{"id":69513,"date":"2023-07-20T08:54:45","date_gmt":"2023-07-20T12:54:45","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=69513"},"modified":"2023-07-20T08:54:45","modified_gmt":"2023-07-20T12:54:45","slug":"coffee-with-greta-tsla-nflx-drag","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/07\/20\/coffee-with-greta-tsla-nflx-drag\/","title":{"rendered":"Coffee With Greta: TSLA, NFLX Drag"},"content":{"rendered":"

Register now<\/a> for next week's free Q&A on LinkedIn with pro trader and podcast host Ben Cahn!<\/b><\/p>\n

 <\/p>\n

DJIA Futures: <\/b>+3 (+0.01%)<\/span><\/p>\n

SPX Futures: <\/b>-13 (-0.3%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-130 (-0.8%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are mostly lower as tech stocks slide following earnings from giants like Tesla and Netflix.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Tesla Reports Record Revenue<\/span><\/h2>\n

Tesla <\/b>(TSLA) shares are falling 4.1% ahead of the open despite beating Q2 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

Here\u2019s how the electric automaker\u2019s results compared to analysts\u2019 estimates:<\/span><\/p>\n

    \n
  • Adjusted EPS: $0.91 vs $0.82 expected<\/span><\/li>\n
  • Revenue: $24.93 billion vs $24.47 billion expected<\/span><\/li>\n<\/ul>\n

    Tesla\u2019s automotive revenue jumped 46% year over year to $21.27 billion.<\/span><\/p>\n

    The company\u2019s operating margin dropped to 9.6%, driven by increased incentives and price cuts on its vehicles.\u00a0<\/span><\/p>\n

    CEO Elon Musk said on the earnings call, \u201cWe continue to target 1.8 million vehicle deliveries this year, but expect Q3 production will be a little bit down because we\u2019ve got summer shutdowns for a lot of factory upgrades.”<\/span><\/p>\n

    Tesla reported Q2 deliveries earlier this month which topped expectations.<\/span><\/p>\n

    Netflix Slides On Weak Outlook<\/span><\/h2>\n

    Netflix <\/b>(NFLX) shares are down 6.1% in premarket trade after reporting mixed Q2 results.<\/span><\/p>\n

    Here\u2019s how the streaming giant\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

      \n
    • EPS: $3.29 vs $2.86 expected<\/span><\/li>\n
    • Revenue: $8.19 billion vs $8.3 billion expected<\/span><\/li>\n<\/ul>\n

      Netflix added 5.9 million new subscribers during the quarter as it cracked down on password sharing in the U.S.\u00a0<\/span><\/p>\n

      That sharply beat expectations for 3 million net new subscribers.<\/span><\/p>\n

      The company said it will now roll out that new policy to the rest of its customers.<\/span><\/p>\n

      Netflix forecast Q3 revenue of $8.52 billion vs $8.67 billion expected, Q3 EPS of $3.52 vs $3.23 expected, and an addition of 4 million new subscribers.<\/span><\/p>\n

      The company reiterated its full-year operating margin outlook.<\/span><\/p>\n

      IBM Misses Q2 Revenue Estimates<\/span><\/h2>\n

      International Business Machines <\/b>(IBM) shares are down 1% ahead of the open after beating Q2 profit expectations but missing on revenue.\u00a0<\/span><\/p>\n

      Here\u2019s how the company\u2019s results compared to analysts\u2019 estimates:<\/span><\/p>\n

        \n
      • Adjusted EPS: $2.18 vs $2.01 expected<\/span><\/li>\n
      • Revenue: $15.48 billion vs $15.58 billion expected<\/span><\/li>\n<\/ul>\n

        IBM reported an adjusted gross margin of 55.9% vs 54.7% expected.\u00a0<\/span><\/p>\n

        The CFO attributed those higher margins to a more profitable mix of products and \u201cproductivity initiatives\u201d like job cuts.\u00a0<\/span><\/p>\n

        He said, \u201cThe productivity benefits free up spend for reinvestment and contribute to margin expansion.\u201d<\/span><\/p>\n

        IBM reiterated its outlook for between 3% and 5% revenue growth this year and $10.5 billion in free cash flow.<\/span><\/p>\n

        United Airlines Rallies On Record Earnings<\/span><\/h2>\n

        United Airlines <\/b>(UAL) shares are up 2.6% in premarket trade after reporting record Q2 results.\u00a0<\/span><\/p>\n

        Here\u2019s how the airline\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

          \n
        • Adjusted EPS: $5.03 vs $4.03 expected<\/span><\/li>\n
        • Revenue: $14.18 billion vs $13.91 billion expected<\/span><\/li>\n<\/ul>\n

          United\u2019s fuel bill tumbled 26% year over year which helped boost the bottom line.\u00a0<\/span><\/p>\n

          Capacity rose 17.5% from a year ago while revenue per available seat mile slipped 0.4%.\u00a0<\/span><\/p>\n

          For the third quarter, the airline expects capacity to expand 16% from last year with revenue growth of 13%.\u00a0<\/span><\/p>\n

          United forecast adjusted Q3 EPS between $3.85 and $4.35 vs $3.70 expected.\u00a0<\/span><\/p>\n

          American Airlines Slips Despite Earnings Beat, Higher Outlook<\/span><\/h2>\n

          American Airlines <\/b>(AAL) shares are falling 1.5% ahead of the open despite beating Q2 expectations on the top and bottom line.\u00a0<\/span><\/p>\n

          Here\u2019s how the airline\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n

            \n
          • Adjusted EPS: $1.92 vs $1.59 expected<\/span><\/li>\n
          • Revenue: $14.06 billion vs $13.74 billion expected<\/span><\/li>\n<\/ul>\n

            Revenue was up 4.7% year over year while flying capacity rose 5.3%.\u00a0<\/span><\/p>\n

            American hiked its full-year outlook following the beat.\u00a0<\/span><\/p>\n

            The airline now expects adjusted EPS between $3 and $3.75 this year vs $2.50 to $3.50 previously.<\/span><\/p>\n

            That forecast was in line with analysts\u2019 estimates of $3.10 per share.\u00a0<\/span><\/p>\n

            Weekly Jobless Claims Tumble To Nine-Week Low<\/span><\/h2>\n

            Weekly jobless claims fell unexpectedly last week in the latest sign of strength for the labor market.\u00a0<\/span><\/p>\n

            The Labor Department reported 228,000 Americans filed initial unemployment claims.\u00a0<\/span><\/p>\n

            That was down by 9,000 from the week before and lower than expectations for claims to rise to 240,000.\u00a0<\/span><\/p>\n

            Continuing claims rose by 33,000 to 1.75 million in the week ending July 8.<\/span><\/p>\n

            In Case You Missed It<\/span><\/h2>\n
              \n
            • Apple <\/b>(AAPL) shares rose on Wednesday following a Bloomberg report that the company is developing its own equivalent of ChatGPT. That report claims Apple has built a chatbot that some call \u201cApple GPT\u201d. Some Apple staffers reportedly believe the company is aiming for a significant AI announcement next year.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

              Register now for next week’s free Q&A on LinkedIn with pro trader and podcast host Ben Cahn!   DJIA Futures: +3 (+0.01%) SPX Futures: -13 (-0.3%) NASDAQ Futures: -130 (-0.8%) Good morning friends! Futures are mostly lower as tech stocks slide following earnings from giants like Tesla and Netflix. Let\u2019s get right to it! Tesla Reports Record Revenue Tesla (TSLA) shares are falling 4.1% ahead of the open despite beating Q2 expectations on the top and bottom line.\u00a0 Here\u2019s how the electric automaker\u2019s results compared to analysts\u2019 estimates: Adjusted EPS: $0.91 vs $0.82 expected Revenue: $24.93 billion vs $24.47 billion expected Tesla\u2019s automotive revenue jumped 46% year over year to $21.27 billion. The company\u2019s operating margin dropped to 9.6%, driven by increased incentives and price cuts on its vehicles.\u00a0 CEO Elon Musk said on the earnings call, \u201cWe continue to target 1.8 million vehicle deliveries this year, but expect Q3 production will be a little bit down because we\u2019ve got summer shutdowns for a lot of factory upgrades.” Tesla reported Q2 deliveries earlier this month which topped expectations. Netflix Slides On Weak Outlook Netflix (NFLX) shares are down 6.1% in premarket trade after reporting mixed Q2 results. Here\u2019s how the streaming giant\u2019s results compared to analysts\u2019 estimates:\u00a0 EPS: $3.29 vs $2.86 expected Revenue: $8.19 billion vs $8.3 billion expected Netflix added 5.9 million new subscribers during the quarter as it cracked down on password sharing in the U.S.\u00a0 That sharply beat expectations for 3 million net new subscribers. The company said it will now roll out that new policy to the rest of its customers. Netflix forecast Q3 revenue of $8.52 billion vs $8.67 billion expected, Q3 EPS of $3.52 vs $3.23 expected, and an addition of 4 million new subscribers. The company reiterated its full-year operating margin outlook. IBM Misses Q2 Revenue Estimates International Business Machines (IBM) shares are down 1% ahead of the open after beating Q2 profit expectations but missing on revenue.\u00a0 Here\u2019s how the company\u2019s results compared to analysts\u2019 estimates: Adjusted EPS: $2.18 vs $2.01 expected Revenue: $15.48 billion vs $15.58 billion expected IBM reported an adjusted gross margin of 55.9% vs 54.7% expected.\u00a0 The CFO attributed those higher margins to a more profitable mix of products and \u201cproductivity initiatives\u201d like job cuts.\u00a0 He said, \u201cThe productivity benefits free up spend for reinvestment and contribute to margin expansion.\u201d IBM reiterated its outlook for between 3% and 5% revenue growth this year and $10.5 billion in free cash flow. United Airlines Rallies On Record Earnings United Airlines (UAL) shares are up 2.6% in premarket trade after reporting record Q2 results.\u00a0 Here\u2019s how the airline\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $5.03 vs $4.03 expected Revenue: $14.18 billion vs $13.91 billion expected United\u2019s fuel bill tumbled 26% year over year which helped boost the bottom line.\u00a0 Capacity rose 17.5% from a year ago while revenue per available seat mile slipped 0.4%.\u00a0 For the third quarter, the airline expects capacity to expand 16% from last year with revenue growth of 13%.\u00a0 United forecast adjusted Q3 EPS between $3.85 and $4.35 vs $3.70 expected.\u00a0 American Airlines Slips Despite Earnings Beat, Higher Outlook American Airlines (AAL) shares are falling 1.5% ahead of the open despite beating Q2 expectations on the top and bottom line.\u00a0 Here\u2019s how the airline\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $1.92 vs $1.59 expected Revenue: $14.06 billion vs $13.74 billion expected Revenue was up 4.7% year over year while flying capacity rose 5.3%.\u00a0 American hiked its full-year outlook following the beat.\u00a0 The airline now expects adjusted EPS between $3 and $3.75 this year vs $2.50 to $3.50 previously. That forecast was in line with analysts\u2019 estimates of $3.10 per share.\u00a0 Weekly Jobless Claims Tumble To Nine-Week Low Weekly jobless claims fell unexpectedly last week in the latest sign of strength for the labor market.\u00a0 The Labor Department reported 228,000 Americans filed initial unemployment claims.\u00a0 That was down by 9,000 from the week before and lower than expectations for claims to rise to 240,000.\u00a0 Continuing claims rose by 33,000 to 1.75 million in the week ending July 8. In Case You Missed It Apple (AAPL) shares rose on Wednesday following a Bloomberg report that the company is developing its own equivalent of ChatGPT. That report claims Apple has built a chatbot that some call \u201cApple GPT\u201d. Some Apple staffers reportedly believe the company is aiming for a significant AI announcement next year.<\/p>\n","protected":false},"author":41,"featured_media":69526,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-69513","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69513","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=69513"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69513\/revisions"}],"predecessor-version":[{"id":69529,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69513\/revisions\/69529"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/69526"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=69513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=69513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=69513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}