Let's jump right in, shall we?
There's one story that has been on everyone's mind today, and it's pretty obvious why.
Elon Musk Enjoys Whiskey...And Weed?
Yeah, that story.
Not familiar? Oh, boy. Time for a rollercoaster ride.
Well, it all started after the infamous take private tweet. Here's a visual timeline in case you live under a rock.
Basically, Musk tweeted on Aug. 7 that he wanted to take Tesla (TSLA) private at $420 a share. Which, of course, sparked a question about whether the CEO was smoking the dope when he tweeted.
10 days later, Musk sat down with the New York Times. He claimed that the number had nothing to do with weed.
"It seemed like better karma at $420 than at $419," he said in the interview. "But I was not on weed, to be clear. Weed is not helpful for productivity. There's a reason for the word 'stoned.' You just sit there like a stone on weed."
Alright, alright, you get it. What does this have to do with the present? Don't worry - we're just getting to the good part.
Musk sat down with Joe Rogan on his podcast and drank some whiskey. And then, in a turn of events, Musk smokes marijuana. Of course, this in and of itself is not a big deal - after all, marijuana is legal in California. However, for a CEO who's just had his Chief Accounting Officer depart and had short-sellers announce that they're suing the company, it begs investors to question the judgement.
So, let's focus on the finance.
The electric-auto maker saw its stock tank about 7% on Friday to $262, breaking below the key 200-day moving average for the first time since Nov. 2017.
Meanwhile, Friday saw the departure of Tesla's chief accounting officer, Dave Morton, less than a month into the job. Tesla's HR chief also reportedly departed on Friday. A Tesla spokesperson didn't return a request for confirmation of the exit.
The Big Apple Comes to Play
According to data provided by IG Group, an online trading platform, the ability of new products to move Apple's stock has diminished over time. On Wednesday, Apple's stock reached a new all-time high of $229.67 per share, its sixth straight record high since Apple announced its Sept. 12 product unveiling, before slipping slightly to just over $223 as of Friday morning.
Perhaps unsurprisingly, the original iPhone - a category-defining device that still drives the majority of Apple's revenue - made the biggest difference in Apple's share price, driving the stock 10.5% higher to the equivalent of $13.52 per share, accounting for Apple's 7-for-1 stock split in June 2014.
The iPhone is still Apple's biggest cash cow, but updates in recent years have been more incremental than revolutionary: "It's becoming increasingly difficulty to have a wow factor," said DA Davidson's Tom Forte.
At the Sept. 12 event, new iPhones could include fresh options in screen size, colors and one at a lower price point that could open up the product to more consumers, according to recent rumors. But the event could also include announcements or hints of some of Apple's other initiatives, such as augmented reality, Apple's long-rumored video streaming service or even an Apple Glasses device. Adding fuel to rumors of an augmented-reality glasses product, Apple bought a startup last week called Akonia Holographics, which makes 'smart glass lenses'.
Ever Wondered What it's Like to Work for Amazon?
Ring founder Jamie Siminoff is one of the few who knows. Amazon (AMZN) bought Ring in one of its largest-ever acquisitions to date. In a deal that closed in April 2018, Amazon reportedly paid between $1.2 billion and $1.8 billion for the home security firm. That makes it Amazon's second-largest acquisition behind its $14 billion purchase of Whole Foods in July 2017, reports Gaus.
Ring sells doorbells and other security equipment that allow people to see who's at their door before opening it. Its objective is to reduce crime and create "better, safer neighborhoods," Siminoff said. Its main products include smart doorbells, cameras and security monitoring systems.
The discussions with Amazon kicked off about four years ago, Siminoff said. Apple Inc. (AAPL - Get Report) had also expressed interest in the company, but he added that the discussions never got particularly serious. By contrast, Amazon was the right fit because the objectives of the two companies seemed to align well.
Amazon's work culture is reputed to be less warm and fuzzy than some of its big tech counterparts. But Siminoff said that from a startup founder's perspective, Amazon's hands-off approach to managing its subsidiaries was a selling point: "I still go to work every day and do what I was doing, and that's great," he said.
Well, that's it for now. Have a good weekend.