The stock market bounced back on Tuesday after recovering losses during the past three trading sessions. S&P 500 and NASDAQ increased 1.0% to 5,240 and 16,367, respectively.
Tweet of the Day
The after hours fade in $SMCI has been wild.
Just to recap… $SMCI was my second largest position coming into this year, approximately 13% with a cost basis around $200.
I sold 90-95% of my shares from $600-1200 $SMCI just reported, the stock popped 17% AH and then dropped…
— Jonah Lupton (@JonahLupton) August 6, 2024
Chart of the Day
Here is the one-year chart of Tesla (TSLA) as of July 24, 2024, when the stock was at $216.
Tesla saw a strong push higher prior to last quarter’s earnings release as investors were happy about delivery numbers. Total Deliveries were 443,956, down 5% from 466,140 the same quarter a year ago. Still, investors were pleased that deliveries were up 15% sequentially (from 386,810 2QtrsAgo) as high interest rates have caused consumers to have limited purchasing power.
When earnings were actually released, however, the stock sold off some as it missed earnings estimates and profit margins declined. Earnings per share (EPS) was $0.52 which missed estimates of $0.60. Profit growth also came short with -43% versus expectations of -34%. Operating margin went from 9.6% year ago down to 6.3% last quarter. The decline was primarily impacted by reduced S3XY vehicle ASP, restructuring charges, increased operating expenses from AI projects, and a decline in S3XY vehicle deliveries. TSLA is a hard stock to value right now, as they company has a slew of potential catalysts, including Robotaxis and the Optimus robot.
TSLA is part of our Growth Portfolio.
