Today is Wednesday, October 26, 2022.
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YouTube Ruins Google's Results
Financials: Alphabet reported earnings of $1.06 per share and revenue of $69.09 billion; both were below estimates.
Ad Miss: Ad revenue for YouTube dropped from $7.20 billion in the same period last year to $7.07 billion in the quarter. Revenue for Google advertising ticked up slightly from the same period last year, but growth slowed.
In the Cloud: While not a big part of Google’s business, cloud revenue increased from $4.9 billion in the same period last year to $6.8 billion in the quarter.
Stock Price: Alphabet’s stock is down 27% this year, but is up 6% in the last 30 days.
Final Thoughts: YouTube’s drop in ad revenue and Google advertising’s revenue growth slowdown are both symptoms of the weak online ad market right now.
Notable Earnings Today: Boeing (NYSE: BA), Meta Platforms (Nasdaq: META), Waste Management (NYSE: WM), Ford Motor (NYSE: F), Bristol Myers Squibb (NYSE: BMY), Teladoc Health (NYSE: TDOC), Kraft Heinz (Nasdaq: KHC), ServiceNow (NYSE: NOW), Hilton Worldwide Holdings (NYSE: HLT), Hess (NYSE: HES), Annaly Capital Management (NYSE: NLY), General Dynamics (NYSE: GD), Wolfspeed (NYSE: WOLF), Harley-Davidson (NYSE: HOG), KLA Corporation (Nasdaq: KLAC), Wingstop (Nasdaq: WING), O'Reilly Automotive (Nasdaq: ORLY), Agnico-Eagle Mines (NYSE: AEM), Automatic Data (Nasdaq: ADP), Boot Barn Holdings (NYSE: BOOT), Boston Scientific (NYSE: BSX), Churchill Downs (Nasdaq: CHDN), Coursera (NYSE: COUR), Digital Realty Trust (NYSE: DLR), Garmin (NYSE: GRMN), Lending Club (NYSE: LC), Masco (NYSE: MAS), Norfolk Southern (NYSE: NSC), Olin (NYSE: OLN), Owens Corning (NYSE: OC), Patterson-UTI (Nasdaq: PTEN), Pilgrim's Pride (Nasdaq: PPC), Ryder System (NYSE: R), Seagate Technology (Nasdaq: STX), Spirit Airlines (NYSE: SAVE), Thermo Fisher Scientific (NYSE: TMO), Upwork (Nasdaq: UPWK), V.F. Corp (NYSE: VFC).
Notable IPOs Today: Mobileye Global Inc. Class A Common Stock (Nasdaq: MBLY), Safeguard Scientifics, Inc. Common Stock (Nasdaq: SFE), First Trust Growth Strength ETF (Nasdaq: FTGS).
Notable Equity Crowdfunding Campaigns Ending Today: MyDentalWig (PicMii).
Notable Economic Events Today: Goods Trade Balance (8:30 a.m. ET), Retail Inventories (8:30 a.m. ET), New Home Sales (10:00 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).
Microsoft’s Cloud Growth Slows
Photo by Turag Photography / Unsplash
The earnings results were fine for Microsoft (Nasdaq: MSFT), but concerns over its cloud sent the stock down 6.65% in after-hours trading on Tuesday.
Financials: Microsoft reported earnings of $2.35 per share and revenue of $50.1 billion; both were better than expected.
Cloudy: Revenue for Azure (Microsoft’s cloud) is up 35%, but that was below estimates.
Final Thoughts: Net income was down and the revenue guidance for the quarter was light. Operating income increased in the quarter.
Visa Sees Strong Consumer Payments
Shares of Visa (NYSE: V) ticked up 0.84% after-hours trading on Tuesday after the financial giant posted positive earnings results.
Final Thoughts: Visa also issued a $12 billion stock buyback and increased the dividend by 20%. Despite macroeconomic uncertainty, Visa says consumer payments are strong.
Trends to Watch
Looking Good: Bitcoin Hits $20K, Ethereum Rises 12% as Crypto Market Cap Tops $1 Trillion (Decrypt)
Chips Fall: Texas Instruments’ Revenue Forecast Falls Short. It’s a Bad Omen for the Economy. (Barron’s)
You’ve Guac to be Kidding Me: Chipotle says price hikes lift revenue as customer visits slip (CNBC)
Toy Meets World: Mattel Cuts Forecast as Tough Holidays Loom; Shares Fall (Bloomberg)
Lightning Shock: CashApp adds support for Bitcoin Lightning Network (Cointelegraph)
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