Tesla Reached Half of a Trillion Dollars !!

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Nov 24, 2020

We Just Broke Half a Trillion

This isn’t the first benchmark that the company has hit this year: back in January, breaking the $100 billion benchmark made it the first publicly traded US car manufacturer to do so.

From $100 billion to $500 billion — that’s a hell of a lot of movement, and we’re not sure it’s going to stop. On December 21st, the company will be joining the S&P 500, meaning index funds have no choice but to buy up shares to balance out their holdings to accurately represent the index. Hold on to your seatbelts, folks… the ride might not be over….

Danone World Foods Company loses investor support following poor performance

Danone World Food Company (OTCMKTS: DANOY), the parent company of Dannon and Activia Yogurts, announced Monday that they are going to be making necessary changes to their business structure in order to rebound from the pandemic hit. More specifically, Danone will be laying off over 2,000 employees and aiming to cut costs by over $1.19 Billion.

Hoping to return to their pre-pandemic operations by 2022, the $1.19 Billion cost cut will eliminate head office costs by giving country managers more power, while also selling part of Danone’s portfolio. For example, Vega protein powder, a Danone associated company, was recently put under review.

From an investor standpoint, Danone has been a leader in environmental change, as they have pioneered reporting carbon-adjusted earnings, and have shifted their portfolio to focus on plant-based companies in the wake of the pandemic.

On the other hand, Danone is set to miss their projected 16% operating margin set for 2020.

Homesnap to be acquired by CoStar for $250 Million

CoStar Group Inc. (NASDAQ: CSGP) is one of the largest real estate information analysis companies in the world, and they have just agreed to acquire Homesnap Inc. for $250 Million. Homesnap, provides real estate brokers with a way to analyze and manage their listings, and is currently used by over 300,000 agents.

Homesnap currently has about 150 employees, and their 2020 expected revenue is about $40 million. CoStar had revenue in 2019 of $1.4 Billion, and Co-founder Andrew Florance recently announced their plan is not to only acquire one company, but to acquire many companies and integrate those companies together with their own.

CoreLogic Inc., one of the largest residential real estate data companies, has confirmed that CoStar is one of the highest bidders for their acquisition. Florance has also elaborated on their plans to acquire many companies, describing how this year, the home-sales market has been driven high from the pandemic and low borrowing costs.

CoStar plans to create many synergies between themselves and Homesnap, as combining the residential data analysis with their commercial real estate platform will increase both companies’ offerings.

It All Started With Some Equations Special Series: Quant Trading (2/5)

A “Quant” is any trader who tries to model the markets and the risk therein using mathematical equations; while the implication of this is that these equations can be traded on, the first quants were more so taking an explanatory role for the rest of the financial world.

For instance, in the early 50’s, Harry Markowitz developed “Modern Portfolio Theory” to explain the necessity of maximizing return for any given level of risk (more on that below). In the 60’s, William Sharpe came up with the “Sharpe Ratio,” a simple equation meant to illustrate the risk of any given investment. In the 70’s, Robert Merton published the “Black Scholes” equation, one of the first formidable attempts at explaining options pricing.

While these models were not enough to trade on, they were significant developments nonetheless — after all, they represented mathematical attempts at explaining risk in the markets that investors actually began listening to.

Putting a Price on the Future Education

Last week, we briefly talked about the deal hunting value investors; of course, we also have to mention the school of thought on the other end of the spectrum, the growth investors.

Growth investors look for companies that they believe will continue to have rapid appreciation in revenue, even if they haven’t yet turned a profit. The name of the game here is speculation on the future rather than crutching on the past. Growth investors are willing to take a risk to get paid in the event that they really do have an accurate idea of the future.

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