Rivian, Elon Fizbo, Safaricom & Markets.
Coinbase global released their financials, Safaricom & Equity jumped out as well and delivered thrilling financials.
Hey Hisa fan,
Rivian Automotive Inc posted the most successful IPO’s for a company without revenue. Yes, that is right, Rivian has no sale to its name yet the company managed to convince investors that the future of EV mobility was huge and the investors were destined for deeper pockets.
Since listing, Rivian’s shares have soared 67% from their initial public offering price of $78 on Wednesday. The EV company is now just about a 25% gain away from overtaking Volkswagen AG, one of the world’s largest car producers, in market value.
Rivian’s rally saw the company’s market valuation jump above Daimler AG, the company that owns the Mercedes-Benz brand, just a day after the company passed General Motors and Ford in terms of market valuations.
Rivian which has for long been seen as a challenger to megamind’s Tesla comes just a few months after Lucid, another electric auto company went public and has been kind to investors’ returns. Lucid has seen its stock price advance 339% this year. It went public via a merger with a blank-check company (SPAC) in July.
Elon’s Clown.
Your favourite CEO was on Twitter two weeks ago as he asked his massive followers whether or not he should sell his 10% stake in Tesla to pay “taxes”. What the followers did not know is that Elon had actually made this decision weeks ago and was possibly just clowning behind the keyboard.
Data on Friday showed that Elon Musk offloaded a combined $6.9 billion worth of shares during the week for the first time since 2016 and the first cashed out stake of its size since the electric carmaker was founded in 2003.
The sale by Musk saw the shares decline by 10% over the week, to close at $1,033.42 per share and decline by over $160 billion, more than the combined market capitalizations of Ford and General Motors.
Investors have remained resilient in the stock which seems to have experienced much resistance on the downside during the week, unlike what major analysts had forecasted as a decliner to the stock by over 20% from a poll earlier in the week.
Kicker: I know you’re wondering what Fizbo is… Well, be friends to the Alphabet or get a hold of Modern Family.
Earnings:
Coinbase Global Inc., [NASDAQ:COIN]Coinbase Global Inc released its fiscal third-quarter earnings in what missed most analysts estimates. Coinbase which is one of the largest publicly-traded cryptocurrency exchanges posted low earnings attributed to declining coin prices and low trading activities.
Revenues of $1.24 billion, compared with the $1.57 billion forecast by analysts.
Monthly transacting users (MTUs) on its platform was down to 7.4 million, down from 8.8 million in the second quarter.
Trading volume was down 29% to $327 billion compared to the analysts’ estimate of $308.88 billion.
The company’s earnings per share stood at $1.62 way below the $6.42 per share forecast from analysts.
Assets on Platform totalled $255 billion, up from $180 billion as of June 30, 2021.
Net revenue for the company stood at $1.2 billion, of which $1.1 billion was transaction revenue and $145 million was Subscription and services revenue.
Adjusted EBITDA was at $618 million a 46% decline from 2Q21 but within range of what analysts had estimated at $662.3 million (range $324.0 million to $1.06 billion).
Safaricom Plc [NSE:SCOM]Kenya’s leading telco Safaricom Plc rebounded from Covid-19 pressures, posting 12.1 per cent growth in net earnings in the first six months of the company’s fiscal year. Despite this, Safaricom posted its first-ever half-year drop in earnings since it was listed on the Nairobi Securities Exchange.
Service revenue grew 16.9% to Kes 13.84 billion
The total value of M-Pesa transactions grew 51.5% to Kes 13.71 trillion backed by the total volume of transactions which equally grew 42% to Kes 7.27 billion.
Gross Profit for the 1HY22 jumped 19.2% to KES 100.8 billion
Monthly service users rose by 4.7% year on year to 31.75 million.
Gross profit posted a 22.2% growth to Kes 54.68 billion from the Kes 44.74 the company posted over a similar period last year.
Safaricom's Profit after tax jumped 12.1% to Kes 37.10 billion
Earnings Per Share was up 12.1% at Kes 0.92
Equity Group Holdings Plc [NSE:EQTY]Equity Group posted a 78.6% growth in profit after tax from the Kes 15.0 billion posted in 3Q2020 to Kes 26.8 billion in 3Q21, the company attributed the earnings to growth in its subsidiaries and also the nun-funded income.
Non-funded income (NFI) grew by 28.8% to Kes 31.9 billion, primarily driven by transactional and forex income.
Total operating costs during the period jumped 17.7% to Kes 13.5 billion in what the company attributed to the operations of subsidiaries outside Kenya.
Equity Group’s portfolio of securities grew by 62.1% supported by the
Net interest income increased 23% to Kes 48.5 billion as the loan book grew by the same margin to Kes 559 billion.
Loan loss provisions declined by a 65.2% margin to Kes 5.14 billion.
Gross non-performing loans (NPLs) were however on the rise, posting a 7% to Kes 56.2 billion.
Equity Group’s DRC unit (EBCDC] is now the largest bank in the Democratic Republic of Congo with the bank posting a 57% growth in deposits, much faster growth than Equity’s home base, Kenya.
Earnings per share as of the 3Q21 was at Kes 2.33 per share.
Shares of Equity were on the rise, posting one of the sharpest growth in share prices on Monday after the results. Investors continue to watch Equity’s share prices as most analysts remain optimistic of a dividend at the end of the fiscal year 2021.
Markets.
Global Markets- On the second week of November, markets remained mixed even as more data emerged on the possible liquidity crunch that is facing China’s real estate sector.
Markets are slowly shifting their focus away from the earnings with over 90% of companies in the S&P 500 Index having released their earnings. Focus now shifts to the growing concern over inflation, which has in recent times caused a chill among investors, despite being comforted by the Fed.
In U.S Markets were red for the week, the Dow Jones Industrial Average dropped by 0.06% to 36,100.31, the S&P 500 was similarly down 0.3% for the week at 4,682.85 and the Nasdaq Composite shed 0.7% during the week to close at 15,860.96 basis points.
Local Markets - The All-share index of the Nairobi Securities Exchange and the NSE25 share index were on the rise during the week, posting a growth of 0.31% and 0.67% to end the week at 171.47 and 3,757.80 basis points respectively.
The NSE20 share index was however down as major components saw their share price decline during the week, with Centum coming out as one of the heaviest drags on the 20 share index. The Index posted a 1.48% drop to end the week at 1,948.87 bps.
What cowries are we collecting this week?
Alibaba Group Holdings Ltd [NYSE BABA] - Alibaba will be releasing its earnings on Thursday. Alibaba has seen a positive rating from analysts over the last few weeks, with the current rating at 63, signalling a strong buy. Will the earnings support this? Let’s wait for Thursday.
Wallmart Inc. [NYSE: WMT] - Walmart, the largest retail store on planet earth will release its financials on Tuesday, what analysts are looking at will be how the retail store has handled the global supply chain issues that had earlier hit most companies listed on wall street.
Nvidia Corporation [NASDAQ: NVDA] - For the fiscal third quarter, Nvidia expects revenues of about $6.8 billion. The Zacks Consensus Estimate for the company is pegged at $6.83 billion, indicating a 44.5% jump from the year-ago reported figure. We will be watching how the global chip shortage which is munching on tech companies will or has affected NVDA.
Other companies to keep watching include Jumia Technologies AG [NYSE: JMIA], Cisco systems and local companies listed on the NSE to issue their 3Q21.
How about you, what stocks are you watching for the week? Let us know on the Hisa App.
Disclaimer: 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.