Good morning everyone,
Today we’re covering WeWork making sh*t up (again) and more tariff talk.
Enjoy the next 4 minutes and 1 second.
Jeff & Jason
- First WeWork blessed us with Community Adjusted EBITDA. And now it’s redefining ‘investment.’ As it contemplates a potential IPO (er, thinks of an excuse not to go public), We dropped its Q1 financials. And its CFO was adamant that it hadn’t lost $264M, rather it had “invested” $264M in growing the company. For what it’s worth, the Q1 results are incrementally less terrible than the same period a year ago when the company lost $274M. Revenue however more than doubled to $728M vs. 2018.
- Made in America *’USA’ chant breaks out*. Donny Politics has enacted an executive order banning telecom gear and services from foreign adversaries that could pose a threat to the security of the US and its domestic interests. So who does the ban effect? Well, technically no one … yet. But the move was most certainly aimed at Huawei and ZTE. It has been long feared that the two companies with close ties to the Chinese government could look to monitor or disrupt US infrastructure.
- Speaking of national security … the White House is planning to give the EU and Japan 180 days to limit or reduce its car and car part imports in return for delaying new tariffs.
- Wells Fargo will no longer be allowed to cross the street without adult supervision and will be forced to run any potential CEO candidates by the Comptroller of the Currency. Joseph Otting of the OCC will use special legal powers to oversee the troubled bank’s hiring process. Otting has stated that he does not have plans to make his review public. It’s safe to say that this is unprecedented.
- “And for that reason, I’m out.” – T. Rowe Price, apparently. The fund manager, one of Tesla’s largest shareholders, went all “buy high, sell low.” According to SEC docs, T. Rowe sold more than 80% of its 1.7M TSLA shares in Q1, following a 30% decline in share price over the first 3 months of 2019.