Netflix, Tesla, Didi, Tritium, and Casa Systems: Weekly News Digest (18–22 April)
This article is dedicated to several topics. Firstly, the trades that had a serious impact on the shares of Tritium and Cass Systems. Secondly, the details relating to the quarterly reports of Netflix and Tesla. And thirdly, Didi's plans for delisting its shares from the NYSE.
Tritium announces major contract with BP
On Monday 18 April, the market heard that Tritium – an Australian company specialising in the development and production of fast chargers for electric cars – had entered into a multi-year agreement with oil and gas giant BP.
With this major contract, BP has already ordered about 1,000 chargers for the British, Australian, and New Zealand markets. Charging stations in these countries will function under the brand, BP Pulse.
The news about the contract with BP immediately made the share prices of Tritium Dcfc Ltd (NASDAQ: DCFC) rise 12.21% to $9.56. The quotes kept growing for two more trading sessions and started correcting only on Thursday when they reached $9.55 after having lost 2.45%.
Verizon becomes a Casa Systems shareholder
On Monday, Casa Systems – a developer of cloud solutions for the architecture of cable broadband, fixed cable broadband, and wireless networking systems – announced a major contract with telecom corporation Verizon Communications.
Casa Systems will provide Verizon Communications with its main 5G network functions for enhancing the Mobile Edge Compute (MEC) service. Moreover, the telecom giant will acquire a 9.9 percent stake in Casa Systems for almost $40 million.
On 18 April, the news sent the shares of Casa Systems Inc. (NASDAQ: CASA) skyrocketing 82.52% to $7.1. As it often happens, such swift growth changed for a correction: over the next three sessions, the shares dropped to $4.99, having lost 29.7%.
Didi’s delisting plans are harming the company’s shares
At the beginning of the week, Chinese corporation Didi Global which owns one of the world's largest taxi services scheduled an extraordinary general meeting (EGM) for 23 May. The purpose of the shareholders' meeting is to vote on delisting Didi's shares from the NYSE.
It is said that Didi will not enter any other exchanges until it completes the US delisting. On 18 April, the quotes of Didi Global Inc. (NYSE: DIDI) plunged 18.29% to $2.01. By the end of trades on Thursday, the shares had already lost 9.04% more to reach $1.71. Since the beginning of the year, Didi's quotes have lost 65.7%.
Netflix report on lost subscribers sent the stock down
On Tuesday 19 April, Netflix – the streaming service – reported on its Q1 2022 financial performance. The company announced that the number of its paid subscriptions had declined for the first time since 2011. In January–March, this number dropped by 200,000 subscribers to 221.6 million. In the next quarter, the number of subscribers is expected to fall to 219.6 million.
The Q1 earnings of Netflix rose 9.8% to $7.9 billion while operating profit increased 0.6% to $1.9 billion. However, the net profit dropped 6.4% to $1.6 billion, or $3.53 per share.
On 20 April, the decline in the number of subscribers sent the share price of Netflix (NASDAQ: NFL) down, plunging 35.12% to $226.19. This decline also dragged down the quotes of other companies that own streaming services – Walt Disney, FuboTV, Warner Bros Discovery, and Paramount Global.
Tesla reports record profits
On Wednesday 20 April Tesla presented its financial report for Q1. The electric car-maker reported that earnings hit an all-time high of 81% to $18.75 billion compared to the statistics of the same time of last year. Net profit skyrocketed 658% yearly to $3.3 billion and EPS came to $2.86, soaring 633% yearly.
Production of Tesla electric cars recorded a 69% growth to 305,407 vehicles, and supply volumes jumped 68% to 310,048 cars, the highest to date. Production of Model 3 and Model Y increased 61%, reaching 291,189 cars. Supply volumes of these cars soared 62%, reaching 295,324 vehicles.
On 21 April, the shares of Tesla Inc. (NASDAQ: TESLA) reacted to the strong statistics with a 3.23% rise to $1008.78. Note that the previous trading session closed with a decline of the quotes by 4.96% to $977.2.
Charger-maker Tritium announced a major contract with BP – the shares recorded a 12% growth in response to the news.
Provider of communication technologies Casa Systems signed a partnership contract with Verizon Communications, to which it sold 9.9% of its shares. Subsequently, the stock quotes reacted with a growth of 83%.
Chinese taxi service Didi Global reported the May scheduling of an extraordinary general meeting for its shareholders to vote for its delisting from the NYSE – the quotes immediately lost over 18%.
Streaming service Netflix reported on its Q1 performance and caused panic among investors because the number of its paid subscriptions had dropped. The shares of the company plummeted by 35% as a result.
Electric car-maker Tesla also published its quarterly report, recording all-time highs in earnings and net profit. The share price of the company rose a bit more than 3%.