Shesa's October/November 2022 Investment Blog
OCT/NOV 2022 - INVESTMENT BLOGBy Shesa Nayak
The stock market has been on a roller coaster. We did experience a stormy September followed by best month for the Dow Jones since 1976 and best October ever. The key reason for this was that many DOW companies came with solid earnings, particularly energy, financials, industrial sector. However, technology stock index Nasdaq has been the laggard. The primary reason is that many technology titans have reported lackluster earnings - Google missed, Microsoft beat but poor guidance, Apple, Amazon missed, Meta was a disaster, Apple came with good earnings but provided no guidance. Hence, we are seeing mixed earnings reports - some of them are good, some of them are bad. Strong U.S dollar and inflation is eating the revenue and profits of many big corporations and that has tormented the technology stocks. The ever increasing interest rate, hawkish FED and fear of recession is scaring people to buy high ticket items. There are still supply chain issues, inventories for semiconductor sector has piled up due to lack of demand. The TV, media, news and views by experts everything seemed negative have created a short sellers paradise.
Federal Reserve keeps raising rates persistently to bring down the inflation. Undoubtedly, the whole World is facing unprecedented inflation. Federal Reserve’s job is to control the inflation. But FED has committed many mistakes earlier and again it’s highly likely they may overdo resulting in recession. Subsequently, in order to rectify the mistake of overdoing, they will have to cut interest rate. FOMC should be visionary, not just just looking at the past data but being proactive in anticipating the eventualities. The next FOMC meeting is on November 1-2 where they are anticipated to raise another 0.75% interest rate. In my view, that’s a forgone conclusion. But what Fed chair J Powell says for future will be the market mover. Will they still stand hawkish or will they pivot (reversing the monetary policy)? I guess they will still remain hawkish.
Meanwhile, mid-term election is coming on November 8. This is another catalyst and if history is any evidence market has done extremely well in the past after the mid-term election.
The stock market, particularly Nasdaq is in a dire state, still down 31.5% from its all-time high. As there is a saying “there will be light at the end of the tunnel”. But the only question is how long is this bear market tunnel? Whatever it is, I see some market bounce in November. Why so? I will share my thoughts but before that let’s take a look to the stock market index.
Indexes | 1/31/2021 (Close) | Close FRI 10/28 | Change in 2022 | % Change in 2022 | All Time High | From All Time High | % from All Time High |
DOW | 36,338.30 | 32,861.80 | -3,476.50 | -9.57 | 36,952.65 | -4,090.85 | -11.07% |
S&P 500 | 4,766.18 | 3,901.06 | -865.12 | -18.15 | 4,818.62 | -917.56 | -19.04% |
NASDAQ | 15,644.97 | 11,102.45 | -4,542.52 | -29.04 | 16,212.23 | -5,109.78 | -31.52% |
BTK | 5,518.45 | 4,939.92 | -578.53 | -10.48 | 6,376.77 | -1,436.85 | -22.53% |
NBI | 4,728.94 | 4,138.97 | -589.97 | -12.48 | 5,517.77 | -1,378.80 | -24.99% |
Q3FY22 Earnings Metrics
For Q3 2022, 52% of S&P 500 companies have reported earnings, out of those 71% have reported a positive EPS surprise.
Earnings Growth: The earning growth is 2.2%. If 2.2% is the actual growth rate for the quarter, it will mark the lowest earnings growth rate since Q3 2020 (-5.7%).
Valuation: The forward 12-month P/E ratio for the S&P 500 is 16.3. This P/E ratio is below the 5-year average (18.5) and below the 10-year average (17.1).
Economy News
FED interest rate: The FOMC is scheduled to meet on November 1-2 and it’s almost certain that they will hike another 0.75%. The benchmark overnight borrowing rate currently stands at a range of 3% - 3.25% should go up to 4 - 4.25%.
U.S GDP: Third quarter GDP grew at 2.6%. However, I don’t think it was because of strong economy, it was because federal government sold lots of oil and gas from its reserve to Europe and within U.S in order to bring down gas prices and reduce deficit. So, I am not thrilled about this GDP growth. Please note that we had negative GDP growth of -0.9% in Q2 and -1.6% in Q1.
- Inflation rate: 8.2% in September, down from 8.3% in August
- Retail Sales: remained flat (0%) in September, it was up 0.04% in August
- Unemployment rate: 3.5% in Sept, down from 3.7% in August
- Consumer Confidence: 59.9% in Sept, August was 58.6%
- Business Confidence: 50.9% in Sept, down from August 58.6%.
- U.S Crude Oil: $88.38 a barrel
- Pending Home Sales: -10.2% YoY, economists has expected only 4% decline
- Mortgage Rates: It has gone beyond 7%, highest since more than 20 years
Current Economic Picture and Stock market
The stock market downturn has reached to 11 months in a row particularly for Nasdaq and 10 months of downturn for S&P 500 and DOW. It has been a very challenging year for investors because of Fed’s aggressive tightening policies to tame soaring inflation and that continues to weigh on almost each and every asset class. The rising inflation resulting from COVID, supply chain constraints, Fed mis-steps, rising inflation, continued high percentage rate hikes by FED and their continued hawkish monetary policy have pushed the Bond yields to 15 years high and U.S dollar has gone up like crazy to more than 20 years high. All these have created an extremely difficult environment for the stock market. The technology stocks have been shattered and those hefty valuations have disappeared. The job market, particularly low paying jobs in certain selective sectors like, leisures, health care have contributed to job growths but lots of technology jobs has dramatically disappeared. The business environment is going towards inevitable recession. The PMI Output Index, which tracks the manufacturing and services sectors, fell to 47.3 this month. Please note that the number falling below 50 indicates contraction in the private sector. So, the question is are we trending towards recession?
Mortgage rates went past 7% and pending home sales dropped significantly (-10%), economists expected -4%.
Fear of Recession
The Fed delivered a 75-basis-point rate hike in September, its third straight increase of that size, and a fourth of that magnitude is expected at next week's policy-setting meeting. In the past stock market never witnessed so much of inflation in such a short timeframe. Furthermore, market also never witnessed such huge interest rate hike in such a quick timeframe. The fear is that FED may overdo raising rates because they follow the past data. And let’s not forget that it takes at least 4-6 moths for the impact to be observed in conjunction to any rate hike. Unfortunately, I do not think Fed acts on vision rather they act on the past data and most of the time excess rate hikes has resulted into recessions. This time I do anticipate the same. But recession has 3 aspects:
- Two consecutive quarter of negative GDP growth which already saw in Q2: -0.6%, Q1: -1.6%
- Higher inflation: We are already 8.2% inflation which is highest since 1981
- Unemployment is still low: During a recession there is higher unemployments so this is still the savior. But hirings have been coming down except for low paying jobs. So, we are not too far away to see unemployment percentage going up.
- Corporate Earnings: Fortunately, we are still seeing positive earnings growth of 2.2% so far in Q3, which is lowest since 2020 (COVID). However, please note that Oil and Gas companies (Energy Sector) is primary contributor to this earnings growth. If we remove that sector then it may result into negative -6% earnings decline.
My analysis of current Stock Market environment & Technology Stocks
Do I need to say what’s happening in the stock market!! As I said earlier, we have seen 11 months of decline in the stock market. This has been one of the longest and probably painful downturn in the stock market since 2008-2009 housing crash. During that time FED was there to rescue the stock market by brining down the interest rate. However, now the situation is opposite, FED is hiking the interest rates. And that’s the pain market is facing. Because stock market had seen continued decline of interest rates for last 13-14 years. So, it was easy to get loan, refinance, issue bond by corporations and take debt. But now it has taken an U turn due to rise in inflation and interest rate. So, the stock market has to reduce its expectations of growth because companies can no more generate huge sales and profit. Add to that, these rate hikes wis causing enormous dent in the housing market and other high ticket items like Car sales, TVs, Computers and many other items. When somebody buys a home, he/she may buy a new sofa, refrigerator, washer/dryer, upgrade homes, backyards and so on.
The technology stocks have been decimated and investors are running away. The earnings of the tech giants were lackluster. Technology stocks are stinking the way home market was stinking during 2009-2010 and 2011. What happened to home market after that? So, are technology going out of favor? It’s anybody’s guess!! I can not expect the same growth and absurd multiples of many high flying technology stocks. Probably that may never come back. The new technology stocks are oil sector, health care, defense, financials, leisure, travel, food etc. Old energy sector is on tear, almost every stock is making new all-time high days after days. Everybody is chasing those stocks as if a new trend has emerged. DOW had the best one month since 1976 and the best October ever, whereas Nasdaq was laggard. Energy stocks are up 24%, Industrial up 14%, Healthcare +9%, Technology +9% only in the month of October. So, has the era of technology stock ended? Well, we always see such rotations and which is not uncommon in the stock market. Every dog has its day. The investors keep running and chasing where ever it’s green. But innovation does not stop and technology stocks get premium because of that. But there were hefty expectations and economy is struggling with so many macro and micro factors, including sky rocketing inflation and interest rates which does not bode well for the technology sector. But valuations have come down significantly and sooner or later time will come where the money will rotate from those darling sectors to technology sector. It’s just a matter of time. But at this time should we we invest in those darling sectors? Sure why not, sometime it’s wise to follow the trend. wherever money can be made. But I am scared of chasing stocks when they are at all-time high, rather I prefer to buy good depressed stock where there is bloodbath and invest for long-term rather than chasing and buying stocks at all-time high. So, I may be away from the crowed for now. That’s just my investment framework.
Are we approaching to the end of Bear Market or more downturn ahead?
Here is my analysis..
The end of bear market may not be over but I feel we might have hit the bottom. As I said before, “there will be light at then end of the tunnel”. But the only question is how long is this bear market tunnel? So, I am analyzing it from many other angles though I am neither an economist nor an analyst. I would like to put some facts for your information.
Mid-term Election: I already wrote a lot in my previous blogs so won’t repeat it agin but just want to summarize in a few lines. During the mid-term election years, 23 out of 27 times or 85% of the time in the past stock market have ended the year on a higher note. But if we see the mid-term year’s low to next year’s high then the stock market have NEVER gone negative. The average return has been outstanding 46.9%. The lowest return was 14.6% in 1946 and highest return was 88.1% in 1914. Will the history repeat. Nobody knows but mostly it repeats.
Reset in valuations: Valuations of lot of stock particularly for many technology stocks have dropped significantly. That brings the opportunity.
Inflation may gradually tame: Fed has been increasing the rate voraciously whose impact should be seen in coming months. Obviously, it should bring the inflation down but the real impact is yet to be seen.
History shows end of bear many times in the month of October. The bear markets tend to die in October, especially in mid-term election years. You can probably recall a few by memory, like…
- In 1962, the Cuban Missile Crisis was resolved in the last week of October after the S&P 500 bottomed on October 23 and after that it soared by over 10% in November.
- In 1987, Black Monday saw the biggest one-day drop in the market ever (-22%), but then came a 13.7% gain over the next two weeks in the S&P 500 and +15.8% in the DOW.
- In 1990, the S&P 500 dropped to 295 on October 11 (down 20% within 3 months, due to Saddam Hussein invading Kuwait), but then it gained nearly 12% by year’s end.
- In 1998, the S&P 500 fell 15% from July 8 to October 8 and then it gained back 21% by Thanksgiving week.
- In 2002, the S&P bottomed out at 776.76 on October 9 after losing 49% in just over two years due to 911 attack and then it gained 14% by October 31 and doubled in five years, setting new highs.
Four of those five instances above occurred in mid-term election years, the only exception was 1987 crash.
Federal Reserve is the biggest threat: The Fed seems to be the biggest threat to a potential fourth-quarter recovery in the stock market and the economy. I am almost 99% sure that they will raise 0.75% interest rate during next FOMC meeting on November 2. After that again they may raise one more time in December meeting but with a lower percentage rate. I guess that should be the end of the rate hike cycle at least temporarily. That being said, this FOMC has committed many mistakes and I will not wonder if they commit another blunder and bring recession for a foreseeable future. I hope they are seeing and analyzing the current challenging macro and micro economic environment - lower sale, profit, higher inventory, continued supply chain constraints, strong U.S dollar, higher interest rate, lower consumer spending, falling home prices, struggling technology sector and lack of good paying jobs, just not eying on inflation and low paid job numbers. They may be genius but I sometime wonder whether they want to keep their pride in order to rectify their past mistake and overdo things? I am not be surprised if that happens. All these have created short sellers paradise. The market may still keep tumbling if the FOMC remain hawkish. I keep reminding that, the impact of the interest rate hikes takes 4-6 months to be reflected in the economy. In the last 6 moths they have raised interest rate from 0.25% to 3% and if I include forthcoming November expected rate hike of 0.75% then it become 3.75% just in a span of 7-8 months. As a matter of fact, we will see further demolition in corporate revenue and profits in the coming quarters.
With all the aforesaid grim facts, I am getting more and more confident that we may be approaching towards end of the stock market downturn. After the next interest rate is raised on November 2 or even before that we may see some bounce in the stock market. Subsequently, we may see a major bounce as soon as Fed approaches their last rate hike in December. Market is getting fed-up with the same inflation, Fed, negative comments from analyst, media, TV etc. And all these may be pointing towards a bottom. More importantly, market factors in these news months ahead of time.
My final thought: I do understand the depressed stock market environment. I do not want to predict the future because nobody knows how stock market will shape. Having said that, I do feel that Fed may be coming towards to end of rate hike cycle, possibly December will be the last and then a pause. So, I will not be surprised to see some good bounce before the end of this year because market factors in ahead of time. Hence, we may see some bounce in the near future, possibly around mid-term election time or little after that, possibly before I publish my next blog in December. But that’s just my thoughts. Future is unknown. Hence, every investor can analyze and reevaluate their strategies and judiciously determine whatever works for them.
Sectorial Stock Market Performances (TOP 5 sectors for 2022)
|
Sector |
YTD Performance in %age |
|
Energy (Only sector in green this year) |
62.21% |
|
Consumer Staples |
-5.30 |
|
Health Care |
-5.84 |
|
Utilities |
-5.86 |
|
Industrials |
-10.56 |
|
Financials |
-12.62 |
Please click below link to view complete sectorial performances:
Source: fidelity.com
Now let me discuss this month’s stock of my Blog Portfolio.
Airbnb, Inc (ABNB)
Airbnb operates a platform that enables hosts to offer stays and experiences to guests worldwide. The company's marketplace model connects hosts and guests online or through mobile devices to book spaces and experiences. It primarily offers rental for private rooms, primary homes, or vacation homes. The company was formerly known as AirBed & Breakfast, Inc. and changed its name to Airbnb, Inc. in November 2010. The was founded in 2007 and is headquartered in San Francisco, California.
The company had its initial public offering on December 10, 2020 with a price of $68 per share. Subsequently, ABNB stock soared as much as 223%, hitting an all-time high of $219.94 on Feb. 11, 2021. Airbnb allows house and condo owners turn their properties into short-term rentals. It could be private rooms or homes or vacation homes. It has gained a huge popularity in this space and have attracted other providers like booking.com, Expedia, TripAdvisor etc. Airbnb's stock performance has been rocky. Shares surged through much of 2021 after its 2020 initial public offering (IPO), but have since given back those gains, tumbling around 30% so far in 2022 because of current stock market environment.
ABNB Business Model
Airbnb has the business model that do not need much on capital spending. It provides a platform to renters and owners where they can make choice based on their expectations. Typically the renters seek for accommodation where they feel homely and that hotel can’t provide. Coincidently, the renters want to rent their property when they don’t need or when it’s free to supplement their income. As such, majority of its revenue comes from services fees from bookings charged to both guests and hosts and generates around 20% profit margin.
Why do I like the stock?
As we know travel and leisure sector have been on tear after the COVID. People were constrained to travel and enjoy vacation. But once COVID has subsided, now people want to travel, go on vacation and enjoy life, corporate travels have increased, unemployment have come down. All these have seen substantial rise in demand for vacation homes, rentals, private properties etc. This is benefiting the company. Though, other companies are finding it lucrative to do similar business model, Airbnb has been the leader in this space. It also has strong financials and fundamentals. Let’s look into those..
Financials
Airbnb has/had a great year as far as earnings are concerned. On Aug. 2, the company reported Q2 earnings of 56 cents a share comparing to a loss of 11 cents in the previous year quarter. That’s astronomical jump. Revenue jumped 58% to $2.1 billion.
Q3 is scheduled for this Tuesday, November 1, the Street’s current consensus forecast is enormous $1.46 per share. The company has crushed the earnings expectations in the past and surprised the street. For 2022 Airbnb is expected to have EPS of 1.89 comparing to a net loss of 57 cents last year. That’s phenomenal. However, the hike in interest rate, inflation and possible recession could make some dent to company’s profit next year, hence the projection for 2023 currently stands at $2.58.
The company has a monopoly in vacation rentals with 74% market share and able to monetize the work of hosts to provide the service to guests. The remote work after COVID has also created a great opportunity as more and more people are working from remote location or from vacation homes. Another reason which does not come to limelight is that Airbnb also collects interest on the funds it holds in between guest bookings and when the guest's stay begins. In the second quarter, it earned $20.2 million in interest income and that number could surge as interest rates keeps rising
Finally, Airbnb looks reasonably priced right now with a forward price-to-earnings ratio of 40. For a company growing rapidly, expanding margins, and penetrating a huge market, that looks like a great entry point.
Now let’s see company’s fundamentals
|
Market Capitalization |
$74.43B |
Total Cash |
$9.9B |
|
Trailing P/E |
57.91 |
Total Debt |
$2.38B |
|
Forward P/E |
40.82 |
Book Value per share |
8.20 |
|
Price/Sales |
10.32 |
52 weeks high |
212.58 |
|
Revenue |
$7.38B |
52 weeks low |
86.71 |
|
Quarterly Revenue Growth (YOY) |
57.60% |
52 weeks change |
-34.01% |
|
Gross Profit |
$4.84B |
Held by Institutions |
65.60% |
|
Net Profit |
$1.25B |
Held by insiders |
1.46% |
|
Quarterly Earnings Growth (YOY) |
N/A |
Float |
384.91M |
|
EPS |
2.07 |
Dividend |
N/A |
My View and Strategy
In my view, Airbnb has a great long-term potential. Currently the stock is trading at $115.21. It had a 52-week high of $212.58, so it sells at a discount of 46% from its 52-week high. I bought this stock around $100 and looking for opportunities to accumulate. Now the market is extremely volatile, particularly Nasdaq stock have been hammered. Though the stock comes under Travel Services but it’s listed in Nasdaq, hence it has also been crushed. The stock market is and will remain volatile. The Q3 earnings for this company and its comment about the next quarter will provide a better direction for this stock. I will wait for the earnings to add further position under such stressful market situation.
Risks
Currently, the stock market going through an uncertain period because of many macro economic factors. The inflation and continual FED interest rate hike may put pressure on the stock market as well as travelers. If there will be any recession than people may cut down their vacation or further layoffs may gain momentum. Under such scenario, it may impact the business environment for Airbnb. However, if the stock market gains the momentum after mid-term election then this stock should be a big gainer.
My final thoughts
Almost all Nasdaq stocks are under pressure. However, Airbnb has still hold well because of it solid earnings. This company is market leader and has 74% market share for vacation rental. It’s generating solid revenue and profits and it’s not as volatile as many other Nasdaq stock. People are still spending money on rentals and vacation so that’s really good news for the company. It’s difficult to predict for the near term but for long-term it’s seems to be a winner. I am very optimistic about its future. If I see any red flags in future then I will revisit and take appropriate action as needed. For now, I think it has great potential, hence I am invested.
Shesa’s Blog Portfolio (As of SEPT 18, 2022)
Equity | Suggested Price | Current Price | Suggested Date | % Change | My View (see disclaimer) |
STOCK (All prices are in USD) | |||||
12.9 | 155.74 | 1/25/13 | 1107% | HOLD | |
META | 47 | 99.2 | 11/13/13 | 111% | HOLD - Buy below $100 |
77.18 | 329.47 | 12/12/13 | 327% | HOLD | |
15.58 | 103.41 | 4/12/14 | 564% | Accumulate | |
13.48 | 34.19 | 11/25/18 | 154% | HOLD | |
54.59 | 108.96 | 5/25/20 | 100% | HOLD | |
45.3 | 305.25 | 6/28/20 | 574% | Accumulate | |
27.98 | 16.09 | 4/25/21 | -42% | HOLD - Q3 Earnings | |
8.11 | 6.59 | 8/27/21 | -19% | HOLD | |
51.49 | 36.76 | 10/10/21 | -29% | Accumulate | |
118.24 | 54.03 | 1/2/22 | -54% | HOLD - Trimmed | |
239.49 | 138.34 | 2/13/22 | -42% | Accumulate | |
18.44 | 13.52 | 3/20/22 | -27% | Accumulate | |
290.25 | 228.52 | 5/1/22 | -21% | HOLD | |
ZIM ** | 55.35 | 23.08 | 6/5/22 | -58% | Accumulate (111% DIV) |
DIS | 106.1 | 105.95 | 7/31/22 | -0% | BUY |
FSR | 8.95 | 7.78 | 9/18/22 | -13% | BUY / Accumulate |
ABNB | 115.21 | 115.21 | 10/31/22 | 0% | NEW ADDITION |
ETF | |||||
139.1 | 276.16 | 8/16/15 | 99% | HOLD | |
70.23 | 56.5 | 1/3/21 | -20% | HOLD | |
MUTUAL FUND | |||||
59.45 | 114.61 | 12/20/14 | 93% | HOLD | |
9.05 | 16.3 | 1/15/16 | 80% | HOLD | |
43.66 | 57.91 | 9/24/17 | 33% | HOLD | |
** Note: Dividends Adjusted | |||||
A few key Q3 Earnings
Apple (AAPL)
Beat on both top and bottom line.
- EPS $1.29 vs. $1.27 est.
- Revenue. $90.15 billion vs. $88.90 billion estimated, up 8.1% YOY.
- iPhone revenue: $42.63 billion vs. $43.21 billion estimated, up 9.67%.
- Services revenue: $19.19 billion vs. $20.10 billion, up 4.98% YOY.
Apple did not provide official guidance for the next quarter due to economic uncertainties.
My View: Irrespective of the challenging environment the company keeps delivering the goods. Company was hit buy Supply China constraint and US dollar. Also, let’s not forget that it had ONLY 8 days of selling of iPhone 14 in the last quarter. Fundamentally, it may be little expensive under current environment, nevertheless it’s a 1000 pound gorilla.
Amazon (AMZN)
- Earnings: 28 cents per share
- Revenue: $127.10 billion vs. $127.46 billion, according to Refinitiv estimates
- Amazon Web Services: $20.5 billion vs. $21.1 billion expected.
Guidance: company said revenue between $140 billion and $148 billion, representing year-over-year growth of 2% to 8%. Analysts were expecting sales to come in at $155.15 billion. I think the stock should bounce back to 100-120 by then year end.
My view: whatever the FED says but it has been crystal clear that consumer spending is slowing and so also corporate spending. Amazon annoy prone to slowdown. Having said that, this is another 1000 pound gorilla which we should not discount. Shares were beaten hard in the AH trading, down xxxx.
MasterCard (MA)
Beat on both top and bottom line.
Earnings: $2.68 vs. $2.58 expected.
Revenue: $5.76 billion vs. $5.65 billion expected.
Meta
- Earnings per share (EPS): $1.64 vs $1.89 expected, according to Refinitiv
- Revenue: $27.71 billion vs. $27.38 billion expected
Daily Active Users (DAUs): 1.98 billion - flat.
Monthly Active Users (MAUs): 2.96 billion vs 2.94 billion.
Projections: Revenue for the fourth quarter will be $30 billion to $32.5 billion.
It said the capital expenditure (CAPEX) will increase from $34 - $39 billion, up from $30 billion.
My view: The company is in a terrible state and it keeps spending HUGE. The future is very uncertain. The stock has been slaughtered like a pig. Changing name(s) does NOT change the fortune!! After such catastrophic downturn, it may see some bounce at a later time. But it may remain in a trading range for longer time. I have an extremely small position. There are too many other places to invest if investors have money..The stock was down $25, 20% in the AH trading.
Ford (F)
- Adjusted earnings per share: $0.30 Adj. vs. $0.27 estimated
- Automotive revenue: $37.2 billion vs. $36.25 billion estimated
ServiceNow (NOW)
Company came with good earnings beating top and bottom line. It also gave a better projection for next quarter.
MSFT
Company beat top and bottom line but guidance was bad.
- Earnings: $2.35 per share, vs. $2.30 expected.
- Revenue: $50.12 billion, vs. $49.61 billion expected.
Guidance: $52.35 billion to $53.35 billion vs. $56.05 billion expected. Shares were down 6.7% in the AH trading.
My view: I don’t won and no plan to add.
GOOG
- Earnings per share (EPS): $1.06 vs. $1.25 expected.
- Revenue: $69.09 billion vs. $70.58 billion expected.
- Google Cloud revenue: $6.9 billion vs $6.69 billion (beat).
Company did NOT provide any guidance due to uncertain env. Shares were down 6.63% in the AH trading.
Intel (INTC)
The company did beat on top and bottom line of the reduced earnings expectations. But it projected lower revenue for next quarter.
General Motor (GM) came with a very good quarter beating both top and bottom line. Also, the company gave an upbeat guidance for next quarter.
VISA came with a good quarter beating both top and bottom line.
Texas Instruments came with a good quarter but next quarter projection is not good.
Sold since my Last Blog
None.
Disclaimer: This blog is meant to provide my opinion only. The information provided is to the best of my knowledge but may not be accurate. I do NOT provide any professional recommendation to buy/sell any stock, ETF, mutual fund, or any other security(s). As an investor, it’s your hard-earned money and you decide what is best for you. The above are merely my own opinions on what I do. Please contact a professional money manager to buy/sell any security. I do not charge any fees or commission by writing the blog except anything from Google AdSense. I have position(s) on whatever security I put on my blog portfolio and avoid including any security that I do not own or follow. Anybody buying or selling the equities mentioned here is their own risk.
Note: Click on Blog archives to read all my Blogs and updates.
Comments
Post a Comment