Shesa's FEB/MARCH 2023 Investment Blog

 FEBRUARY 2023 - INVESTMENT BLOG

By Shesa Nayak

U.S. Stock Market Commentary  

The stock market kicked-off with a bang in 2023. Nasdaq’s logged its best January gain since 2001, up 10.4% and S&P 500 saw its best January gain since 2019. Every major asset class finished higher in January, reversing declining trend from 2022. The falling dollar value and diminishing bond yield had resulted in a big rally in stock market because investors expected that federal reserve will stop rate hikes soon. The stock market was gaining nice momentum then came January jobs report which showed that payrolls (employment) increased by 517,000, far higher than the 187,000 economists estimated and Unemployment fell to 3.4% lowest since 1969, 53 years low despite the fact that technology sector has laid off over 100,000 people. So, after a spectacular January the job report further reignited fear that Federal Reserve will continue to hike rates longer than expected. Fed chair J Powell said in an interview that the "disinflationary process has begun but strong January jobs report shows that there is a significant road ahead to get inflation down”. This spooked the stock market as more rate hikes may be on the card. Gross domestic product  (GDP) grew at a 2.9% pace in the fourth quarter of 2022. The CPI - Inflation rose 0.5% in January, more than expected. The overall inflation went up to 6.4% from previous year vs. 6.2% expected by Wall Street. Rising rental costs accounted for about half of the monthly CPI increase. The retail sales rose 3% in January smashing Wall Street expectations and this is the highest increase since March 2001. These data were little disturbing for the market as FED will continue to raise interest rate. 

So, how much more FED is going to raise rates and for how long? That’s million dollar question. It’s very difficult to predict anything with surety but I share my view later. Having said all these, please note that inflation has been declining for 7 straight months. There are challenges and there are opportunities. I will share my detailed view but first let’s look into stock market index.

	2023
Indexes	Close FRI 12/30/22	Close FRI 2/17/23	Change in 2023	% Change in 2023	All Time High	From All Time High	% from All Time High
DOW	33,147.25	33,826.69	679.44	2.05	36,952.65	-3,125.96	-8.46%
S&P 500	3,839.50	4,079.09	239.59	6.24	4,818.62	-739.53	-15.35%
NASDAQ	10466.48	11,787.27	1,320.79	12.62	16,212.23	-4,424.96	-27.29%
BTK	5,281.10	5,526.36	245.26	4.64	6,376.77	-850.41	-13.34%
NBI	4,213.13	4,252.96	39.83	0.95	5,517.77	-1,264.81	-22.92%

Economy News

• Interest Rate: 4.75%. On Wednesday, February 1, The Federal Reserve announced Wednesday that it had raised its key federal funds rate by 0.25% which was lowest aggressive from earlier rate hikes. Currently, it stands in the range of 4.75-5%. I anticipate another 0.25% hike in interest during next Fed meeting on March 21-22.
• Mortgage Rate: 30 years conforming loan: 6.79%
• GDP:   In  Q4 2022  GDP grew at 2.9%. The Atlanta Fed is projecting a GDP growth of 0.7% for the first quarter of 2023. Q3: 3.2%, Q2: -0.6%, Q1: -1.6%.
• Retail Sales: The retail sales rose 3% in January smashing Wall Street expectations and this is the highest increase since March 2021. Please note that December retail sales were down 1.1%. 
• Unemployment rate: In January 517,000 jobs were created far higher than 187,000 economists estimated. Unemployment fell to 3.4% lowest since 1969, 53 years low.
• Consumer Confidence: 66.9 up from 64.9 in January 2023.
• Business Confidence: The ISM Manufacturing PMI fell to 47.4 in January, the lowest since May 2020.
• U.S Crude Oil: $76.33 a barrel. 
• U.S Dollar Index: 103.88.

Earnings - Q4 2022

Earnings Growth: For Q4 2022, the earnings decline for the S&P 500 is -4.7%. It will mark the first time the index has reported a year-over-year decline in earnings since Q3 2020 which was -5.7%. We may see continued decline in earnings for next 1-2 quarters.

Valuation: The forward 12-month P/E ratio for the S&P 500 is 18.0. This P/E ratio is below the 5-year average of 18.5 but above the 10-year average of 17.2.

Why Bullish market momentum shifted in last few days?

As I said in my opening remark, the stock market was gaining nice momentum then came January jobs report which showed that payrolls increased by 517,000 smashing Wall Street estimation of 187,000. The Unemployment rate fell to 3.4% lowest since 1969. So, after a spectacular January the job report further reignited fear that Federal Reserve may continue to hike rates for a little longer than expected. Fed chair J Powell said that strong January jobs report shows that there is a "significant road ahead" to get inflation down. This scared the stock market. We also saw CPI - inflation numbers came at 6.4% ahead of Wall Street estimation of 6.2%, retail sales smashed all expectations 3% vs. 1.9% expected, Producers Price Index (PPI) came big 0.7% vs. 0.4% expected by Wall Street. What it means is that Wall Street economist, analysts, media everybody failed in all their forecasts. But please note one thing if you carefully observe the trend then Stocks have finally gained some upward momentum since its October 2022 low despite downturn in last few days.

My perspective on why Stock Market will be better in 2023

Despite all the economy number and Federal Reserve’s ongoing interest rate hike, there are many historical evidence that market should go up in 2023. It will never be a straight uptick and there would be lots of volatility. Let’s see some of the factors on why I think of a better 2023.

• January sets the trend for the Year

Let’s look at the history how the stock market performs when January sets the trend. See the table below. This outperformance makes continued gains likely. In January Nasdaq went up a hooping 10.4% and S&P 500 Index jumped 6.2%. That's the best January return we saw since 2019, the last stronger January was way back in 1989, 34 years ago. The reason for this phenomenon is simple: The trend matters in the stock market. In 86% of the cases a positive return in January led to 11.3% gains over the rest of the year. If January was a loser, the rest of the year was barely in the green, rising only 0.7%... See the table when January kicked-off with a great start. Below table shows 10 best January since 1960. Also, one key point, since 1928, only 4 times S&P 500 has gone negative for two consecutive years. The latest being 2000 .com burst. 

Year	January Return	Full Year Return
1987 (biggest crash in stock market)	13.2%	2%
1975	12.3%	31.6%
1976	11.8%	19.2%
2019	7.9%	28.8%
1967	7.8%	20.1%
1985	7.4%	26.3%
1989	7.1%	27.3%
1961	6.3%	23.1%
2023	6.2%	?? - TBD
1997	6.1%	31.0%

• Advance vs. Decline ratio

This is one of the critical parameter which indicates whether stock market will remain bearish or gradually turn into a bull market. The January stock rally failed to break above the November high. But the advance to decline ration of stock did the opposite and blasted through its November highs.  In other words, higher number of stocks were up rather than down. That tells us something important about the current market. When more stocks goes higher than going lower, that’s a good indication that market rally is likely on the way. The S&P 500 broke above that November high on February 1. Though, market has given back some gains still it’s a signal that the next bull market may be be approaching.

• Inflation is slowly but gradually coming down: Here is the past and projected inflation rate. Based on this projection, if it remains true then we may see inflation somewhere around 2-3% by late summer 2023. If it happens,  that should be the end of further rate hikes. Rather, people may get more concerned about recession rather than inflation.
• June 2022: 9.1%
• Nov 2022: 7.1%
• Dec 2022: 6.5%
• Jan 2023: 6.4%
• February 2023: 5.2 - 5.5%
• March 4.1%
• April: 3.9%
• May: 3.1%
• June: 1.9%

As you can see from the above table the inflation has been diminishing after picking up in June 2022 as FED keeps raising rates. The Federal Reserve has been increasing rates voraciously whose impact should be seen in coming months. So, with inflation continuing to slide, it's time for fearful investors to pay attention. In all probability, I think the job numbers should come down much below than January. My only concern is the rents are still going up which is contributing to almost half of the CPI. 

Note: Please note that the above inflation numbers are NOT my projection that’s how WS is projecting.

• Mid-Term Election Year: I already wrote in many of my previous blogs. But we have to keep this factor in mind because it has happened almost every time in the past. I keep writing this because this is a very important factor to consider. 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 (in this case 2023) 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 it repeats more than 90% of the time. 
• Stock Market return after bear market: As I said, the interest rate hike won't go on forever. If history is any evidence then it should kick off a two-year rally that could potentially send stocks soaring 30-40% or more. Let’s see total returns of the S&P 500 with dividends reinvested after Fed stopped raising interest rates. This table covers all of the cycles going back to 1980 – the last time inflation growth was this high.

Peak Int Rate	3 months return	6 months return	12 months return	24 months return
5/31/1980	-5.5%	-3.4%	-11.1%	36.6%
6/30/1984	9.7%	10.7%	30.9%	77.8%
2/28/1989	11.5%	23.2%	18.9%	36.2%
3/31/1995	9.5%	18.2%	32.1%	61.7%
5/31/2000	6.1%	-5.0%	-10.6%	-22.9%
6/30/2006	5.7%	12.7%	20.6%	4.7%
12/31/2018	15%	19.4%	31.5%	54.6%
Avg. Return	7.4%	10.8%	16%	35.5%
Success % age	85.7%	71.4%	71.4%	85.7%

In one year average return is 16% and after 2 years S&P 500 has delivered 35.5% of average return. The only exception was 1980 where there was negative return after one year of the interest rate peak. But after 2 years it roared up to +36.6% return.

• Supply chain is getting better: The root cause of inflation - Let’s take moment to recall the pandemic. If we look back, the key reason why inflation picked up was supply chain constraints. Lack of production, supply and higher demand from consumers. But as the World is moving away from pandemic supply chain is getting better and better. Now goods have started flowing more freely around the world. Manufacturers can obtain necessary parts and materials without paying huge prices. So when raw materials prices comes down the price of end product/goods also comes down. Hence, we should see continued declines in inflation. When inflation keeps coming down no need for FED fear, prices will eventually come down. And certainly hat's good news for the stock market.
• Lots of money in the sideline: There are about $4.5 trillion in the sidelines. These money are never going come at once. At this time, many investors are apprehensive about the stock market visualizing the uncertainty. But once market starts picking up this money will start rolling over to stock market in a gradual manner. That may further fuel the rallies. 

• Fear of Missing Out: The trading world has changed due to algorithm based high frequency trading (HFT) which is aggravating the situation and largely controlled by big money. However, the "FOMO" effect – the fear of missing out is much more prominent today than in the 1980s or 1990s. With information traveling so rapidly, no one wants to be late to the recovery. So, when there is a turnaround it may be very fast. However, it’s difficult to predict when that may happen but in my view we may see in the second part of this year.

Negative Factors that may impact Stock Market

• Job Growth is good for the economy but not so good for the Stock Market: The humongous job growth in January has further scared the Federal Reserve and as a mater of fact to the stock market. But please note that, huge adjustments are made in January job report, hence I will not be surprised if February job report comes much less than January number. Also, let’s not forget tech sector has cut about 100,000 high paying jobs - people earning anywhere from 120,000 to 300,000-400,000 including all compensations. Hence, it’s equivalent of cutting multi-million jobs who are earnings $12-15 per hour. So, expect the consumer spending too come down on foreseeable future. But there is still fear that Federal Reserve could keep increasing rates because of low employment rates. Consumer spending is still very robust  and credit card debt in U.S has bumped up to almost a trillion dollar.  Soviet’s worth keeping an eye how long consumer will keep spending. Because it correlates to corporate revenue and profitability. Consumer spending is about 68% of the GDP. If inflation does not come down then that may put the market at risk because Fed will continue to raise rates.

My final thoughts on 2023 Stock Market

I am not saying everything will be smooth sailing for investors this year. The markets will likely remain volatile in the months ahead. But the tides may be turning soon. Looking to this month’s strong economic data Fed may continue to raise rate till summer (Jun-July). But as I keep saying market always factors in the events 3-6 months ahead of time. So, market may rally ahead of time in anticipation of the fact that Fed may be approaching towards the end of rate hike cycle. We may get much more clarity after seeing the employment data and CPI next moth. I expect those data to be softening. On the earnings front, I do not expect Q1 earnings to be rosy. We may still see negative earnings growth.

Everyone expected a recession but visualizing the current economic data we may not see a recession. When everyone is certain of an outcome, it's less likely to occur. Even if a recession does come, it'll be what everyone predicted. However, it’s highly likely that earnings recession which is very much on the card. But it’s needless to say that market has already priced in falling earnings,  which is the downstream effect of a recession. Many Wall Street experts predict that earnings may fall only about 6% to 7% in 2023. However, the S&P 500 Index is still down 15% and Nasdaq is down 27%. That's the market pricing in a further earnings decline. I have been writing about mid-term election year, return after bear market, January trend, Advanced vs. decliners, falling inflation etc. It’s not that I am trying to hype something. These are facts/metrics and I do not make up those. The reason for all these phenomena is simple: The trend matters in the stock market. However, time is the essence. Nobody knows when it is going to happen but it will most likely happen sooner or later, probably once inflation comes down little more and Fed will have no choice but to stop raising rates. However, for that to happen it may take few more months. We all can wish that inflation comes down, Fed stops raising rates, stock market booms from tomorrow but unfortunately that’s not going to happens. 

Let me sum up by saying, the bear markets generally last about a year, 9.6 months on an average. And we are already there. But whether this particular market is a bit longer won't change one important point “Bull markets always follow bear markets”. Usually, 75% time we experience bull market and 25% time it’s bear market. That means better days are ahead, and it's not too early to prepare. Bull market is good for growth stock and hence when it comes, some of the growth stock should have good times ahead. Let’s “watch the Fed but listen to the market”. Let’s deal with the situation and make use of the available cash when there are opportunities in a judicious way based on our investment framework by abstaining emotions - greed and fear! 

EV Charging, release of Federal Fund and EU bans 

Last week Biden Administration announced further plans today to accelerate the rollout of accessible charging stations across the country. As part of the announcement, the administration finalized standards for electric charging stations that can be used irrespective of the brand of EV. In other words, a Nissan EV can be charged using a Tesla charging station. It also allocated $7.4 billion in grants which was passed under the Infrastructure Law. The money will go to charging companies to build a nationwide EV and hydrogen fueling corridor for medium and heavy-duty trucks, along with $2.5 billion to states and municipalities to build out charging infrastructure as well. Last week, the European Parliament formally approved a law to effectively ban the sale of new petrol and diesel cars in the European Union from 2035, aiming to speed up the switch to electric vehicles and combat climate change.

Sectorial Stock Market Performances (TOP sectors for 2023 - Year to Date)

Sector	YTD Performance in %age
Consumer Discretionary	16.31
Communication Services	13.11
Information Technology	12.26
Real Estate	7.12
Financials	6.06
Industrials	4.73
Energy (Worst performer this year)	-4.19

Please click below link to view complete sectorial performances:

https://eresearch.fidelity.com/eresearch/markets_sectors/sectors/si_performance.jhtml?tab=siperformance

Source: fidelity.com

Now let me discuss this month’s stock of my Blog Portfolio.

STEM, Inc (STEM)

Stem is a Global Leader in Artificial Intelligence (AI) driven Clean Energy Solutions and Services. It operates as a digitally connected and intelligent energy storage network provider in the United States and internationally. It offers energy storage systems known as Athena, an artificial intelligence platform, which offers battery hardware and software-enabled services to operate the energy storage, system design and engineering services, supply chain management, warranty and preventive maintenance plan. Basically, the company provides energy storage, solar, and EV charging. Its customers include community, commercial and industrial. The company went public as a SPAC (Special Purpose Acquisition Company) on April 29, 2021. It’s located in San Francisco, California. 

Why do I like STEM?

It’s a technology company dealing with software infrastructure which provides technology for all future growth areas i.e. energy storage, solar power, and EV charging. The company has been growing its revenue exponentially and it’s expected to continue for many years to come. STEM is growing its revenue, bookings and pipeline at an incredible pace. The company said they are making all appropriate adjustment and shifting some work to offshore for cost reduction and achieve profitability faster than predicted. It’s also focusing on increasing high end margin revenues without creating debt and strengthening its balance sheet. It plans to have Earnings Before Interest, Taxes Depreciation and Amortization (EBITDA) positive in the second half of 2023. STEM is exploding on revenue growth despite missing some revenue because some key shipments could not get out of China before end of year due to port impacted by Covid issues in China.  The CEO said they didn't miss any guidance but this was just a timing issue.  The good news is that bookings are above their high -end of the estimate. And pipeline (leads) is expanding faster than planned, with better margins.  The company declares its Q4 earnings last week and had an astronomical 194% revenue growth but the stock was hammered 15%. Hence, it really gives a great opportunity to accumulate. Now let’s look into the revenue and bookings to better understand its growth. Let’s look into some of its financials.

Revenue Growth

Q1 2022	$41M
Q2 2022	$67M
Q3 2022	$100M
Q4 2022	$156 million, up whooping 194% vs. Q4 2021.
Whole Year 2022	$363 million, up 186% comparing to 2021.

Booking Growth

Q1 2022	$41M
Q2 2022	$67M
Q3 2022	$100M
Q4 2022	$458 million, up 111% comparing to Q4 2021
Whole Year 2022	$1.1 billion, up 153% comparing to 2021.

• Total Pipeline for the company accounts about $7.1 billion at end of 2022
• Gross Margin of 9%, up from 1% in 2021.
• Net Loss of $124 million versus Net Loss of $101 million in 2021. .
• Company projects EBITDA positive in the second half of 2023.
• Company expect Inflation Reduction Act (IRA) passed by the Biden administration would increases deployments by 40% over the next five years.

This is a company where we get standalone energy storage,  Solar storage, Solar monitoring package, AI driven software, solar power through AlsoEnergy (bought last year),  EV charging through partnership with Chargepoint and EV charging bundle. In other words, it provides a complete solutions in the area of green energy. The company is now focussing more to its biggest strength which is AI driven software solutions for energy sector. STEM has over a billion  dollar in backlog and a market cap of only $1.2 billion. We know that all of the backlog is not assured to convert into revenue but even a 40-50% conversation ratio makes this stock insanely cheap. And now that gas prices are heading up again, it’s another tail wind for STEM because more people/corporate/government will hasten their migration to green energy.

My View and Strategy

A few days ago the company came with exceptional revenue growth blasting than 194% in Q4, and 186% for the while year - 2022. the bookings are exceptionally good, IRA is going to help later this year. The future projection seems to be growth of about 50% for next few years but the stock was hammered losing about 25% of its value despite such humongous revenue growth. Because Wall Street is now biased with profits. However, let’s not forget the STEM went public just about a year and half ago. Every business takes few years to achieve the profitability because they need to invest in the business to grow and take market share. Agreed, the company is not going to have triple digit revenue growth in future but it's projected to grow over 50% for many, many years. Some time Wall Street works on emotion rather than fact! I am sure this stock will recover sooner than later. I have bought this stock but what it needs is patience to keep accumulating. I have been accumulating this stock and some leaps for over an year. Currently the stock is trading at $8.30.  It had a 52-week high of $18.02, so it’s trading at 54% discount to its 52-week high. As my blog readers know, I do not buy any stock at once, rather I keep accumulating in a phased manner over a period of time. The stock has taken a beating and I do feel that it’s a great opportunity for the long-term investors. I do not think there will be an immediate turn-around but I am extremely confident that this stock may potentially go up at least 50% in next 12-18 months conservatively. However,  at this time, it needs patience to keep accumulating. I am a bottom fisher for good companies, I don’t like chasing high flying stocks. If I do, it may be a small amount exclusively for trading. Moreover, I keep accumulating what I think is a good stock and has great future potential. Hence, my portfolio may be red when market goes south but when market turn bullish some of those stocks may run away. Most of the green energy stocks have gone south and have a painful time for last 1 year or so. I do not think these may gain momentum in the very near term. But the momentum may start in a few months when the government money from Inflation Reduction Act (IRA) starts flowing later this year and going forward. So, anybody who has such stock in the portfolio need to invest with patience. Otherwise, it’s better to avoid it. Having said that, we have started seeing some momentum in the growth stock starting this year and that’s a positive news for growth investors.

Risks

The stock market has recovered a little bit since October low. But the current environment is still very dicey because of inflation and continued rate hikes by Federal Reserve. So, the volatility will remain for foreseeable future. The FED can go up raining rates till inflation is under control. In addition, STEM is a SPAC company which is currently being hated by the investors until the company achieve profitability. As far as inflation is concern, it’s a risk not only for STEM but also overall stock market. Once market gains positive momentum and IRA money gets distributed, we may see a huge momentum shift to green energy stock. But nothing is written on the stone so can’t be predicted with surety. So, there is RISK for sure but I do not see a huge downside for this stock from here but upside potential in next 1-2 years can be humongous. Risk averse investors who can’t withstand volatility should avoid it. Because nobody knows or can guarantee the future. 

My final thoughts

We are at an unprecedented time and lots of green energy stocks have bitten the dust. But STEM has been increasing revenue exponentially. Though such astronomical growth may not be feasible, but this is a company with end-end solutions viz. AI software, monitoring, storage, solar power etc. It’s not possible for any company to sustain over 100% revenue growth year-over-year but it has a terrific potential to grow over 50% for many years to come. It’s expected get EBITDA positive later this year. The IRA will provide further impetus. For the long term, I see a huge opportunity but short-term may be rocky. I have been accumulating STEM with patience and will wait for a few months/year, if needed. Because I see tremendous long term growth opportunities. Hence, I am invested. If I see red flags, it does not matter how great the company is, I may pull the trigger. But at this time I see a huge long term opportunity with STEM. 

Shesa’s Blog Portfolio (As of FEB 19 2023)

Equity	Suggested Price	Current Price	Suggested Date	% Change	My View  (see disclaimer)
STOCK (All prices are in USD)
AAPL	12.9	152.55	1/25/13	1083%	BUY around $140
META	47	172.88	11/13/13	268%	Accumulate
MA	77.18	361.13	12/12/13	368%	HOLD
AMZN	15.58	97.2	4/12/14	524%	BUY/ Accumulate
SHOP	13.48	43.61	11/25/18	224%	HOLD
SPG	54.59	123.66	5/25/20	127%	HOLD
ENPH	45.3	204.99	6/28/20	353%	Accumulate
PLUG	27.98	15.58	4/25/21	-44%	Accumulate
SAVA	51.49	29.48	10/10/21	-43%	HOLD
NVDA	239.49	213.88	2/13/22	-11%	BUY/Accumulate
CHPT	18.44	12.22	3/20/22	-34%	BUY/Accumulate
TSLA	290.25	208.31	5/1/22	-28%	BUY/Accumulate
ZIM **	52.40	22.16	6/5/22	-58%	BUY/Accumulate (DIV 124%)
DIS	106.1	105.22	7/31/22	-1%	BUY/ Accumulate
FSR	8.95	6.98	9/18/22	-22%	BUY / Accumulate
ABNB	115.21	131.60	10/31/22	14%	BUY/Accumulate
AXSM	77.13	66.62	1/1/23	-14%	BUY/Accumulate
STEM	8.30	8.30	2/20/23	0%	NEW ADDITION
ETF
IHF	139.1	267.91	8/16/15	93%	HOLD
QCLN	70.23	55.61	1/3/21	-21%	BUY/ Accumulate
MUTUAL FUND
PRMTX	59.45	102.55	12/20/14	72%	HOLD
FSRPX	9.05	17.73	1/15/16	96%	HOLD
FSMEX	43.66	63.49	9/24/17	45%	HOLD
** Note: Dividends Adjusted

Q4 Earning Updates

Apple (AAPL): Missed top and bottom line.

* EPS: $1.88 vs. $1.94 estimated, down 10.9% year over year 

* Revenue: $117.15 billion vs. $121.10 billion estimated, down 5.49% year over year 

* iPhone revenue: $65.78 billion vs. $68.29 billion, down 8.17% year over year.

* Guidance: Not provided by Apple.

Apple CEO Tim Cook said three factors hurt the results: strong dollar, production issues in China and macroeconomic environment.

My view: I will HOLD till there are more clarities.

Amazon (AMZN): Beat on top line. 

* Earnings: 3 cents per share.

* Revenue: $149.2 billion vs $145.42 billion expected.

* AWS: $21.4 billion vs $21.87 billion expected.

Guidance: revenue in the first quarter will be $121B - 126B vs. $125.1 billion.

My View: I see good opportunity to accumulate for long term.

Enphase Energy (ENPH) declared  another quarter of exceptional earnings in this challenging economic environment.

EPS: $1.51 vs. $1.24. 

Revenue: $724.65 million vs. $706.51 million. 

Guidance: for Q1 it projected revenue between $700 million and $740 million vs. $685 million. The company is further expanding.

META reported good earnings.

- Earnings: $1.76 per share

- Revenue:  $32.17 billion vs $31.53 billion expected

The company also reported restructuring charges of around $4 billion. The stock was up 20% on the AH trading.

Disney (DIS) reported good earnings beating both top and bottom line, cuts 7,000 jobs.

EPS: : 99 cents vs 78 cents expected.

Revenue: $23.51 billion vs $23.37 billion expected.

Total subscriptions: 161.8 million vs 161.1 million expected

Airbnb (ABNB) which is in my blog portfolio came with solid Q4 results today. Fourth quarter revenue grew 24% to $1.90 billion vs $1.86 billion. The smashed earnings per share of 48 cents vs 8 cents expected. 

Forecast: Between $1.75 billion and $1.82 billion vs $1.68 billion expected. 

My View: Accumulate on any pull down.

Stock 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.

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