Tesla Inc. (STAR)
There are two ways to read Elon Musk’s recent US$1-billion purchase of Tesla stock. It’s either a huge vote of confidence from the world’s richest man, who is betting Tesla’s future on robotaxis and Optimus humanoid robots. Or it’s a smokescreen to hide the fact that neither business has proven to be commercially viable yet, let alone contributed to Tesla’s shrinking bottom line. For now, at least, the stock market appears to be buying into Mr. Musk’s rosy narrative. And, as we all know, he never overpromises anything.
DavidsTea Inc. (DOG)
After the company’s latest earnings report, DavidsTea investors could use an extra-large cup of Calming Chamomile Tea. Shares of the retailer – which closed most of its stores in a restructuring launched in 2020 – sank after the company posted a second-quarter loss of $1.56-million, up from a loss of $1.49-million a year earlier, as sales inched up just 0.5 per cent. With sales stuck in neutral and losses piling up, investors might want to chase down their tea with a shot of something stronger.
Lyft Inc. (STAR)
Business quiz! Shares of Lyft rose after a) the ride-hailing app said it plans to launch a passenger drone service in traffic-congested Los Angeles and New York later this year; b) Uber and Lyft announced a blockbuster trade that will see 10 of Uber’s top-grossing drivers move to Lyft in exchange for US$10-million and a first-round pick in the 2026 driver entry draft; c) robotaxi leader Waymo said it will expand its autonomous ride-hailing service to Nashville next year in partnership with Lyft, which will provide fleet-management services and eventually allow customers to order a Waymo through the Lyft app. Answer: c)
Dave & Buster’s Entertainment Inc. (DOG)
Expensive: splurging on drinks, dinner and video games at Dave & Buster’s. More expensive: investing in Dave & Buster’s stock. The arcade and sports bar chain saw its shares tumble after second-quarter adjusted earnings were less than half of Wall Street’s estimates, pulled down by same-store sales that fell 3 per cent from a year earlier. The company is trying to entice customers with new games, a revamped menu and more effective marketing. But whether you’re a customer – or an investor – Dave & Buster’s is taking a bite out of your wallet.
Intel Corp. (STAR)
For all its talk about free markets and deregulation, the Trump administration sure seems to have a soft spot for state capitalism. Weeks after the U.S. government acquired a roughly 10-per-cent stake in Intel for US$8.9-billion, Nvidia said it would invest US$5-billion in Intel’s common stock, with plans for the two chip makers to collaborate on products. The latest deal came after the Trump administration approached Nvidia earlier this year and asked it to take a stake in its smaller rival, sources told The New York Times. What’s next? Collective farming? Nationalization of the NFL? Don’t give them any ideas.