📊 Diversify like Morgan Stanley

UFC’s owner snapped up WWE | Tesla delivered, but its profit might not | [Finimize]( Hi {NAME}, here's what you need to know for April 4th in 3:08 minutes. 🤏 Inflation doesn’t have to mean it’s crunch time for your investments. Check out our latest Finimize Podcast, [How To Protect Your Wealth During The Cost-Of-Living Crisis]( with Moneybox’s Brian Byrnes, and find out how you can ring-fence your precious nest egg. [Listen now]( Today's big stories - Tesla announced record quarterly deliveries – but there could be a speed bump around the corner - This Morgan Stanley framework could help you hedge against a stock market slump – [Read Now]( - UFC’s owner Endeavor got hold of WWE in a big, brawny acquisition Cruising For A Bruising [Cruising For A Bruising] What’s Going On Here? Tesla [rode]( high on record quarterly deliveries – but its profit could be an accident waiting to happen. What Does This Mean? After a lackluster end to 2022, Tesla began this year with a “new year, new me” mindset. So while we resolved to cut calories, Tesla opted to cut prices – offering discounts in all markets, of up to 20%. And sure, that turned out to be a bit of a [self-own in China](, but the move did give global deliveries a boost: Tesla sent out nearly 423,000 EVs last quarter, outpacing some analysts’ predictions and setting a new quarterly record. But there’s a snag: that's only a 4% uptick from the previous, underwhelming quarter, amounting to 36% growth from the same time last year. And that’s left Elon Musk – who reiterated his famous 50% growth goal back in January – with more than a little egg on his face. Why Should I Care? The bigger picture: Pricey plunge. Tesla’s problems are spelled out pretty clearly in the fine print. See, while deliveries of bread-and-butter Model 3 and Y EVs grew from the quarter before, its pricier (and more profitable) models actually took a nosedive – a sign of a gloomy economy and consumer belt-tightening. Factor in the Pandora’s box Tesla’s opened by starting a price war, and the firm could be forced to slash prices even further. For markets: Keep an eye on shares. Tesla's stock has been on a roll this year, almost doubling as investors applauded Musk's push for growth and his production ramp-up. But the stock's future could hinge on how much these efforts have eaten into profit margins – something investors will learn later on this month. And that’s worth watching out for: the company’s already warned that it's ready to prioritize growth over profit – and while Tesla’s high margins mean the firm can afford to cut prices, hitting profit too hard could make even dyed-in-the-wool Musk fans jump ship. You might also like: [Here’s how to weigh up the value of Tesla’s shares.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Cruising For A Bruising&utm_campaign=daily-global-04-04-2023&utm_source=email) Analyst Take Morgan Stanley’s Top Three Portfolio-Diversifying Trades [Morgan Stanley’s Top Three Portfolio-Diversifying Trades]( [Photo of Stéphane Renevier] Stéphane Renevier, Analyst You never know what’s around the corner in uncertain times like these, and that’s [especially true for stocks](. With that in mind, you might do well to [diversify your portfolio]( – no matter whether you want to find [a cheap way to protect your favorite stocks]( or want to [make money from a bearish view](. Well, [Morgan Stanley]( has a trick that might help with that: this [metric-based framework]( can help you decide [which investments could hold strong]( when stocks struggle. So that’s today’s Insight: [Morgan Stanley’s framework for spotting portfolio-diversifying trades](. [Read or listen to the Insight here]( Meet your future community Let’s face it, even the best brands need a little push to [reach the right audience](. Our [one-million-strong community of modern investors]( is clever, clued-in, and keen to learn. In short, they’re exactly the type of folk you want to reach. So whether you’re an established brand, scaleup, or startup, [our promotional campaigns]( can help you reach the right audience at the right time. Your tailored campaign will make the most of all the Finimize channels, including live event and Summit showcases, social media blasts, and curated newsletter placements – [yup, right here](. Introduce yourself to your future community with Finimize. [Get In Touch]( Royal Rumble [Royal Rumble] What’s Going On Here? The UFC's parent company Endeavor [stepped]( into the ring and captured WWE in a $10 billion smackdown acquisition. What Does This Mean? Endeavor was originally known for representing film and TV stars, but a series of bumper acquisitions have beefed up its sports and entertainment muscle over the years. One show-stopping move came back in 2016, when it first snapped up a controlling stake in the UFC – the world’s biggest mixed-martial-arts organization. Since then, it seems to have been gunning for another title fight – and Endeavor must have spied a chance to flex its muscles in January, when WWE floated the idea of a sale. The firm announced the all-stock acquisition on Monday, in a deal that values WWE at nearly $10 billion. And with plans in the works to combine UFC and WWE into a single new company, the two contenders will be working as one uber-brawny $21 billion tag team before long. Why Should I Care? Zooming in: The old one-two. This is shaping up to be a dream sports and entertainment “pure-play” for investors. See, while WWE leans toward melodrama with scripted smackdowns and larger-than-life characters, there's still potential for overlap with the authentic combat of UFC. After all, fighter crossovers have happened before, and this deal might open the door for more – with the potential to boost both brands’ popularity. Add in projected cost savings of as much as $100 million, and this could turn out to be a winning matchup. The bigger picture: No glass jaw. Economists are warning about the growing risk we’ll be hit by a recession – but Endeavor's bet on the sports and entertainment industry could be a winner even if they’re right. After all, fans tend to lean on their passions when times get tough, and that makes the sector pretty sturdy. Compared to firms in some other industries, then, Endeavor might only face a relatively gentle tap-out – not a full-on knockout blow. You might also like: [Here’s how to prepare for both a crash and a soft landing]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Royal Rumble&utm_campaign=daily-global-04-04-2023&utm_source=email) 💬 Quote of the day “Mankind craves stories, but the world yields only events.” – Friedrich Nietzsche (a German philosopher) [Tweet this]( Put your brand’s know-how in the spotlight Retail investors are constantly on the lookout for reliable, smart, and easy-to-digest information. We like to think our bite-sized, jargon-free content is what they’re looking for – but your brand’s specialist knowledge sure could help them level up too. [Finimize custom content solutions]( put your brand in the spotlight: demonstrate your expertise with jargon-free guides, and show [our million-strong community]( that they can trust your brand. Our editorial team will work with you to craft and maintain a content strategy that suits your business needs and resonates with our switched-on community, in text, audio, and video formats. 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The [Japanese writer]( is releasing his first novel in six years. ❤️ Share with a friend Thanks for reading {NAME}. If you liked today's brief, we'd love for you to share it with a friend. You stay classy, {NAME} 😉 We’d love to hear your thoughts. [Give feedback]( Want to advertise with us too? [Get in touch]( Image Credits: Image credits: Mike Mareen - Shutterstock | UFC, WWE Preferences: [Update your email]( or [change preferences]( [View in browser]( [Unsubscribe]( from all Finimize Emails 😴 Crafted by Finimize Ltd. | 280 Bishopsgate, London, EC2M 4AG All content provided by Finimize Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. You signed up to this mailing list at finimize.com or through one of our partners. © Finimize 2021 [View Online](