Business and Finance News - 7.11.24

Author

Skool Projekt Staff
July 11, 2024

 

Good Morning, Students!

 

Equity represents the ownership of assets, which can include both tangible and intangible properties. This ownership often comes with the responsibility of managing any debts or other liabilities that may be associated with the assets. Essentially, equity signifies a stake in the net value of the asset after accounting for any financial obligations tied to it.

 

Diversify your equity investments to mitigate risk and maximize potential returns.

 

-Mr. W

 

TOP STORIES

Microsoft and Apple Abandon OpenAI Board Seats Amid Regulatory Concerns and Governance Reforms

  • Microsoft gives up observer seat on OpenAI's board.

  • Apple will no longer join OpenAI's nonprofit board.

  • Microsoft's decision was confirmed in a letter to OpenAI.

  • The seat provided insights without compromising board independence.

  • Microsoft cites significant progress and confidence in OpenAI's direction.

  • OpenAI reconstituted its board with Altman's return as CEO.

  • OpenAI plans no observers on its board after Microsoft's departure.

*Apple (AAPL) - Apple Inc. is a multinational technology company known for its innovative products and services (iPhone, iPad, Mac Computers, etc.).

*Microsoft (MSFT) - Microsoft Corporation is a global technology company that develops, manufactures, licenses, supports, and sells a wide range of software products, hardware devices, and related services.

*OpenAI - OpenAI is an artificial intelligence research organization and company with a mission to ensure that artificial general intelligence (AGI) benefits all of humanity.

 

Carvana Stock Surges 137% YTD with New EV Features and Analyst Upgrade, Short Sellers Lose $1 Billion

  • Carvana stock is up about 137% year-to-date.

  • Carvana launched new features for buying electric and plug-in hybrid vehicles.

  • New tools let buyers apply for tax-credit savings at checkout, up to $4,000.

  • Needham analyst Chris Pierce upgraded Carvana shares to Buy with a $160 price target.

  • Carvana stock increased 4.4% to $131.25 on Wednesday.

  • Short sellers lost about $1 billion betting against Carvana in Q2.

  • Approximately 22% of Carvana's stock available for trading is sold short.

*Carvana (CVNA) - Carvana is an online platform that allows customers to buy, finance, and trade in used cars, offering a convenient, fully digital purchasing process and home delivery or pick-up from their car vending machines.

 

Intuit to Cut 1,800 Jobs, Close Two Sites, and Hire 1,800 for AI Pivot, Reorganization to Cost Up to $260M

  • Intuit plans to cut about 1,800 employees, or 10% of its workforce.

  • Layoffs will occur in Boise, Idaho, and Edmonton, Canada worksites.

  • The pivot towards AI includes hiring another 1,800 workers in fiscal 2025.

  • New positions will focus on engineering, product, and customer-facing roles.

  • Layoffs and closures are expected to cost $250 million to $260 million.

  • Costs include $217 million to $227 million in severance payments and benefits.

  • Intuit aims to complete the reorganization by the first fiscal quarter ending Oct. 31.

*Intuit (INTU) - Intuit provides financial software and services for individuals, small businesses, and accountants, including well-known products like TurboTax for tax preparation, QuickBooks for accounting, and Mint for personal finance management.

 

LegalZoom Shares Hit Record Low After Revenue Cut; CEO Dan Wernikoff Departs, Jeffrey Stibel Named Successor

  • LegalZoom shares dropped to an all-time low after cutting revenue outlook.

  • Chief Executive Dan Wernikoff is leaving the company.

  • The stock fell 29% to $5.60, the largest decrease on record.

  • Shares have plunged 49% since the beginning of the year.

  • LegalZoom now forecasts full-year revenue of $675 million to $685 million.

  • Previous revenue outlook was $700 million to $720 million.

  • Chairman Jeffrey Stibel has been named CEO, succeeding Wernikoff.

*LegalZoom (LZ) - LegalZoom provides online legal services and documents, helping individuals and businesses with tasks such as forming LLCs, creating wills, trademark registration, and other legal filings without the need for a traditional attorney.

 

TSMC Surpasses Analysts' Forecasts with 40% Q2 Sales Increase, Revenue Reaches NT$ 673.51 Billion, Shares Up 76% YTD, Valuation Exceeds $1 Trillion

  • TSMC reported a 40% increase in second quarter sales, beating analysts' forecasts.

  • The company generated NT$ 673.51 billion in revenue, up from NT$ 480.84 billion in Q2 2023.

  • June revenue reached NT$ 267.86 billion, a 32.9% increase from June 2023.

  • TSMC shares rose 2% in the morning session, having gained 76% year-to-date.

  • The company’s valuation surpassed $1 trillion after shares hit record highs on Tuesday.

  • TSMC outperformed its own guidance, generating $20.7 billion in Q2 revenue.

  • The surge in sales is driven by demand for advanced microchips used in AI technologies.

*Taiwan Semiconductor Manufacturing Company (TSM) - Taiwan Semiconductor Manufacturing Company (TSMC) is the world's largest contract chip manufacturer.

 

THE MARKETS

Here’s how the markets closed yesterday:

 

Here’s how leading market ETFs did yesterday:

 

Here’s how the THE SUPER SIX STOCKS did yesterday:

Disclaimer: This content is not intended as financial guidance. The purpose of this newsletter is purely educational, and it should not be interpreted as an encouragement to engage in buying, selling, or making any financial decisions regarding assets. Exercise caution and conduct your own research before making any investment choices.