So today was massive in terms of earnings data coming from some of the largest companies in the nation. A summary of results and my thoughts below:
- AMZN: Better than expected results with earnings of $12.37 per share ($7.41 was expected) and $96.15 billion in sales vs $92.78 billion expected. Stock was about even after hours suggesting a beat was expected. Sales look to continue to accelerate; however, AMZN noted operating income would decline slightly due to covid related costs. Overall, this company has a lofty valuation but seems poised to grow into it...and then some. Buy.
- GOOGL: Big earnings beat and double-digit revenue growth. Earnings of $16.40/share and revenue of $46.17 billion (estimates were $11.29/share and $42.90 billion). Stock popped 7 or so percent after hours; which followed a 3% gain on the trading day, netting an overall 10% gain for the day. GOOGL has lagged its big tech peers this year. Finally, the company shows some spending restraint and posts some solid numbers. Buy this one heavy.
- FB: The ad giant posted $2.71/share of earnings and $21.47 billion in revenue (vs estimates of $1.91 and $19.8 billion respectively). Earlier in the week/month, PINS and SNAP had monster quarters and they suggested business was moving from FB to them as an effect of the ad boycott being put on FB by some large advertisers. Well, the data sure don't show it? Lesson for all interested in making money, when people are hatin' on FB, Buy Buy Buy on any weakness. In my opinion, one of the best growth to value plays in the market right now.
- AAPL: Earnings of $0.73/share and revenues of $64.7 billion. Keep in mind the shares split, so the earnings/share numbers look low relative to EPS results from past quarters...need to adjust! The sheer size of AAPL's revenue blows me away every quarter by how high it is.....sure it only grew 1% YoY; but dang, how do one grow much from a number of such magnitude! With the new phone (iPhone 12) and 5G cycle upcoming...and the pull back following earnings. This is a buy. Also, of note, cell providers are subsidizing phones like crazy. Therefore, consumers don't have to actually foot the bill for the entire cost of the phone to get their hands on one. So; this detail, in my opinion, will drive momentum for mass cell phone upgrades...
- ATVI: So, this one is down slightly after hours, but not sure why?? They blew away estimates! Revenues of $1.77 billion vs $1.67 billion estimated and earnings of $0.78 vs $0.64 estimated. Call of Duty killed it with it's highest first-year premium sales in franchise history. Hours played were up 7X YoY. With the holiday season approaching and new consoles available, gaming will be HUGE when it comes to gift ideas. Also, Call of Duty Warzone has overtaken Fortnite amongst teens as most popular free-to-play game. Final point, Candy crush still brings in $536 million per quarter...dang, what an addiction. I may sound like a broken record...but this too is a buy.
Best Quarters in order, my opinion, best to worst...even though all did well. GOOGL > FB > ATVI > AAPL > AMZN.