Today is Friday, April 29, 2022.
New to this newsletter? Sign up here
Apple's $8B Covid Supply Hit
Shares of Apple (Nasdaq: AAPL) dropped 2.22% in after-hours trading on Thursday after the tech giant warned about a potential financial loss during its earnings call.
Financials: Apple reported earnings per share of $1.52 and revenue of $97.3 billion; both were better than expected.
Disruptions: During the earnings call, Apple said that it will incur a loss of $4 billion to $8 billion in the current quarter due to supply constraints caused by Covid-related disruptions and industry-wide shortages. This is not a surprise because it was announced a few days ago that iPhone factories in China had to shut down due to a Covid-19 outbreak.
Record Quarter: It was a record March quarter overall for revenue and an all-time revenue record for Services. iPhone, Mac, and iPad revenue did better than expected.
Share the News: It was also good news for shareholders as Apple increased its dividend and authorized an additional $90 billion for its share repurchase program.
Final Thoughts: It was a good quarter for Apple, but those supply chain problems are concerning.
Notable Earnings Today: Amazon (Nasdaq: AMZN), Apple (Nasdaq: AAPL), Twitter (NYSE: TWTR), Caterpillar (NYSE: CAT), Nokia (NYSE: NOK), Roku (Nasdaq: ROKU), Southwest Airlines (NYSE: LUV), Intel (Nasdaq: INTC), Mastercard (NYSE: MA), Robinhood Markets (Nasdaq: HOOD), McDonald's (NYSE: MCD), U.S. Steel (NYSE: X), Merck (NYSE: MRK), Gilead Sciences (Nasdaq: GILD), Peabody Energy (NYSE: BTU), Atlassian (Nasdaq: TEAM), Eli Lilly (NYSE: LLY), Southwestern Energy (NYSE: SWN), Domino's Pizza (NYSE: DPZ), KLA Corp. (Nasdaq: KLAC), Abiomed (Nasdaq: ABMD), Agnico Eagle Mines (NYSE: AEM), Altice USA (NYSE: ATUS), Altria Group (NYSE: MO), American Electric Power (Nasdaq: AEP), Ares Management (ARES), Barclays (BCS), Baxter International (BAX), Beazer Homes (BZH), CalAmp (CAMP), Celanese (NYSE: CE), Century Aluminum (Nasdaq: CENX), Church & Dwight (NYSE: CHD), CNX Resources (NYSE: CNX), Cohu (Nasdaq: COHU), Comcast (Nasdaq: CMCSA), CubeSmart (NYSE: CUBE), DexCom (Nasdaq: DXCM), Digital Realty Trust (NYSE: DLR), Eastman Chemical (NYSE: EMN), First Solar (Nasdaq: FSLR), Hartford Financial Services Group (NYSE: HIG), Helmerich & Payne (NYSE: HP), Hershey (NYSE: HSY), Huntsman (NYSE: HUN), International Paper (NYSE: IP), Iron Mountain (NYSE: IRM), Keurig Dr Pepper (Nasdaq: KDP), KLA Corp. (Nasdaq: KLAC), Linde (NYSE: LIN), LPL Financial Holdings (Nasdaq: LPLA), Mohawk Industries (NYSE: MHK), Northrop Grumman (NYSE: NOC), Olin (NYSE: OLN), Overstock.com (Nasdaq: OSTK), Patterson-UTI Energy (Nasdaq: PTEN), PG&E (NYSE: PCG), Pitney Bowes (NYSE: PBI), PulteGroup (NYSE: PHM), Seagen (Nasdaq: SGEN), Sirius XM Holdings (Nasdaq: SIRI), SM Energy (NYSE: SM), Southern (NYSE: SO), Stanley Black & Decker (NYSE: SWK), Stryker (NYSE: SYK), T. Rowe Price Group (Nasdaq: TROW), Terex (NYSE: TEX), Textron (NYSE: TXT), Thermo Fisher Scientific (NYSE: TMO), TotalEnergies (NYSE: TTE), VeriSign (Nasdaq: VRSN), W.W. Grainger (NYSE: GWW), Weatherford International (Nasdaq: WFRD), West Fraser Timber (NYSE: WFG), Western Digital (Nasdaq: WDC), Western Union (NYSE: WU), Willis Towers Watson (Nasdaq: WTW).
Notable IPOs Today: Belite Bio, Inc (Nasdaq: BLTE).
Notable Equity Crowdfunding Campaigns Ending Today: N/A.
Notable Economic Events Today: Core PCE Price Index (8:30 a.m. ET), Employment Cost Index (8:30 a.m. ET), Personal Income / Spending (8:30 a.m. ET), Chicago PMI (9:45 a.m. ET), Michigan Consumer Sentiment (10:00 a.m. ET).
Amazon Drops Due to Rivian Loss
Shares of Amazon (Nasdaq: AMZN) dropped 8.99% in after-hours trading on Thursday after the e-commerce and tech company posted mixed earnings.
Financials: Amazon reported a loss of $7.56 per share, which was below estimates. Revenue of $116.4 billion was better than expected.
Bad Bet: How did Amazon end up with a net loss of $3.8 billion in the quarter? The company took a valuation loss of $7.6 billion from its investment in electric vehicle maker Rivian (Nasdaq: RIVN). It’s a one-time loss, but it stings.
Growth: Amazon Web Services (AWS) was a bright spot for the company, which has grown 34% over the last two years.
Final Thoughts: Since announcing its stock split in March, shares of Amazon have dropped.
Chia Predictions for 2022
Where will the price of the cryptocurrency Chia go in the near future - and is it a good bet for investors?
Risk: Investing in Chia is considered to be “low risk,” according to a rating from InvestorsObserver.
Numbers: The price of Chia can go as high as $169 in 1 year from now (it is currently around $85) and could hit $485 in 5 years, according to TechNewsLeader.
Final Thoughts: While these signs are positive, other analysts look at technical indicators and see a bearish future for this crypto.
Trends to Watch
Sellout: Elon Musk sold around $4 billion worth of Tesla shares (CNBC)
Big Drop: Robinhood Reports 43% Revenue Decline (The Wall Street Journal)
Biggest Loser: Eli Lilly finds "huge opportunity" in drug that helps people shed up to 21% of weight (CBS News)
Challenges: Intel stock declines as chip maker doubles down on outlook despite headwinds (MarketWatch)
Winners: Crypto is Winning, and Bitcoin diehards are furious about it (The Verge)
Thank you for reading!
Forward to a friend and tell them to sign up here.
Want more investing tips? Listen to the podcast.
Questions or comments? Hit reply to reach out.