Tesla Inc. (STAR)
TSLA - Nasdaq
Fun fact: Tesla Inc. delivered 443,956 vehicles in the second quarter. To put that into perspective, it’s 443,944 more than the number of children (12) that Tesla chief executive Elon Musk has fathered with three different women. It’s also about 5,000 more than the number of vehicle deliveries Wall Street expected, which explains why Tesla’s stock surged this week and analysts were gushing about the company’s supposed rebound. “Mojo back for Musk,” declared Dan Ives of Wedbush Securities, who hailed the quarterly numbers as a “major turning point” in the “Tesla bull case story.” Never mind that deliveries were down 4.8 per cent from the same quarter a year earlier or that Tesla has been slashing prices to boost flagging demand. Musk fan boys are handing out the cigars.
Paramount Global (STAR)
PARA - Nasdaq
Business quiz! Shares of Paramount Global, the film and TV conglomerate that owns CBS, BET, Showtime and MTV, rose after: a) the company announced that the newest instalment in its Mission: Impossible film series will star U.S. President Joe Biden as himself attempting to beat Donald Trump in the 2024 election; b) Paramount Global declared a special dividend consisting of “a deluxe DVD box set of all 21 seasons of the crime drama NCIS – 467 episodes in all!”; c) Skydance Media, led by the son of Oracle Corp. co-founder Larry Ellison, reached a preliminary agreement to acquire Paramount Global’s parent, National Amusements Inc., for US$1.75-billion, according to media reports. Answer: c.
Aecon Group Inc. (DOG)
ARE - TSX
Aecon investors have an ache all right. Shares of the construction and infrastructure development company tumbled after it announced $237-million in charges for the second quarter – a $127-million non-cash hit to settle a dispute relating to the Coastal GasLink pipeline project in British Columbia, and about $110-million in cash charges tied to three other large-scale projects that have also faced delays and cost overruns. “While charges were expected over the coming years, they have been pulled forward and are substantially larger than we had expected,” said analyst Benoit Poirier of Desjardins Securities, one of several brokers that cut its price targets on the shares. Judging by the stock’s double-digit drop, investors were just a wee bit surprised, too.
Bitcoin (DOG)
BTN24
How to make yourself sick: 1) Stuff yourself at Mandarin’s all-you-can-eat buffet, then hop on the Leviathan roller coaster at Canada’s Wonderland; 2) Shell out $1,000 for a pair of Leafs Game 7 playoff tickets; 3) Invest in bitcoin. The world’s biggest cryptocurrency skidded to a four-month low on Friday, down as much as 27 per cent from its record high in March, amid growing uncertainties about the coming U.S. presidential election. If Joe Biden “is to be replaced [as the Democratic Party nominee] … that person may not be pro-crypto,” Josh Gilbert, a market analyst at digital brokerage eToro, told Reuters. Moreover, potential dumping of tokens by creditors of Mt. Gox, a defunct Japanese exchange that has begun refunding an estimated US$9-billion in crypto assets, added to the selling pressure. Crypto investors are talking to Ralph on the porcelain telephone.
Macy’s Inc. (STAR)
M - NYSE
Nobody shops at bricks-and-mortar stores any more. Too crowded. Shares of U.S. department store chain Macy’s Inc. jumped on reports that investment firms Arkhouse Management and Brigade Capital Management have boosted their offer to acquire the iconic retailer to about US$24.80 a share, or US$6.9-billion. That’s up from US$24 a share offered in March, and from an initial bid of US$21 at the end of 2023. Macy’s, which also owns Bloomingdale’s, has been trying to boost profits by closing underperforming stores and revamping others under CEO Tony Spring, who took the reins in February. Now, the board will have to decide if the turnaround will gain traction faster if Macy’s is taken private or if it should remain a public company. Either way, the death of bricks-and-mortar retail has been greatly exaggerated.