In this week’s 3 market insights, we discuss Meta, Tesla, and the economic thorn that is inflation.
Here’s a summary:
- Meta remains the dominant app download leader in September.
- Tesla car pricing continues its decline.
- Inflation path forward clearing up.
META dominates September app downloads with 134 million downloads across its family of apps.
Full disclosure: My firm and I own shares of META.
Meta achieved an impressive 134 million downloads in September. These downloads include WhatsApp, WhatsApp Business, Facebook, and Instagram, which combined makeup over 30% of total downloads for the leading global apps.
In the context of advertising agencies, we have spoken to recently, it’s notable that their ad spend continues to rise as they become more comfortable with the advertising environment. Additionally, these agencies consider Meta’s family of apps as the gold standard, primarily due to the higher conversion rates associated with budget allocation on these platforms.
Tesla Model 3 pricing all the way back to its lows.
The pricing trend at Tesla has generally been downward, even with available tax credits for electric vehicles. Tesla attributes this to a strategy aimed at gaining more market share. However, it’s important to highlight that in the past 12 months, the price cuts have been substantial. While Tesla is renowned for its quality products and strong brand, questions linger here at Avory about the potential impact of increasing competition on their sales margins. This has always been a question, however competitors like Rivian, BYD, Kia, Lucis, Polestar, Fisker, Canoo, and others now have cars on the road.  Tesla can get sales, but at what cost?
The future of inflation looks bright even if CPI generates a .3% monthly growth.
The above chart shows the trajectory of inflation using Bespoke. It looks at what year-over-year inflation will be at certain levels of monthly growth. The conclusion is short and simple. If monthly inflation moves higher by .2% or lower, we hit 2.5% or lower in 6 months time.
Twitter: @_SeanDavid
The author and/or his firm may have positions in the mentioned companies and underlying securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
