📈 Rivian takes a $5.2 billion bath

Together With

Advertise with us | Our Newsletters | Your Rewards

Good Morning!

Grab a seat and hang on tight because the market has been a bit of a roller coaster lately. On Tuesday, the major averages took a hit and the Dow Jones Industrial Average was down by 0.7% - capping off the second negative month in three for all the major indexes! It's not all doom and gloom, though. Apparently, China's manufacturing sector could be leading a global economic recovery! Manufacturing activity expanded at its fastest pace in over a decade in February - Maybe they've been sneaking in some extra coffee breaks ☕.

Get ready for some excitement in the earnings department because Salesforce (CRM), Snowflake (SNOW), and a few big retailers are all set to release their earnings reports. Speaking of earnings, electric vehicle startup Rivian (RIVN) reported a loss of nearly $5.2 billion and saw shares fall by around 8% during extended trading. Ouch, that's gotta sting.

Track inflections in finance and tech. (Sponsor)Finance and tech are very meta industries, like layers over the rest of the economy. They're rich with insights into how a lot of the world and economy works.

The Diff is a newsletter that explores those meta industries—posts range from in-depth company profiles, to applied financial theory, strategy breakdowns, and macroeconomics.

That’s why the newsletter is read by founders, VCs, hedge fund managers, and more.

Join 49k+ other readers by subscribing here for free!

Markets

Dow closes more than 200 points lower Tuesday, major averages end February with losses (2 minute read)Tough news for the stock market as the major averages took a hit on Tuesday. The Dow Jones Industrial Average was down by 0.7%, the S&P 500 lost 0.3%, and the Nasdaq Composite closed 0.1% lower. Oof! Even though the year started off well, all the major indexes had their second negative month in three, with the Dow down by 4.19% for the month and 1.48% year to date.

European stocks edge higher; Chinese data hints at global recovery (3 minute read)Good news for European stock markets on today's open - they're trading higher! What's got investors feeling positive? Well, it seems like China's manufacturing sector could be leading a global economic recovery, which is pretty exciting. At the moment, the DAX index in Germany is up by 0.2%, the CAC 40 in France has climbed 0.3%, and the FTSE 100 in the UK has risen by 0.4%. Nice! This boost in confidence is thanks to China's manufacturing activity expanding at its fastest pace in over a decade in February.

Investing

Roblox Stock Up 30%: Time to Buy? (5 minute read)After an awesome earnings report on Feb. 15, Roblox (RBLX) shares shot up - they beat expectations big time, with daily active users surging too. The stock has given back some gains, but it's still up 30% year to date. It's worth noting that although Roblox has traditionally been popular with tweens, the company is seeing growth in older users. These users don't have to beg their parents for money to buy virtual currency - they have their own money to spend! This is great news for Roblox's business, and potentially their share price!

Salesforce reports, Snowflake earnings, Retail numbers: 3 things to watch (3 minute read)Here's the scoop on what could make or break the markets. First up, Salesforce, the business software whiz-kids, are expected to reveal earnings of $1.36 per share on a revenue of $8 billion. But that's not all, multiple activist investors are aiming to squeeze more profitability out of the company. Next up, we have cloud computing giant, Snowflake, who's expected to make over 4 cents per share on a revenue of $576.2 million. Lastly, retailers Dollar Tree and Lowe's Companies are expected to report earnings - Watch out for what they have to say about consumer spending, costs, and inventory.

Rivian posts mixed fourth quarter and underwhelming EV production outlook, stock falls (5 minute read)The electric vehicle startup had some mixed Q4 earnings, with a lackluster production outlook to boot. They reported a loss of nearly $5.2 billion in 2022, which is better than the $5.4 billion loss that was predicted back in November. However, it looks like investors weren't too thrilled, as shares fell by around 8% during extended trading. Rivian is focusing on getting their R1 truck and SUV production up and running, as well as cranking out some electric delivery vans for Amazon, their largest individual shareholder.

Money

2023 Tax Brackets: The Best Income To Live A Great Life (10 minute read)The Financial Samurai talks about everyone's favorite topic: taxes! Yeah, we know, it's not the most exciting thing in the world, but it's important to understand the latest tax brackets for 2023 because it affects all of our wallets. So, to maximize our time, which is our most valuable asset, let's review the income tax brackets for singles and married couples, including long-term capital gains tax rates.

🐥

Best of Twitter

Thanks for reading, if you enjoyed, tell your friends!

P.S: If you're interested in crypto and web3 - check out our new newsletter, The Crypto Journal!