main question:

For this WSJ Article (available through LIRN https://proxy.lirn.net/CAInstOfAdvMgmt#tabId_alphabetical-view) discussion, you are required to choose a “unique” article related to the core finance concepts from the week. The term “unique” means that you may not post a discussion about an article that another student has already discussed. WSJ articles are first come first served, which should encourage you to reserve your article and post your discussion early.

The objective of the discussion assignment is to apply the core finance concepts from the week. You are free to use outside sources any article/source(article). The key component of your discussion grade will come from your ability

to connect the article to one or more of the learning outcomes from this week. The stronger the connection, the better the discussion grade. Students also need to include a brief summary of the article within their write up and remember to properly cite (APA) the article at the bottom of your discussion post. (200-250word will be fine)

reply1 (150-200words will be fine)

According to Dave Sebastian (2020), it was reported that Coca Cola’s fourth-quarter sales increased by 16% compared to the prior year’s last quarter, which was significantly beyond the analysts’ expectations. In addition, its revenue derived from selling organic beverages also rose 7%. The sale in developing countries such as China and Brazil contributed to 3% of its global revenue increase.

From our class, we learned financial analysis including understanding revenues (Forester, 2015). Revenues are generated primarily from the company’s business operations in the form of sales of goods or services. By analyzing the revenues in comparison within the same season in prior periods, analysts are able to evaluate the business’s performance in terms of consistency. Also, the revenues can be compared with the performance of other players in the industry, which allows analysts to measure one’s performance with its position in the market. In addition, revenue provides a direct measurement of market share as well. Indeed, there is other financial information that is very important to be considered concurrently. A full understanding of a company’s performance depends on both quantitive and qualitative measures. Moreover, sustainability is another consideration for investors. In the case of Coca Cola, its expansion in organic beverages demonstrates its emphasis on sustainable profitability.

Reference

Sebastian, D. (2020, January 30). Coca-Cola Posts Higher Sales. Retrieved from https://www.wsj.com/articles/coca-cola-posts-higher-quarterly-sales-11580387057?mod=article_inline (Links to an external site.)

Foerster, S. (2015). Financial management: concepts and applications. Harlow: Pearson Education Limited.

reply#2

This week, investors were shock about Tesla’s stock price. The stock was $400/share last year end but reached to $940 this morning. What made Tesla Shares Rally at Fastest Pace Since 2013? When Tesla announced it will open a new warehouse in Shanghai, China, to support the increasing demand. I think that’s the first good news to increase the stock price. Later on, Tesla announced two new cars: Cybertruck and Model Y, which slight increase the stock price again. Recently, Tesla just released the second consecutive quarterly profit and said it would comfortably make more than half a million vehicles this year which increased the stock price further.

I think that’s the special characteristic of start-up companies compare to value companies (the companies have already at the steady growth stage). In Q2 2018, Tesla still has $718 million net loss but the situation changed in Q3 2018. In Q3 2018, Tesla has $ 311 million net income. The net loss was due to the fact that Tesla incurred large amount of research and development and start-up cost before. That’s very normal for start-up companies. And in general, the start-up companies will eventually benefit from the R&D expenditures just like Tesla.

Reference:

Akane Otani. (2020, February 3) Tesla Shares Rally at Fastest Pace Since 2013. (Links to an external site.)Retrieved from: https://www.wsj.com/articles/tesla-shares-rally-at-fastest-pace-since-2013-11580760419?mod=searchresults&page=1&pos=11