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Meta stock gains 4% as it takes on Twitter 🐦
Twitter vs Threads: Tension between Mark Zuckerberg and Elon Musk is high. A couple of weeks ago, they both agreed to fight each other in a cage after Meta announced its latest rival to Twitter: Threads.
Meta’s stock keeps on climbing: Meta’s stock price is up over 130% since January and this latest move has seen it climb even further. The decision to transfer Instagram users’ handles and followers directly over to Threads has investors excited.
A potential ‘Twitter killer’: Twitter is in a bit of a mess. Most recently, it introduced a limit on how many tweets a user can see in a day, which as you can imagine, didn’t go down well. Are investors sensing blood in the social media space? Time will tell.
Tesla shares jump 7% thanks to impressive delivery numbers 🚗
Musk’s master plan: Whilst Twitter may be in a bit of a mess, Musk’s plan of boosting sales by slashing Tesla prices appears to be working after it outperformed its expected deliveries for Q2.
Breaking records: Tesla reported a record-breaking 466,140 vehicles delivered in Q2, which is a whopping 80% higher than this time last year. Historically, one of Tesla’s largest challenges has been deliveries, so this is particularly exciting news for investors.
Looking ahead: The 7% boost has added a cool $57 billion to Tesla’s market cap, but whether the stock stays at this level may depend on Tesla’s Q2 financial results on the 19th July. There may have been a lot of deliveries, but that’s come as a result of slashed prices. Will this harm Tesla’s Q2 profit numbers, and in turn, its share price?
Virgin Galactic plummets 16% despite a successful launch 🚀
Successful launch, slumping share price: Last week, Virgin Galactic sent 3 Italian passengers and 2 Virgin pilots into space on its first commercial spaceflight. The mission was successful, so why is the stock suffering this week?
Extreme tourism: Tourism to extreme destinations has been criticised as of late, mainly due to the recent OceanGate catastrophe. In the wake of this tragedy, investors are questioning the long-term viability of extreme commercial tourism.
An unproven business model: Despite launching successfully, many investors are also doubtful of Virgin Galactic’s business model. Currently, the company can only launch one flight per month which isn’t enough for a healthy cash flow.
What have we learned this week? 🤓
Meta is copying, again: Meta has a history of copying social media rivals, and whilst the markets have reacted positively, savvy investors will know Meta’s clones haven’t always taken off.
Tesla’s plan is working, so far: Musk’s decision to lower Tesla prices to stoke demand was a risk, especially given its previous issues with delivery. But the early signs are positive.
Extreme tourism is both feared and profitable: Whether it’s tourism to outer space or to the depths of the ocean, extreme tourism is undoubtedly a profitable market, set to reach $1 trillion by 2030 according to Grand View Research’s report. But sentiment can change, and that’s certainly happened after the devastating OceanGate incident.
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*Figures correct as of July 5th 2023.
Past performance does not guarantee future results. Capital at risk when investing.
This content is for educational purposes only. Shares does not provide investment advice. If you are unsure about anything, please seek advice from an authorised financial advisor.
