After another great quarter, Amazon is expecting to see another blockbuster quarter in Q4. Amazon is now firing on all cylinders growing its businesses spectacularly. A YoY growth of 17-27% for a company the size of AMZN will be a great achievement.
Services is where Apple is headed next. The products have performed spectacularly over the last decade and as they mature and cannibalize, Apple has quietly grown the Services sector year over year. The current increase of 24% is another feather in the cap for Apple. A great quarter and year for Apple with plenty more to come.
The headline appears to be a beat with the revenue and earnings both clearing the low set bar. But the bar has been lowered for IBM as the company undergoes major transformations and continues to see YoY declines in earnings and flat revenues. The cloud and strategic imperatives have picked up the slack seen in other traditional segment -- but investors may soon be running out of patience. The debt load and financial engineering are two big concerns to be watched by IBM shareholders.
Another great quarter from Amazon and a great move by Amazon to expand in an emerging market where great future growth can come from. The company has grown AWS spectacularly in the US and looks to repeat similar success internationally.
While the company has reported great quarters for a few years now, this is one metric that the media seems to be focused on. It is starting to get to a ceiling and further increases will be smaller if not non-exitent. Still, the revenues continue to climb and FB continues to perform well in growing their revenues and earnings.
Another great quarter from Apple. The company continues to draw record revenues and earnings quarter after quarter, but the stock prices remain low and the company remains in a state of value trap. Apple has faced the curse of the Dow ever since joining the index, as speculators and investors continue to look for future prospects. To note is also the record spending on R&D that Apple is working on something big.
$10B in cash with $45B in debt is hardly a strong balance sheet. The company has been riding the financial engineering train for a while now and with revenue falling quarter over quarter for over 16 consecutive quarters, investors should be very concerned.
IBM has a $2B debt repayment coming up in July 2016, which might explain why they did not execute on the share repurchase program. The company continues to borrow excessively and is poorly run and management needs to own up to the mistakes and direction they are taking this company.
Another massive quarter from Amazon and as expected, the revenue continues to grow at a fantastic pace. The company has shown impressive results in the past and some doubters questioned the future growth prospects, but Amazon continues to deliver. The growth in revenue of 28% YoY for the quarter is very impressive. Other metrics have also improved and the cash flow continues to provide some tailwind.
Investors are loving it and continue to push the stock price higher after the results.
A great quarter from Facebook. Advertising is the driving engine for the revenue growth and Facebook has cracked the code and is giving Alphabet a run for its money.
Facebook can expect to see more organic growth in advertising revenues in future quarters as it explores new avenues - such as ad rev share with publishers and new platforms such as Whatsapp and more importantly, Oculus.
Any other company and this would be hailed as blowout numbers. Twitter barely gets any love from the media even though the company is heading in the right direction - as far as the financials are concerned. The revenue has grown well, the earnings are looking better.
The MAU growth is the missing piece of puzzle that Twitter is missing and needs to find new avenues to grow the service usage. The NFL deal sets Twitter up for a possible increase
Slowing revenue growth is the main reason for the stock's decline post earnings release. While the Q2 revenue and earnings were great, just as expected -- the expected Q3 revenue of $41B-$43B disappointed investors.
It remains to be seen if this is just a speed bump or the start of a long decline, in which case, Apple will need to look for bigger acquisitions to fuel inorganic growth.
Amazon had a great year in 2015. While still growing that top-line revenue at 20%, the company is now profitable showing net income instead of loss. Shareholders should take some comfort that the company is finally turning the corner. Another good quarter from AMZN although the market reaction has been less than enthusiastic. Great buying opportunity for long term investors.
Another stellar quarter from Facebook. Bad numbers are hard to find a company that is firing on all cylinders. However, one statistic that is repeated time and again in the media is the mobile ad revenue portion. Investors seem to be too excited about this number - but should be tempered. Ad revenue is ad revenue whether it comes from desktop or mobile, and now that the number is getting higher and reaching closer to 100.
For global companies which earn a big part of their revenue in international markets, lower revenue is the reality that shareholders have to face and digest. The march upwards of the US$ makes returns depressed and Apple is hit by the problem just like other global companies. The currency wars continue and US investors will see lower returns from such multinational companies.
However, if investors are long term focused, this too shall pass as the US$ will eventually reach a top and start weakening compared to other currency pairs.
Another down quarter for the Big Blue. This is the fifteenth straight quarter where the revenue has declined and the company struggles to maintain shareholder patience.
"Adjusting for currency"/"constant currency" is a meaningless hypothetical statistic, which tries to put a positive spin on a dismal result.
While the revenue has increased, Intel has resorted to buybacks (at all-time highs) to engineer the EPS numbers. The stock has benefited from the broad market moves and it would benefit the shareholders to rather invest. Instead the company has spent 73% of its revenues trying to beat Wall St expectations.
While revenue has increased from last year, the growth has slowed down from previous years. Obvious comparisons include Facebook's encroachment into Google's territory. During the conference call, Google indicated that they intend to target TV ad-space in the coming quarters/years. Hopefully that will provide much needed rev growth.
Apple's Q1 is usually the strongest quarter - typically right after launch of a new product and going into holiday season. Apple is bullish going in with the lower revenue estimate a healthy 10% higher than previous year's Q1 (Q1 2014 revenue was $57.6B)
Dropping revenues, disappearing earnings & razor thin margins. Its hard to find anything positive in IBM's earnings release. To top it off, the solution proposed is to buy back more of its stock. The company in current state cannot survive and needs some radical changes in the coming quarters/years.