The StockDr & Team travel directly into the destruction Tesla and Spirit Airlines have caused this week.
TSLA tanked as the National Highway Safety Administration opened a formal investigation into TSLA’s autopilot system or traffic awareness cruise. NHTSA identified 11 incidents of Tesla’s on Autopilot have hit vehicles at scenes where first responders have used flashing lights, flares, an illuminated arrow board, or cones warning of hazards.
Spirit Airlines (SAVE) cancelled more than 2800 flights between July 30 and Aug 9. The airlines blamed the disruption on bad weather, staffing shortages and technical problems. This massive disruption cost the company about $50 mil in revenue.
The company says they’re making “tactical schedule reductions” for the rest of the Q3 to soften the blow of staffing shortfalls. CEO Ted Christie is offering an apology on behalf of their entire leadership team.
Between the cancellations and “tactical changes” this will impact the company to the tune of $80-100 million in negative revs for Q3.
“Big Short” investor Michael Burry is betting against Cathie Wood’s flagship ARK fund (ARKK). Burry’s Scion Asset Management bought 2,355 put contracts against the ARKK in Q2 and is holding on. The ARKK had a pretty good Q2 performance up 9% but down 10% so far in Q3.
Cathie Wood then called out Michael Burry on Social Media after he bet against the ARKK. “To his credit, Michael Burry made a great call based on fundamentals and recognized the calamity brewing in the housing/mortgage market. I do not believe that he understands the fundamentals that are creating explosive growth and investment opportunities in the innovation space.”
The Millennial Moment presented by our Mega-llennial, Nikki Ward discussed another Crypto Hacker story involving PolyNetwork, a cryptocurrency platform targeted in a massive heist last week, which saw the hacker, or hackers, make off with more than $600m worth of tokens.
A hacker, who is referenced as “Mr. White Hat,” exploited a flaw in PolyNetwork’s code which allowed them to transfer the assets to their own crypto wallets. The hacker has returned most of the money, except $200 million of funds which are currently locked in an account that requires passwords from PolyNetwork and the hacker to gain access. PN is pleading with the hacker to provide the private key needed to retrieve the money.
“Mr. White Hat” is a reference to ethical hackers who search for vulnerabilities in organizations’ systems that could expose them to attacks. Security researchers have questioned the labeling of the Poly Network attacker as a white hat hacker.
The group said its promise to reward “Mr. White Hat” with a $500,000 bounty still stands, and even invited the hacker to become its “chief security advisor.” PolyNetwork said it “has no intention of holding Mr. White Hat legally responsible” for the hack.
This week’s meeting of the minds was brought to you by the Siler Wealth Management Team.
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