In partnership with |  |
|
|
Happy Sunday! |
Here at Carbon Finance, I'm all about the numbers and using data to tell the story. So, what's the latest on the U.S. economy? |
The U.S. GDP exceeded expectations in Q2, rising 2.8% compared to the 2.1% forecast. This is a considerable jump from the 1.9% growth in Q1. |
On the inflation front, the CPI came in below expectations at a 3.0% increase in June. |
This mix of strong economic growth and easing inflation is exactly what the Fed wants to see. |
Because of this, markets are betting on a 100% chance of a September rate cut, making the Fed's July 30th meeting crucial for clues on their plans. |
Some key data bites from this week that you should know: |
|
In today's newsletter: |
🥤 Buffett's Coca-Cola Dividends 🚧 Tesla Hits A Roadblock 🔎 Is Google In Trouble? 📈 Best Stocks Last 100 Years 💰 Richest Members Of Congress
|
|
|
Things are looking sweet at Coca-Cola. |
The company exceeded analyst estimates for both earnings and revenue in Q2. |
Global unit case volume grew 2% and net revenue increased by 3%. |
Coca-Cola also raised its full-year guidance, expecting organic revenue growth of 9-10% and comparable EPS growth of 5-6%. |
Arguably the biggest fan of Coke? Warren Buffett. |
Berkshire Hathaway holds a massive 400M shares of Coca-Cola, earning around $776M in dividends annually. |
This represents a remarkable 60% yield on the original $1.3B investment. |
|
|
Tesla nosedived 13% after earnings last Tuesday, dragging most of the market down with it. |
The stock, which had surged over 70% since its low in April, couldn't sustain the momentum as disappointing numbers led to a sharp decline. |
Here's a snapshot of the numbers: |
|
This marks the company's fourth straight quarter of missing earnings estimates. |
Automotive revenue fell 7% to $19.9B, and operating expenses surged due to AI projects, pushing operating margins down from 9.6% last year to 6.3%. |
The drop in average selling prices, combined with restructuring charges and fewer vehicle deliveries, hit profitability. |
On the bright side, the energy generation and storage segment saw revenue double, and free cash flow increased by 34% to $1.3B. |
Plus, production costs per vehicle are dropping. |
With a forward price-to-earnings ratio of 73x, Tesla's stock is far from cheap. |
Investors hoping for a turnaround will need to bank on the company's investments in AI and the delayed Robotaxi business. |
As Elon Musk put it during the earnings call, "The value of Tesla overwhelmingly is autonomy…So I recommend anyone who doesn't believe that Tesla will solve vehicle autonomy should not hold Tesla stock." |
|
|
Should Google be worried? |
This week, Sam Altman, CEO of OpenAI, unveiled plans to revolutionize search with a new prototype called SearchGPT. |
This tool aims to merge AI with real-time web info to deliver fast, accurate answers with clear sources. |
Currently, there's a waitlist for SearchGPT, but OpenAI plans to integrate these features into ChatGPT soon. |
Google still leads the U.S. search engine market with an 87.45% share, though this has dropped 1.6% year over year. |
Meanwhile, Bing and Yahoo have seen their market shares grow by 13.6% and 16.2%, respectively. |
To maintain its lead, Google will need to stay ahead of these rising competitors. |
The company recently reported Q2 earnings that exceeded expectations, showing continued growth in search and cloud services. |
The current search landscape shows that while Google currently dominates, rivals like Bing have a chance to capture a bigger slice of the market if they play their cards right. |
|
📣 A Message From Our Sponsor |
Track Company Earnings Like a Pro |
|
Earnings Hub is designed for investors to give you everything you want to know about company earnings, including: |
An Earnings Calendar |
Expectations & Actuals Listen to Earnings Calls Live (or replay) Earnings Call Transcripts & AI Summaries Realtime News on your favorite stocks Alerts delivered via Text or Email
|
Most of the features are FREE! Premium features are 50% off right now at just $49 for an entire year. |
See Earnings Hub Calendar |
|
|
I enjoy investing in individual stocks, and I'm sure you do too. |
A new study looked at 29,078 publicly traded U.S. companies from December 1925 to December 2023 and the findings were eye-opening. |
51.6% of these companies lost money for their investors. |
While the median stock had a compound annual growth rate (CAGR) of -7.4%, the average return was a staggering 22,840%. |
This indicates that a handful of outperformers drove most of the market's returns. |
17 companies, in fact, saw total returns exceeding five million percent. |
Despite these jaw-dropping figures, the annualized returns of these huge winners were a more modest 13.47%, demonstrating the importance of long-term investing. |
The king at the top of the hill? |
Altria, the cigarette company, which boasted a cumulative return of 265,528,900%. |
A $10,000 investment in Altria would have ballooned to $26.5B (yes, you read that right), thanks in part to its famous "Marlboro Man" advertising campaign. |
The rest of the top 10 features a diverse mix of construction materials, railroads, aerospace, and beverage companies. |
|
|
Should Congress be allowed to trade stocks? |
Even some members of Congress don't think so. |
This week, a Senate panel approved a new bipartisan bill aimed at banning lawmakers from trading stocks. |
The majority of Americans support this move. |
For instance, since 2014, Nancy Pelosi's stock trades have yielded about 700%, based on data from our friends over at Quiver Quant. |
Pelosi's returns are over three times the market average, which has returned 190% during the same time period. |
Pelosi is among the wealthiest Congress members, ranking third with an estimated net worth of $248M. |
Vern Buchanan is second with $249M, while Rick Scott tops the list with $327M. |
Note, these are rough estimates and do not include the value of the individual's primary residence. |
To put things into perspective, Congressional members earn an average salary of $174,000, according to Statista. |
|
🪙 BTC Reserve. Donald Trump proposed a strategic national Bitcoin $BTC stockpile - CNBC | 👀 Risk Oversight. A major US regulator found that half of the major banks have weak operational risk management - BB | 📱 iFold. Apple $AAPL continues to work on a foldable iPhone which could arrive in 2026 - TV | 🧑⚖️ Left's Legal Trouble. Famous short seller Andrew Left of Citron Capital has been charged with fraud by the SEC - CNBC | 🇨🇳 Surprise Cut. The Chinese central bank unexpectedly cut a key interest rate to boost the economy - NYT | 🤝 Sports Partnership. Reddit $RDDT has partnered with the NFL, NBA, and MLB for revenue share deals - TV |
|
|
|
Notable Companies Reporting Earnings This Week: |
Monday (7/29): Tuesday (7/30): Microsoft $MSFT, Procter & Gamble $PG, AMD $AMD, Pfizer $PFE, Starbucks $SBUX, PayPal $PYPL, Pinterest $PINS, Match Group $MTCH, SoFi $SOFI
Wednesday (7/31): Meta Platforms $META, Mastercard $MA, T-Mobile $TMUS, Qualcomm $QCOM, Boeing $BA
Thursday (8/1): Apple $AAPL, Amazon $AMZN, Intel $INTC, Ferrari $RACE, Coinbase $COIN
Friday (8/2):
|
All of the companies that are reporting earnings next week can be viewed here. |
|
📚 Recommended Reading |
|
If the Wall Street Journal and the Sunday Comics had a kid...it would look a lot like Sunday Money. |
Sunday Money is a weekly newsletter that delivers 10 quick ideas on money, investing, and entrepreneurship. |
It's free and you should totally subscribe. |
|
 | Major Trades Published 07/22 - 07/26. Trades may be those of family members. [Source: 2iQ] |
|
Buys |
Michael McCaul (R) Victoria Spartz (R)
|
Sells |
Buddy Carter (R) Michael McCaul (R) Company: Oshkosh ($OSK) Company: Nvidia ($NVDA)
|
 | Major Trades Published 07/22 - 07/26 |
|
Buys |
Truist Financial ($TFC) UPS ($UPS)
|
Sells |
Best Buy ($BBY) Nvidia ($NVDA) Airbnb ($ABNB)
|
|
How was today's newsletter?I value all of the feedback that I receive. Let me know how I did so I can continue to make this the best investing newsletter available! |
|
🤝 Review of the Week |
|
| Share Carbon Finance | Enjoy my newsletter? Share it with friends who love investing to receive free rewards! Every referral helps 😊. | You currently have 0 referrals, only 1 away from receiving my ChatGPT Investing Guide. | | | Or copy and paste this link to others: https://www.carbonfinance.io/subscribe?ref=DwqDXt8SIM | |
|
Disclaimer: The publisher does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author, paid advertiser, or partner and do not reflect the official policy or position of any other agency, organization, employer or company. | Carbon Finance is a publisher of financial information, not an investment or financial advisor. We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient. | The information contained on this website/newsletter has been crafted with the assistance of an AI language model to enhance the content of this newsletter. We have made efforts to ensure the quality and reliability of the information presented, but we cannot guarantee its absolute accuracy. Therefore, readers are advised to exercise their own judgment and seek additional sources if necessary. | THE INFORMATION CONTAINED ON THIS WEBSITE/NEWSLETTER IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS' OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN. | No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. | Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material. | The publisher, its affiliates, and clients of the publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions. | The mention of Sunday Money in our newsletter is provided as a courtesy to our readers and should not be construed as an endorsement of any product, service, or information provided by the sponsor or partner. Carbon Finance makes no representations or warranties, express or implied, about the accuracy, completeness, reliability, or suitability of the information contained in the sponsor's or partner's materials or any related services. Any reliance you place on such information is strictly at your own risk. We are not liable for any loss or damage arising from your engagement with Sunday Money or their content. | Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein. | Some of the links in this newsletter are affiliate links. This means that if you click on the link and purchase the item, we will receive an affiliate commission at no extra cost to you. All opinions remain our own. | By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer. Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law. |
|
|
Tidak ada komentar:
Posting Komentar