📈 Tesla's Nightmare First Quarter

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Good Morning!

It’s Good Friday, so the markets are closed today, but that doesn’t stop us from bringing you the latest.

SBF was sentenced to 25 years yesterday, and some people think it wasn’t enough. I mean.. If you do the math that’s 28 days per million dollars.

Also, with Q1 now finished, the S&P officially had it’s strongest first quarter since 2019. Let’s dive in. 👇️ 

Markets

Is the stock market open on Good Friday? (2 minute read)
The Treasury market closed early on Thursday, March 28, ahead of the U.S. stock market's closure for Good Friday. With a total value of $27 trillion, the Treasury market concluded its operations at 2 p.m. Eastern Time to observe the holiday.

Despite a momentary pause earlier in the week, stocks experienced a robust rally throughout the first quarter. Recent economic indicators suggest consumer confidence in the economy remains positive, coupled with a belief in easing inflationary pressures. While major stock exchanges will be closed on Friday, investors can anticipate fresh data on inflation. Additionally, on Friday, our favorite Fed Chairman Jerome Powell is scheduled to deliver a speech.

Tesla Bulls Turn Bearish As 'Nightmare' First Quarter Comes To An End (3 minute read)
Tesla (TSLA) investors brace for what may be the first setback of 2024 as the global EV leader faces potential delivery shortfalls in Q1, prompting a dip in its shares. Analysts, including Wedbush Securities' Dan Ives, a notable Tesla supporter, have revised their outlook downward, with Ives cutting his price target to $300 from $315, labeling the quarter a "nightmare" for Tesla amid looming concerns over demand.

Ives emphasizes that while he maintains a long-term bullish view on Tesla, near-term challenges, particularly in China, where intensified competition and pricing pressures persist, pose significant hurdles. As Tesla prepares to unveil its global delivery figures next week, anticipation is tempered with apprehension.

S&P 500's latest record closes out best first quarter since 2019 (3 minute read)
Stocks surged into the close on the final trading day of March, concluding a prosperous first quarter of 2024 with the S&P 500 hitting a fresh record high. The S&P 500 and the Dow Jones Industrial Average both advanced over 0.1% on Thursday, while the Nasdaq Composite experienced a slight decline of about 0.1%.

Notably, all three major indices have now seen gains for five consecutive months. The S&P 500's impressive performance, boasting a more than 10% return since the year began, marks its strongest first quarter showing since 2019. Initially driven by megacap stocks, the rally has displayed signs of broadening, prompting Wall Street firms to continually revise their year-end price targets upwards in response to the S&P's remarkable momentum, a trend that historical data suggests may persist.

Investing

Sam Bankman-Fried Sentenced to 25 Years in Prison (5 minute read)
On Thursday, a federal judge ruled that Sam Bankman-Fried, the former CEO of the cryptocurrency exchange FTX, must serve a 25-year prison sentence for his involvement in a fraud and conspiracy scheme that led to the collapse of the once-prominent platform.

Judge Lewis Kaplan, in delivering the sentence, criticized Bankman-Fried for showing no remorse for his actions and described his public persona as partly fabricated. Despite arguments from the defense claiming Bankman-Fried was not likely to reoffend, Judge Kaplan emphasized the severity of the crimes and highlighted the tarnished reputation Bankman-Fried now holds globally.

The decision came after a two-hour hearing in a Manhattan courtroom, during which prosecutors, Bankman-Fried's attorney, victims, and others provided statements. Bankman-Fried was convicted on seven criminal counts in November, a year after FTX filed for bankruptcy. His lawyer announced plans to appeal the conviction following the sentencing.

Reddit shares plunge almost 25% in two days (1 minute read)
Following an initial surge post-IPO, Reddit shares have taken a sharp downturn, closing at $49.32, below their debut price of $50.44 on the New York Stock Exchange.

The decline began on Wednesday, with shares dropping approximately 11% to $57.75 at market close, catalyzed by a report from Hedgeye Risk Management branding Reddit's stock as "grossly overvalued." This sentiment was echoed by the company's CEO and COO, Steve Huffman and Jennifer Wong, who collectively sold over a million shares, prompting questions about insider confidence amidst the company's recent market performance.

Analysts point to the dual purpose of IPOs, not only providing liquidity for expansion but also enabling insiders to cash out, raising concerns about the underlying health of Reddit's trajectory in light of insider selling. Despite a promising start to the week with a 30% surge on Monday and an 8.8% rise on Tuesday, subsequent events have fueled skepticism.

Amazon Bets $150 Billion on Data Centers Required for AI Boom (4 minute read)
Amazon intends to allocate nearly $150 billion over the next 15 years towards expanding its data center infrastructure, positioning the cloud-computing giant to accommodate the anticipated surge in demand for artificial intelligence applications and digital services. This substantial investment underscores Amazon's determination to uphold its dominance in the cloud services market, where it currently maintains approximately double the market share of its closest competitor, Microsoft Corp.

While Amazon Web Services experienced a slowdown in sales growth last year due to cost-cutting measures by business clients, recent signs of increased spending suggest a resurgence, prompting Amazon to secure resources for its energy-intensive facilities. Kevin Miller, an AWS vice president, emphasized the company's commitment to expanding capacity to better serve its customers.

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