Plus, Dominos closes restaurants in Italy.
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U.S. inflation fell to 8.4% in July, down from 9.1% registered in June. On a month-to-month basis, CPI remained flat. It rose 1.3% from May to June. Both figures were improvements compared to economists’ expectations of a 0.2 CPI monthly increase and an 8.7% increase in annual inflation. More: - Core CPI, which excludes food and energy prices, rose 5.9% YoY and 0.3% month to month.
- The Fed has been increasing its interest rate benchmark in a bid to tackle rising inflation which appeared to peak last month at 9.1%, its highest increase since Nov. 1981.
- The Fed is expected to raise interest rates to 3.4% by the end of the year.
- Stocks responded favorably to the drop in consumer prices, with the S&P gaining 2.13%, the Dow rising 1.63%, and the Nasdaq gaining 2.89% on Wednesday.
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Disney released its Q3 fiscal 2023 earnings on Wednesday, reporting better than expected results. The conglomerate posted $21.5B in revenue, up 26% YoY. Disney's parks, experiences, and products generated $7.4B in revenue, up 72% YoY. Net income came in at $1.41B, or $1.09 a share, up 53% YoY. More: - Disney reported a total of 152.1 million subscriptions for its Disney+ platform, beating analysts' prediction of 147 million.
- Across Hulu, ESPN+, and Disney+, the company has over 221 million streaming subscribers.
- Hulu and ESPN+ had 46.2 million and 22.8 million subscribers, respectively.
- Disney's streaming platforms lost a total of $1.1B, reflecting the higher cost of content on the services.
- Disney's average revenue per user for its Disney+ platform declined 5%.
- Disney plans to launch an ad tier for its Disney+ platform in December in the U.S.
- The ad tier will be $7.99 a month. The ad-free tier will increase 38% to $10.99.
- Disney shares rose over 7% in extended trading on Tuesday.
- The company is down ~28% YTD.
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Tesla CEO Elon Musk sold ~7.9 million TSLA shares between last Friday and Tuesday. Musk received nearly $7B from the liquidation. He sold the shares to have enough cash on hand in the event that he is forced to close the Twitter acquisition and his equity partners back out. More: - A legal battle between Musk and Twitter has ensued after he moved to back out of the $44B acquisition of the social media company.
- A hearing will be held in October before the Delaware Court of Chancery.
- If the court does force the acquisition, Musk will need to come up with $33.5B in equity financing for the deal to close.
- He liquidated his Tesla stake early on to avoid an emergency last-minute sale.
- Should the Twitter deal not go through, Musk confirmed that he will buy Tesla stock again.
- Musk owns a 15% stake in Tesla after the current liquidation.
- Musk has made $32B from selling Tesla stock over the past year, including $8.5B in April.
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Coinbase reported its Q2 earnings on Tuesday, with revenue for the quarter totaling $808.3M. Reported revenue figures missed analysts' forecasts of $832.2M. Net loss came in at $1.1B, in stark contrast to the $1.59B profit reported in the preceding quarter. More: - Revenue declined nearly 64% from last year.
- Coinbase's Q2 2021 revenue totaled $2.03B, while Q1 2022's total was $1.16B.
- Retail transaction revenue was down 66% to $616.2M.
- Lower trading volumes than the first quarter resulted in a 31% QoQ drop in net revenue.
- A loss of $4.98 per share was reported, almost double analysts' expectations of $2.65 per share.
- The value of assets on the platform fell from $256B at the end of Q1 to $96B in Q2.
- Bitcoin accounted for 31% of the transaction revenue, followed by Ethereum at 22%.
- Monthly transacting users fell from 9.2 million in Q1 to 9 million in Q2.
- Coinbase narrowed its monthly transacting user outlook for the year to between 7 million and 9 million, from the previous 5 million to 15 million.
- During premarket trading, shares of Coinbase fell 5.9%.
- The company's shares fell 10.6% on Tuesday.
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SoftBank intends to reduce its stake in Alibaba from 23.7% to 14.6%. Approximately $34B (4.6T yen) is expected to be raised from the sale of 242 million American depository receipts (ADRs). On Monday, SoftBank reported a $23.4B quarterly loss during Q1. The Japanese firm will need between $40B and $45B in cash to sustain its investments this year, according to analysts. More: - In addition, SoftBank needs cash on hand for its $7.5B share buyback program.
- The share sale is expected to be completed by September.
- SoftBank will have to give up its board seat in Alibaba as a result of the liquidation.
- Furthermore, SoftBank will not be able to list Alibaba’s income on its financial statements.
- Alibaba’s stock has lost 70% of its value since its peak of $307 per share in Oct. 2020.
- SoftBank led a $20M investment in Alibaba in 2000 and raised its stake in the ecommerce firm over the following years.
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United Airlines has made a $10M deposit for 100 flying taxis by Archer Aviation. The airline and a regional partner invested in Archer last year and signed an agreement to buy up to 200 of Archer’s flying taxis. United joins other airlines that have invested in the new technology or placed orders for the taxis. More: - Archer Aviation was founded in 2020 and is headquartered in San Francisco.
- Archer’s flying taxis take off and land vertically like helicopters.
- Airlines hope the taxis would be able to carry customers around cities to avoid traffic and congestion at hub airports.
- United and Archer announced that United would be the launch customer for Archer’s new four-passenger aircraft.
- Shares of Archer rose over 5% in after-market trading on Wednesday.
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- Malaysia Airlines has ordered 20 Airbus A330neo widebody jets from the aircraft maker. According to sources, the airline is expected to make an announcement soon.
- Lachlan Murdoch, Fox Corp CEO, said ad spending for the mid-term election in the U.S. will surpass previous spending. During its earnings call on Wednesday, Murdoch said political ad revenues at Fox's 29 local television stations were about three times larger than Q3 2020.
- Domino's has closed all its locations in Italy due to a lack of demand. The company said customers in Italy prefer getting their pizzas from local mom-and-pop shops.
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 |  | Vanessa Omeokachie is a Researcher at Inside. Her interests include finance, tech, and startups. In her free time, she enjoys reading, hiking, attending music festivals, and traveling. Connect with her on Twitter @VanessaOmeo or through email at vanessa@inside.com Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot. |  | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 Ford. | |
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