Retail monster Amazon.com reported stronger March quarter revenue Thursday and raised guidance for Q2 sending the shares sharply higher. Amazon stock was trading at 118.19 ▲ 8.37 (7.62%) after the release. Earnings were 31 cents per share v 21 cents per share expected on revenue of $127.36 billion vs $124.71 billion expected. AWS generated operating income of $5.1 billion in the quarter, AWS determines the company’s profitability as total operating income rose to $4.77 billion. The markets were already bulled up after … Continue reading “Amazon Advertising and AWS Cloud Computing Drive Earnings Higher than Expectations”
FedEx Shipments Fall for Fourth Straight Quarter, Looks to Deeper Cost Cuts
Delivery giant FedEx has had a somewhat traumatic year earnings wise with multiple warnings as inflation, rising rates and the supply crunch have all affected it. FDX reporting its November end quarter beat EPS by $0.36 but missed on revenue and guided FY23 EPS below consensus. FedEx reported that fewer packages moved through FedEx’s system for the fourth straight quarter with weaker demand most acute in its Express unit, which provides overnight and international deliveries. FedEx continued to be wounded … Continue reading “FedEx Shipments Fall for Fourth Straight Quarter, Looks to Deeper Cost Cuts”
NRG Energy to Buy Vivint Smart Home in $5.8 Billion Deal
NRG Energy Inc. on Tuesday said it agreed to buy Vivint Smart Home Inc., for $2.8 billion in cash the assumption of $2.4 billion of the company’s debt for a total deal value of $5.2 billion. NRG, which produces and sells energy services, said it would pay $12 a share for Vivint, a 33% premium to Vivint’s closing share price on Monday. NRG is effectively betting on the smart device market by buying $VVNT which offers integrated home systems that … Continue reading “NRG Energy to Buy Vivint Smart Home in $5.8 Billion Deal”
Target Lowers Earnings Guidance Hurt by Strapped Consumers
Retail giant Target reported worse than expected third quarter earnings premarket on Wednesday. TGT cut their profit outlook again, something they have done multiple times this year. TGT stock slumped around 15% premarket. Target will continue to heavily discount its excess inventory. Competitor Walmart reported better than expected earnings Tuesday. It appears strapped customers are heading to cheaper product at WMT. Gross and operating margins are expected to shrink further again in the quarter, as discounts and higher supply-chain costs … Continue reading “Target Lowers Earnings Guidance Hurt by Strapped Consumers”
Amazon the Latest in Huge Tech Layoffs, Just the Start or A Healthy Rationalization?
In this down cycle of the economy, more specifically the growth sector, technology has been particularly hit. These companies were some of the most to benefit from the low interest rates, work from home, no fear bull market. It stands to reason when that sector falls apart with the dramatic rise in interest rates. This week it was announced Amazon plans to lay off approximately 10,000 people in corporate and technology jobs as soon as this week. This would be … Continue reading “Amazon the Latest in Huge Tech Layoffs, Just the Start or A Healthy Rationalization?”
Walmart Raised Earnings Guidance Announcing $20 Billion Share Buyback
The world’s largest retailer Wal-Mart on Tuesday reported better than expected earnings before the bell with revenue $152.80B beating the expected $147.34B. WMT raised its year outlook on strong results for Q3 The company is gaining market share in consumer basics shoppers grapple with inflation. Heavy discounting and focus on keeping prices lower than competitors is working. Walmart also raised its full-year net sales expectations and announced a new $20 billion share buyback plan, pushing its shares up 6% in … Continue reading “Walmart Raised Earnings Guidance Announcing $20 Billion Share Buyback”
US Tech Billionaires Added $59 Billion in Richest Day Ever as Nasdaq Surged 7.5%
The markets reacted dovishly to the US CPI moderating after resurging in August with aggressive Fed interest rate rises. The repricing of risk was furious, plunging Treasury yields a weakening dollar and big gains in mega cap stock. The Vanguard Mega Cap Growth ETF (MGK) closed up 8.0%. The Nasdaq soared +654.23 or 6.36%. The big winners were the big Techs, Amazon, Google, Microsoft, Apple and even beaten down Tesla. US tech Bloomberg billionaires’ fortunes rose $59 billion, a one-day record … Continue reading “US Tech Billionaires Added $59 Billion in Richest Day Ever as Nasdaq Surged 7.5%”
More Tech Wreckage as Amazon Follows Meta Down After Misses on Revenue and Guides Lower
Retail monster Amazon.com reported weaker September quarter revenue Thursday and lowered guidance sending the shares sharply lower. Amazon stock was trading at $90.15 -20.81 or -18.75% after the release. The markets were already jittery after the META trainwreck the night before. Amazon recorded a $3.9 billion loss on its Rivian investment which led to a reported a loss of 20 cents per share on revenue of $121.23 billion vs. $119.09 billion expected. Amazon was the last of the mega-cap tech companies … Continue reading “More Tech Wreckage as Amazon Follows Meta Down After Misses on Revenue and Guides Lower”
FedEx Earnings Updated After Profit Warning Pinpoints Cost Cuts of $2.7 Billion
Delivery giant FedEx reported adjusted earnings during the fiscal first quarter of $3.44 a share, matching the preliminary figure from the Sept. 16 profit warning. Revenue was $23.2 billion in the period ended Aug. 31. FedEx continued to be wounded by a collapsing European and Asian economies. Global volume softness accelerated in the final weeks of the quarter. FedEx warned last week that Q1 was down from $4.37 last year and well below the consensus of $5.14. The company reaffirmed … Continue reading “FedEx Earnings Updated After Profit Warning Pinpoints Cost Cuts of $2.7 Billion”
FedEx Profit Warning as Global Volumes Decline, Withdrawing Guidance
Delivery giant FedEx issued a major profit warning after the close Thursday for the first quarter and withdrew guidance for the year. $FDX was down over 11% after hours. FedEx continued to be wounded by a collapsing European and Asian economies. Global volume softness accelerated in the final weeks of the quarter. FedEx sees Q1 non-GAAP EPS of $3.44, down from $4.37 last year and well below the consensus of $5.14. The company reaffirms plans to buyback $1.5b shares. FedEx … Continue reading “FedEx Profit Warning as Global Volumes Decline, Withdrawing Guidance”