“Just when you thought 2020 couldn’t get any more strange, the guy who almost lost control of his company for tweeting a 420 joke to impress his girlfriend is the second richest man on earth.” – Jeff
The market rally continued on Tuesday on hopes that a vaccine could be distributed in December.
Today we’re talking about Tesla stopping at the moon on Elon’s trip to Mars.
Ride the electric wave
Elon Musk’s personal net worth has grown $100B in 2020, to $128B, but he still has a ways to go to catch Jeffery Commerce who’s currently valued at $180B. Keep in mind that’s after the $35B he lost in his divorce settlement.
A year for the ages
Tesla’s stock price has been on fire this year, rising nearly fivefold since March. And it doesn’t show any signs of slowing.
The electric vehicle maker reported its fifth straight profitable quarter and delivered a record (for the company) 139k vehicles, keeping it on track to hit half a million for the year.
Plus, Tesla is scheduled to be listed on the S&P 500 next month, leading some analysts to speculate that the stock could go to $1k soon.
The bottom line…
Of course, becoming the world’s second-richest man isn’t stopping Treelon from innovating. He announced yesterday that the company is working on an electric vehicle that can travel 600 miles. For those you unfamiliar with EVs, that’s the gas-guzzling equivalent of like 80 MPG (in the city).
Tesla is also working on a compact car to be distributed throughout Europe. Watch out Mini.
Purdue Pharma, the proud producer of OxyContin and star player in the opioid epidemic, pled guilty to three criminal charges yesterday.
The (former) pharmaceutical giant admitted to paying doctors to write more prescriptions for its painkillers, not maintaining a prevention program to keep its drugs off of the black market, and providing misleading information as a way to boost company manufacturing quotas. Apparently you can’t do that…
The admissions of guilt were part of the criminal and civil settlement last month, in which the company paid $225M of the $8.3B owed, and filed for bankruptcy. No criminal charges were filed against the founding Sackler family.
Dick’s head steps down
Ed Stack is stepping down as CEO of Dick’s Sporting Goods. He’s been the CEO since he and his siblings bought the company from their father, Dick, who clearly didn’t love them, back in 1984.
But after 36 years at the helm, he’ll be replaced by current President Lauren Hobart. Ed will stay onboard as chairman and chief merchant. You can take the guy away from Dick’s but you can’t take the Dick’s out of the guy.
The sporting goods giant also reported earnings Tuesday, with profits tripling from the same period last year to $172.2M and e-commerce sales jumping 95%. Dick’s rose 2% during trading, but just couldn’t keep it up, ending the day flat.
A beat and a drop
Best Buy reported earnings yesterday. Same store sales grew by 23% from the same period last year, EPS of $2.06 beat the estimated $1.70, and revenue of $11.85B topped the forecasted $11B. Yet shares fell 6.96%… what gives?
Investors honed in on the CFO’s comments that he doesn’t expect Q4 sales growth to be at the same level seen in Q3. It also doesn’t help that Best Buy did not provide an outlook for the fourth quarter, and noted that higher shipping costs and inventory may present an issue as we head into the holiday shopping season. Having a PS5 before March is so overrated.
It’s in the computer
HP gained 2.64% on the day and over 5% after hours, as the PC maker reported its fiscal Q4 earnings after the bell. Adjusted EPS of 62 cents beat the forecasted 52 cents, while revenue of $15.3B beat the estimated $14.7B.
Notebook sales for the quarter rose 18%, as people snatched up PCs to be able to mastu-, er, work and attend school from home during the pandemic. The company expects its fiscal Q1 EPS to come in between 64 cents and 70 cents, which is higher than the estimated 54 cents.
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