The Market News Reel for this week! Get the most important market news & updates for the week ahead each Monday!
Major headlines, excerpts from news sources and a link to the full article are shown below. "Breaking Thoughts" section is purely our opinion.
Rivian Releases its S-1 IPO filing, reveals $1 billion 2021 loss
"Rivian Automotive Inc., the maker of electric pickups backed by Amazon.com Inc., disclosed a nearly US$1 billion net loss in the first half of the year in its initial public offering paperwork Friday.
The Irvine, California-based startup in a filing with the U.S. Securities and Exchange Commission listed the size of the offering as US$100 million, a placeholder that will change when terms of the share sale are set.
Rivian was seeking to be valued at about US$80 billion in a listing" - read more on BNN Bloomberg here
Breaking Thoughts: Going through Rivian's S-1, several interesting things are apparent:
- Rivian pitches itself as a technology platform with apps, driver assistance AI and in car entertainment.
- Ramping up production above a few prototypes is extremely difficult and expensive. Rivian has burned through $2.5 billion since 2019, while at the same time not delivering a single vehicle to customers.
- Its $80 billion valuation should be kept in perspective, Tesla was public in 2016-2018 delivering tens of thousands of vehicles ($10s of billions in sales) while having a roughly $30-45 billion market capitalization. Rivian is now worth twice that before making even $1.00 in sales.
- Their electric trucks look awesome, inside and out!
We hope they succeed as a company as the world needs more EV makers.
Tesla Hits Record Deliveries of 241,300 cars in Q3
"Tesla delivered 241,300 vehicles globally in the July to September quarter, up 73% from a year earlier. Analysts had expected the electric-car maker to deliver 229,242 vehicles, according to Refinitiv data.
General Motors (GM.N), Honda (7267.T) and some of its bigger rivals posted declines in U.S. sales in the third quarter, hit by a prolonged chip shortage. GM's third-quarter U.S. sales fell nearly 33% to its lowest level in more than a decade." - read more on Reuters here
Breaking Thoughts: Tesla continues stellar above estimated growth, despite the global chip shortage. Tesla is having its annual shareholder meeting in Austin, Texas on October 7th this week where they will announce many more updates about their progress. Watch live here.
One of the reasons they were able to keep production up and running was that they re-engineered several microcontrollers to use different chips that they had in stock, while many other automakers sat idol.
Traditional auto makers are seeing sales fall 33% this year and are primarily blaming supply shortages, we will wait to see if their sales can recover next year as supply shortages ease.
Netflix Stock Hits All Time High on New Shows Viewership
"Netflix Inc. shares closed at a record on Thursday, the latest sign that Wall Street is optimistic a steady stream of hit shows will keep subscribers coming.
Recent stock gains have been fueled by the return or debut of well-known titles, including new seasons of “The Witcher” and the sitcom “Seinfeld.” But the latest lift has come from the South Korean action-drama series “Squid Game,” whose massive popularity appears to be an early indicator of stronger user trends, Bloomberg Intelligence wrote on Wednesday." - read more on BNN Bloomberg here
Breaking Thoughts: Netflix's sharing of international content helps unify the world through media, kinda cool. As traditional media companies attempt to make their own streaming services, the lead that Netflix has in global content + audience will be hard to compete with.
Major Earnings This Week
Tuesday October 5:
PepsiCo (PEP): Expected Q3 earnings of $1.73 per share
Wednesday October 6:
Constellation Brands (STZ): Expected Q2 earnings of $2.77 per share
Levi Strauss (LEVI): Expected Q3 earnings of $0.37 per share
Thursday October 7:
Tilray (TLRY): Expected Q1 earnings of -$0.07 per share
Major IPOs Expected This Week
Wednesday October 6:
iFIT Health & Fitness (IFIT) raising up to $600M at a $6.6B valuation
See you next week!
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