Fitbit spikes after losing less money than expected

• Joe Ciolli
 

• 19h
• 1,138
 

Fitbit

FIT Fitbit Rg-A

 5.84 0.61 (+11.70 %)

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Fitbit's stock surged after the company posted a second-quarter loss than was lower than analyst forecasts.

The adjusted loss for the period was $0.08 per share, beating analyst estimates of a $0.15 per share deficit. The wearable device maker also reported quarterly revenue of $353.3 million, exceeding a consensus forecast of $341.6 billion.

"Consumer demand in the second quarter was better than anticipated, enabling Fitbit to reduce channel inventory and generate better sales," co-founder and CEO James Park said in a statement. "We are executing according to our transition plan and have increased confidence in achieving our full year results."

The strength seen in Fitbit's stock is welcome news for shareholders that have seen the company hover near record lows for the past few months. Shares have plunged 83% since the start of 2016.

Following the second-quarter earnings news, shares of Fitbit rose 7.1% to $5.43 a share as of 4:22 pm ET.

Fitbit spiked after reporting earnings that beat analyst estimates.Markets Insider

Get the latest Fitbit stock price here.

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REPORT: Billionaire Steve Cohen is facing a UK regulatory hurdle

BEN MOSHINSKY

AUG 3, 2017, 6:40 PM

image: https://static.businessinsider.com/image/5982e1d627fa6b129b2e67ce-400/image.jpg

Getty Images

LONDON — A fund set up to manage the wealth of Steve Cohen, the billionaire who ran one of Wall Street’s most infamous hedge funds, is facing a regulatory struggle in the UK, the Financial Times reported.

Point72, which Cohen set up in 2014 to manage around $US11 billion of personal wealth, has been notified by the Financial Conduct Authority that it intends to reject an application for regulatory approval, the FT’s Lindsay Fortado and John Gapper said.

While family offices can operate without approval in the UK, they must seek special authorisations from the FCA to manage the assets of other clients.

Around 1,100 people work at Point72, which has its headquarters in Stamford, Connecticut. Point72 and the FCA declined to comment.

The US Securities and Exchange Commission in 2013 barred the firm that made Cohen’s name as an investor, SAC Capital, from managing outside money after it pleaded guilty to insider trading. Cohen wasn’t personally charged. That ban lifts in 2018, following a settlement that ended charges that Cohen hadn’t properly supervised a portfolio manager, Mathew Martoma, who had engaged in the insider trading.

Cohen is reportedly planning to launch a new fund, reportedly with a goal of managing as much as $US20 billion.

Read more at https://www.businessinsider.com/report-billionaire-steve-cohen-is-facing-a-uk-regulatory-hurdle-2017-8#vy7dEihQj0sWVFSY.99

Tesla burns through the most cash in its history

• Akin Oyedele
 

• 18h
• 7,383

Tesla Model 3Timothy Artman/Tesla

TSLA Tesla

 348.75 4.75 (+1.40 %)

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Tesla burned through a record amount of cash in the second quarter as it prepared to unveil its Model 3 sedan. 

The company's earnings statement released Wednesday showed that Tesla's negative free cash flow expanded to a record -$1.2 billion from -$622.4 million a year earlier. 

The stakes are high for Tesla's first mass-market car priced at $35,000. Tesla on Wednesday said production was on track to hit its targets, and that over 1,800 vehicles were being ordered daily on net.

Tesla has typically burned through more cash than traditional auto makers as it strived to remain at the forefront of innovation in the electric-car space.

In the second quarter, Tesla increased spending on research and development by 92% to $369.8 million. 

"Capital expenditures should be about $2 billion during the second half of 2017, as we make milestone-based payments for Model 3 equipment" and other products, the company wrote.

Tesla's earnings further showed that the company reported a smaller-than-expected loss and beat analysts' estimates for revenues. Andy Kiersz/Business Insider

Get the latest Tesla stock price here.

SEE ALSO: Tesla reports a smaller loss than expected, says Model 3 production is on track to hit targets

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