IBM's Foreign Exchange Rates
Photo by PiggyBank / Unsplash

IBM's Foreign Exchange Rates

Plus, Ethereum's Merge rumors.

Steven Lerner
Steven Lerner

Today is Tuesday, July 19, 2022.

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IBM's Foreign Exchange Rates

Shares of IBM (NYSE: IBM) fell 4.32% in after-hours trading on Monday after the technology giant posted mixed financial earnings.

Financials: IBM reported earnings per share of $2.31 and revenue of $15.5 billion, which were both better than expected.

The Good: Revenue for software went up 6% and infrastructure revenue grew 19%. Revenue for hybrid cloud over the last 12 months is also up 16%.

The Bad: IBM sees foreign exchange rates as a currency “headwind” that could impact its bottom line. The company downgraded its expected free cash flow to $10 billion. And revenue for consulting was $4.8 billion, which was slightly below estimates.

Bigger Picture: Foreign currency problems aside, the results show that the enterprise cloud sector is still strong.

Numbers: IBM’s stock is up over 1% in 2022. It’s one of the few tech stocks to be positive so far this year.

Final Thoughts: Other companies with international operations could also be impacted by the same foreign exchange rate issues.


Notable Earnings Today: Johnson & Johnson (NYSE: JNJ), Netflix (Nasdaq: NFLX), Halliburton (NYSE: HAL), J.B. Hunt Transport Services (Nasdaq: JBHT), Lockheed Martin (NYSE: LMT), Cal-Maine Foods (Nasdaq: CALM), Silvergate Capital (NYSE: SI), Interactive Brokers Group (Nasdaq: IBKR), Ally Financial (NYSE: ALLY), Hancock Whitney (Nasdaq: HWC), Hasbro (Nasdaq: HAS), Forestar Group (NYSE: FOR), Citizens Financial Group (NYSE: CFG), Pinnacle Financial Partners (Nasdaq: PNFP), ManpowerGroup (NYSE: MAN), Equity Bancshares (Nasdaq: EQBK), Signature Bank (Nasdaq: SBNY), Aspen Group (Nasdaq: ASPU), Novartis (NYSE: NVS), United Community Banks (Nasdaq: UCBI), Truist Financial (NYSE: TFC), Volvo (OTCMKTS: VLVLY).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: OYO Fitness (StartEngine).

Notable Economic Events Today: Building Permits (8:30 a.m. ET), Housing Starts (8:30 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

Ethereum Boosted by Merge Rumors

Ethereum on a dark leather surface.
Photo by Kanchanara / Unsplash

The price of Ethereum shot up 8% on Monday and is up over 25% in the past week.

Catalyst: The price jumped thanks in part to Ethereum Foundation member Tim Beiko predicting that the Ethereum Merge will occur on September 19, according to CoinDesk.

Definition: The Merge refers to a change in how Ethereum adopts a more carbon neutral proof-of-stake mechanism. It’s an idea that’s been around since 2014.

Numbers: Despite the recent bump, the price of Ethereum is still down 65% in 2022.

Final Thoughts: Monday also marked the first time in five weeks that the total market cap for crypto soared above $1 trillion, according to Yahoo! Finance.

Equity Crowdfunding Spotlight: PureWild

Briefly describe your business. PureWild makes the cleanest marine collagen products on the planet: Collagen-infused drinks and wines, and the only collagen supplements formulated specifically for women with breast cancer and autoimmune diseases.

What are the terms of the investment for your campaign? It is equity and common stock. The price per share is $1.50 and the pre-money valuation is $15,000,000. See StartEngine for more details.

What makes your startup special? Why will it succeed? Consumers are learning that a daily dose of marine collagen supports whole body wellness. We make the best quality marine collagen products. We donate supplements to women in need and give 1% to the Sierra Club.

Give an Arm or Not: SoftBank halts work on Arm’s London IPO following political turmoil (Financial Times)

The Good Times Are Over: Netflix’s latest anti-password sharing test lets users ‘buy’ additional homes (The Verge)

Coming Soon: Fundrise Announces Innovation Fund Opportunity for Investors as it Pursues New Asset Class (Crowdfund Insider)

Looking for an Exit: Crypto miners moved over $300 million of bitcoin in one day, and some are dropping out altogether (CNBC)

Uncertainty: Goldman Sachs CEO sees recession risk as more likely than his own economists do (NPR)

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