?? 3 March 2023 – Okta, Tesla, & Costco
Happy Friday, everyone! ??
Are you ready for a relaxing weekend after a busy week of work and responsibilities? Before we get too comfortable, let us take a few minutes to catch up with some of the main events in the corporate world.?
On Thursday, stocks reversed their recent losses after Atlanta Fed President Raphael Bostic stated his inclination towards further quarter-point increases. The Dow added 1%, the S&P 500 gained 0.8%, and the tech-heavy NASDAQ rose 0.7%.?
Though stronger-than-expected economic data sparks worry in investors that the Fed will push the economy painfully, this earnings season is swaying sentiments in tandem. Utilities and consumer basics led the market rally, while growth stocks dropped. The 10-year Treasury note yield touched 4.072% for the first time since November 2022, while U.S. crude oil prices surged to $78.16 a barrel.?
All this and more in today’s 5-minute read!
Okta posts promising fourth-quarter results after a series of unfortunate events last year
Cloud software company?Okta (OKTA)?had a tough few years during the pandemic years – but its fourth-quarter results appear to signal the winds of change. Last year, the identity-management firm was hacked by LAPSUS$ and faced difficulty integrating Auth0 after it acquired it. Okta lost 70% of shares, having begun trading 20 times forward. Now - the company topped analyst predictions with adjusted operating income at $46 million and raised revenue projections by 1%. After welcoming ChatGPT as a client, Okta may be on the right track!
Tesla outlines cost-cutting plans and slashed prices for EVs at the investor day event
After shareholder concerns about Musk’s Twitter takeover,?Tesla (TSLA)?held an investor event to pitch the company’s “Master Plan Part 3”. The presentation gave investors insights into the company’s leadership and operations – including tactics to innovate design and manufacturing and cut costs in the process. Musk will inaugurate the new Mexico factory soon. Tesla hopes to raise vehicle sales to 20 million by 2030 – and cutting prices of the early Models S and X and second-generation Models 3 and Y in half will help reach a wider market!
Costco beats Wall Street predictions on most fronts; stocks fall 2% upon the news
Grocery store giant?Costco (COST)?posted mixed second-quarter financials that topped expectations on most fronts. Revenue fell slightly below estimates, standing at $55.27 billion. Adjusted earnings per share reached $3.30, and same-store sales rose 6.8% - both beating projections. Costco reeled in net sales of $17.06 billion last month, while membership fees accounted for $1.03 billion for the previous quarter. As consumers move away from big-ticket items and spend on the essentials, Costco’s future is tied to the state of the economy!