Before last week, the stock market seemed to have voted that Trump was going to win the elections. Stocks related to clean energy programs were down (with notable exceptions to Tesla) and stocks around crypto and were moving up. With Biden exiting the race, the Nasdaq opened on Monday with an increase of 1.3% while the S&P 500 was up 1%, both coming off their worst weekly losses since April. The market is still digesting this change in the political landscape.
Tesla: The EV maker will be reporting earnings today (Tuesday), following a surprisingly decent deliveries report from July 2. Investors are keen to hear how Elon Musk plans to bounce back after a big revenue dip in Q1 2024, focusing on margins and expenses post-layoffs and price cuts. Analysts are predicting $24.77 billion in revenue.
Investors are also really eager to hear more about Tesla’s robotaxi tech, the booming battery business, and the new factory in Mexico. Musk’s political moves have sparked some questions too, especially about Tesla's brand in places like California. There are also talks about Tesla’s Optimus robots, with limited production next year and more to come by 2026.
Overall, as the EV space tightens from Chinese manufacturers to legacy U.S. car makers like GM and Ford, investors want reassurance that Tesla is still the horse to bet on.
While Musk has a history of ambitious promises, recent upgrades to Tesla’s driver assistance software have fans excited. We are expecting the call to cover these and the ongoing challenges in hitting those self-driving goals.
Alphabet: Alphabet, Google's parent, is reporting earnings today (Tuesday), and Wall Street is buzzing with excitement. After a stellar Q1 that saw the company handing out its first-ever $0.20 per share dividend and green lighting a whopping $70 billion in stock buybacks, everyone’s eager to see what’s next.
Alphabet’s stock is up 30% this year, outpacing Microsoft and Amazon. Analysts are betting on $84.35 billion in revenue, a jump from last year’s $74.6 billion. Ad revenue is expected to hit $64.5 billion, thanks to booming Google Search, YouTube ads, and Google Network revenue.
On the cloud side, Google is aiming for $10.1 billion in revenue and nearly $1 billion in operating income, up from last year’s numbers. Despite trailing Amazon and Microsoft, Google is banking on its AI investments to fuel future growth. But don’t hold your breath—analysts think AI’s real cash flow is still a couple of years away.
In the meantime, Google’s AI search answers have had some hiccups, but improvements are on the way. This earnings report will be a peek into whether AI is starting to pay off for Google and its Big Tech buddies. So, come ready!
Chipotle: Chipotle Mexican Grill (CMG) is set to serve up its latest quarterly earnings after market close on Wednesday, fresh off its flashy 50-for-1 stock split. Analysts are expecting tasty numbers of revenue jumping 17% to $2.94 billion and profits sizzling up 28% to $437.8 million.
Some analysts are bullish on Chipotle's potential to keep beating earnings, even as other parts of the economy and some competitors are feeling the pinch from tighter consumer spending. Why? Despite price hikes, Chipotle’s increases are at a lower rate than most of the industry. It was found that the cost of a chicken burrito, the chain's most popular item, has risen at a slower rate than the consumer price index's (CPI) "food away from home" inflation pace over the last decade.
In other news, Chipotle announced the retirement of its longtime CFO, Jack Hartung, who will pass the torch to current VP of Finance, Adam Rymer, in January. Hartung’s been the financial helm since 2002 and will stay on board through March.
Since the stock split on June 26, the stock has dipped nearly 20%.
Here is one stock in the Nigerian Stock Market we’re keeping an eye on:
Transcorp: With a robust portfolio and a strong cross-sector presence, Transcorp holds a unique competitive edge in the Nigerian market. Boasting strong fundamentals and the expectations of an impressive H1:2024 performance, Transcorp is set for a promising return.
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