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Trader's Diary

Economic calendar

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Definition of terms:
Earnings

Earnings

refer to the profits or net income generated by a company during a specific period.

  • Earnings are a measure of a company's financial performance and are often reported on a quarterly or annual basis.

  • Positive earnings indicate that a company has made a profit, while negative earnings indicate a loss.

  • Earnings can be influenced by various factors, such as revenue, expenses, taxes, and other financial activities.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Actual

Actual refers to the real or current value or result of something. In the context of IPOs, actual can refer to the actual price or number of shares sold in the IPO, as opposed to the estimated price or number of shares.

Estimate

Estimate refers to a prediction or approximation of something, such as the expected price or number of shares in an IPO. Estimates are often made by investment banks and analysts based on market demand and other factors.

Difference

Difference refers to the numerical or percentage variance between two values. In the context of IPOs, difference can refer to the variance between the estimated and actual price or number of shares sold in the IPO.

Percent

Percent refers to a fraction of 100, often used to express a proportion or rate. In the context of IPOs, percent can be used to express the difference between the estimated and actual price or number of shares sold as a percentage of the estimated value.

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IPOs

IPOs (Initial Public Offerings):

An IPO occurs when a private company sells its stock to the public for the first time to raise capital or money.

The money raised from an IPO can be used for various purposes, such as paying down debt, investing in the company's long-term health, research and development, expanding into new product lines, or purchasing fixed assets.

During the IPO process, the equity shares of private investors

convert into publicly owned shares of the new entity, and early investors may sell their stock once the company's shares begin trading.

The chief benefit of an IPO is to help the company raise money and gain access to the capital markets, allowing for expansion and increasing credibility.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Name

The name is the official name of the company whose shares are being offered in the IPO.

Exchange

The exchange is the stock exchange where the company's shares are listed and traded. Examples of stock exchanges include the New York Stock Exchange (NYSE) and the Nasdaq.

Currency

The currency is the type of currency in which the company's shares are priced and traded. This can vary depending on the country and stock exchange where the company is listed.

Start date

The start date is the date on which the company's shares begin trading on the stock exchange after the IPO.

Offer price

The offer price is the price at which the company's shares are initially offered to the public in the IPO. This price is set by the company and its underwriters based on market demand and other factors.

Shares

Shares refer to the units of ownership in the company that are being offered to the public in the IPO. These shares can be bought and sold on the stock exchange after the IPO.

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Splits

Splits (Stock Splits):

A stock split occurs when a company increases the number of its outstanding shares of stock to boost the stock's liquidity.

In a stock split, the number of shares outstanding increases by a specific multiple, but the total dollar value of all shares remains the same.

Companies often choose to split their stock to lower its trading price to a more comfortable range for most investors and increase the liquidity of trading in its shares.

For example, if a company decides to split its stock 2-for-1, the number of shares outstanding would double, while the share price would be halved.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Split date

The split date refers to the date on which the stock split takes effect. It is the date when the new shares resulting from the split are distributed to existing shareholders. Optionable

Optionable refers to whether the stock is eligible to be used as an underlying asset for options contracts. If a stock is optionable, it means that options can be traded on that stock.

Old shares

Old shares refer to the existing shares of a company before a stock split takes place. These are the shares that will be exchanged for the new shares resulting from the split.

New shares

New shares are the additional shares that are issued to existing shareholders as a result of a stock split. The number of new shares is determined by the split ratio, such as 2-for-1 or 3-for-2, where shareholders receive a certain number of new shares for each old share they own.

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Tesla vehicle deliveries dropped but beat the expectations

Date: 3.7.2024

When I am reflecting on Tesla's recent second-quarter results, it's clear that the electric vehicle (EV) pioneer continues to navigate an environment of fierce competition and declining demand. Despite the drop in deliveries, it managed to beat market expectations, which earned the stock a 10% increase in value and took it to a near six months high.*

When I am reflecting on Tesla's recent second-quarter results, it's clear that the electric vehicle (EV) pioneer continues to navigate an environment of fierce competition and declining demand. Despite the drop in deliveries, it managed to beat market expectations, which earned the stock a 10% increase in value and took it to a near six months high.*

Data that surprised

Tesla (NASDAQ: TSLA) delivered 443,956 vehicles in Q2 of this year, a slight decrease of 4.8% compared to last year, but a 14.8% increase quarter-over-quarter. This performance beat analysts' expectations, whose estimate was 438,019 deliveries. During this period, 422,405 Model 3 and Model Y units were delivered with 21,551 units of models like the Model S, Cybertruck and Model X, according to Reuters. This performance contributed to a 10% increase in its share price to $231.26, just under $10 off six months high.* The positive market reaction underscores investor confidence in Tesla's ability to manage cooling EV demand through tactical price adjustments and incentives.

Analysts, such as CFRA's Garrett Nelson, have pointed to the data as a reassuring sign, while others believe that Tesla is running out of strategies due to price adjustments.

tesla chart

Performance of Tesla´s stock over 5 years. Source: Investing.com

Competition is strong

Despite the better-than-expected figures, competitors pose big challenges for Tesla, especially in China. While Tesla has to adjust prices to maintain sales, competitors like BYD, Rivian or GM are gaining ground with more affordable models. According to Reuters, Chinese automakers saw sales double in the same period, with BYD reporting a 21% increase in battery EV sales to 426,039 vehicles and GM up 40%, for instance. Tesla did not disclose exact sales numbers in China, but according to their data released, sales in China, including exports outside the country, were down 17% year-over-year. In addition, automaker also facing headwinds in Europe, such as reduced electric vehicle subsidies and weak demand, which caused sales in that region to fall 36% during May alone.

Elon Musk's outlook

The company's May annual report gives a revised forecast for the number of deliveries by 2030, showing a cautious outlook and a departure from their ambitious targets. In the 1Q 2024 earnings, Elon Musk commented on the possibility of new models that should be more affordable and with the production of autonomous taxis to be revealed on August 8, 2024.

Conclusion

In conclusion, while Tesla's delivery data brings momentary relief to investors, the road ahead remains fraught with challenges. The company's ability to innovate and execute in the face of fierce competition and evolving market dynamics will be critical. As a trader, I remain optimistic about Tesla's long-term prospects, but I am also mindful of the volatility and uncertainty inherent in the electric vehicle sector. I will undoubtedly be keeping a close eye on upcoming developments, including the unveiling of robotaxi, as one of the key moments. [1]

 

* Past performance is no guarantee of future results

[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.

Date: 20.11.2024
Qualcomm Expands Horizons Beyond Smartphones: I'm Buying This Promising Player at a Low Price

Today I took the time to analyze Qualcomm Inc. (NASDAQ: QCOM) in detail, which seems to be on a very interesting development trajectory. As the world's largest seller of smartphone processors, the company recognizes the need to diversify its business and find new sources of growth, which leads me as an investor to think more deeply about its future potential.

Date: 13.11.2024
Shopify's Growth Signals the Strength of Its Transformative Strategy

Today, I followed the market with a particular interest in Shopify Inc. (NYSE: SHOP), a company that has become synonymous with e-commerce over the years. Looking at their latest financial results and strategic moves, it's clear that their transformation into a platform for larger businesses is bearing fruit.

Date: 6.11.2024
Nvidia Overtakes Apple as the World’s Largest Company: The AI Boom in Full Swing

Today, I find myself reflecting on Nvidia Corp.’s (NASDAQ: NVDA) meteoric rise to become the largest company in the world, surpassing none other than Apple Inc. Nvidia’s stock rose 2.9%[1] to $139.93, pushing its market cap to an astonishing $3.43 trillion, overtaking Apple’s $3.38 trillion valuation.* To put this into perspective, Microsoft, which Nvidia already surpassed last month, holds a valuation of $3.06 trillion. What stands out to me is how artificial intelligence has fundamentally reshaped Wall Street’s landscape, with Nvidia emerging as the clearest beneficiary of the AI revolution.

Date: 30.10.2024
OpenAI and Broadcom’s Strategic AI Chip Development

Today, I've been closely following the news about OpenAI's plans to collaborate with Broadcom Inc. on its own AI chip, designed specifically for inference – the process of running AI models after they've been trained. This potential game-changer is attracting the attention of the tech world, as OpenAI seeks to develop a solution focused on responding to user requests rather than traditional training dominated by Nvidia's graphics processing units (GPUs).

Date: 23.10.2024
Texas Instruments in the Third Quarter of 2024 – Hope for Recovery?

As part of this week, I analyzed the third-quarter results of Texas Instruments Inc. (NASDAQ: TXN), which provide an interesting insight into future developments in the semiconductor sector. Even though the company announced the eighth consecutive decline in sales, the tone of the outlook is in an optimistic spirit, which signals the potential for a recovery in demand soon.

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