Nasdaq futures pop, Tesla surges after earnings with extra heavyweights on deck

Live5 updates

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  Wed, April 24, 2024 at 2:50 PM GMT+3

  Just off the cellphone: Otis CEO Judy Marks

  Many within the Yahoo Finance newsroom know of my pleasure for studying up on elevator and escalator maker Otis Worldwide (OTIS) — I’m fascinated by what the corporate makes, the way it makes it and what all of it says concerning the well being of the worldwide financial system.

  I simply received off the cellphone with Otis CEO Judy Marks. Her feedback to me on China — following her journey in March to the nation (an vital marketplace for Otis) — left an impression:

  “The message from the Chinese authorities is we would like financial growth. We need overseas direct funding. We’re going to have fun 40 years in China this yr, and it is an vital market to us, however we have watched because the market has developed and among the challenges within the property market they usually’re actually persevering with. I might let you know that the property market and the brand new gear market just like the final 18 to 24 months, it stays weak. Liquidity and credit score constraints are weighing on the builders, and the highest 50 developer gross sales this quarter have been down almost 50% versus this quarter final yr. So on the gear facet, we’re calling this a down excessive single digit to down 10% marketplace for the yr.”

  Marks would not see progress returning to Otis’ China business in 2024.
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  Wed, April 24, 2024 at 2:21 PM GMT+3

  Hilton continues to purchase its firm again

  Hilton (HLT) continues to be one of the vital aggressive acquirers of its inventory out of the gazillion firms I observe carefully.

  In many respects, it almost appears like Hilton is taking itself non-public once more! The lodge and resorts firm went public once more in 2013 after being purchased by Blackstone in 2007.)

  This from the corporate’s just-released earnings report:

  “During the three months ended March 31, 2024, Hilton repurchased 3.4 million shares of its widespread inventory at a mean worth per share of $196.17, for a complete of $662 million, returning $701 million of capital to shareholders in the course of the quarter together with dividends. The variety of shares excellent as of April 19, 2024 was 250.0 million.”

  For perspective, Hilton ended 2022 with a share rely of 277 million.
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  Wed, April 24, 2024 at 2:03 PM GMT+3

  Toymaker earnings not coming in enjoyable

  No enjoying round right here, earnings from main toymakers Mattel (MAT) and Hasbro (HAS) aren’t very enjoyable to have a look at.

  Not precisely an awesome earnings report from Mattel final evening — now saying it would return to income progress in 2025. Mattel is exclusive in that the Barbie film actually drove up its outcomes final yr, so issues mathematically can be down. Sales fell 1% year-over-year within the first quarter.

  Hasbro’s earnings this morning are additionally powerful on the eyes for traders. The firm is looking out a 21% gross sales plunge in its key shopper merchandise business because of “broader business tendencies, exited businesses and diminished closeout gross sales on account of final yr’s stock clean-up.”

  Both weak studies say rather a lot about the place customers minds are at proper now … not with shopping for dolls, motion figures and board video games.

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  Wed, April 24, 2024 at 1:57 PM GMT+3

  One stat to know on AT&T

  I’m nonetheless wading by AT&T’s (T) lengthy earnings report, however one quantity caught my consideration proper off the leap.

  $4.7 billion.

  That’s how a lot debt AT&T repaid within the quarter, because it continues to attempt to deliver down leverage in life after Time Warner. CEO John Stankey has advised me a couple of occasions inside the previous yr that paying down debt is among the most vital targets for his administration workforce.

  As it needs to be — AT&T nonetheless ended the primary quarter with about $132.8 billion in whole debt! The firm’s market cap is $118 billion.

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  Wed, April 24, 2024 at 1:48 PM GMT+3

  An inventory of questions Tesla traders must ponder

  The day after.

  Tesla (TSLA) CEO Elon Musk has performed traders like a fiddle. He gave them what they have been clamoring for forward of earnings — particulars on a less expensive Tesla — and they’re consuming it up. Shares are up 10% in pre-market buying and selling, and the corporate’s ticker is dominating the Yahoo Finance Trending Ticker web page.

  All of that’s high-quality and good, but it surely all detracts (seemingly by Musk’s design) from the principle story at Tesla that has weighed on its inventory worth this yr: The firm is struggling, and any daring guarantees by Musk that sends its inventory increased inside an terrible yr for the corporate needs to be questioned big-time.

  Here are some questions the Tesla bulls must ask themselves.

  • Musk guarantees robotaxis, exhibits off within the earnings slide-deck what their ride-sharing app could seem like. But…

    • What do regulators must say about this? How possible is that this launch inside the subsequent 12-months?

    • Musk does know that Uber (UBER) exists proper? And that it’s properly making income lastly and investing aggressively in its business.

    • Musk appears to suppose folks will wish to share their Teslas and make this platform successful. What occurs in the event that they don’t wish to share their tricked out Model 3?

    • Musk mentions Tesla will personal among the robotaxi fleet. What does that do to its money circulation and margin profile? Do traders and analysts wish to see Tesla saddled with these additional prices whereas the pure EV business is underneath strain and they’re attempting to make humanoid Optimus robots?

  • Musk guarantees he’s absolutely engaged at Tesla. But …

    • Some fascinating dialogue on the earnings name on how lengthy Musk plans to remain CEO of Tesla. He didn’t reply exactly with a timeline, mentioned he works on Sunday and seemingly across the clock (like many different people). He then questioned whether or not Tesla may get out its robots if he weren’t main the corporate. Is now the time to ponder a Musk-less Tesla inside the subsequent few years? What does that even seem like for traders? So lots of his prime execs have left or are leaving, together with one of many guys on the earnings name final evening! If buttoned-up/company Disney (DIS) CEO Bob Iger is seen as failing at succession planning, then Musk may very well be seen as one of many worst succession planners in CEO historical past.

  • Musk kilos the desk on Tesla being an AI firm once more. But …

    • Sure, Tesla has some superb expertise. But doesn’t Tesla make vehicles first that then use its expertise? Who would you relatively personal inventory in? A pure play AI firm akin to Microsoft (MSFT) or a automobile firm masquerading as an AI firm?

  • Musk hypes a less expensive Tesla. But …

    • Tesla isn’t any stranger to recollects and issues about product high quality. Just take a look at the Cybertruck recall final week! So, how top quality is a $25,000 Tesla going to be? This sounds prefer it may very well be a dreadful possession expertise, not not like when my mother and father purchased an affordable 1986 Ford Tempo and a 1987 Ford Escort after they got here out.