Diamonds and Dogs
The future is now for electronic cars. Tesla Motors (TSLA) is the diamond today up over 10% or 21 points thanks to better than expected guidance. While the third quarter's numbers were not spectacular, the company guided to 17,000 to 19,000 deliveries in the fourth quarter or 47% to 64% sequential growth and 73% to 93% year-over-year growth was music to investors ears. In other words, Tesla expects its fourth quarter to be its biggest quarter yet. The market's enthusiastic response may also include some optimistic perspective from management on the demand for its vehicles, which noted that launch of its recent Model X SUV actually accelerated order growth for both Model S and Model X.
Groupon's (GRPN) got its own deal today, up to 30 percent off for a corporate makeover. The stock is plunging nearly 30%, its biggest one-day decline, after the company said it doesn't know whether it will lose money or make a penny a share in the fourth quarter. Analysts estimates for the fourth quarter were for a 7 cent a share gain while sales may now be at least 11 percent below the consensus estimate. Remember the time Google wanted to buy Groupon for $6 billion? Well, after dropping 65 percent for the year, the company is now worth less than a third of that.
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