(Beata Zawrzel/Getty Images) |
Waiting for that direct deposit to hit |
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It seems like actors don't have to worry about AI taking their jobs just yet: TV maker TCL's streaming service dropped a trailer for an AI-animated rom-com and it's… unsettling. Yesterday, stocks sealed their longest losing streak since January, as tech names dragged down the market. Today Netflix is on deck to report earnings. |
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"Restore shareholder democracy"... by approving Elon Musk's $56B pay package. That's what Tesla urged its shareholders to do yesterday for the second time. Musk's pay was rejected in January by a judge who said Tesla's process in arriving at the "unfathomable sum" was "deeply flawed." The EV maker clapped back that 73% of shareholders had approved the plan, and that Musk hadn't been paid for his work at Tesla since 2018, when the package was first put forward. The $56B would be the largest executive pay package of all time. |
- Outta here: Shareholders will vote again to yea or nay Musk's pay in June, when they'll also decide whether Tesla should be reincorporated in Texas from Delaware — a move proposed after a Delaware judge rejected Musk's pay package.
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Awkward timing… to ask for a raise. One analyst called Tesla's first-quarter earnings a "nightmare" after it shared disappointing EV deliveries and production #s. Deliveries fell nearly 9% compared to the same quarter last year (Tesla's first annual drop in nearly four years), and the company said it'll lay off more than 10% of its workers. While Tesla blamed its bummer #s on factory disruptions, analysts pointed to a thornier reason: underwhelming EV demand. Tesla shares were down 37% for the year as of yesterday, making it one of the S&P 500's worst performers, and its delivery #s don't bode well for its earnings on Tuesday. |
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The meek shall inherit good PR… When companies struggle, outsiders tend to question whether execs deserve their pay. But opting for a smaller paycheck can be a good look: the CEOs of Alphabet, Apple, and Intel have taken pay cuts this year as tech cos lay off thousands. After Zoom said in February that it'd lay off 15% of its workforce, its CEO opted for a 98% pay reduction. |
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Singled out: sophisticated investors know that timing can be everything. Concentrated daily exposure to the moves of an individual stock can potentially yield high returns — and GraniteShares' suite of Short and Leveraged single stock ETFs* give experienced investors a way to do just that. 2 for TSLA… GraniteShares offers two ETFs with automaker Tesla (NASDAQ: TSLA) as the underlying stock: |
They're part of GraniteShares' innovative Short and Leveraged Single Stock ETFs offering — which also includes tech stocks like Alibaba, Meta, Apple, AMD, Coinbase, and Nvidia. Magnify your exposure to TSLA's daily price moves with TSLR or TSDD.** *An investment in these ETFs involve significant risks. Click each fund for more information. |
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Singled out: sophisticated investors know that timing can be everything. Concentrated daily exposure to the moves of an individual stock can potentially yield high returns — and GraniteShares' suite of Short and Leveraged single stock ETFs* give experienced investors a way to do just that. 2 for TSLA… GraniteShares offers two ETFs with automaker Tesla (NASDAQ: TSLA) as the underlying stock: |
They're part of GraniteShares' innovative Short and Leveraged Single Stock ETFs offering — which also includes tech stocks like Alibaba, Meta, Apple, AMD, Coinbase, and Nvidia. Magnify your exposure to TSLA's daily price moves with TSLR or TSDD.**
*An investment in these ETFs involve significant risks. Click each fund for more information. |
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🏦 Main Street POV… JPMorgan Chase, Citigroup, Bank of America, and Wells Fargo topped Q1 expectations, but interest income isn't what it used to be: Chase (the world's biggest bank) had its worst one-day stock drop in nearly four years after falling short on net interest income (what it earns from interest on loans and deposits, minus what it pays out for savings accounts). Wells Fargo's net interest income fell 8% for the quarter, and BoA's revenue fell as interest income dipped. America's largest banks lent billions of $$ less in Q1. Banks have raised yields on savings accounts to compete for customers, and it's starting to eat into profits. 🏦 Wall Street POV — Morgan Stanley and Goldman Sachs also beat estimates as investment banking made a big comeback. Goldman's investment banking fees surged 32% to $2.1B — the strongest quarter for the category in two years. Morgan Stanley, JPMorgan, and Citi also notched double-digit growth for their i-banking divisions. Morgan Stanley's wealth-management biz (which makes up nearly half its revenue) jumped 5%. Strong earnings and a market rally have ignited more dealmaking: global M&A volumes climbed 30% to about $755B in the first quarter. ➡️ Future POV: Banks had benefited from rising interest rates, which allowed them to earn more on loans to customers (think: mortgages, credit cards). But now that Fed rates seem to be on a "higher for longer" path, it's become a double-edged sword. Late last year, US banks were sitting on $684B in unrealized losses as high rates and rising bond yields plunged the value of their older bonds. While an IPO revival could keep Wall Street's dealmaking revenue hot, JPMorgan's CEO said geopolitical tensions and stubborn inflation create "significant uncertain forces." |
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Sherwood Spotlight: Investors are making billions betting on lawsuits |
"Litigation finance" is an alternative investment vehicle where deep-pocketed and often anonymous third parties fund lawsuits (ranging from antitrust to divorce) in exchange for a potentially big chunk of the winnings, and it's popping off right now. Litigation funder Burford Capital was awarded $6.2B after a case that it bankrolled against Argentina went its way last year: a sum that amounts to a 37,000% return on its investment. Supporters say litigation funding can help cash-strapped plaintiffs see their day in court, but critics warn that the murky industry could provide ultrawealthy companies and individuals further sway over the justice system. Read more at Sherwood. |
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| 📜 Policy… Hong Kong regulators approved spot bitcoin and ether ETFs, exciting crypto investors hopeful for an influx of institutional $$. But analysts cautioned that Hong Kong's ETF market size is a fraction of the US's, which could limit inflows. 🤖 Techy… Sam Altman's Worldcoin said it's launching an ethereum layer-2 dubbed World Chain. The vision: a network where folks can transact more easily and cheaply than bots — assuming they've been verified as "real" by Worldcoin's iris-scanning orb. 🪙 Coins… ApeCoin stumbled 30% over the past week, nearly touching its all-time low of $1. ApeCoin's slide tracked a similar drop for Bored Ape NFTs, which are closely associated with the coin and have seen their floor price fall 67% on the year. |
- Pharma: Eli Lilly stock spiked after it said its weight-loss drug, Zepbound, may help people with sleep apnea (the biz will seek FDA approval for that use). The drug's already in short supply after hot demand.
- Jumbo: Seafood icon Red Lobster is reportedly considering bankruptcy to deal with cash-flow problems stemming from pricey leases and labor costs — and possibly an expensive endless-shrimp deal.
- Wait: Alaska Airlines planes were back in the air after all its flights were temporarily grounded because of a system issue. Alaska's had a rough year: the carrier said it lost $160M as a result of Boeing's doorbacle.
- DigiCart: Amazon said it'll sell its grocery-scanning Dash Carts to other food retailers. While the company recently bailed on its "Just Walk Out" cashierless tech, smart carts could be easier to scale.
- Glitch: "Grand Theft Auto" publisher Take-Two will cut 5% of its staff and scrap several games in development. Video game cos including Sony, Microsoft, and Epic have laid off nearly 9K gaming workers this year.
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- Earnings expected from TSM, Nokia, Blackstone, D.R. Horton, Alaska Air, Elevance Health, Infosys, Netflix, PPG Industries, and Intuitive Surgical
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Authors of this Snacks own bitcoin and ethereum and shares of: Alaska Air, Alphabet, Amazon, Apple, Eli Lilly, Microsoft, and Tesla |
**Advertiser's disclosure: Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Funds, please call (844) 476 8747 or click here. Read the prospectus or summary prospectus carefully before investing. The Fund is not suitable for all investors. The investment program of the funds is speculative, entails substantial risks and includes asset classes and investment techniques not employed by most other ETFs and mutual funds. Investments in the ETFs are not bank deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund is designed to be utilized only by knowledgeable investors who understand the potential consequences of seeking daily inverse (-2 X) investment results, understand the risks associated with the use of inverse exposure and are willing to monitor their portfolios frequently. For periods longer than a single day, the Fund will lose money if the Underlying Stock's performance is flat, and it is possible that the Fund will lose money even if the Underlying Stock's performance decreases over a period longer than a single day. An investor could lose the full principal value of his/her investment within a single day.The Fund seeks daily leveraged investment results and are intended to be used as short-term trading vehicles. This Fund attempts to provide daily investment results that correspond to the respective inverse of the performance of its underlying stock (a inverse Fund). Investors should note that the fund pursues daily leveraged investment objectives, which means that the fund is riskier than alternatives that do not use leverage because the fund magnifies the performance of their underlying security. The volatility of the underlying security may affect a Fund's return as much as, or more than, the return of the underlying security.Because of daily rebalancing and the compounding of each day's return over time, the return of the Fund for periods longer than a single day will be the result of each day's returns compounded over the period, which will very likely differ from -200% of the return of the Underlying Stock over the same period. The Fund will lose money if the Underlying Stock's performance is flat over time, and as a result of daily rebalancing, the Underlying Stock volatility and the effects of compounding, it is even possible that the Fund will lose money over time while the Underlying Stock's performance decreases over a period longer than a single day. THE FUNDS ARE DISTRIBUTED BY ALPS DISTRIBUTORS, INC. GRANITESHARES IS NOT AFFILIATED WITH ALPS DISTRIBUTORS, INC. |
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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate... See more |
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