Bundle of investment news: clean energy, Twitter and the lack of cars

Пачка инвестновостей: чистая энергетика, twitter и недостаток машин

Cars are not produced. Clean energy makes money. Twitter repenting to investors.

Disclaimer: when we talk about, that something has grown, we mean comparison with the same quarter a year earlier. Since all US issuers, then all results are in dollars. When creating the material, sources were used, inaccessible to users from the Russian Federation. Hopefully, you know, what to do.

I forbid you to buy cars

Analytical company IHS Markit (NYSE: INFO) cut its forecasts for passenger car production: on 6,2% in 2021 - up to 75.8 million cars, on 9,3% in 2022 - up to 82.6 million cars - and 1,1% in 2023 - up to 92 million cars.

IHS Markit rarely downwards its own forecasts, but then circumstances intervened: semiconductor shortages are forcing auto makers to shut down factories until much needed components are available.

it, sure, sad news for car manufacturers: for them it means lost revenue. But, basically, they have already laid down such expectations in their forecasts, so there is no big shock for their shareholders.

But as for the manufacturers of auto parts, then this is really bad news for them: many, due to the small size and not the largest cash reserves, will have to suffer, until their customers in the large automotive industry increase the volume of orders to the level of previous forecasts.

It is hard to say, how will it affect car dealers. One side, a disruption in the supply of new cars will lead to a deficit in the supply of cars on the market - and will allow dealers to increase prices. But they have already grown much more level, what consumers expected, so you can not hope much, that dealers will be able to earn even more on the sale of existing cars at exorbitant prices.

This news could lead to consolidation in the manufacturing industry: taught by bitter experience of lack of components and production stoppages, large industrial conglomerates will seek to vertically integrate their supply chains. In a practical sense, this allows the owners of shares in small manufacturing enterprises to hope, that these issuers will soon be bought by someone larger.

Clean energy for conservatives

Clean energy research company RMI shares its economic benefit analysis with Axios, expected by various US states from the implementation of projects in the field of renewable energy sources, to be built in the period 2021-2030.

Calculated tax revenues, land use payments, new jobs and other things, directly related to these projects. It turned out, that there will be tens of billions of dollars of benefit over the life of the projects. Moreover, the most noticeable beneficiaries will be regions like the Appalachians - states with a rural population and a large number of vacancies in the field of traditional energy - in particular, mining of coal and oil.

If the numbers are real, then this argument can serve to cause widespread acceptance of the eco-energy agenda by the conservative States. This would allow all issuers in this area to seriously expand their American business.. And the financial argument in favor of clean energy is now more relevant for states than ever.: Corona crisis has cut local tax revenues and crippled local economies, so that, may be, states will seize on clean energy as an opportunity to create a new growth point for the economy in their region.

Пачка инвестновостей: чистая энергетика, twitter и недостаток машин

You will be fined - and you do not tweet

Social network Twitter (NYSE: TWTR) entered into an agreement with investors on a misinformation claim. The company's management was accused of, that it hid information from investors about important business development metrics, in particular about the growth in the number of users. Lack of information led to excessive growth in quotes, which then gave way to a fall in stocks after, how the true state of affairs was revealed, - and, respectively, some investors lost money. Under the terms of the agreement, Twitter will pay the plaintiffs $ 809.5 million from its own money.

Basically, the company has more than enough money: she has $ 4.125 billion in accounts alone. So it can't be said, what a terrible loss. On the other hand, this claim, which stretches as far as 2016, demonstrates the weakness of the company.

In 2014, Twitter management said, that aims to bring the number of monthly users to 550 million in the medium term and to make more than a billion in the long term. In 2019, when the company stopped providing investors with data on this indicator, she only had 330 million monthly users. Twitter is now informing investors about the number of daily monetized users - their number is 206 million.

Obviously, that Twitter's growth ended up being worse, than the management and investors dared to hope at the beginning of the glorious path of the company. maybe, other "promising startups" are also overestimating their growth now - what will come back to haunt them in the future.

The outcome of the case for Twitter shareholders is rather sad. I think, that this experience will motivate the company's management to avoid overly optimistic forecasts for the business in the future. And this will slow down the growth of quotations., because these unrealistic promises of space growth are being followed by investors, buying shares of tech startups with shaky business model. After all, as Joe said in Friends on a similar occasion, "Without your humor, you're just a bad lover.".

Пачка инвестновостей: чистая энергетика, twitter и недостаток машин

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