Stock Market News & Updates

The amount Avatar ultimately brings in could have a very meaningful impact on Disney's EPS for the current quarter, and the stock price is likely to be very sensitive to the success of the movie over the next few weeks.

We had a look at companies in the US consumer cyclical sector to see which ones stood out in each industry. We looked specifically at gross margins (revenue - the cost of goods sold) and operating margins which reflect the effect of other operating expenses on the bottom line. If a company can maintain or improve its margins in an inflationary environment it may have pricing power - i.e. the ability to raise prices without losing sales to competitors. This is a distinct competitive advantage.

OpenAI’s chatbot, ChatGPT, has captured the world’s attention since being released two weeks ago. The chatbot uses OpenAI’s GPT-3 model to answer questions and perform tasks using natural language. The platform gained a million users within five days of its launch, no doubt aided by users sharing their interactions with the chatbot on social media platforms. Is it a threat to Alphabet's search business?

Beyond Meat’s (Nasdaq: BYND) share price rose 14% in the last two sessions while the rest of the market fell. It’s also up nearly 30% since late November. With no notable news flow, It seems the stock, which has a short float of about 42%, has been caught up in a short squeeze.

The market is punishing Crowdtrike (Nasdaq:CRWD) after the company reported slightly better-than-expected third-quarter numbers, but issued cautious guidance. Revenue and EPS were both slightly better than expected, but also reflected rapidly decelerating revenue growth. The bearish aspect of the results was the commentary. CEO George Kurtz said that customers were taking longer to close deals and adding extra layers of required approvals.

Disney’s (NYSE: DIS) share price has risen nearly 8% on the news that former CEO Robert Iger is replacing Bob Chapek as CEO. Disney’s share price has collapsed over the last few months as spending at Disney+ offset the recovery in the parks and experiences division. The chart below shows the share price performance under Bob Iger and then Bob Chapek, along with the performance of the S&P 500 index. It’s easy to see why bringing Iger back should restore investor confidence.

On the face of it, Nvidia’s (Nasdaq: NVDA) third-quarter results were mixed with revenue down 17% year-on-year but ahead of consensus estimates. EPS were lower than expected, while guidance was encouraging.

Disney has been a major disappointment for investors. In 2020 and 2021 the share became the leading ‘reopening play’ as investors bet that the reopening of amusement parks, cinemas, and tourism combined with strong growth from Disney+ would drive profit growth. The reality is that spending at Disney+ is acting as a drag on margins.

Roku’s (Nasdaq: ROKU) share price fell to a new 52-week low after the company warned that revenue will be sharply lower than previously expected during the current quarter. The share price has now given up all its gains since February 2019, which at one point amounted to 775%. Here's our lukewarm take.

Earning’s season took a rocky turn last week after four out of the five ‘Big Tech’ firms disappointed investors. Companies reported slowing growth, headwinds from the strong USD, and rising costs. While the broader market shrugged off the news, the Nasdaq lagged as some of its largest components fell by more than 10%.

Investors have been waiting for 10 years for IBM’s turnaround strategy to show up as actual revenue growth. During that decade, annual revenue dwindled from $100 billion to $54 billion in 2020. It’s understandable that investors have become skeptical of a few good quarters of improving growth. Nevertheless, it’s worth noting that trailing 12-month revenue has now increased for four consecutive quarters.

With persisting inflation, spiking interest rates, and overall gloom predictions regarding financial markets' short-term future, many companies are trading at steep discounts. Yet, not all of them present an equally good opportunity. Trading at a favorable P/E ratio, with strong dividends and improving profit margins, Walgreens Boots Alliance, Inc. (NASDAQ: WBA) is an interesting prospect in the pharmaceutical sector.

According to the Q3 preliminary results, the company produced 0.99 million ounces of gold and 123 million pounds of copper. The 2022 guidance production remains on track even with the access to high-grade ore at Nevada Gold Mines postponed for Q4. The company will report full earnings before the market opens on November 3, 2022.

Shares of Canopy Growth (Nasdaq:CGC) and other cannabis stocks predictably rallied after President Biden began the process of softening US federal regulations around cannabis. But the share prices of Canadian producers like Canopy Growth quickly reversed on Friday, ending below where they started on Thursday. For many investors, Canopy Growth has been the go-to cannabis stock but its capacity to build a presence in the US is not what it once was.

Advanced Micro Device's (Nasdaq: AMD) shares price fell sharply on Friday after the company released selected preliminary third-quarter results. In summary, the release indicated that revenue will be substantially lower than expected due to softer demand from the PC market.

Tesla's ( Nasdaq: TSLA ) share price fell again after Elon Musk 'proposed' moving ahead with his purchase of Twitter (NYSE: TWTR). The concern is that Musk may have to sell more Tesla stock to finance the deal. Whether or not Musk does have to sell more Tesla shares, long-term investors might also become concerned with how much time he can devote to Tesla with yet another company in his portfolio.

Meta Platforms, Inc. (NASDAQ:META) is pushing multi-year lows, as the stock hovers around the $140 level. While in the short run, a company can be volatile, it is ultimately the quality of the business that determines a company's valuation. In our analysis, we will re-cap Meta's core business and attempt to evaluate how it fares against key competitors.

Microsoft (NASDAQ:MSFT) lost 19.4% of its market cap despite exhibiting some strong fundamental qualities. The company seems to be growing the top line, as well as scaling margins. We analyzed the company to see if the decline is warranted for the $1.7t market cap stock and came up with some mixed results.

Intel Corporation (NASDAQ:INTC) started an accelerated downtrend in August. The company lost 27% of its market value since then, and investors may be concerned about the near future. Looking at analysts forecasts, it seems that there may be some more pain ahead. We break down the fundamentals, future expectations, and see what that means for investors in our analysis.

Considering the yearly trajectory of the US dollar compared to the stock market, not many would argue that the cash is trash. However, when the stock market turns sour, trash can be cash – as evident from garbage operators such as Waste Management, Inc.  (NYSE:WM) outperforming in such an environment.

In this analysis, we will look at some of the aspects the market may have adapted when pricing Tesla, Inc. (NASDAQ:TSLA) and explore why the stock may retain current levels. Even though the fundamentals may not reflect the current valuation.

When debt becomes expensive, growth stories leave the headlines, and market woes take their place. In that environment, money looks for a safe harbor provided – amongst the others – in the Consumer Staples sector. Thus, it is not surprising that General Mills, Inc. (NYSE: GIS) has been doing better than expected, providing a stable dividend at a very reasonable valuation compared to its peers.

Datadog (NASDAQ:DDOG) is captivating investors with its high 79% revenue growth rate, and an estimated total addressable market (TAM) value of $53b by 2025. However, the company has a forward price to sales ratio of 14.3x, which is ahead of the 7.9x industry average ratio. In order for this to work for investors, the company must keep up its high performance for more than 6 quarters to reach the average, when it can afford to have lower growth rates.

In the Q4 earnings release, Costco (NASDAQ:COST) reported that net sales for the quarter increased by 15.2% to $70.76 billion, and their net sales for the fiscal year increased by 16% to $222.73 billion. Their net income for the fourth quarter was $1.868 billion, which is $4.20 per diluted share, and their net income for the fiscal year was $5.84 billion, or $13.14 per diluted share.