NEWS
Earnings Are The Star Of The Show

Earnings are the name of the game these days, with a significant portion of the S&P 500 set to report results this week. Today’s targets were Tesla, Google, and others, as investors looked to get a read on the economy and these individual companies’ future prospects. Let’s see what you missed. 👀

Today's issue covers Tesla tumbling lower after earnings, Google’s YouTube concerns, Lockheed Martin and GE Aerospace’s leadership, and UPS failing to deliver while another stock hit the $SPOT. 📰

Here's today's heat map:

2 of 11 sectors closed green. Materials (+0.40%) led, & energy (-1.59%) lagged. 💚

U.S. existing home sales fell to their slowest pace since 2010, with prices hitting a new record (up 4.10% to $426,900) even as supply upticks. 🔺

Visa shares dipped after posting a revenue miss, with total payment volume, cross-border volume, and processed transactions growth slowing QoQ. 💳

General Motors fell 6% after further delaying electric vehicle plans. It will miss its goal of a North American production capacity of 1 million EVs by 2025. 🪫

Coca-Cola jumped 2%, with unit case volume growing globally but falling slightly in North America. It joined competitor Pepsi in citing softer U.S. consumer demand but raised its full-year guidance amid global strength. 🥤

Comcast shares dipped 3% after its earnings beat, but revenue missed due to weakness in its film studio and theme park segments. Peacock subscribers rose 38% YoY to 33 million, with that and 20% growth in its mobile phone business offsetting some of its 120,000 broadband customer losses. 🔻

P.S. With earnings season in full swing, be sure to check out Stocktwits’ new earnings call feature that’s elevating the experience to a whole new level. More info available below today’s main story. 🥳

Here are the closing prices: 

EARNINGS
Tesla Tumbles Amid Earnings Trouble

The market had high expectations of the electric vehicle maker heading into today’s report, given its price had nearly doubled over the last three months. 😮

However, it was unable to impress investors and is falling after hours.

Adjusted earnings per share of $0.52 were well below the $0.62 expected, while revenues of $25.50 beat the consensus estimate of $24.77 billion. Investors were happy to see record revenues but not thrilled it’s coming from strength in its businesses other than its vehicles. 🙃

As a result, Tesla’s automotive revenue remains the key focus for analysts, rising 14% QoQ but falling 6.50% YoY. In addition, regulatory credits of $890 million were three times last year’s, contributing a sizeable portion of the total $19.90 billion in automotive segment revenue. 🔻

With fierce competition in the U.S. and abroad, Tesla was forced to offer discounts and other incentives to spur demand. That hit earnings significantly, with its adjusted earnings margin falling from 18.70% to 14.40% YoY.

Also, rival automakers saw sales of fully electric vehicles rise 33% YoY during the first half of this year, while Tesla’s sales fell 9.60%. 🔋

More importantly, Elon Musk and management failed to address investors’ concerns about how the company plans to navigate this difficult environment for EV makers. Or provide material updates on promises like the robotaxi fleet and the use of humanoid robots in Tesla factories.

So far, macro and other external factors have been blamed for much of Tesla’s struggles, and investors don’t believe those headwinds are set to disappoint anytime soon. 😬

Shares were down around 8% after hours, though the Stocktwits sentiment meter has moved back into bullish territory after nearly a month in neutral to negative territory. We’ll see if retail’s optimism pays off! 👍

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