Latest news with #AndrewRocco
Time of India
6 days ago
- Automotive
- Time of India
Tesla says it started building initial versions of an affordable car, posts a steep sales decline
Tesla said on Wednesday it has built initial versions of an affordable car, a move likely meant to stem the steep decline in sales the company has experienced in markets across the world. Elon Musk 's electric vehicle maker posted the worst quarterly sales decline in more than a decade and profit that missed Wall Street targets, but its profit margin on making cars was better than many feared. "Tesla's disappointing results aren't surprising given the rocky road it's traveled recently. But the company maintains a strong foundation in the key growth sectors of energy storage , robotics, and AI-powered transportation. While traditional automakers like GM are gaining EV market share, we can expect that Tesla will continue pushing the needle on innovation if it can get a better handle on its current leadership distractions. Key challenges that will linger are supply chain risks related to its reliance on China and fierce competition from Chinese EV makers in that market. Tesla doesn't need to choose between cars and future tech. There are technical synergies between EVs, robotaxis, energy systems, and robotics that could accelerate innovation across all fronts. The question is whether leadership can execute on this integrated vision in this fast-moving market." Andrew Rocco, stock strategist, Zacks Investment Research, Chicago: "Tesla delivered earnings Wednesday night that fell short of top-and-bottom line expectations slightly. Despite the earnings miss, Tesla shares were buoyed early by the fact that the bleeding in gross margins has seemingly come to a halt, with gross margins coming in at 17.2% versus Wall Street estimates of 16.5%. The gross margin beat is especially impressive when investors consider that Tesla has been offering generous incentives and lower prices to its consumers. Coming in to the report, Wall Street expectations were dire amid a slowing core EV business and CEO Elon Musk's reputational damage on both sides of the political aisle. Nevertheless, Tesla has limped over the low bar that was a dramatic earnings miss and delivered earnings that were better than most feared. Additionally, news broke right before the market closed that Tesla is in "early talks" with the state of Nevada to expand its robotaxi service . If Tesla can convince investors that it will scale its robotaxi service rapidly, shareholders will be more forgiving regarding the core EV business, as Musk and his team look to expand into new verticals, transitioning and diversifying the business." Thomas Monteiro, senior analyst, "Although still far from what fundamentals would suggest for a trillion-dollar company, Tesla's latest numbers do spark some optimism, indicating that the worst is likely behind it-at least in terms of the core auto business. Given the plethora of headwinds faced during the difficult Q2 - both internally and on the macro front - margin deterioration appears to have come in at the lower end of the curve. When combined with improving cyclical demand dynamics in markets like China and parts of the US, this suggests that full-year results might not be as dire as previously expected following the disastrous first half of the year. This also shows that the company has weathered the tariff storm somewhat better than initially projected, optimizing the production/delivery equation in the US. While it remains unclear how much of a hit regulatory credits will take in Q3, it's evident the company will need to continue refining its production strategy elsewhere to better navigate the second half. From this perspective, recent product announcements are aligned with those strategic needs-particularly around the highly anticipated Model 2 . With Tesla entering the Indian market and working to regain ground in China, we view this as a potential game-changer for H2. All things considered-and while we're still a ways off from seeing true fundamental support for the current share price-the outlook for the core business is looking somewhat better. This could continue to support Tesla's long-term transition into a fully AI/robotics-driven company, which appears to be where Musk is placing his bets."
Yahoo
18-06-2025
- Automotive
- Yahoo
Tesla's Robotaxi Launch Is Days Away -- And the Stock Market Smell Blood or Brilliance
Tesla (NASDAQ:TSLA) is back in motionup 2.17% at 10.40am today as Wall Street turns its attention to one thing: robotaxis. The electric vehicle giant is just days away from launching its autonomous ride-hailing service in Austin, and the stakes couldn't be higher. Traders are bracing for turbulence. After a 3.9% slide on Tuesday, the stock has been bouncing around as the countdown begins. Whether the launch goes off smoothlyor runs into app bugs, protests, or worsecould shape Tesla's near-term price action. For those with a shorter time horizon, it's a textbook profit-taking setup. Tesla has already surged 33% since its April 22 earnings, and Zacks strategist Andrew Rocco, who holds the stock in the Technology Innovators Portfolio, thinks traders might want to lock in gains before any post-launch noise hits. But longer-term investors are watching for something bigger. People are starting to price in robotaxi, Rocco said. The thesis? Tesla has been quietly laying the groundwork for scalemost Model 3 and Model Y cars sold in recent years could become robotaxis with software updates. That gives Tesla a shot at catching up to Waymo, which currently handles over 250,000 autonomous rides weekly using just 1,500 vehicles. Still, this isn't a done deal. Bulls are betting the launch will validate Tesla's AI strategy and unlock a high-margin business model built on autonomous networks. Bears, on the other hand, aren't buying the hypenot yet. They're focused on sagging car sales and the regulatory uncertainties ahead. The launch might turn into a milestone momentor a speed bump. But one thing's for sure: how Tesla handles the next few weeks could reshape how the market values its future. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-06-2025
- Automotive
- Yahoo
Tesla's Robotaxi Launch Is Days Away -- And the Stock Market Smell Blood or Brilliance
Tesla (NASDAQ:TSLA) is back in motionup 2.17% at 10.40am today as Wall Street turns its attention to one thing: robotaxis. The electric vehicle giant is just days away from launching its autonomous ride-hailing service in Austin, and the stakes couldn't be higher. Traders are bracing for turbulence. After a 3.9% slide on Tuesday, the stock has been bouncing around as the countdown begins. Whether the launch goes off smoothlyor runs into app bugs, protests, or worsecould shape Tesla's near-term price action. For those with a shorter time horizon, it's a textbook profit-taking setup. Tesla has already surged 33% since its April 22 earnings, and Zacks strategist Andrew Rocco, who holds the stock in the Technology Innovators Portfolio, thinks traders might want to lock in gains before any post-launch noise hits. But longer-term investors are watching for something bigger. People are starting to price in robotaxi, Rocco said. The thesis? Tesla has been quietly laying the groundwork for scalemost Model 3 and Model Y cars sold in recent years could become robotaxis with software updates. That gives Tesla a shot at catching up to Waymo, which currently handles over 250,000 autonomous rides weekly using just 1,500 vehicles. Still, this isn't a done deal. Bulls are betting the launch will validate Tesla's AI strategy and unlock a high-margin business model built on autonomous networks. Bears, on the other hand, aren't buying the hypenot yet. They're focused on sagging car sales and the regulatory uncertainties ahead. The launch might turn into a milestone momentor a speed bump. But one thing's for sure: how Tesla handles the next few weeks could reshape how the market values its future. This article first appeared on GuruFocus.
Yahoo
09-05-2025
- Automotive
- Yahoo
Trending tickers: latest investor updates on TSMC, Lyft, Coinbase, Pinterest and IAG
Taiwan Semiconductor Manufacturing Company (TSMC) ( TSM), the world's largest contract chipmaker, reported a surge in sales for April, driven by a wave of stockpiling ahead of US tariffs on imports. The company, which supplies major tech players such as Nvidia (NVDA) and Apple (AAPL), posted sales of NT$349.6bn (£8.7bn/$11.5bn) for the month, marking a 48.1% increase from the same period last year and a 22.2% rise from March. Read more: FTSE 100 LIVE: Stocks rise on trade deal optimism as Chinese exports to US slump The spike in revenue followed US president Donald Trump's announcement on 2 April of tariffs on trade partners. Though the tariffs were temporarily paused for 90 days, the move prompted companies across the US to accelerate imports in anticipation of the duties taking effect. TSMC, which is a key supplier for global technology giants, reported a 43.5% rise in revenue for the first four months of the year, reaching NT$1.2tn. Shares in Lyft (LYFT) rose more than 7% in pre-market trading on Friday after the ride-hailing company beat earnings expectations, reported record ride volumes, and unveiled a $750m (£565m) share buyback programme aimed at boosting investor confidence. For the quarter ending 31 March, Lyft reported adjusted earnings per share of 24 cents, up from 7 cents a year earlier and ahead of the 19 cents forecast by analysts. Revenue grew 14% year-on-year to $1.45bn, slightly below the expected $1.47bn. The company forecast ride growth in the mid-teens % range year-on-year, signalling continued strength in rider demand. Lyft also announced an expansion of its share repurchase programme to $750m, a move seen as supportive for its stock price. Read more: Oil prices rise ahead of US-China trade talks "The buyback will help to tamp down the supply of shares and make earnings per share look more attractive," said Andrew Rocco, stock strategist at Zacks Investment Research. For the second quarter, Lyft expects gross bookings between $4.41bn and $4.57bn, compared with analysts' estimates of $4.5bn. It forecast adjusted EBITDA in the range of $115m to $130m, largely in line with consensus. Shares in Coinbase were down by 2.6% ahead of the US opening bell after the company reported first-quarter earnings that missed Wall Street's expectations, despite growth in stablecoin revenue. For the quarter ending 31 March, Coinbase posted a net income of $65.6m, or 24 cents per share, a drop from $1.18bn, or $4.40 per share, in the same period last year. Excluding the impact of crypto investments, the company's adjusted earnings were $527m, or $1.94 per share. Revenue rose to $2.03bn, up from $1.64bn a year ago, but still came in below the consensus estimate of $2.12bn from LSEG. Transaction-based revenue totalled $1.26bn, while subscription and services revenue stood at $698.1m for the quarter. Read more: Stocks that are trending today Coinbase, which operates the largest cryptocurrency marketplace in the US, reported a 17% decline in consumer trading volume from the previous quarter, down to $78.1bn. The elevated volumes at the end of 2024 had been driven by optimism surrounding the election of Trump and expectations of a more crypto-friendly regulatory environment. Institutional trading volume also saw a dip, falling 9% from the fourth quarter to $315bn. In a strategic move, Coinbase announced plans to acquire Dubai-based crypto derivatives exchange Deribit for $2.9bn, marking the largest deal in the crypto sector to date. The acquisition will help Coinbase expand its footprint outside the US. Shares in Pinterest surged 14% in pre-market trading on Friday, following a 15% climb after the company reported first-quarter earnings that exceeded expectations and offered better-than-expected guidance for the second quarter. Pinterest's revenue for Q1 came in at $855m, exceeding estimates of $846.6m. However, adjusted earnings per share of 23 cents missed analysts' expectations of 26 cents. The company forecasted second-quarter sales in the range of $960m to $980m, with the midpoint surpassing analysts' expectations of $966m. Stocks: Create your watchlist and portfolio Pinterest also reported 570 million monthly active users for the quarter, ahead of Wall Street estimates of 565 million. The company logged $172m in adjusted EBITDA for the first quarter, a key metric for profitability. Finance chief Julia Donnelly said on the post-earnings call that Pinterest is "not immune to the macro environment," but added that the company is confident in its "multiple revenue initiatives." "We have observed a reduction in spend from Asia-based e-commerce retailers in the US, given the change in the de minimis exemption; however, we have also seen a geographic diversification from some of those Asia-based retailers to our European and rest-of-world user regions," Donnelly added. Shares in IAG were higher as British Airways' (BA) parent company has bought 32 new Boeing (BA) planes from the US, following the country's trade agreement with the UK on Thursday. International Airlines Group (IAG) confirmed the order of the Boeing 787-10 aircraft for its BA fleet, alongside 21 Airbus ( planes for its other airlines on Friday morning. The US and the UK said they had struck what Keir Starmer called a 'historic' deal on Thursday, which saw American import taxes on British goods like cars and steel either slashed or removed completely. Read more: UK-US trade deal benefits Rolls-Royce amid tepid FTSE US commerce secretary Howard Lutnick said on Thursday that plane engines and other aeroplane parts would also be excluded from trade tariffs as part of the trade deal. 'We've agreed to let Rolls-Royce (RR.L) engines and those kinds of plane parts come over tariff-free,' he said. He told reporters that an unnamed British airline had agreed to buy $10bn (£7.56bn) of Boeing planes as the trade deal was agreed. 'Looking ahead to the next decade, these new aircraft will enable us to strengthen our core markets and further improve our customer experience,' Luis Gallego, IAG chief executive said. Other companies in the news on Friday 9 May: Macquarie ( NTT (9432.T) Mitsubishi Heavy Industries (7011.T) Commerzbank ( Orkla ( Krones ( AngloGold Ashanti (AU) Read more: Bank of England cuts interest rates to 4.25% UK house prices rise for the first time since January The most bought stocks and funds for investors in AprilSign in to access your portfolio
San Francisco Chronicle
30-04-2025
- Business
- San Francisco Chronicle
Meta's first quarter earnings, revenue beat Wall Street's expectations
Instagram and Facebook parent Meta Platforms Inc. posted better-than-expected results Wednesday for the first quarter thanks to strong advertising revenue on its social media platforms. Meta's stock climbed in extended trading after the results came out. The company earned $16.64 billion, or $6.43 per share, in the January-March period, up 35% from $12.37 billion, or $4.71 per share, in the same period a year earlier. Revenue rose 16% to $42.31 billion from $36.46 billion a year earlier. Analysts, on average, were expecting earnings of $5.23 per share on revenue of $41.34 billion, according to a poll by FactSet. For the current quarter, Meta forecast revenue in the range of $42.5 billion to $45.5 billion. Analysts are expecting $43.84 billion. The Menlo Park, California-based company also raised its capital expenditures estimate for 2025 to $64 billion-$72 billion, up from its prior outlook of $60 billion-$65 billion. Meta said the new guidance 'reflects additional data center investments to support our artificial intelligence efforts as well as an increase in the expected cost of infrastructure hardware.' 'We've had a strong start to an important year, our community continues to grow and our business is performing very well,' CEO Mark Zuckerberg said in a statement. 'We're making good progress on AI glasses and Meta AI, which now has almost 1 billion monthly actives.' Zacks Investment Research analyst Andrew Rocco said that while many companies have not been providing guidance amid tariff concerns and an uncertain economic environment, the fact that Meta did is a 'bullish sign.' On Tuesday, Meta released a standalone AI app, called Meta AI, that includes a 'discover' feed that lets users see how others are interacting with AI. Meta shares jumped $24.20, or 4.4%, to $573.20 in after-hours trading. The stock is down about 8% year-to-date.
