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Good Morning!
Happy Thursday! Let’s have a good one:
👉Fed signals rate cut
👉Peloton earnings are in
👉WeRide postpones IPO
FED: Signals Rate Cut
Federal Reserve officials came close to reducing interest rates at their July meeting but ultimately held off, signaling that a September cut is likely. According to the minutes released Wednesday, most participants agreed that a rate cut would be appropriate next month if economic data remains steady.
Source: Investopedia
While all voting members chose to keep rates steady, some felt a 25 basis point cut was justified in July due to recent inflation progress and rising unemployment. Markets are fully anticipating a September cut, the first since the early days of the Covid crisis.
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EARNINGS: Peloton
Peloton is beginning to dig itself out of its financial struggles, reporting a slight sales increase of 0.2% in its fiscal fourth quarter—the first growth in nine quarters. Despite a dip in hardware sales, the company saw a boost in subscription revenue, particularly from used bikes, which grew 16% year-over-year.
Source: Peloton
Peloton's efforts to cut costs, including a 19% reduction in marketing spending, have narrowed losses to $30.5 million, down from $241.8 million a year ago. The company is now focusing on profitability, expecting adjusted EBITDA between $50 million and $60 million for the current quarter despite lower-than-expected sales forecasts.
WeRide: Postpones IPO
Self-driving tech company WeRide has postponed its U.S. IPO, citing delays in finalizing necessary documents. The company had planned to offer 6.5 million ADS at $15.50 to $18.50 each, aiming to raise up to $440 million. Founded in Silicon Valley in 2017 and now valued at $5.11 billion, WeRide focuses on robotaxis, minibuses, and freight vehicles.
Source: CNBC
With Beijing's approval set to expire this week, it's unclear if WeRide will need to reapply. If successful, this IPO would be one of the largest by a Chinese company since Didi's in 2021.
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