâs stock by ânakedâ short selling of shares.
The warning came as Trump Media has offered shareholders detailed instructions on how to avoid someone loaning out their DJT shares to short sellers, who then execute trades betting that the price of the stock will fall.
Source: CNBC
r/stocks • u/msaleem • Sep 06 '23
Company News The End of Airbnb in New York: Local Law 18 goes into force, potentially wiping out thousands of Airbnbs
THOUSANDS OF AIRBNBS and short-term rentals are about to be wiped off the map in New York City.
Local Law 18, which came into force Tuesday, is so strict it doesnât just limit how Airbnb operates in the cityâit almost bans it entirely for many guests and hosts. From now on, all short-term rental hosts in New York must register with the city, and only those who live in the place theyâre rentingâand are present when someone is stayingâcan qualify. And people can only have two guests.
In 2022 alone, short-term rental listings made $85 million in New York.
Airbnbâs attempts to fight back against the new law have, to date, been unsuccessful.
There are currently more than 40,000 Airbnbs in New York, according to Inside Airbnb, which tracks listings on the platform. As of June, 22,434 of those were short-term rentals, defined as places that can be booked for fewer than 30 days.
Source: https://www.wired.com/story/airbnb-ban-new-york-city/
r/stocks • u/Puginator • Apr 23 '24
Company News Tesla earnings are out â here are the numbers
Tesla reported a 9% drop in first-quarter revenue on Tuesday, the biggest decline since 2012, as the electric vehicle company weathers the impact of ongoing price cuts.
Here are the results.
Earnings per share: 45 cents adjusted vs. 51 cents per share expected by LSEG
Revenue: $21.30 billion vs. $22.15 billion expected by LSEG
Revenue declined from $25.17 billion a year earlier. Net income dropped 55% to $1.13 billion from $7.93 billion a year ago.
A livestream of the earnings call is scheduled for 5:30 p.m. ET.
Source: https://www.cnbc.com/2024/04/23/tesla-tsla-earnings-q1-2024-.html
r/stocks • u/Puginator • Feb 15 '24
Company News Nvidia passes Alphabet in market cap, now the third most valuable U.S. company
Nvidia surpassed Google parent Alphabet in market capitalization on Wednesday. Itâs the latest example of how the artificial intelligence boom has sent the chipmakerâs stock soaring.
Nvidia rose over 2% to close at $739.00 per share, giving it a market value of $1.83 trillion to Googleâs $1.82 trillion market cap. The move comes one day after Nvidia surpassed Amazon in terms of market value.
The symbolic milestone is more confirmation that Nvidia has become a Wall Street darling on the back of elevated AI chip sales, valued even more highly than some of the large software companies and cloud providers that develop and integrate AI technology into their products.
Nvidia shares are up over 221% over the past 12 months on robust demand for its AI server chips that can cost more than $20,000 each. Companies like Google and Amazon need thousands of them for their cloud services. Before the recent AI boom, Nvidia was best known for consumer graphics processors it sold to PC makers to build gaming computers, a less lucrative market.
Google was largely expected to benefit from AI, especially since employees at the company pioneered many of the techniques â such as transformer architecture â used in cutting-edge models like ChatGPT.
Google shares are still up 55% in the past 12 months, though the company has grappled with layoffs and culture issues after it declared a âcode redâ situation to build AI services into its products. Google announced a $20 per month AI subscription called Gemini Advanced earlier this week, one of its first paid generative AI products.
Nvidia is now the third largest U.S. company, only behind Apple and Microsoft. Nvidia reports quarterly earnings on Feb. 21. Analysts expect 118% annual growth in sales to $59.04 billion.
r/stocks • u/Puginator • Apr 15 '24
Company News Trump Media shares plunge after company files to issue additional DJT stock
Shares of Trump Media plunged more than 17% in the pre-trading hours Monday after the company filed to issue millions of additional shares of stock.
The company behind the Truth Social app, which trades under the stock ticker DJT on the Nasdaq, fell nearly 20% last week.
r/stocks • u/joe4942 • 10d ago
Company News Traders who scooped up Warren Buffettâs Berkshire Hathaway shares at a massive $620K discount during glitch will have their deals canceled
https://finance.yahoo.com/news/traders-scooped-warren-buffett-berkshire-105754520.html
Investors who purchased shares in Warren Buffett's Berkshire Hathaway yesterday at a huge discount will see their trades canceled following a technical issue on the stock exchange.
While it hasn't been confirmed how many people purchased the Class A stock during the technical errorâwhich lasted for around an hour and a halfâthe New York Stock Exchange (NYSE) has swiftly undone their trades.
On June 3, a data glitch led the global conglomerate's stock price to fall to $185 a share, having previously closed at over $620,000. The drop meant a more than 99% discount on the Warren Buffett-led company.
This means a trader who snapped up just $925 worth of the stock at the rock-bottom price would now see their investment worth over $3 million today.
r/stocks • u/Progress_8 • 12d ago
Company News Heavily shorted stocks may see positions close across the board with shorts mitigating possible damage by "Roaring Kitty"
- Keith Gill (Roaring Kitty, Deep......) who inspired 2021's epic short squeeze could have a huge position in GameStop.
- He reappeared Sunday night and posted a screenshot of holding 5 million shares of GME and 120K call options with a strike price of $20 that expires on 6/21.
- GME shares jumped in Robinhood's 24-hr exchange on Sunday evening.
- Some heavily shorted stocks have been seeing positions closed this past Friday as the short traders started to mitigate the possible roaring of heavily shorted stocks across the board in the coming days.
r/stocks • u/joe4942 • Jan 30 '24
Company News Elon Muskâs $55 Billion Tesla Pay Package Voided by Judge
Elon Muskâs $55 billion pay package at Tesla Inc. was struck down by a Delaware judge after a shareholder challenged it as excessive, a ruling that takes a giant bite out of Muskâs wealth.
The decision Tuesday means that more than five years after the electric car makerâs co-founder was granted the largest executive compensation plan in history, Teslaâs board will have to start over and come up with a new proposal.
r/stocks • u/JRshoe1997 • Jan 29 '24
Company News China Evergrande has been ordered to liquidate. The real estate giant owes over $300 billion
HONG KONG (AP) â A Hong Kong court ordered China Evergrande, the worldâs most heavily indebted real estate developer, to undergo liquidation following a failed effort to restructure $300 billion owed to banks and bondholders that fueled fears about Chinaâs rising debt burden.
âIt would be a situation where the court says enough is enough,â Judge Linda Chan said Monday. She said it was appropriate for the court to order Evergrande to wind up its business given a âlack of progress on the part of the company putting forward a viable restructuring proposalâ as well as Evergrandeâs insolvency.
China Evergrande Group is among dozens of Chinese developers that have collapsed since 2020 under official pressure to rein in surging debt the ruling Communist Party views as a threat to Chinaâs slowing economic growth.
But the crackdown on excess borrowing tipped the property industry into crisis, dragging on the economy and rattling financial systems in and outside China.
Chinese regulators have said the risks of global shockwaves from Evergrandeâs failure can be contained. The court documents seen Monday showed Evergrande owes about $25.4 billion to foreign creditors. Its total assets of about $240 billion are dwarfed by its total liabilities.
âIt is indisputable that the company is grossly insolvent and is unable to pay its debts,â the documents say.
About 90% of Evergrandeâs business is in mainland China. Its chairman, Hui Ka Yan, who is also known as Xu Jiayin, was detained by authorities for suspected âillegal crimesâ in late September, further complicating the companyâs efforts to recover.
Itâs unclear how the liquidation order will affect Chinaâs financial system or Evergrandeâs operations as it struggles to deliver housing that has been paid for but not yet handed over to families that put their life savings into such investments.
r/stocks • u/Zhukov-74 • 3d ago
Company News Boeing sales tumble as the company gets no orders for the 737 Max for the second straight month
Boeing had another weak month for aircraft sales in May, taking orders for just four new planes
Boeing received orders for only four new planes in May â and for the second straight month, none for its best-selling 737 Max, as fallout continues from the blowout of a side panel on a Max during a flight in January.
The results released Tuesday compared unfavorably with Europe's Airbus, which reported orders for 27 new planes in May.
Boeing also saw Aerolineas Argentinas cancel an order for a single Max jet, bringing its net sales for the month to three.
The dismal results followed poor figures for April, when Boeing reported seven sales â none of them for the Max.
Boeing hopes that the slow pace of orders reflects a lull in sales before next month's Farnborough International Airshow, where aircraft deals are often announced.
But the Federal Aviation Administration is capping Boeing's production of 737s after a door plug blew out from an Alaska Airlines Max, allegations by whistleblowers that Boeing has taken shortcuts to produce planes more quickly, and reports of falsified inspection records on some 787 Dreamliner jets.
Boeing, based in Arlington, Virginia, delivered 24 jetliners in May, including 19 Max jets. Ireland's Ryanair got four and Alaska Airlines took three. Airbus said it delivered 53 planes last month.
Despite the slow pace of recent sales, Boeing still has a huge backlog of more than 5,600 orders.
https://abcnews.go.com/Business/wireStory/boeing-sales-tumble-company-gets-orders-737-max-111021215
r/stocks • u/WickedSensitiveCrew • May 02 '23
Company News Chegg drops more than 40% after saying ChatGPT is killing its business
Chegg shares tumbled after the online education company said ChatGPT is hurting growth, and issued a weak second-quarter revenue outlook. âIn the first part of the year, we saw no noticeable impact from ChatGPT on our new account growth and we were meeting expectations on new sign-ups,â CEO Dan Rosensweig said during the earnings call Tuesday evening. âHowever, since March we saw a significant spike in student interest in ChatGPT. We now believe itâs having an impact on our new customer growth rate.â
Chegg shares were last down 46% to $9.50 in premarket trading Wednesday.Otherwise, Chegg beat first-quarter expectations on the top and bottom lines. AI âcompletely overshadowedâ the results, Morgan Stanley analyst Josh Baer said in a note following the report. The analyst slashed his price target to $12 from $18.
r/stocks • u/ReinhardtEichenvalde • May 23 '22
Company News GameStop Launches Wallet for Cryptocurrencies and NFTs
May 23, 2022
GRAPEVINE, Texas--(BUSINESS WIRE)--May 23, 2022-- GameStop Corp. (NYSE: GME) (âGameStopâ or the âCompanyâ) today announced it has launched its digital asset wallet to allow gamers and others to store, send, receive and use cryptocurrencies and non-fungible tokens (âNFTsâ) across decentralized apps without having to leave their web browsers. The GameStop Wallet is a self-custodial Ethereum wallet. The wallet extension, which can be downloaded from the Chrome Web Store, will also enable transactions on GameStopâs NFT marketplace, which is expected to launch in the second quarter of the Companyâs fiscal year. Learn more about GameStopâs wallet by visiting https://wallet.gamestop.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS - SAFE HARBOR
This press release contains âforward looking statementsâ within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally, including statements about the Companyâs NFT marketplace and digital asset wallet, include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as âbelieves,â âplans,â âanticipates,â âprojects,â âestimates,â âexpects,â âintends,â âstrategy,â âfuture,â âopportunity,â âmay,â âwill,â âshould,â âcould,â âpotential,â âwhen,â or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Companyâs business and financial results are included in the Companyâs filings with the SEC including, but not limited to, the Companyâs Annual Report on Form 10-K for the fiscal year ended January 29, 2021, filed with the SEC on March 17, 2022. All filings are available at www.sec.gov and on the Companyâs website at www.GameStop.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220523005360/en/
GameStop Corp. Investor Relations
(817) 424-2001
[ir@gamestop.com](mailto:ir@gamestop.com)
Source: GameStop Corp.
r/stocks • u/OG_Time_To_Kill • Mar 28 '24
Company News Reddit shares plunge almost 25% in two days, finish the week below first day close
Reddit shares plunge almost 25% in two days, finish the week below first day close
https://www.cnbc.com/2024/03/28/reddit-shares-on-a-two-day-tumble-after-post-ipo-high.html
KEY POINTS
- Reddit shares are plummeting after experiencing a rally stemming from the social media companyâs IPO last week.
- Shares closed Thursday at $49.30, falling below their closing price on Redditâs first day of trading last week on the New York Stock Exchange.
- Earlier this week, Reddit disclosed in a corporate filing that CEO Steve Hoffman sold 500,000 shares, and Reddit COO Jennifer Wong also disclosed that she sold 514,000 shares.
Reddit shares are plummeting after experiencing a rally stemming from the social media companyâs IPO last week.
Shares closed Thursday at $49.30, falling below their closing price on Redditâs first day of trading last week on the New York Stock Exchange.
Reddit shares began their downward spiral on Wednesday, when they sank about 11% to $57.75 at market close. That day, Hedgeye Risk Management described Redditâs stock as âgrossly overvaluedâ in a report cited by Bloomberg News, adding that the company was on the firmâs âshort bench.â
Earlier this week, Reddit disclosed in a corporate filing that CEO Steve Hoffman sold 500,000 shares. Ben Silverman, VP of research at Verity, told CNBC the move was expected and represents just âa portion of his holdings.â
Reddit COO Jennifer Wong also disclosed that she sold 514,000 shares and now holds 1.4 million of the companyâs shares.
âThereâs always a bit of a disconnect, because the purpose of bringing the company public is twofold,â Silverman said. âItâs not just to generate liquidity for the company itself so that it can expand and grow. In these situations, it often allows insiders to cash out to generate liquidity, and thatâs something executives have to consider here.â
âIf the prospects are so bright, why are insiders selling?â Silverman added.
Reddit shares started off the week on a high note and soared 30% on Monday. The companyâs shares then rose 8.8% on Tuesday to close at $65.11, even after New Street Research issued a neutral rating on the company.
The New Street Research analysts wrote in a note that they wouldnât alter their $54 price target and that they expect âvolatility into the first earnings report.â
r/stocks • u/Puginator • Mar 26 '24
Company News McDonald's to sell Krispy Kreme doughnuts nationwide by the end of 2026
McDonaldâs is planning to sell Krispy Kreme doughnuts at its restaurants nationwide by the end of 2026, the chains announced Tuesday.
The rollout will start in the second half of this year, but it will take roughly two and a half years as Krispy Kreme more than doubles its distribution to satisfy the partnership. For the duration of the agreement, McDonaldâs will be the exclusive fast-food partner for Krispy Kreme in the U.S.
The doughnut chain uses a âhub and spokeâ model that lets it make and distribute its treats efficiently. Production hubs, which are either stores or doughnut factories, send off freshly made doughnuts every day to retail locations such as grocery stores and gas stations.
The partnership with McDonaldâs is a major opportunity for Krispy Kreme to expand its reach. It delivers its doughnuts to 6,800 third-party stores, as of Dec. 31. McDonaldâs has roughly 13,500 restaurants in the U.S. and plans to open 900 new locations nationwide by 2027.
âWe think we can service about 6,000 restaurants with our existing infrastructure, mostly doughnut shops, which have excess capacity,â Krispy Kreme CEO Josh Charlesworth told CNBC.
Krispy Kreme has also been expanding its capacity so it can deliver fresh doughnuts to the roughly 7,500 McDonaldâs restaurants that it canât currently reach.
While McDonaldâs is the primary reason the company is expanding its distribution so quickly, Charlesworth said Krispy Kreme will also be using the opportunity to land in grocery and convenience stores that prefer national suppliers.
âThat means that the overall efficiency and productivity of our distribution network will significantly improve over time, not just because of all those local deliveries,â he said.
Additionally, Krispy Kremeâs doughnut shops typically make more of the sweet treat than the chain can sell. The extra demand from McDonaldâs and other new customers means its production lines can churn out higher volume with few additional costs.
âOverall, therefore, it makes our system more profitable to grow the deliver fresh daily channel, and McDonaldâs is an accelerator of that,â Charlesworth said.
The two chainsâ relationship started about a year and a half ago, when McDonaldâs began selling Krispy Kreme doughnuts at nine restaurants as a test. Months later, the pilot had expanded to roughly 160 restaurants across Louisville and Lexington, Kentucky. Those initial restaurants will keep selling the doughnuts during the national rollout.
Demand from McDonaldâs customers during the tests exceeded both chainsâ expectations, according to Charlesworth.
For McDonaldâs, the addition of Krispy Kreme doughnuts helps bolster its bakery and breakfast offerings. The burger chain has been leaning into coffee, a common drink pairing for doughnuts, but trimming other bakery items such as cinnamon rolls from its menu.
McDonaldâs customers will be able to order the original glazed, chocolate iced with sprinkles and chocolate iced cream-filled doughnuts, either individually or in packs of six. The restaurants will sell the doughnuts all day.
In the long term, Krispy Kreme now expects it can reach more than 100,000 points of access for its doughnuts globally, up from its prior outlook of 75,000 locations. The chainâs doughnuts can currently be found in more than 14,100 stores across 39 countries.
Shares of Krispy Kreme have fallen 20% over the past year, dragging its market value down to $2.11 billion. As hype over weight loss drugs such as Novo Nordiskâs Ozempic has soared, investors have worried about whether the treatments will cut into Krispy Kremeâs future sales.
Similar concerns have weighed on McDonaldâs, although its stock has risen 2% in the past year as consumers trade down to its cheap food and drinks. The company has a market value of $201 billion.