$Applied Materials(AMAT)$ It i-To The Moon - Tiger Brokers Online Investing Community - To The Moon

$Applied Materials(AMAT)$

It is funny that AMAT fell so hard overnight despite decent earnings.

In terms of fiscal 4-Q earnings, it surpassed Wall Street estimates with adjusted earnings of $2.32 per share on sales of $7.05 billion, marking a 9% increase in earnings and a 5% rise in sales year-over-year. The forward guidance is not even that bad: est. $7.15b revenue, which is slightly lower than expected 7.24b, and $2.29 earnings per share, which is slightly higher than the expected $2.27.

Take note that all these are happening despite AMAT cutting exposure to its largest source of revenue, China, from over 40% to 30%, and losing 28% in sales in China. AMAT is not only set to reduce further exposure; its losses incurred is significantly balanced by increases in sales in Taiwan, South Korea, the U.S, and elsewhere.

Sure, there is the hoo-haa about US-China trade war and a Trump administration with full-house authority to enact tariffs. But AMAT has clearly showed everyone that it has a risk diversification strategy that is actually working. In preparing for the uncertainty, AMAT is showing that it has strong fundamentals to navigate the geopolitical environment.

Seen from this angle, AMAT's earnings report is not soft, but very strong, because investors' expectation should have been that its report would be far worse.

From a basic TA standpoint, AMAT's price is also cyclically at all time low (daily/weekly chart) and just waiting to go back up. It is a time to buy, not sell further. Unless you're telling me that we should look at monthly chart and anticipate it dropping to potentially 138-140.. are investors betting on this within the next 12 months?

If investors are panicking and taking profit from what they claim to be a 'soft' earnings report, then it shows that they are affected not by the reality of the situation, which is cautiously optimistic, but by their very strained perception of the broader geopolitical outlook, and judged that there are other things worth betting than going with AMAT's 'soft' earnings and embracing the US-China trade war in the months ahead. AMAT doing already very well despite all the noise seems not enough to satisfy their greed.

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Comments

floopi
11-15
floopi
It's interesting how market sentiment can swing wildly despite solid fundamentals.

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The forward guidance is not even that bad: est. $7.15b revenue, which is slightly lower than expected 7.24b, and $2.29 earnings per share, which is slightly higher than the expected $2.27.</p>\n<p>Take note that all these are happening despite AMAT cutting exposure to its largest source of revenue, China, from over 40% to 30%, and losing 28% in sales in China. AMAT is not only set to reduce further exposure; its losses incurred is significantly&nbsp;balanced by increases in sales in Taiwan, South Korea, the U.S, and elsewhere.</p>\n<p>Sure, there is the hoo-haa about US-China trade war and a Trump administration with full-house authority to enact tariffs. But AMAT has clearly showed everyone that it has a risk diversification strategy that is actually working. In preparing for the uncertainty, AMAT is showing that it has strong fundamentals to navigate the geopolitical environment.</p>\n<p>Seen from this angle, AMAT's earnings report is not soft, but very strong, because investors' expectation should have been that its report would be far worse.</p>\n<p>From a basic TA standpoint, AMAT's price is also cyclically at all time low (daily/weekly chart) and just waiting to go back up. It is a time to buy, not sell further. Unless you're telling me that we should look at monthly chart and anticipate it dropping to potentially 138-140.. are investors betting on this within the next 12 months?</p>\n<p>If investors are panicking and taking profit from what they claim to be a 'soft' earnings report, then it shows that they are affected not by the reality of the situation, which is cautiously optimistic, but by their very strained&nbsp;perception of the broader geopolitical outlook, and judged that there are other things worth betting than going with AMAT's 'soft' earnings and embracing the US-China trade war in the months ahead. AMAT doing already very well despite all the noise seems not enough to satisfy their greed.</p></body></html>","htmlText":"<html><head></head><body><p><a href=\"https://ttm.financial/S/AMAT\">$Applied Materials(AMAT)$&nbsp;</a><v-v data-views=\"1\"></v-v></p>\n<p>It is funny that AMAT fell so hard overnight despite decent earnings.</p>\n<p>In terms of fiscal 4-Q earnings, it surpassed Wall Street estimates with adjusted earnings of $2.32 per share on sales of $7.05 billion, marking a 9% increase in earnings and a 5% rise in sales year-over-year. The forward guidance is not even that bad: est. $7.15b revenue, which is slightly lower than expected 7.24b, and $2.29 earnings per share, which is slightly higher than the expected $2.27.</p>\n<p>Take note that all these are happening despite AMAT cutting exposure to its largest source of revenue, China, from over 40% to 30%, and losing 28% in sales in China. AMAT is not only set to reduce further exposure; its losses incurred is significantly&nbsp;balanced by increases in sales in Taiwan, South Korea, the U.S, and elsewhere.</p>\n<p>Sure, there is the hoo-haa about US-China trade war and a Trump administration with full-house authority to enact tariffs. But AMAT has clearly showed everyone that it has a risk diversification strategy that is actually working. In preparing for the uncertainty, AMAT is showing that it has strong fundamentals to navigate the geopolitical environment.</p>\n<p>Seen from this angle, AMAT's earnings report is not soft, but very strong, because investors' expectation should have been that its report would be far worse.</p>\n<p>From a basic TA standpoint, AMAT's price is also cyclically at all time low (daily/weekly chart) and just waiting to go back up. It is a time to buy, not sell further. Unless you're telling me that we should look at monthly chart and anticipate it dropping to potentially 138-140.. are investors betting on this within the next 12 months?</p>\n<p>If investors are panicking and taking profit from what they claim to be a 'soft' earnings report, then it shows that they are affected not by the reality of the situation, which is cautiously optimistic, but by their very strained&nbsp;perception of the broader geopolitical outlook, and judged that there are other things worth betting than going with AMAT's 'soft' earnings and embracing the US-China trade war in the months ahead. AMAT doing already very well despite all the noise seems not enough to satisfy their greed.</p></body></html>","text":"$Applied Materials(AMAT)$ It is funny that AMAT fell so hard overnight despite decent earnings. In terms of fiscal 4-Q earnings, it surpassed Wall Street estimates with adjusted earnings of $2.32 per share on sales of $7.05 billion, marking a 9% increase in earnings and a 5% rise in sales year-over-year. The forward guidance is not even that bad: est. $7.15b revenue, which is slightly lower than expected 7.24b, and $2.29 earnings per share, which is slightly higher than the expected $2.27. Take note that all these are happening despite AMAT cutting exposure to its largest source of revenue, China, from over 40% to 30%, and losing 28% in sales in China. AMAT is not only set to reduce further exposure; its losses incurred is significantly balanced by increases in sales in Taiwan, South Korea, the U.S, and elsewhere. Sure, there is the hoo-haa about US-China trade war and a Trump administration with full-house authority to enact tariffs. But AMAT has clearly showed everyone that it has a risk diversification strategy that is actually working. In preparing for the uncertainty, AMAT is showing that it has strong fundamentals to navigate the geopolitical environment. Seen from this angle, AMAT's earnings report is not soft, but very strong, because investors' expectation should have been that its report would be far worse. From a basic TA standpoint, AMAT's price is also cyclically at all time low (daily/weekly chart) and just waiting to go back up. It is a time to buy, not sell further. Unless you're telling me that we should look at monthly chart and anticipate it dropping to potentially 138-140.. are investors betting on this within the next 12 months? 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