Finimize - 📉 Amazon and Apple tumble

Hi Reader, here's what you need to know for October 29th in 3:15 minutes.

🤓 The Finimize #CryptoSummit2021 is fast approaching, and the expert speakers just keep coming. There are now over 20 of them hosting 8 hours of sessions, and this week alone we’ve added Grayscale CEO Michael Sonnenshein, Christie’s senior vice president Neda Whitney, and Seed Club co-creator Jess Sloss into the mix. Grab your free ticket

Today's big stories

Apple and Amazon’s earnings fell well below expectations, as they struggle to maintain their post-pandemic momentum
Our analyst has looked into whether this Amazon-backed EV-maker could become the next Tesla – Read Now
Oil giant Shell reported worse-than-expected results, and the road to recovery could be paved with renewables

Water Damage

What’s Going On Here?

Amazon and Apple both reported worse-than-expected results late on Thursday, and it’s going to take more than a bag of rice to fix this.

What Does This Mean?

Amazon finally has something to grumble about: revenue from the company’s ecommerce segment climbed by a weaker-than-expected 12% last quarter versus the same time last year. It has reservations about the next few months too: it’s not expecting labor shortages to go away, even as it offers tasty incentives to poach workers off smaller outfits. Investors, then, initially sent its stock down 5%.

Apple had better luck: revenue from its services segment – Apple TV, Music, and the like – grew by more than expected. But the company said it reckons the chip shortage has cost it as much as $6 billion, and iPhone sales – which represent the company’s biggest source of revenue – came in below expectations too. Investors noticed: they sent its shares down 5%.

Why Should I Care?

Zooming in: Apple doth protest too much.
If you followed Facebook and Snapchat’s earnings updates, you’ll know Apple’s new privacy settings have made it harder for advertisers to target would-be shoppers. And while Apple keeps waxing lyrical about how the move was in iOS users’ interests, that virtuousness looks a little threadbare considering that advertisers now have to pay Apple directly if they want to get noticed. It’s hardly a coincidence, after all, that the segment has more than tripled its market share in the six months since the changes were introduced…

The bigger picture: A very wary Christmas.
Amazon’s disappointing ecommerce update reflects a bigger problem: US consumer spending is dropping off, which is partly why the country’s economy grew just 2% last quarter versus the same time the year before. That’s the slowest growth since the beginning of the recovery. So while your mom might think it’s the thought that counts this Christmas, economists beg to differ…

You might also like: Why a slowdown in the US bodes well for European stocks.

Copy to share story: https://www.finimize.com/wp/news/water-damage/

🙋 Ask a question

Analyst Take

Could This Amazon-Backed EV Manufacturer Become The Next Tesla?

Stéphane Renevier, Analyst

What’s Going On Here?

You’d be forgiven for thinking Tesla’s Cybertruck – which Elon announced in typically understated fashion in 2019 – is the world’s first electric truck.

But one little-known company has actually beaten both Tesla and the long-established stalwarts to production.

And now, as part of its victory lap, that carmaker has filed to list on the stock market by the end of the year.

A lot of investors will see this as a prime opportunity to buy in: the company, after all, is already backed by Amazon, BlackRock, and even Ford.

But others might be a bit more hesitant, not least because this carmaker – which is reportedly aiming for a $80 billion valuation – is yet to make one dollar in revenue.

So that’s today’s Insight: whether this carmaker really has what it takes to become the next Tesla.

Read or listen to the Insight here.

Security comes first

With Bittrex, you have a crypto exchange that puts trust at the core of trading.

Bittrex’s premier trading platform offers lightning-fast trades, dependable digital wallets, and industry-leading security.

You’ll discover multiple layers of protection and two-factor authentication, as well as the most reliable tech on the market to keep your funds and transactions secure.

That’s why Business Insider has rated Bittrex the number one platform for account security.

All of this empowers you to trade with confidence every time: start trading with Bittrex.

Get Started