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"Does this mean we have to watch Elon dance again?"
- Jeff, on Teslaâs latest earnings
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Hey there carnivores,
Markets started off the day strong but gave back the gainz by the end of the session.
Today weâre diving deep on Facebook and Teslaâs earnings.
Keep raging,
Jeff & Jason
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Valley-swag
Facebook investors got Winklevoss-ed (read: royally f*cked) on Wednesday with shares [dropping nearly 7%]( after a not-quite-as-good-as-expected-but-still-pretty-ok earnings report.
The good, the bad, the ugly
First, the good: a [record profit]( of $21.1B which represents a 25% hike from Q4 last year. So, what's the bad? In the US and Canada daily active users grew by just 1M, sparking fears of slowing growth. Turns out there's a finite amount of crazy aunts who catch up with old friends in the comment section of BuzzFeed videos.
And now for the ugly: full-year expenses rose 51% ($46.71B)... which took a toll on operating margin, because, you know, Finance 101.
Is there anything to celebrate in Silicon Valley?
Elon Musk is still getting his Russ Hannemann on. When he isn't, presumably illegally, rolling around in the Cybertruck in LA, he's making Tesla shorts look foolish.
Case in point: TSLA shares [rose]( more than 13% after an earnings report that featured top ($7.38B versus $7.02B) and bottom ($2.14 vs. $1.72) line beats. And a record delivery of 112k EVs probably didn't hurt.
What else does that crazy son of a b*tch have up his sleeve?
The Model Y, that's what. Because did you think a guy like Elon wasn't going to complete "S, 3, X, Y"?
In a first for the company, a vehicle will be [released](... wait for it... ahead of schedule. That's right, the Model Y SUV will start shipping in March of 2020... vs. Fall of 2020. Oh, and the range on the "long-range" version of the Roadster's little cousin will be 315 miles instead of 280. Investors likey.
The bottom line...
It's all about being a grower (not a show-er) in the Valley. And that's a big problem for Zuck and Co. FB has acknowledged that one of its biggest concerns is the limited amount of internet users on planet earth. This is what we call a good problem to have.
Facebook, which boasts 2.89B monthly active users across all properties (read: the 'Book, the 'Gram, WhatsApp etc.) is quickly approaching the upper limit of internet users on earth. *Brain explodes*
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Running out of good trade ideas? Is todayâs action spooking you?
Jeff Bishop is putting his money, mouth, and reputation on the line when he trades live in front of thousands.
[It happens today at 12 PM ET.](
No registration is required. And itâs absolutely free to attend.
[Be here at 12 PM ET!](
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âï¸ Same sh*t, different day. The Fed announced that it is [staying true to its word]( of holding rates steady this year, within the range of 1.5% to 1.75%. The US central bank also increased the interest rate on bank deposits, from (brace yourselves...) 1.55% up to 1.6%. Don't spend it all in one place. J-Pow's goal is to get inflation back up to 2% this year, after failing to do so last year, a move that would hopefully encourage more business investments. All 10 members of the committee agreed to sitting on their hands this year, barring any major global issues... *cough cough* not that there are any going around at the moment...
âï¸ Out of ink. The Oracle of Omaha is giving up on print, as Berkshire will divest its struggling newspaper business and [sell BH Media and Buffalo News]( to Lee Enterprises. If this seems familiar, it's because Lee took over the management of all newspapers (besides Buffalo News) for Berkshire in mid-2018. Lee is paying $140M in cash. How can a newspaper afford that? With a loan from, you guessed it, Berkshire Hathaway. All-in Berkshire is loaning $576M to Lee with a 9% interest rate, due in 25 years.
âï¸ Hard Pass. "Wait, I thought this happened like a year ago?" - everyone. MoviePass' parent company is (finally) [filing for bankruptcy](... and it's as big of a clusterf*ck as you'd expect. Different pages of the filing indicate different asset and liability figures. The documents even indicate it would be too expensive and burdensome to calculate current assets. *Every accountant cringes* And that's not all. The company with arguably the worst business model of all time is facing probes from the FTC, SEC and NY attorneys general... plus lots of strongly worded letters from cinephiles over the age of 65.
âï¸ Electric avenue. America loves a good comeback story. Unfortunately, this is not that story. GE still has a longgg way to go. But new-ish CEO Larry Culp appears to be putting the team on his back, leading the company to a pretty, pretty good Q4. Shares [rose]( more than 10% after earnings dropped, on news that GE beat analyst's estimates for profit, revenue and, free cash flow. Plus, Larry the Stable Guy projects that cash flow and profit will rise in 2020. Don't call it a comeback... yet.
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62 Calef Hwy #233 Lee, New Hampshire 03861 United States