Today is Wednesday, February 2, 2022.
New to this newsletter? Sign up here.
Google’s 20-for-1 Stock Split
Shares of Google’s parent company Alphabet (Nasdaq: GOOGL) jumped 9.07% in after-hours trading on Tuesday after the technology giant posted positive earnings.
Financials: Alphabet reported earnings of $30.69 per share and revenue of $75.32 billion; both were better than expected.
Success: The company reported strong revenue across the board, particularly in its Google advertising segment, Google search, and Google Cloud. It was also a record quarter for Pixel phone sales.
Stock Split: Alphabet’s board of directors approved a 20-for-one stock split in the form of a one-time special dividend for July 2022. This is good for investors.
Glass Half Empty: Overall it was a strong quarter for Alphabet. There were some issues, including a slight revenue miss in YouTube ads, but otherwise, it was a good performance.
Final Thoughts: As other tech companies move into the metaverse, how will Google enter the space?
Notable Earnings Today: Meta Platforms (Nasdaq: FB), AbbVie (NYSE: ABBV), Qualcomm (Nasdaq: QCOM), Spotify Technology (NYSE: SPOT), D.R. Horton (NYSE: DHI), T-Mobile (Nasdaq: TMUS), Thermo Fisher Scientific (NYSE: TMO), Waste Management (NYSE: WM), Marathon Petroleum (NYSE: MPC), Align Technology (Nasdaq: ALGN), Dynatrace (NYSE: DT), Humana (NYSE: HUM), Century Communities (NYSE: CCS), Kulicke & Soffa Industries (Nasdaq: KLIC), SiTime (Nasdaq: SITM), Capri Holdings YSE: CPRI), Boston Scientific (NYSE: BSX), Adtran (Nasdaq: ADTN), Aflac (NYSE: AFL), Allegheny Technologies (NYSe: ATI), Allegiant Travel (Nasdaq: ALGT), AmerisourceBergen (NYSE: ABC), Avalonbay Communities (NYSE: AVB), Avery Dennison (NYSE: AVY), Brinker International (NYSE: EAT), C.H. Robinson Worldwide (Nasdaq: CHRW), Cognizant Technology Solutions (Nasdaq: CTSH), e.l.f. Beauty (NYSE: ELF), Emerson Electric (NYSE: EMR), Ferrari (NYSE: RACE), Greenhill & Co. (NYSE: GHL), Hillenbrand (NYSE: HI), Hologic (Nasdaq: HOLX), IDEXX Laboratories (Nasdaq: IDXX), Johnson Controls International (NYSE: JCI), Lincoln National (NYSE: LNC), M/I Homes (NYSE: MHO), Magellan Midstream Partners (NYSE: MMP), Marathon Petroleum (NYSE: MPC), McKesson (NYSE: MCK), MetLife (NYSE: MET), MGIC Investment (NYSE: MTG), New York Times (NYSE: NYT), Novo Nordisk (NYSE: NVO), Old Dominion Freight Line (Nasdaq: ODFL), Omega Healthcare Investors (NYSE: OHI), Qorvo (Nasdaq: QRVO), Rayonier (NYSE: RYN).
Notable IPOs Today: Silver Spike Investment Corp. Common Stock (Nasdaq: SSIC), Daxor Corporation Common Stock (Nasdaq: DXR), Modular Medical, Inc. Common Stock (Nasdaq: MODD), Roman DBDR Tech Acquisition Corp. II (Nasdaq: RDTXU), Maris-Tech Ltd. Ordinary Shares (Nasdaq: MTEK).
Notable Equity Crowdfunding Campaigns Ending Today: Deskless Workers (NetCapital), ZEVA Aero (StartEngine), Red’s House (MainVest), Northstar Technologies Group (NetCapital).
Notable Economic Events Today: Manufacturing PMI (9:45 a.m. ET), ISM manufacturing index (10:00 a.m. ET), JOLTs job openings (10:00 a.m. ET), API weekly crude oil stock (4:30 p.m. ET).
PayPal Hit by Poor Guidance
Photo by Muhammad Asyfaul / Unsplash
Shares of PayPal (Nasdaq: PYPL) dropped 17.92% in after-hours trading on Tuesday after the finance technology company posted mixed earnings.
Financials: PayPal reported earnings of $1.11 per share, which was slightly below estimates. Revenue hit $6.92 billion, which was slightly better than estimates.
The Problem: The company’s earnings guidance for the first quarter fell below expectations. In addition, user growth on the platform has slowed.
Final Thought: PayPal was a big winner during the pandemic stay-at-home economy in 2020, but shares are down 29% in the past year.
3 Stats to be Bullish on Streaming Stocks
While many streaming television stocks haven’t performed well as of late, here are some reasons to be bullish about the industry.
More Users: The percentage of consumers in the United States who have a subscription video-on-demand service jumped from 52% in 2015 to 78% in 2021, according to Statista.
Seat at the Table: Streaming usage across all television homes jumped to a record-high 26%, according to Nielsen in June 2021, proving that streaming is part of the fabric of media.
Big Growth: Streaming usage is up 266% in the past three years and up was 21% in the third quarter of 2021, according to Conviva.
Final Thoughts: The growth of streaming suggests that these stocks might be a good bet. However, will these streaming stocks grow their users in 2022?
Trends to Watch
Driving Down: Tesla recalls all 53,822 vehicles with its 'full self-driving' feature (CNN)
Words Cannot Espresso My Gratitude: Starbucks earnings miss as higher costs weigh on profits, coffee chain cuts earnings outlook (CNBC)
Concerning: Bitcoin price closes in on $40K, but pro traders are still skeptical (CoinTelegraph)
Dropped Call: AT&T Stock Is Falling. CFO Says Spinoff Will Benefit Retail Shareholders. (Barron’s)
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.