Wood Add $NVTA: Up 276% & Drop 45%, What’s Behind The Roller Coaster?
Is Cathie Wood still trustworthy? Cathie Wood acquired 28.7 Million $Invitae(NVTA)$ shares worth $122 Million. That's 0.68% of their equity portfolio (31st largest holding). The investor owns 11.48% of the outstanding Invitae stock. The first Invitae trade was made in Q4 2016. Since then Cathie Wood bought shares fifteen more times and sold shares on five occasions. The investor's estimated purchase price is $514 Million, resulting in a loss of 76%. $ARK Innovation ETF(ARKK)$$Invitae(NVTA)$ Invitae Corporation, a medical genetics company, integrates genetic information into mainstream medicine to improve healthcare of people in the United States, Canada, and internationally. The company offers genetic tests in various clinical areas, digital health solutions, and health data services. It serves patients, healthcare providers, biopharma companies, and other partners. Genetic testing platform Invitae ripped 277% higher on August 10. It was truly epic. However, this stock was down by 45% in the following week by a severe sell-off.It appears the nearly 300% run-up on Wednesday was not about earnings but instead only due to a short squeeze.Roughly 217 million shares traded hands. For comparison, the average daily trading volume was just 13.7 million shares over the previous three months. Furthermore, the business entered August with only about 235 million shares outstanding total.It was also truly bizarre. Invitaeannounced a strategic pivot and provided financial guidance on July 18. That included unflattering growth projections, replacing the CEO, laying off one-third of its workforce, and promising to keep cash burn to "only" $825 million in 2022 and 2023. Nothing changed when it reported second-quarter 2022 operating results on August 9.EarningsGenerated revenue of$136.6 million in the quarter, a 17.5% increase compared to$116.3 million in the second quarter of 2021.GAAP gross profit was$26.3 million, and non-GAAP gross profit was$54.7 million in the second quarter of this year.GAAP gross margin was 19.2%. Non-GAAP gross margin was 40.1% as compared with 36.6% in the first quarter of 2022 and 35.4% in the second quarter of 2021.Cash, cash equivalents, restricted cash and marketable securities were$737 million as of June 30, 2022. Cash burn was$147 million, achieving a $22 million reduction from the first quarter of 2022.Invitae was among the worst positioned. It spent money a little carelessly, prioritized revenue growth over every other metric, and wasn't delivering any financial benefits from achieving larger scale. From 2018 to 2021, the business grew revenue 212%, but only grew gross profit 63%. That's a problem when operating expenses grow 302%. The result was unsurprising: Operating cash outflows swelled 507% in that span.
Musk & $MANU: To Buy or Not to Buy, That is the Question
To buy or not to buy, that is the questionThroughout the world of football giants, the name of the Red Devil $Manchester United PLC(MANU)$, in the football world status is absolutely famous and powerful existence. But the Red Devils, in recent seasons, seem to have lost their mojo. The lineup of Cairo, B fee, Varane, Sancho, Rashford and a host of other masters, but the record is a mess, the senior internal chaos is unbearable.Manchester United has gradually evolved from a strong team that relies on its performance to a "weblebrity" that relies on topics that bring traffic. A variety of media "true or false" news are coming, just today, another rumor about the Red Devils continue to ferment in the network: Tesla CEO Musk suddenly declared that he will buy Manchester United.The news has really exploded in today's football world, and United fans have been running around and even feasting because of this news, and it seems that spring is coming for Manchester United for a while.In this case, the wealthy Musk suddenly got involved with Manchester United, which really made many Red Devils fans see the hope. But just a few hours later, Musk played a modern version of "teasing", he tweeted again: "this is a long-running joke on Twitter. I'm not buying any sports teams." It must be said that this wave of extreme pull makes Manchester United fans again heartbroken.Why does Musk say that?Look at Premier League, $Manchester United PLC(MANU)$ loses two games in a row, the bottom of the scoreboard.It is important to know that the team's revenue has broadcast fees, advertising and sponsorship fees and player transfer fees, which are all based on scores. If they don't make it to the Champions League or don't win the EPL title, their revenue will drop dramatically.It can even be said that the team's performance even affects the stock price.$Manchester United PLC(MANU)$ Manchester United shares rose 4.9% to $13.40 as of 5:30 a.m. Wednesday, paring a 17% gain on thin volume at the start of early trading.Trading volume in Manchester United shares and options spiked before Musk’s tweets. Open interest in call options increased to more than 60,000 contracts from around 20,000 contracts within just two trading days last week, with one call option showing 37,630 contracts changing hands on Aug. 12, according to data compiled by Bloomberg.Manchester United is valued at$4.6 billion, according to Forbes.In the most recent sale of a Premier League powerhouse, a group led by billionaire Todd Boehly agreed to buy Chelsea FC from sanctioned Russian oligarch Roman Abramovich for £4.25 billion ($5.1 billion), including future investments.The Glazer family was in debt when they acquired Manchester United, leaving United with a lot of debt. One of the reasons for listing in the US is because the Glazer family's capital is all in the US, so they can cash out.Fans have protested the performance of the club under the ownership of the Glazer family, which also owns the NFL’s Tampa Bay Buccaneers. At the opening home match of the season -- a 2-1 loss to Brighton -- a large group of devotees walked toward the stadium with banners that read: “Fight greed. Fight for United. Fight Glazers” and “We want our club back.”
Musk Sells $6.9B of Tesla: Will you hold, buy or sell?
On Tuesday evening, according to documents released by Tesla, Elon Musk sold 7.92 million shares of Tesla stock, worth about $6.88 billion.Join the discussion here >>Musk just made a big pie about "buying back shares" at the shareholder meeting shortly after ......According to the documents, the transaction took place between August 5 and 9. And $Tesla (TSLA)$ just held its 2022 annual meeting of shareholders in Austin, Texas, on August 4.Musk was also asked how Tesla plans to use its capital in coming years. He said Tesla will primarily increase its capital expenditures and research and development spending “as fast as we can do so without wasting it.” He added that “a sort of share buyback is possible,” depending on what Tesla’s future cash flow looks like. He “wouldn’t want to commit” to Tesla share buybacks just yet, and that a force majeure event somewhere could change the equation. However, he reiterated that if Tesla’s future cashflow is looking solid, and the world is “relatively stable,” then a “share buyback is on the table.”In April this year, after the announcement of the acquisition of Twitter, Musk sold a total of 4.4 million shares of Tesla stock, worth about $4 billion, through a series of transactions from April 26 to April 27, when he also vowed to announce on Twitter: "No further TSLA sales planned after today"Cash out in case the deal to buy Twitter is forced to be executedIn July, Musk announced the suspension of the acquisition of Twitter because $Twitter (TWTR)$ failed to provide him with all information in a timely manner, and on July 12, Twitter filed a lawsuit against Musk for performance at the promised price.So according to Musk, the sale, mainly because he needed the cash in case the deal to buy Twitter was forced to be executed and some equity partners did not reach an agreement, so it was important to avoid an emergency sale of Tesla shares. Musk has reportedly sold about $32 billion worth of Tesla stock in the past 10 months, and Tesla stock has fallen about 20% during the year.CEO of TrueMark Investments has said before that Musk could sell Tesla shares regardless of how the Twitter deal ends up.A user on Twitter asked Musk if he would buy Tesla stock again if the Twitter deal was cancelled, and Musk replied, "Yes."[Topic]Musk Sells $6.9B of Tesla: Will you hold, buy or sell?[Rewards]1. Tigers will be given50-200 coins randomly according to the post's quality and users' interaction2. Tigers with the most high-quality posts will be given 500 coins each(NOTES: Comments made under this article WILL NOT be counted)Enter the Topic Page to make a post & win Tiger coins as rewards >>
What is Your Target Price of SOFI After Earnings Beat Expectations?
$SoFi Technologies Inc.(SOFI)$: Shares of SoFi rose 28% after the company beat expectations with its latest results and signaled various benefits stemming from its bank charter.What is Your Target Price After Earnings?Join the discussion here >>EarningsThe company reported a second-quarter net loss of $95.8 million, or $0.12 per share.SoFi posted adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $20 million, up from $11 million a year before.Revenue increased to $362 million from $231 million.SoFi saw $2.5 million in personal loan originations during its second quarter, which marked a 91% rise relative to a year prior.The company disclosed that student-loan volume of $399 million to the quarter was down to about 25% of SoFi’s average pre-pandemic volume “as the moratorium on student loan payments continues to weigh on the business.” Home-loan originations fell by more than half to $332 million, which the company attributed in part to rising interest rates.Noto shared on the earnings call that the company was seeing strong benefits from the bank charterit officially obtained at the start of the year.Additionally, the company has seen improved deposit and spending trends.“To put this in perspective, it took three years to accumulate our first $1 billion of deposits and just three months to grow another $1.6 billion,” Noto said. “In addition, approximately 80% of our deposits are from direct-deposit members, demonstrating the quality and stickiness of these deposits.”For the third quarter, SoFi executives model adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $75 million to $80 million, whereas analysts were expecting $35 million.[Topic]What're your thoughts on $SoFi Technologies Inc.(SOFI)$? Are you long or short on this stock?[Rewards]1. Tigers will be given 50-200 coinsrandomly according to the post's quality and users' interaction2. Tigers with the most high-quality posts will be given 500 coins each(NOTES: Comments madeunder this article WILL NOT be counted)Enter the Topic Page to make a post & win Tiger coins as rewards >>
$AMTD International(AMTD)$ AMTD Idea Group Shares Spiking Higher in Premarket, up $3.40(+54%) after surging already 236% yesterday... Will it continue to fly higher? Will you long or short on this stock? Join the discussion here >> This Hong Kong-based financial services provider priced 16,000,000 American depository shares (“ADSs”) at $7.80 per ADS on July 15th. Yesterday on 2 Aug, the stock topped a $400 billion valuation (+30000%) in just 2 weeks after its IPO, becoming larger than 95% of the S&P 500 stocks... And the craziest part is that nobody knows why. Even the company released a note today saying, “During the period since our initial public offering, the Company noted significant volatility in our ADS price and, also observed some very active trading volume. To our knowledge, there are no material circumstances, events nor other matters relating to our Company’s business and operating activities since the IPO date. "[Topic] What're your thoughts on $AMTD International(AMTD)$$AMTD Digital Inc.(HKD)$ ? Are you long or short on this stock? [Rewards]1. Tigers will be given 50-200 coins randomly according to the post's quality and users' interaction2. Tigers with the most high-quality posts will be given 500 coins each(NOTES: Comments made under this article WILL NOT be counted)Enter the Topic Page to make a post & win Tiger coins as rewards >>
How You Should React to Apple‘ $5.5bln Funding and Earnings？
1. $Apple(AAPL)$ Sells $5.5 Billion of Bonds to Fund Buybacks, DividendsApple Deserves a Surge after earning, What indicator shall we pay attention??Photographer: Chris Ratcliffe/BloombergApple Inc.tapped the US high-grade bond market Monday with a $5.5 billion sale in four parts.The longest portion of theoffering, a 40-year security, yields 118 basis points over US Treasuries, down from initial price discussions in the 150 basis points range. The order book for the sale peaked at more than $23 billion, a person with knowledge of the demand said，source from bloomberg.As reported, Goldman Sachs, JPMorgan Chase and Bank of America are responsible for the bond offering.The same time, many of the big banks have issued massive amounts of corporate debt following their results, making July's supply of corporate debt larger than expected. Analysts expect the momentum to continue into this week, with Wall Street expected to issue about $30 billion in new high-grade bonds.2. Why did Apple raise Funds by issuing corporate bonds?Some analysts say companies that issue debt financing appear to be taking advantage of the recent stability in the corporate market and relatively low funding costs.In recent years, Apple has been reducing its massive cash hoard in recent hundreds of billions of dollars worth of share buybacks and dividends. Apple's cash and cash equivalents reserves total nearly $180 billion, and the company has paid dividends of about $14 billion a year over the past three years.Recent earnings data show that Apple generated nearly $23 billion in operating cash flow, returned more than $28 billion to shareholders, and continued to invest in the company's long-term growth plans.Bloomberg Intelligence analyst Robert Schiffman wrote on Monday:Apple continues to raise tens of billions of dollars a year, more because of its confidence in expanding cash flow than operational needs.Apple said:it intends to use the net proceeds from the bond issuance for general corporate purposes, including buybacks and a planned dividend payment to return capital to shareholders, fund working capital, capital expenditures, acquisitions and debt repayment.As for Apple's large-scale bond issuance, the market has long pointed out that it is mainly to avoid the taxes that need to be paid when the huge overseas cash is directly transferred back to the United States.Apple stores a large amount of cash outside the United States. If the cash is directly transferred back to the United States, it will need to pay huge taxes. However, it raises funds by issuing bonds. Although it needs to pay interest to buyers when the bonds mature, the interest will not be paid. The scale is small compared to the size of the tax to directly transfer funds back to the United States.Prior to that, on July 30, 2021, Apple issued $6.5 billion worth of bonds in the U.S. investment-grade bond market in four tranches to raise funds to return more cash to shareholders. This is the fourth time Apple has raised debt since May 2020. In addition, in 2015, Apple announced the details of a $6.5 billion bond issuing.How does Apple's coporate debt rated?In July 2021, Standard & Poor's gave Apple's bonds an "AA+" rating.In December 2021, Moody's upgraded Apple's long-term credit rating to AAA, joining Microsoft and Johnson & Johnson as only a few U.S. companies in the S&P 500 with the highest credit ratings.Apple latest Q2 2022 earnings report showed that Apple’s quarterly revenue reached $83 billion, with earnings per share, iPhone, iPad revenue and gross margin all beating expectations, helping to ease supply chain hurdles and a cooling economy impacting its sales worry.Apple is expected to generate $665 billion in free cash flow over the next six years, on almost $3 trillion in sales, and spend $452 billion on growth.Even after spending $90 billion on buybacks this year alone, Apple is expected to finish 2027 with $664 billion in cash. Apple isn't a company, it's a nation unto itself.Over the long term, analysts expect about 11% long-term returns. Today Apple is 33% historically overvalued pricing in five years' worth of growth, with literally zero fundamentally justified upside over the next five years.As of posting, Apple edged down 0.9% in premarket trading on Tuesday, with up 18.86% in the past July and YTD in 2022 is -9.04%. Question For You:Apple is one of the most beloved companies on Wall Street, Are you a longterm investor of APPLE, What target Price you believe Apple will arrive?
Ford Catches Eye Again: Q2 Earnings Beat Estimates & Accelerates EV Push
As the outlook for inflation is unpredictable and the Fed continues to raise interest rates, there are growing concerns that the U.S. economy is about to fall into recession, with the auto industry being hit the hardest.So far this year, Ford is down 39%, compared to a 16% drop in the S&P 500 over the same period.$Ford(F)$Ford convinced investors through its earnings performance that the company would not fall into the red and that everything would improve in the second half of the year, and maintained its full-year earnings forecast.Ford Q2 Earnings Beat EstimatesFord shares popped after the company beat earnings and revenue expectations, with a substantial jump in operating income.Ford said adjusted EBIT, jumped to $3.7 billion from $1.1 billion a year ago, as its margin improved to 9.3% from 3.9% on supply chain improvements and a more profitable mix of products sold.But despite that gain, Ford’s net income was just $667 million after it accounted for a $2.4 billion decline in the value of its stake in electric vehicle startup $Rivian Automotive, Inc.(RIVN)$.Despite ongoing supply chain challenges, the automaker was able to build more of its popular models for its U.S. dealers than a year ago. That was good news for the company’s profit margins, as those incremental SUV sales largely replaced sales of Ford’s now-discontinued and less-profitable car models.However, inflation — specifically, higher prices for key commodities and transportation — offset those gains to some extent.Ford also reported $2.9 billion in operating cash flow and $3.6 billion in adjusted free cash flow, leading the board of directors today to issue a dividend of $0.15 a share for all outstanding stock.Starting next year, Ford will operate and report financial results around: Ford Blue - the traditional ICE (internal combustion engine) businessFord Model e - the EV business along with software and connected servicesFord Pro – the commercial and government vehicles business unit.Ford accelerates EV pushAlthough it is important to control costs, however, for important business, it is necessary to spend money.Last week Ford reiterated that it was on track to build 600,000 EVs annually by 2023, as it detailed new partnerships with CATL and LG Energy for raw materials and battery production. Ford said it aims to increase its annual EV production capacity to 2 million vehicles by 2026, and that it has sourced 70% of the materials needed to reach that goal.In accordance with the recently published financial statements, Ford Motor has a Beta of 1.1.Beta is a way of measuring a stock's volatility compared with the overall market's volatility. The market as a whole has a beta of 1. Stocks with a value greater than 1 are more volatile than the market.This is 30.95% higher than that of the Consumer Cyclical sector and 30.95% higher than that of the Auto Manufacturers industry.SHARE YOUR THOUGHTSDo you think Ford will be able to meet its expectations of producing 600,000 EVs annually by 2023?
Why Tesla Dumps Bitcoin？Where is the TSLA Short-term Resistence？
There are no big surprises or shocks in the earnings of $Tesla Motors(TSLA)$ . For a high-growth company, it is ok for the performance last quarter.Tesla's share price catalyst has never been based on earnings, mainly depending on the number of deliveries or on Elon Musk. However, there are still concerns if you look at Tesla's quarterly report.Sold 75% of Bitcoin HoldingsTesla sold $936 million worth of bitcoin in the second quarter, accounting for 75% of its holdings. It had just $218 million in Bitcoin remaining on its balance sheet, compared to $1.26 billion in the first quarter.With the cryptocurrency trading down nearly 66% from its highs of about $69,000 per token last November, many investors have been feeling the pain. Musk seems to have timed the market well, as a rough calculation implies Tesla lost only around $189 million from its initial Bitcoin investment, based on the difference between its $936 million conversion of Bitcoin into fiat and 75% of its initial $1.5 billion outlay, which comes to $1.125 billion.Initial: $1.5 billionLost: $1.125 billion(75% of $1.5 billion) - $936 million = $189 millionCash Flow of Tesla If Tesla doesn't sell bitcoin, Tesla's cash flow would have gone from +$800 million to -$100 million. Tesla has had negative cash flow for the past four quarters, which isn't a big deal.Tesla's operating activities have been able to generate stable cash flow. The problem of Tesla's negative cash flow is mainly due to the large investment costs and debt costs.However, there is a cost of up to $1.3 billion called "Changes in operating assets and liabilities". That's why Elon Musk sold bitcoin to keep the positive cash flow.What items are included? The table below is a summary of this item for the past 4 quarters (excluding the latest 2 quarters). Since Tesla has not filed a formal financial report with the SEC, it is not clear what the specific performance of the second quarter will be, so we can only speculate on the first quarter and previous data.Of these sub-items that are negative to operating cash flow, "other non-current assets" have been in the hundreds of millions over the past quarters. The reasons for converting cash into "other non-current assets" may be land investments, equipment factories, goodwill, long-term investments, etc. It is hard to convert the assets into cash. It is unclear whether most of the $1.3 billion in the second quarter also went into "other non-current assets", and if so, we need to know more about where it is, whether it is a one-time or long-term expense.Decrease in OrdersMusk has said several times recently that Tesla may decrease the sell prices. If Tesla's price increase is a confident expression of "strong consumption", then Musk's suggestion of Tesla's price reduction is easy to associate with "consumption weakened."In addition, Musk's recent remarks on economic expectations and the decision to lay off have many speculating about weaker order numbers.In this conference call, some analysts also asked this question:“Are you seeing any sort of pressure in the order book?”“Well, right now, our problem is very much production.”“Specifically on your question, are we seeing a macroeconomic impact on our demand?"“Some maybe, but it's…”It's no surprise, that even iPhones experience sluggish consumption. Cars have longer life cycles. The key question is, what can Tesla do after the number of Tesla orders decrease?Currently, Tesla still has a lot of orders. Musk said that the waiting period for a car is 6-12 months, which is enough for Tesla. Due to Tesla's high gross profit margin, there is still room for the price reduction. Tesla's price reduction will certainly attract consumers.After price reduction, Tesla has to rely on new cars or new products to dominate the industry. In this conference call, Musk was very confident about the launch of the self-driving FSD and said he would continue to raise prices. As for the Tesla truck, it may not be mass-produced and delivered until next year.Short-term Price Pressure-$857or $908? Below are $Tesla Motors(TSLA)$ 's technical perspective resistance prices in short-term.First Weekly chart showing that, there may have selling pressure once Tesla touched to 30-WMA(price at $857).Pressure at WMA 30/$857From the Day chart, we can see tesla broker through few recent highs since May, and the next pressure price would be close to 200DMA at $908.Pressure at DMA200/$908.34Final Question For You：Do you have strong confidence in Tesla?What‘s you short term or long term target price of Tesla? ( It will split stocks in August 4th)
Twitter's Early Wins: A Five-day Trial in October. What Will be the Result?
$Tesla Motors(TSLA)$ CEO Elon Musk and $Twitter(TWTR)$'s legal team launched the first hand-to-hand combat, but Musk lost the first game, and the judge ruled that the Twitter acquisition case should be resolved quickly.Chief Judge Kathaleen McCormick of the Delaware Court of Chancery ruled that the case will undergo a five-day fast-track trial in October this year, rejecting Musk’s request for another hearing next year. The result is closer to Twitter's demands, which had previously called for a 4-day fast-track trial in September.Justice Katherine said in her ruling that generally, the longer a merger deal is pending, the greater the uncertainty the seller faces and the greater the risk of irreparable harm. Twitter’s lawyer, William Savitt, also said at the hearing that the company’s request for a fast-track trial was in line with the timelines of previous cases, and that it was necessary to enter the fast-track review process in order to prevent Musk from pulling out of the deal and continuing to derogate from the company’s continued harm.Musk's lawyer Andrew Rossman said that this time is not enough to review the massive data of Twitter, and Musk hopes to prove the percentage of spam accounts on the platform. Rossman accused Twitter of wanting a quick trial in order to continue its "coverup."Savitt countered, however, that juggling the percentage of junk accounts was unnecessary in this case because nothing in the merger agreement addressed the issue.Rossman stressed at the hearing that the key juncture in the case is April next year, when the financing commitments for the acquisition will expire. At the same time, Musk is also the second largest shareholder of Twitter, and there is no reason to hurt the company at all.SHARE YOUR THOUGHTSWhat Will be the Result?You may be rewarded with Tiger Coins for sharing your thoughts in the comment💸💸💸Follow me! Don't forget I am the richest tiger in this community😎😎