Who Was It That Said Earnings Wouldn’t Save The Stock Market?
Michael Kramer and the Clines of Mott Capital own shares of GOOGL,V,MA
Well, if there were any questions that a strong earnings season was not going to help lift stock, I think today’s price action officially blew that theory out of the water. Add on Amazon’s colossal beat, along with Intel and Microsoft, and tomorrow is likely shaping up to be another intense day.
One needs to remember companies like Amazon, Facebook, Microsoft, and Alphabet aren’t any companies, these are among the most significant companies by market cap, within the top 5 of the S&P 500. When they go up big or down, they take the whole market with them.
Amazon just blew away numbers, and crushed it on the bottom line, reporting earnings per share of $3.27 per share versus estimates of $1.25. It seems impressive just how much control Amazon has over its bottom line, it comes down to if they want to make a profit or not, not if they can make a profit, and that is something quite frankly, I have never seen before.
Revenues also beat in a big way coming in at $51 billion, vs. estimates of $49.94 billion. But more importantly, the company is guiding revenue estimates next quarter to $51 to $54 billion, primarily inline with estimates of $52.24 billion.
I know the stock is up big after, and between its monster 4 percent before results, and 6 percent move after, it now up about 10.5 percent in total, to $1,615.
The revenue guidance is very impressive to me and there is plenty to like in the quarter, well have to see where estimates going forward start coming. If we start getting meaningful revenue upgrades, then an argument can once again be made that Amazon as plenty of room to continue rising.
Microsoft also reported strong results as well, with earnings beating estimates by $0.10, coming in at $0.95 per share, while revenue also top expectations coming in at $26.82 billion, vs. estimates of $25.78 billion. Again very strong numbers, and impressive levels of growth. Microsoft is basically unchanged in the after hours.
0 For 5, What!
So lets see I’m gonna give myself an 0-2 as a follow-up to my five stock prediction article. It makes my total predictions at 0 for 5, with the immediate after hours market reactions. But in all fairness, lets see where all these stocks are in a weeks time.
Beside I am right sometimes aren’t? LOL. Of course, I am, I nailed Visa, eBay, Intel, Qualcomm, Verizon, American Express, Netflix, to name a few. Look we all get things right and wrong, it is just the way it goes. You have to go with the flow.
Anyway, moving on then.
Intel reported a big beat, and the stock is also rocketing higher following results, and I continue to think this one is heading towards, $60. I targeted that level back in December.
I still think SQ has further to fall as well, perhaps towards $42.
Visa had a big day, and is trading at all-time highs, I think a rise above that upper trend line, accerlates the rise. The numbers were that good. I think upgrades are still to come.
Pretty much where Visa goes, so too does MasterCard, so I expect good results from MasterCard as well, and could it too could be getting ready for a big push higher.
Did you notice where GE stopped rising? Yeah at $14.85, I swear you really can’t make this stuff up!
Good night, and thanks for reading!
Mott Capital’s Reading The Markets – An In-depth Global Macro Stock Market Commentary – In Video Format – See How Michael Dissects The Markets
Free Articles Written By Mike:
Join our 1,034 Daily Subscribers And Get This Commentary In Your E-Mail! Subscribe
[vc_tweetmeme type=”follow” follow_user=”michaelmottcm” show_followers_count=”true” large_button=”true”]
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future.
© 2018 Mott Capital Management, LLC. Use, publication or reproduction in any media prohibited without the permission of the copyright holder.
Tags: #stockmarket #ge #amazon #Microsoft #visa #mastercard #intel