Elon Musk Fails to Electrify Wall Street; H&M’s Untrendy Earnings; Dell’s List for Female Entrepreneurs

It’s electric…

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Shares of Tesla took a bit of a dive today as investors attempted to illustrate how they feel about Elon Musk’s idea of buying out his other big endeavor, SolarCity. Musk, who owns about 19% of Tesla, feels that a SolarCity buyout will cut costs for both companies and magically create wonderful new lucrative opportunities. He also believes customers will be inspired to buy up a threesome of his electric cars, home batteries and solar system. Did I mention, by the way, that Musk also own 22% of SolarCity? Just saying. Investors, however, think it’s a bad move for Tesla to take in SolarCity, which would add about $2.6 billion in debt to the electric car maker.  Besides, investors aren’t feeling the love over SolarCity’s growth prospects and the increasing competition that keeps popping up. Tesla has yet to turn out a profit and isn’t even expected to do so until 2020. Of course, Musk disagrees with this analysis and is convinced that this is his year to start making some cold hard cash. Plus, he thinks a SolarCity buyout would put Tesla’s valuation at $1 trillion, and I’m guessing he likes how that sounds. SolarCity’s stock, by the way, is down 50% so far this year.

Un-trendy…

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Fast-fashion retailer H&M had a disappointing second quarter with profits falling a very un-trendy 17% to $847 million. At least sales went up, but only by 2%, to a decent $6.56 billion. But if that’s not bad enough, shares of H&M are down 17% so far this year. Naturally, the weather – the cold weather, this time – and the strong dollar took their share of the blame, as did tomorrow’s Brexit vote, I kid you not. Sales in the U.K., H&M’s third largest market, fell 7% and CEO Karl-Johan Persson thought it might have been because of the looming “Brexit” vote. Because, after all, aren’t most tweens and teens in Britain pondering that issue while they do their fast-fashion shopping at H&M? Persson, by the way, is not a “Brexit” fan. Incidentally, sales also fell in Portugal , France and Switzerland, yet there is no talk of any of those countries pulling out of the EU.

Woman up!

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There’s a new list out brought to us courtesy of Dell that ranks cities according to how good they are for female entrepreneurs. Called the Women Entrepreneur Cities Index, cities on this list are measured according to how well they attract and support female entrepreneurs of high potential who seek to grow and scale their business. In order for a city to even qualify, it first had to be categorized as a city that was already hospitable to entrepreneurs in general, regardless of sex or race. With that out of the way, the index took into account 71 different indicators – which I will not list, you’re welcome – and divided them into five different categories including, markets, talent, capital, culture and tech. The cities were given scores in these areas and the results may – or may not – surprise you. The Big Apple came in first with a score of 58.6 out of 100. The Bay Area followed second with a score of 58.3. Across the pond, London snagged the third place spot while Paris took ninth. Other U.S. cities that pulled in respectable scores included Washington DC in 7th place, Seattle, Washington in tenth place and Austin, Texas coming in twelfth. If you didn’t see your city listed then fear not as only 25 major global cities were taken into account for this particular list. And here’s a fun fact: A correlation was found between how much an area fosters and nurtures female entrepreneurs and that area’s general economic growth. They go hand in hand. How ’bout that.

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Where Have All the PC’s Gone?; Chipotle Ready for Big Return; Lego’s New Policy is Awesome

Click away…

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PC’s did not have a very merry Christmas. Or fiscal quarter for that matter. In fact, this marks the fifth consecutive quarter of disappointing PC sales. For the fourth quarter, those sales tanked by a very un-jolly 8.3%. We’re talking Lenovo, HP and Dell. But it was Acer that did the absolute worst with a 15% decline for all of 2015. Shipments of PC’s, for the first time since 2008, fell under 300 million to a very disappointing 276.2 million, more than a 10% decline since 2014. There’s just too much competition from tablet and smartphones that consumers don’t feel the need the rush to upgrade their machines. However, analysts seem to think that sales will pick up later in the year as Windows 10 gets commercialized. The one bright spot, according to the International Data Corporation, were “detachable” PC’s that seem to be all the rage right now. That segment of the industry posted some impressive growth. But then it gets weird. You see Apple, seen as a premium brand in the United States and Europe, actually saw growth – 3% for the quarter and 6% for the year – selling 20.7 million machines. It’s weird, if only because Lenovo, HP and Dell still sold more computers separately than Apple did. So it’s all a matter of perspective, I suppose.

All wrapped up?

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All is not lost for Chipotle after analysts decided that the chain has the potential to get its mojo back. Apparently, none of those analysts suffered from any food-borne illnesses from eating at Chipotle. That may or may not have had to do with why shares of the company rose the most today in more than 5 months. In fact, despite the fact that Chipotle is still slightly reeling from its relatively recent food safety crisis, the chain has plans to open up more than a couple of hundred new restaurants in the coming year. Execs say that the company is implementing new food safety protocols and believe it will make Chipotle an industry leader when it comes to food safety. Go Chipotle! The restaurant chain took a heady 15% sales hit in the fourth quarter following a multi-state E.Coli outbreak at several of its locations. As a result, the company expects to see negative sales posted until at least 2017.  However, shares today went up as high as $432.30 Bear in mind that the company experienced a major 40% slump from the high it hit back in August to the tune of $757. 77 and lost about $10 billion of its market value. There are currently several lawsuits against the chain over its past food-safety practices. But hey, good news: Chipotle execs say that the CDC is just about done with its own investigation into the food chain. Yay. Just don’t confuse that with the separate federal investigation of Chipotle following a norovirus outbreak in California.

Everything is awesome…

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Chinese artist Ai Weiwei will now get to play with all the Lego his political artwork requires. The fuss all started when Weiwei requested a large bulk order for some artwork. It was intended for an exhibition in Australia featuring 20 portraits of pro-freedom figures – to be done in Lego. But Lego wouldn’t allow him to order the amount of bricks needed for the “art” because, at the time, Lego’s policy stipulated that it did not endorse the use of its plastic bricks for projects that carry a “political agenda.” Never mind that my own father is convinced that The Lego Movie had a major political agenda subtly woven into the script. But we’ll leave it at that. In any case, when Ai Weiwei aired his grievance with the toymaker, supporters in several countries began sending in their own Lego stockpiles to the artist. Weiwei ended up using plastic bricks from a Chinese company that were similar to Legos and considerably cheaper too. Lego decided to change its policy and will officially forego asking details about such projects. However, artists must clearly display that Lego does not support or endorse the theme, message  or politics of the Lego artwork in question. Voila!