This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.
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Amazon Can Do No Wrong, While Intel Can Do Nothing Right
MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN SHARES OF NXPI, CELG
So two things stand out to me this afternoon, Amazon fell short on revenue for the quarter and forward guidance, yet today everyone is focused on the big earnings beat? Interesting, since when did the market care about Amazon’s earnings? It was just a year ago, that Amazon had that big earnings miss. Does that mean we should start valuing Amazon on an earnings basis? Look, I’m somewhat joking, but going back to last night, if I told you Amazon would miss revenue for the quarter, and guidance, you would probably instantly say how much is it down? At least my reaction was, oh crap that is not good. But no, this is Amazon, and it can not be beaten, so the stock goes up.
I am happy the stock is rising it is good for the market, and I like to see people making money. But, I do find it frustrating that market seems to let Amazon get away stuff other companies can’t.
Intel is a perfect example, posting what looks likes solid numbers, which were even better than the guidance updated just a month ago, which was raised significantly at the time. Then it provides better guidance for next quarter, and the stock goes down, on the delay of a chip for six months. Intel wasn’t even priced to perfection and trading well off its highs near $60, getting slammed over the CEO departure. The departure needs to be dealt with it and fixed, and the sooner it gets fixed, the better. But I don’t think it should be trading 3 or 4 percent.
Facebook, primarily traded sideways once it opened down 19 percent. I had written last night there was support at $173, and that is pretty much where the stock fell and remained all day.
I talked about Facebook in the premium section and went through the parts of the slides from last night conference calls highlighting some areas that investors should be asking yourself about. I’m not going to get into here it, because it is easier to visualize than type. Besides if I gave everything away for free I won’t be able to eat, so sign up! 🙂Facebook’s Growth Issue
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NXP traded for the first time in nearly two years as an independent company, and the quarterly results looked solid, but to be honest, there is nothing to compare them too. I’m not 100% sure the estimates were all that reliable. But over the next few weeks, analysts should start updating everything. But the call sounded favorable to me and was I pleased to hear they are stronger today and in a broader part of the auto market then two years ago, it seems pretty clear to me why Qualcomm wanted them. I already knew why they want them, but it seems to come into focus much more so today. They will be a force as autonomous driving continues to develop.
I know Qualcomm rallied today, but I think it was for the wrong reason. I believe Qualcomm finds itself in a tight spot because they will not be able to make any significant acquisitions because of China, and they will not be acquired because of the US, and the licensing business is under assault from Apple. Ask IBM how massive stock buybacks work out when revenue isn’t growing.
Or you can even ask McDonalds. They were down today, and as revenue continues to slip away, you have to ask yourself how many more cost can they cut and how many more shares they can buy. Somehow the stock avoided closing below a critical support level.
Celgene reported, and those numbers looked solid, and the stock managed to stay above support of $86.50. That has to be a good sign?
There are just many earnings around, for me to go through all of them. I will put a survey below and if you really want me to take a look at let me know, I have provided a list of 5.
Have a great night!
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#facebook #amazon #intel #qualcomm #nxp #celgene