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- Market Munch 🍎 | 8 March 2023
Market Munch 🍎 | 8 March 2023
Adani flexes his muscles, Tesla chops prices, and China loads their guns up. 🔥
Aryaansh Rathore
March 07, 2023
Happy morning, Munchers! 🙏
As always, here is your daily dose of the news that matters, from Wall Street to Dalal Street - in 4 minutes and 59 seconds.
Yesterday, Adani baba got trigger-happy with the cash gun, Tesla took prices down a notch, and China got ready for some cash flows. 🔥
Let’s dive in.
What’s hot, what’s not?
Market Commentary
The US Fed put a big dent in the dreams of growth investors and said that they were prepared to hike interest rates even more. The result? Massive bloodshed in markets.
Energy trading seemed relatively muted. Most traders were focused on the good ol’ S&P.
The Mexican peso hit a 5-yr high as a result of skyrocketing rates and American support. Time to scoop up some tacos to celebrate. 🤷🏻
Story Roundup
1 - Tesla chops prices twice. ✂️
The world's largest EV market seems to be having a little bit of friction.
Tesla just announced their third price cut in 3 months - and customers are super angry.
A massive throng of car owners (literally) showed up to Tesla showrooms, whining about how much value their cars have lost.
They're saying that "Tesla lied to customers" and that their "legal rights need to be protected".
Imagine if you bought a car, and it’s value fell by 30% in the first 3 months of you owning it.
I guess the car price is going down faster than the share price. 💀
It looks like China’s going for an age-old, tried and tested strategy.
Underpromise and overdeliver.
Just yesterday, they revealed a very low target of a 5% increase in GDP.
Markets assumed that China’s decades-long history of rip-roaring growth was over.
Today though, they’re playing with their biggest financial sector deregulations in history.
They’ll be getting rid of the current banking and financial regulators, and the replacement is gonna be another agency… which focuses less on money matters.
China is tired of losing billions of FDI dollars to their neighbouring competition and they’re trying to make the deal seem sweet again.
Time will tell where this one goes.
Adani baba is going global.
Quite literally.
His stock price has been chopped up and $150bn of wealth has been wiped out, so it’s pretty sensible to assume that he wants to regain some confidence from his big-ticket investors.
So Adani did what any rational billionaire would do.
He prepaid equity financing worth almost a billion dollars. All of this was due in April ‘25 the earliest.
Adani baba is trying to give the world a message.
“You guys think we’re going under, but I’ve got a billion in the bank to pay off debt that I don’t even need to”
Big leagues. 🤷🏻
Ambitious goals and lackluster performance - TikTok is slashing it's targets for revenue by over $2 billion.
As the river of advertising revenue slowly dries up, social media businesses are being battered.
This is the first sign that TikTok is not immune to the problems that plague it's counterparts, despite the insane growth they're going through.
They've restructured their US operations to try and cut costs, even delaying their IPO to ensure that a difficult market doesn't beat up their valuation.
Staff have been directly blamed for this slump, from not driving enough sales in advertising to slowing down efforts on the ecommerce end.
Slowdown's coming in hot. 🥵
Turns out the folks at Facebook aren’t done with their layoffs!
CEO Mark Zuckerberg emailed 1,000 employees yesterday and informed them of their coming job cuts.
Revenue growth that pandemic times offered was unsustainable, which meant that Facebook stopped being an efficient business because of all their over-hiring.
Teams across the company are gonna be hit hard, along with a hiring freeze that will continue into next year.
Tight, tight belts. 😩
Hope you enjoyed this issue of Market Munch. If you’ve got any feedback - good or bad (😏) you can hit reply to this email and I'll get a ping in my inbox. Thanks a ton for reading!
Cheers, and have a lovely day. 🙏
- Aryaansh ⚡