Ford Flops On Supply Chain Warning

After yesterday’s close, Ford warned investors that inflation and supply chain issues would cost it an extra $1 billion during the third quarter. 🔺

Parts shortages have prevented 40,000-45,000 vehicles from reaching its dealers, mainly high-margin trucks and SUVs. However, it expects to be able to ship those vehicles during Q4.

Executives reiterated their full-year guidance, projecting 2022 adjusted EBITDA of $11.5-$12.5 billion. They also said they’d “provide more dimension about expectations for full-year performance” at its third-quarter earnings release on October 26th. 📅

Supply chain issues have affected most industries throughout the pandemic, hitting automakers particularly hard. In July, General Motors warned investors that it had about 95,000 vehicles lacking some components. ⚠️

Overall, while the company remains optimistic, investors appear less so. $F shares were down 5% after hours and are down 11% so far in today’s session. 👎

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Musk Officially Boards The Bird App

Elon Musk officially closed his $44 billion Twitter takeover last night and is wasting no time at all in making changes. We guess we wouldn’t either if legally forced to spend $44 billion, but still. 😂

It began with Musk entering Twitter’s San Francisco headquarters on Wednesday carrying a sink and changing his Twitter bio to “Chief Twit.” 📝

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Starbucks’ Reinvention Plan

Starbucks has not been exempt from the market’s wrath over the last few years. The stock is trading at the same level as three years ago and remains 40% below its all-time high set in 2021. However, at today’s investor day, Starbucks outlined a plan that it hopes will reenergize its performance. ☕

The event, led by interim CEO Howard Schultz, presented actions and target investments in the company’s partners, customers, and stores which it expects to accelerate its long-term growth.

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American Airlines Gains Some Altitude

American Airlines reports results on October 20th. However, today it preannounced that its third-quarter sales are likely better than previously expected.

The company said revenue for the quarter that ended September 30 will be up 13% from Q3 2019, above its July forecast of a 10%-12% increase. The strong summer travel demand helped it cover rising costs. 💪

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