🚀Auto-drive Tesla, Netflix, Earnings and Starship's Big Week.
Tesla, Netflix and most U.S companies posted mixed earnings, even as investors brace for a week of more earnings from Wall Street-listed tech companies.
Hey Hisa fan,
A spectacular week it has been, from this week’s most streamed event; SpaceX’s orbital test flight of Starship, the most powerful rocket ever built by man, to the local challenges facing the Nairobi Securities Exchange, the week has been spectacular. The week progressed with more talks growing of a global recession, led with the U.S as interest rates and inflation figures rise.
Top Earnings Brief.
Tesla Inc [NASDAQ:TSLA 0.00%↑] - Electric car maker Tesla, posted a decline of 24% in net income to $2.51 billion, or 73 cents a share, from $3.32 billion, or 95 cents a share posted a year ago.
The EV company's total gross profit stood at $4.5 billion, with Tesla's profit gross margin at 19.3%, down from 23.8% in Q4 and 29.1% a year earlier.
Tesla had negative cash flow, excluding $521 million in auto regulatory credits, and free cash flow tumbled 80% from a year earlier to $441 million.
Tesla is "comfortable" with its 2023 production target of 1.8 million - CEO Elon Musk
Neflix Inc. [NASDAQ: NFLX 0.00%↑] - Netflix’s 1Q23 profits and revenue were largely in line with analysts’ expectations, the company posted a growth of 1.75 million net new subscribers from the 2.2 million forecasted.
The company posted revenue growth at $8.16 billion from $7.87 billion over the same period last year. Netflix posted a drop in earnings of $1.31 billion, or $2.88 a share, compared with the $1.6 billion earnings, or $3.53 a share, the company posted a year earlier.
Morgan Stanley Co. [MS 0.00%↑] - Earnings for Morgan Stanley were down 19% year-on-year to $2.98 billion, or $1.70. Companywide revenue slipped 2% to $14.52 billion as expenses for the bank rose by 4% to $10.52 billion. Wealth management revenue climbed 11% from the year-earlier period to $6.56 billion while Investment banking revenue dipped 24% to $1.25 billion.
Goldman Sachs [GS 0.00%↑] - Profits for GS fell 19% as Mergers & Acquisitions and bond trading slumped in the 1Q23. The company also said it lost money on the sale of some assets in its consumer business even as the company sold $1 billion worth of loans from its Marcus portfolio.
Coffee Break
Ever thought about man planning to be multi-planetary? Well, it may just be soon. Last week, Elon Musk owned SpaceX launched its first integrated orbital test flight of Starship. While the spacecraft exploded a few minutes into the test flight, Elon Musk and SpaceX said the test was success as it completed a number of objectives.
Markets
The benchmark U.S stock market indicators closed with mixed results after a week of highlighted first-quarter earnings reports and a lower then usual economic calendar of activities. The Cboe Volatility Index (VIX), which is often referred to as the fear gauge on Wall Street, dropped to its lowest point since the end of 2021.
The Dow Jones Industrial Average snapped a four-week win streak as mixed quarterly earnings sent mixed signals to the market. The Dow closed the week 0.2% lower, at 33,808.96, the Nasdaq Composite Index was equally lower 0.4%, to 12,072.46 and the S&P 500 equally went lower 0.1%, to 4,133.52. The small-cap Rusell 2000 index was fairly unchanged at 1,790.
Local Markets.
The Nairobi Securities Exchange extended into the red from last week with the benchmark NSE All share Index (NASI) shedding 3.72 points or 3.33% to end the short trading week at 107.84 bps.
The NSE 20 share index similarly shed 19.79 points or 1.23% to close the week at 1594.06 bps, while the NSE 25 share index shaved off 52.63 points or 1.80% to close the week at 2867.96 bps.
Kenya’s largest company by market capitalization continued to shed value during the week. Safaricom shed 7.30% in shareholder wealth to close the week at KES.16.50 per share down from KES.17.80 per share posted in the previous week. Trades on Safaricom represented 49.85% of the week’s traded value.
What Top Cowries are we collecting this week?
Safaricom Plc [NSE:SCOM] - Investors are beginning to take positions in the market as market braces for annual results which is expected to be released in the first weeks of May. (Est: 10th.May.2023)
U.S Tech Earnings - This week, we expect the largest tech companies such as Microsoft Inc. [NASDAQ:MSFT], Google parent firm, Alphabet Inc. [NASDAQ:GOOGL] and Amazon Inc [NASDAQ:AMZN] to release their financials this week.
Boeing Co. [NYSE: BA] - The Aircraft manufacturer will be releasing their financials on Wednesday, April 26, 2023. The company had earlier said it would pause deliveries of some 737 MAX jets because of incorrectly installed parts. Will this affect BA earnings?
How about you, what stocks are you watching for the week? Let us know on Hisa App.
Disclaimer: The writer of this article owns SCOM 0.00 , HAFR , EQTY 0.72%↑ , NVDA -0.72%↓ & AAPL 2.08%↑ shares. This article does not constitute any investment recommendations. Investors and the general public are advised to do their own research before making any investment decision.