This week in the markets
- Tesla CEO Elon Musk may have violated SEC regulations against attempting to manipulate the markets by tweeting on Tuesday that he may take his company private.
- Walt Disney Company reported earnings that were lower than expected (poor Mickey), but it did see strong growth in its studio, parks, and broadcast units.
- The New York City Council voted on Wednesday to limit the number of ride-hailing cars in the city, which includes Uber and Lyft. Start calling your designated drivers now.
- Online mattress startup Casper is planning to open 200 locations within the next three years across the US. Casper may no longer be invisible!
Musk’s tweet sparks possible SEC investigation
Tesla CEO Elon Musk announced on Tuesday that he was considering taking the company private at $420/share, which raised questions from the Securities and Exchange Commision (SEC). If the SEC finds that Musk’s tweets were intended to give Tesla’s stock price a boost, he could face a formal investigation. Besides raising inquiries into market manipulation, the tweet also raised shares by 8% midday Tuesday.
Disney’s disappointing earnings cause their stock price to drop
The Walt Disney Company reported fiscal third-quarter earnings that were below analysts’ expectations on Tuesday. The disappointing earnings report caused Disney’s stock to drop 2% in after-hours trading. But don’t feel too bad for Mickey. Despite missing the mark on earnings, the company did see growth in its studio, parks, and broadcast units. In order to help future earnings reports, Disney plans to release a streaming service in 2019. Will they be able to slay the beast called Netflix?
Uber, Lyft, and others have been capped in NYC
The New York City Council voted on Wednesday to freeze the number of ride-hailing cars. The council voted to stop the issuance of new for-hire vehicle licenses for 12 straight months, while they study industry trends. The council reported that there are more than 100,000 for-hire vehicles in the city, which add to the traffic congestion problems. Uber and Lyft are not happy, and both argued the cap will cause longer wait times for commuters. You know who is happy? Cabbies.
Casper set to open up 200 storefront locations
The fast-growing online mattress seller Casper is planning to open 200 store locations across the US over the next three years. The news came as Mattress Firm plans to close many brick-and-mortar locations, possibly due to the improved mattress-buying experience offered by online startups. Casper has already racked up $100 million in revenue within its first two years online and is now out to conquer traditional storefronts as well.
And now for your weekly Lionomics wrap-up. 🤓
Lionomics: Finance made easy
This week, we dove into diversification, rebalancing, and goal setting, lessons that are important in finance as well as life! Investing success starts with knowing your goals, because what you’re saving for affects your ideal asset allocation. Diversifying across a variety of asset classes helps reduce risk, and rebalancing gets you back on track when your allocations go rogue.
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