TSLA - Wall Street Breakfast Podcast: Tesla Falls Margin Miss

2023-04-20 07:10:46 ET

Listen on the go! Subscribe to Wall Street Breakfast on Apple Podcasts and Spotify Tesla ( TSLA ) falls after lower pricing, high expenses contribute to margin miss. U.S. GoldMining ( USGO ) prices $20M IPO, debuts today . Autoliv ( ALV ) invests in new airbag cushion plant to expand its footprint in Vietnam. Learn more about these stocks with Seeking Alpha Premium .

This is an abridged transcript of the podcast.

• A margin miss for Tesla

• U.S. Gold mining a spinout of Canada Goldmining kicks off trading today on the Nasdaq, Ticker symbol USGO.

• Today is crypto Thursday which means we’re joined by our weekly contributor Mike Fay, the leader of the Investing Group, BlockChain Reaction on Seeking Alpha. He has three topics today, one being

OUR TOP STORY

Tesla falls after lower pricing and high expenses contribute to a margin miss…

Seeking Alpha Associate News Editor Kevin Curran has the story…

*audio from Kevin Curran*

I’m including a link in show notes to Tesla’s dedicated stock page on Seeking Alpha.

This page has all the information an investor will need including articles from analysts, news articles as well as how Tesla’s peers are performing.

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NOW MORE ON THE MARKET

A choppy session ended with another flat finish on Wednesday.

The Nasdaq ( COMP.IND ) closed with a fractional gain, the S&P 500 ( SP500 ) ended near the unchanged mark and the Dow ( DJI ) finished -0.2%.

Six of the 11 S&P sectors concluded trading in the red, although no market segment moved more than 1% in either direction. Communication Services, Materials and Energy saw modest declines, while Utilities and Real Estate were the day's best performers.

Once again, earnings news dominated the headlines. Netflix ( NFLX ) retreated after the release of its quarterly results, which included a narrow miss on revenue and tepid guidance.

Morgan Stanley ( MS ) also released its financial figures, although the results only led to a muted response on Wall Street.

In the fixed income market, Treasury yields were higher. The 10-year yield ( US10Y ) advanced 3 basis points to 3.60%, while the 2-year yield ( US2Y ) rose 6 basis points to 4.26%.

MORE OF OUR TOP STORIES

Autoliv (NYSE: ALV ) announced its plan to build a new state of the art airbag cushion and fabric plant in Vietnam, serving Asia, and marking its first investment in Vietnam.

The new facility will be built in the northern part of Vietnam.

It is expected to begin production of airbag cushions by late 2025.

Premarket, shares of ALV are down less than 2 percent.

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Wednesday we told you about the job cuts that Disney (NYSE: DIS ) is planning.

Now we’re hearing that the cuts will land on its ESPN unit next week, in addition to the entertainment wing of the company we told you about.

Disney had previously announced it would cut 7,000 jobs across three rounds.

CNBC is report ing that ESPN will shed some on-air talent as well as management. Cuts of about 15% are also reported to be coming to the entertainment division.

How many layoffs ESPN will undergo is yet to be determined.

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Event ticketing firm SeatGeek filed confidentially for a U.S. initial public offering this month.

According to a report from The Information, which cited people familiar, SeatGeek expects to generate more than $500 million in revenue this year.

SeatGeek competes with Live Nation ( LYV ), the owner of TicketMaster, as well as Vivid Seats ( SEAT ), which went public through a SPAC deal in October 2021. Vivid Seats shares have dropped ~40% since going public. SeatGeek also competes with StubHub, which was reported last January to also be looking to go public though a direct listing.

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Today is crypto Thursday.

We’re hearing from our weekly contributor Mike Fay. Mike is the leader of the Investing Group, BlockChain Reaction on Seeking Alpha. Today he’s tying in three topics, Securities and Exchange Commissioner Gary Gensler before the House Financial Services Committee, Algorand and DASH.

*audio from Mike Fay*

I’ll leave a link to Mike Fay’s author page in show notes.

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Bank runs by depositors across sectors led to the collapse of Signature Bank ( OTC:SBNY ), not just cryptocurrency clients,

This was the message from the head of New York state's financial regulator at a House hearing on stablecoins on Wednesday.

New York State Department of Financial Services Superintendent Adrienne Harris told the House Financial Services Committee that clients including wholesale food vendors, law firms and trust accounts rushed to pull out deposits from the bank.

She said, "It is a misnomer that the failure of Signature ( OTC:SBNY ) was related to crypto and the outflow of crypto deposits was in exact proportion to the representation in the depositor base overall."

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U.S. GoldMining (NYSEMKT: USGO ), a spin-out of Canada's GoldMining (NYSE: GLDG ) has priced its initial public offering of 2M units at $10.00 per Unit .

The gross proceeds from the offering are expected to be $20M.

Each Unit consists of one share of common stock and one warrant to purchase one share of common stock of USGO exercisable at $13.00 per share for a period of three years after the issuance date.

USGO will kick-off trading on the Nasdaq Capital Market today, April 20th.

Offering is expected to close on or about April 24th.

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A U.S. appeals court sided with Amgen (NASDAQ: AMGN ) on Wednesday, dealing a setback to Novartis (NYSE: NVS ) and Zydus Pharmaceuticals.

This is a patent litigation case related to a bid by Novartis and its partner to launch generic versions of Amgen’s psoriasis drug Otezla.

The U.S. Court of Appeals for the Federal Circuit upheld a lower court ruling that determined Amgen's patents were valid and proposed generics from Zydus and Novartis' ( OTCPK:NVSEF ) would infringe upon them.

The court blocked Otezla generics until 2028. It affirmed a ruling to invalidate one of Amgen's ( AMGN ) patents that, according to Novartis, would have blocked generic versions of Otezla until 2034.

The most recent article on Amgen is by The Value Portfolio . It's entitled “Amgen Has Long Term Staying Power.” In the article, they rate the stock a buy. The leader of the Investing Group, The Retirement Forum, highlights the performance of Amgen’s R&D pipeline.

I’ll leave a link in show notes.

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Now let’s take a look at the markets as of 6:20 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are pointing lower. The Dow is down 0.4%. The S&P 500 is down 0.6% and the Nasdaq is down 0.9%. Crude oil is down 1.8% at less than $78 a barrel. Bitcoin is down 1.5% at $28,833.

In the world markets, the FTSE 100 is down 0.2% and the Dax is down 0.7%.

On today’s economic calendar, at 8:30 AM - April Initial Jobless Claims data is due. The consensus estimate stands at 238,000, down from March’s report of 239,000. And at 3:00 PM - the feds Michelle W. Bowman will provide opening remarks at an event hosted by the Federal Reserve Bank of Dallas.

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