Nvidia beats on earnings and revenue after the close–stock trades flat after pre-earnings run

Nvidia beats on earnings and revenue after the close–stock trades flat after pre-earnings run

After the close today, Nvidia (NVDA) reported fourth quarter earnings of $1.32 a share (versus analyst projections of $1.22) and revenue of $7.6 billion (versus expectations for $7.42 billion). As of 4:45 the stock has trading down $1.09 in the after-hours market. In my opinion that’s likely a result of a big run up in the stock before earnings. The stock gained 11% from February 11 through the close today, February 16. From January 27, a low in the recent downturn in Nvidia shares, to today’s close the shares are up 21%.

Nvidia beats on earnings and revenue after the close–stock trades flat after pre-earnings run

Nvidia shares move up ahead of Wednesday earnings

Traders and investors look to be anticipating a big earnings beat from Nvidia after competitor Advanced Micro Devices delivered good news in its earnings report. The Wall Street consensus is that Nvidia will report $1.01 a share for the quarter, up from 64 cents a share in the year earlier period. But the course of the stock after earnings is likely to have more to do with news, if any, on a chip that Nvidia announced at the January 2022 Consumer Electronics Show.

Please watch my new YouTube video: QuickPick Cummins Update

Please watch my new YouTube video: QuickPick Cummins Update

Welcome back to Quick Picks. I have another update this week, this time on Cummins (CMI), the maker of diesel engines that I first covered in August 2021. Cummins has built itself into a leader in developing new technologies for diesel engines in terms of efficiency and is now using the cash flow from that legacy business to create a market leading position in clean energy engines (fuel cells and electric vehicles.) That willingness to invest legacy earnings in new businesses is why I say they’re more like MSFT than XOM. The stock has fallen in recent months, so I think it’s a great time to buy and hold (and get paid a 2.6% dividend, too).

Disney beats on revenue, earnings–and new streaming subscribers

Disney beats on revenue, earnings–and new streaming subscribers

So much for fears the Disney (DIS) would follow the disappointing course plotted by Netflix (NFLX) and report disappointing numbers for new subscriptions to its Disney Plus streaming service. For the December quarter, the company’s first quarter of fiscal 2022, Disney Plus added 11.8 million subscribers, easily beating analyst projections for 7.3 million new subscribers.

Selling Amazon tomorrow–worrying signs in core e-commerce business

Selling Amazon tomorrow–worrying signs in core e-commerce business

Investors have really impressed by Amazon’s fourth quarter earnings report. And there were some impressive numbers in the report for the quarter. Amazon’s cloud services unit, AWS, saw revenue growth alleviate again to a 40% growth rate. Revenue growth from from advertising did decelerate to a 32% growth rate but that’s still really impressive given what other companies have been saying about a weak ad market in the quarter. Frankly, if Amazon were just the cloud and digital advertising businesses I’d be shouting buy even if the stock is trading at a trailing 12-month price-to-earnings ratio of 49.81. But Amazon is also an e-commerce company and the numbers there didn’t look all that great.

Selling Amazon tomorrow–worrying signs in core e-commerce business

Trick or Trend: I know the consensus is that Amazon saved the market with its earnings report; I have to disagree

The story to end last week was Amazon’s (AMZN) big earnings surprise on Thursday. Fourth-quarter sales increased 9.4% to $137.4 billion. Profit was $27.75 a share, aided largely by a pretax gain from the company’s investment in Rivian, which went public in November. Analysts, on average, projected revenue of $137.8 billion and earnings of $3.77 a share. (I’d note that the $22.75 a share in earnings and the projected $3.77 are not comparable due to that huge one-time gain from the Rivian IPO.) Wall Street was especially impressed by the performance of Amazon Web Services, the company’s cloud-computing division. AWS recorded sales of $17.8 billion, a 40% year-over-year increase, and operating profit of $5.29 billion. Adverting revenue for the quarter was was $9.7 billion, a 32% increase from a year earlier. Wall Street also gushed about the company’s decision to raise the price of its Amazon Prime membership by $20 a year to $139

People’s Bank moves to juice China’s economy earlier than I expected

People’s Bank moves to juice China’s economy earlier than I expected

Today, the People’s Bank of China cut its key interest rate for the first time in almost two years to help support China’s economy. The People’s Bank of China lowered the rate at which it provides one-year loans to banks by 10 basis points. Not a huge move–100 basis points equals one percentage point–but earlier than many economists–and I–had anticipated.

Time to shift gears on your selling strategy (if any) as we move to 2022 from 2021–my last two sells for 2021 are Itau Unibanco and Cemex

Time to shift gears on your selling strategy (if any) as we move to 2022 from 2021–my last two sells for 2021 are Itau Unibanco and Cemex

We’ve got just two more trading sessions left in 2021. And then it’s on to 2022. Which means you should have wrapped up–or making any last minute sells–to harvest tax losses from 2021 in the next day or so. Of course, being the tax-savvy investor that you are, you have postponed taking profits on big winners in 2021 until 2022. (I’ll have an update on January profit-taking in the week after New Years.)

50 Stocks Portfolio member Johnson Controls ups dividend 26%

Special Report: 4 Strategies and 14 Best Buy on the Dip Stocks–Complete 4 strategies and 14 picks

Yes, we want to buy on the dip. Whenever we get a significant dip. (And significant to me is 5% or more in the major indexes–and 10% or more in specific sectors.) But, we need new strategies for buying on the dip that take into account the market’s valuation problem, the central bank tightening that looks to be in the cards, and the real possibility of a dip in growth below forecasts in 2022. I’ve got fouir strategies to suggest for buying in this market on these dips. And 14 picks to use to execute those strategies.