In partnership with |  |
|
|
Happy Sunday! |
Earnings season is in full swing and there's been a ton of news this week. |
Before we jump in, I wanted to bring something up. |
As you know, I'm super excited to have you be a part of the community. |
I have a good vision of what I'd love to build with this newsletter, and this 30 second survey will help me a ton to better serve you and help make this vision a reality. |
By completing the survey, you'll: |
Receive investing insights tailored to your unique experience Shape future content that aligns with your background Access exclusive opportunities and partnerships Improve your overall newsletter experience …and much more!
|
|
Some key data bites from this week that you should know: |
|
In today's newsletter: |
🔱 Gold Reaches All-Time Highs 🍿 Netflix Dominates Streaming 📈 Never Ending ZYNdemic 🔋 Tesla's Q3 2024 Earnings 🥤 Coca-Cola vs PepsiCo
|
|
📣 A Message From Vinovest |
Whiskey: A Hedge Against Market Volatility |
|
Looking to protect your portfolio from the next recession? |
Consider investing in rare spirits like whiskey. |
Whiskey investing provides a proven hedge against stock market dips driven by inflation and other factors. |
With Vinovest, you can invest in high-growth segments such as American Single Malt, emerging Scotch, Bourbon, and Irish whiskey. Thanks to established industry relationships, Vinovest overcomes industry barriers that have made historically whiskey investing expensive and opaque. As a result, you can enjoy high-quality inventory that boosts your portfolio value and enhances liquidity. |
Schedule a call with a Vinovest advisor to learn more. |
|
|
Gold is shining bright. |
|
What's driving this? |
The conflict in the Middle East, uncertainty around the U.S. presidential election, expectations of lower U.S. interest rates, and increased global central bank purchases.
|
In fact, net central bank buying hit 483T in the first half of 2024, a 5% increase from the previous record of 460T in the first half of 2023, per the World Gold Council. |
|
|
|
If you're having a bad day, just remember—Bill Ackman sold Netflix near its recent bottom. |
In January 2022, Ackman disclosed a $1.1B position in Netflix, buying 3.1M shares after the stock tumbled due to growth concerns. But after just three months, following a poor earnings report that sent the stock down 35%, he completely closed out his stake, losing $430M.
|
In a conversation with CNBC's Scott Wapner, Ackman explained he sold because Netflix's plans to adopt an ad-supported model and crack down on account sharing introduced too high of a degree of uncertainty. |
Since then, Netflix has soared 250% and is trading near all-time highs. |
In Ackman's defense, hindsight is 20/20 and things at Netflix definitely looked bleak at the time when he sold. |
That said, the very strategies that concerned Ackman have appeared to work out well. |
More than 50% of Netflix's new subscribers are currently choosing the ad-tier. Today, Netflix boasts 283M subscribers, far ahead of Disney+ at 154M, HBO Max at 103M, and Paramount at 68M.
|
|
|
Philip Morris might as well rename itself to "Printing Money." |
The maker of Zyn nicotine pouches surged 10% to an all-time high after a strong earnings report: |
|
Year-over year, adjusted EPS grew 14.4%, while net revenue rose 8.4%. |
The company's shift toward a smoke-free future continues to see momentum. |
|
Combustible products, like cigarettes, also saw 8.6% net organic revenue growth and a slight increase in gross profit. |
However, the company's most prized possession, Zyn, continues to steal the spotlight. |
U.S. shipments reached 149M cans in Q3, totaling a record 532M over the last year. Despite a small dip, Zyn still holds 65.5% of the U.S. nicotine pouch market and continues to expand globally, now available in 30 markets.
|
Building on this progress, there's no smoke clouding Philip Morris' future. |
|
|
|
Elon decided to shift into overdrive in Q3. |
Tesla reported earnings on Wednesday, sending the stock up roughly 23% this week. Here's the breakdown: |
🟢 Adj. EPS: $0.72 vs. $0.58 Est.
🔴 Revenue: $25.18B vs. $25.37B Est. |
GAAP net income hit $2.2B, up 17% YoY, while free cash flow surged 223% to $2.7B. Tesla now holds $33.6B in cash and investments, up 29% from last year. |
Gross margins expanded 195 bps to 19.8%, and operating margins rose 323 bps to 10.8%, thanks to several factors: |
Regulatory credit revenues grew as other automakers purchased credits from Tesla to meet emission requirements. Cost of goods sold per vehicle dropped to $35.1K, a record low. Tesla's energy generation and storage business hit a record gross margin of 30.5%, with Powerwall deployments reaching new highs. Vehicle deliveries increased 6% YoY. Operating expenses decreased 6%, totaling $2.3B.
|
Other Q3 highlights include surpassing 2B cumulative miles driven on FSD (supervised) and making Cybertruck production profitable. |
During the earnings call, Elon mentioned Tesla could achieve 20-30% vehicle growth over the next year. |
|
|
Consumers of Coca-Cola and Pepsi seem to be losing their fizz. |
On Wednesday, Coca-Cola reported earnings that beat expectations on both the top and bottom lines. |
Organic revenue grew 9%, but global unit case volume dropped 1%, driven by weaker demand in China, Mexico, and Türkiye. North America saw flat volume growth.
|
How did sales rise despite declining volume? Price increases. |
Coca-Cola raised prices by 10%, helping boost revenue. That said, Coke's CEO James Quincy said consumers are "exhibiting value-seeking behavior, such as looking for combo deals or opting for smaller packages. At the same time, premium brands like Fairlife and Coca-Cola Zero sugar continue to perform well."
|
Pepsi is facing similar challenges. |
|
Here's an interesting fact: while Coca-Cola may be more recognizable, PepsiCo, Pepsi's parent company, generates double Coke's revenue. |
PepsiCo's diversified portfolio, which includes popular snacks like Lay's and Doritos, alongside beverages, drives its larger scale.
|
|
💵 Tax Bracket Update. The IRS has released the new federal income tax brackets for 2025 - IRS | 🚓 CEO Charged. Abercrombie & Fitch's former CEO was arrested on federal sex trafficking charges - AP | 🔥 Inflation Bet. Paul Tudor Jones says all roads lead to inflation and is long Gold and Bitcoin - YT | 🥽 Vision Shift. Apple has allegedly cut back on Vision Pro production, with plans to make a cheaper headset - TV | 🐐 Neutral Position. Warren Buffett will not be endorsing any presidential candidate in the 2024 election - TI | 🪙 Profit Grab. Denmark's Tax Council has suggested taxing unrealized Crypto gains - CT | 🖼️ Art Correction. The global art market is set for its second straight year of declines - CNBC | 🤖 Agent Evolution. Microsoft has announced the ability to create autonomous AI agents with Copilot Studio - MSFT |
|
|
 | Presented by our sponsor, EarningsHub |
|
Notable Companies Reporting Earnings This Week: |
|
Here's what I will be watching this week: |
Monday: ON Semiconductor $ON, Waste Management $WM, Cadence Design Systems $CDNS, Ford $F Tuesday: McDonald's $MCD, Pfizer $PFE, American Tower $AMT, PayPal $PYPL, SoFi $SOFI, Alphabet $GOOG, Visa $V, AMD $AMD, Stryker $SYK, Chipotle $CMG, Electronic Arts $EA, Snap $SNAP Wednesday: Eli Lilly $LLY, AbbVie $ABBV, Caterpillar $CAT, ADP $ADP, Microsoft $MSFT, Meta $META, Amgen $AMGN, Starbucks $SBUX, KLA $KLA, DoorDash $DASH, MicroStrategy $MSTR, Coinbase $COIN, Robinhood $HOOD, Twilio $TWLO Thursday: Mastercard $MA, Merck $MRK, Uber $UBER, Altria $MO, Roblox $RBLX, Apple $AAPL, Amazon $AMZN, Intel $INTC, Atlassian $TEAM Friday: Exxon-Mobil $XOM, Chevron $CVX, Enbridge $ENB, Charter Communications $CHTR, T. Rowe Price $TROW
|
I use EarningsHub to track earnings, estimates, and receive AI summaries of investor calls. |
|
|
 | Major Trades Published 10/21 - 10/25. Trades may be those of family members. [Source: 2iQ] |
|
Buys |
|
Sells |
Rick Allen (R) Tom Suozzi (D)
|
 | Major Trades Published 10/21 - 10/25 |
|
Buys |
|
Sells |
Nuvalent ($NUVL) General Motors ($GM)
|
|
📚 Recommended Reading |
|
Written by anonymous wall street investors and bankers, The Wall Street Rollup is the best place to find investing, finance, and M&A news that you can read within 5 minutes. |
The writers of the Wall Street Rollup are on a mission to upgrade your 5 minute newsletter. |
Sign up for free to get a 2x/week newsletter with all the stories you need to get ahead below👇 |
|
|
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 | |
|
Disclosure: I own $GLD | 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 The Wall Street Rollup 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 The Wall Street Rollup 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