Good Evening. Tech stock rose for the second day in a row as all three major indices extended their gains from Tuesday.
The Nasdaq was up 1.58%, the S&P 500 was up 0.59%, and the Dow was up 0.15% as of Wednesday’s market closing.
TESLA BEAT EXPECTATIONS
Following a protracted COVID-related closure at its Shanghai production facility, Tesla (TSLA) published its Q2 earnings, exceeding analysts’ expectations.
Additionally, the business claims to have converted 75% of its Bitcoin into fiat money (most of us call fiat money… money) and added $936 million in cash to its balance sheet by selling the cryptocurrency. However, the quarter marked the end of Tesla’s run of generating record earnings.
Here are the report’s key figures in comparison to Wall Street’s predictions, as put together by Bloomberg.
Revenue: $16.90 Billion vs $16.88 Billion expected
Earnings Per Share: $2.27 vs $1.83 expected
Despite some obstacles, such as restricted production and shutdowns in Shanghai for the majority of the quarter, the company said in a statement that it managed to end the quarter with the highest vehicle production month in its corporate history, with an operating margin of 14.60%, which is among the highest in the sector.
However… rising inflation and interest rates may be Tesla’s next major worries even as production appears to be on the mend.
PARTNERSHIP
Shopify (SHOP) has disclosed a partnership with YouTube, a division of Alphabet (GOOGL), to allow retailers to sell on the video platform. Shopify wants to reach out to the increasing number of content producers who have a big impact on consumers’ purchasing decisions.
The current collaboration between Shopify and YouTube builds on an existing one with Google. Customers now have access to SHOP’s local inventory data via Google features, allowing them to learn when a specific product will be in stock.
One of the largest entertainment channels can now be integrated with online retailers thanks to the launch of YouTube Shopping on Shopify. As a result, businesses and content producers who have already launched their own products will have access to a sizable client base.
Shopify has made significant investments in creating strategic integrations with key internet businesses to deliver new services, like the Twitter TWTR sales channel, Apple’s iPhone tap-to-pay feature, and Alphabet, to battle increased competition and the current macroeconomic turbulence.
Although the company’s chances for short-term growth are dim given the state of the market, the recent integration with YouTube will assist it in the long run in generating new revenue sources, positively affecting revenue growth.