Where Do Your Megabytes Go?

Good morning and how are you doing? Welcome to this week’s edition of 4 Customs Street, our weekly newsletter on the stock market.

The newsletter is divided into two:?

• Green White Green—focused on the Nigerian stock market.?
• Star-Spangled Banner—focused on the US stock market.

The title of this week’s newsletter is, in some ways, a continuation from last week. US stocks are still in the red. Nigerian stocks are still moving up.?

Green White Green Last Week?

The good times are still on at 4 Customs Street. Last week, the stock market gained 4.25%. That might seem small if you are into volatile assets like cryptocurrencies. So far this year, the stock market is up 24.1%.?

Where do your megabytes go??

Airtel Africa released its results for the financial year ended March 2022. It made $4.7 billion in revenue and a profit after tax of $755 million.

Airtel Africa operates in 14 countries including Nigeria—this accounted for $1.8 billion or 39.8% of the group’s total revenue.?

The bulk of that came from voice which earned it $985 million and data which earned it $734 million.?

Data customers accounted for 20.3 million or 45.7% of the 44.3 million customers in Nigeria.?

Telcos are even more keen on 4G customers because their data consumption is much higher. While other data subscribers used an average of 4.2 gigabytes per month. 4G users consumed an average of 6.5 gigabytes per month.?

Sometime this year, the company’s? payment service bank will commence operations. This will enable Airtel to provide mobile financial services in Nigeria, such as accepting cash deposits and carrying out payments and remittances.?

Green White Green This Week?

A few companies may release their delayed results any moment from now.?

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Star-Spangled Banner Last Week?

Elon Musk may be having second thoughts about acquiring Twitter. A few days ago, he put out a tweet stating the deal was now on hold as he queried the number of spam accounts on Twitter’s user base. Twitter’s most recent results put that number at a bit under 5% of its 229 million users.

Some analysts are of the opinion Elon may be looking for a way to buy the company at a cheaper price.?

It could also be an excuse by him to walk away. In order to fund the transaction, he sold some Tesla shares and will use some as collateral for a loan. Tesla’s price has dipped a bit since then, meaning he would need to find more cash or have more shares as collateral.?

If he walks away, he could face a lawsuit for breach of contract that could cost in excess of the $1 billion termination fee agreed.?

Star-Spangled Banner This Week?

Everyone’s feeling the pressure from higher inflation. Both consumers and retailers. As Walmart, Target, Home Depot, Lowe's and Macy's drop their quarterly earnings during the week, investors would want to know if they will bear the pressure from higher costs or pass it on to consumers.

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