Tesla Made Its Investors Happy
The company surprised its investors yesterday when it reported its earnings. Its net quarterly profit soared. Tesla’s third-quarter profit was $143m and this built the bullish momentum for the stock. The reason for this is that the company has reported losses for the first half of the year—to the tune of $1.1 billion. So, even though the net quarterly profit wasn’t a stellar number but investors cheered it because the first two quarters were extremely appealing and given that the net amount for the first half of the year was negative and the third quarter number is positive, this is more than enough for investors to open their champaign bottles.
The stock traded nearly 20% high in the after-hour trading yesterday as investors started to build their position ahead of the normal trading hours.
The firm issued a bullish outlook and the fact that the Model Y sport utility vehicle is ahead of its schedule, it gave investors the much-needed confidence that the company is back on track.
The overall take away from Tesla’s earning is that the company is getting its cost structure in shape, its landscape has matured and perhaps the mammoth spending phase may be on the pause if not over.
RBS- The Pain Isn’t Over Yet
If there is a bank that is no short of plunders, it got to be RBS. According to its quarterly earnings report, the firm’s profit was completely wiped out due to mis-selling the insurance in the UK. The bank reported a loss of 8 million pounds and this number was towards the higher end what was expected. Remember, RBS is the institution that is still state-controlled—meaning the government still holds the majority stake in it.
RBS has been extremely bold in providing business loans and this lead the way for bad loans piled up on its books. Having the nonperforming loans on your book have a cost and the bank has paid that cost once again.
We think the only positive element about their earning was that the bank still thinks that it is on track for full-year expectation and this is despite the fact that we have dark Brexit clouds. The reason for this confidence is that the company operating profit for the nine-month is atr 2.7 billion pounds—certainly a healthy number, but not as good as the previous year when it stood at 2.8 billion pounds.
Microsoft- The Intelligent Company with Smashing Number
The world’s biggest software company reported it’s earning last night and its revenue climbed 14 percent to $33.1bn and the diluted earning per share also improved 21 percent to $1.38. Christmas is certainly early for the Microsoft investors
A company which was only polualr in making Window software changed its business model in good time. This change became one of the biggest sources of income for Microsoft. I am talking about cloud computing. It was pleasing to see that the growth is still coming in the firm’s intelligent cloud business. For Microsoft to continue to grow, we need the fastest rising area of the industry, cloud computing, the strongest part of its business model. And the company is delivering on it. If you look at the revenue from their cloud business, you can see the optimistic picture—the revenue surged by 27 percent to $10.8bn.
