Morning Market Feed, May 21st
Weight loss drugs are all the rage and we have another player entering the arena, whilst entering the arena, the stock price is shooting up about 30% on the day. Furthermore, we see Palo Alto Networks report earnings which reacted with a -9% reading after the release. We also see more entertainment from EV land with news coming from Polestar and Tesla, as we start to look at Nvidia earnings. All sources will be listed at the bottom of the article, let’s dive straight into it!
S&P500 +0.12% | Dow Jones -0.46% | Nasdaq +0.70% | Russell2000 +0.22% | 10-year 4.49%
EV Land Keeps The Newswheel Spinning
As per the latest news, Tesla is set to fire even more employees as morale starts to run low at the company. By now I start to ask what is to all these lay-offs. It should have been 10% of staff, but we have seen at least 3 news articles going over even more lay-offs like Musk firing almost the entire supercharger team. The article I’m referring to today goes over how last week, Musk canceled another 693 jobs at Nevada facilities as now China is looking to get some more names scratched from payroll.
Other EV news is regarding Polestar. This is not a stock that typically falls within the boundaries of stocks I’m looking for, however, it is a stock I have owned in the past and have done relatively great by cutting a small loss, about -15% at the time, compared to where it trades now. The company that entered the markets as a SPAC merger in 2021 during the EV hype is now facing Nasdaq delisting as investors are still waiting for the annual report. The company has said to be working on it as they have 60 days left to do this. In the filing the company released in order to notify investors of not meeting the required deadline, the company also said it needed to review historical errors it had found. Shares are down about 11.5% following the de-listing warning.
He’s Him!, Or Her!
Hims & Hers announced that it now unlocked excess to injectable GLP-1 medication. The compound originally found in diabetes drugs that took the weight loss world by storm has caused Ozempic and Wegovy to be short on supply, so Hims & Hers now offers an affordable solution starting at just $199 per month. Depending on what you buy when on a diet, this could even be more affordable. Shares of the company are up about 30% on the news that the company adds this compound to their offering of weight loss solutions.
Palo Alto Networks
Palo Alto Networks is down about 9% after releasing their earnings, even though they beat analyst expectations. The number came in as followed:
EPS $1.32 vs $1.25
Revenues of 1.985 billion dollars vs 1.968 billion dollars expected
these numbers look good so the problem must then lie in the guide. And this is somewhat true as guidance came in right in line with analyst expectations. So why sell off 9%? The company switched strategies last quarter in which they want to sell to customers and this new strategy is so far failing to impress.
FED Speakers
Yesterday saw an entire shopping list of FED speakers. Not that they said anything original, but plenty was said. The main message? “Interest rates will stay higher for longer and the slowdown in the disinflation is something to watch”. So that is nothing new or spectacular. For today there are once again 5 FED officials planned to speak. Take a guess what I expect them to say?
Source Tesla Article
Source Polestar Article
Source Polestar SEC Filing
Hims&Hers Source
Palo Alto Networks Earnings Release
Palo Alto Networks Article
