JC888
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10:52

Google ($GOOG) - Good Price & Good Company ? FAANG To Fall?

My afterthoughts to Tiger_chat 's question of whether an investor profits from a good company or a good price ? "Why not both" I asked myself ? Wouldn't there be more upsides comparatively speaking ? Having put the theory to test on different companies type (see below for details); time to try it on another FAANG stock ? Let's put $Alphabet(GOOG)$ to the test & see if it fits the bill. Sidetrack: Below are stocks that I have covered. Click to read, if interest. Please "Like" as well to show some love okie ? Thanks ! T-Mobile  Chipotle Mex Grill  Amazon  McDonalds Inc  United Parcel Service (UPS) Apple Inc Spotify Inc Meta Platform (Facebook) AMD Inc Snap Inc Lam Research (semicon) General Motors Visa Inc An American multi-national company It was founded on 04 Sep 1988 (a young company !) Founders were Larry Page and Sergey Brin;  They were PhD students at Stanford University in California It was listed on Nasdaq on 19 Aug 2004 at $85 per share On the list of most valuable brands, Google is ranked 2nd by Forbes In addition to its products-rich offerings (see below table); Alphabet is branching into non-IT specialities eg. (1) Quantum computing (Sycamore), (2) Self-driving cars (Waymo, formerly Google Self-Driving Car Project), (3) Smart cities (Sidewalk Labs), & (4) Transformer models (Google Brain) In 2022, a year where US market has been hammered by extreme volatility and ease of covid pandemic restrictions - how did Alphabet (Google) fare ? Current stock price < 7 Feb 2022 stock price by -26.08% Alphabet (Google) - Summary Revenue came in at $76.04 Billion vs $75.32 Billion (Q4 2021) vs $76.53 (Refinitiv expectations); thats a +0.96% gain Net Income (GAAP) came in at $13.62 Billion vs $20.64 Billion (Q4 2021); thats a -34% decline. Earnings per share (GAAP) was $1.05 vs $1.53 (Q4 2021) vs $1.18 (Market expectations); thats a -31.37% decline Operating Income came in at $18.2 Billion vs $21.89 Billion (Q4 2021); thats a -16.86% decline Alphabet (Google) - Revenue by Segment Details Alphabet is a collection of businesses — the largest of which is Google. For financial reporting, Google is further segregated into two segments, Google Services & Google Cloud. For all non-Google businesses, they would be reported collectively as Other Bets Like any social media apps, the bulk of the revenue comes from its digital advertising dollars that includes (a) YouTube ads, (b) Search ads and (c) Network ads. For Q4 2022, advertisers' dollars have declined by -4% On the other hand, its Cloud services have grown by +32% to $7.3 Billion. FYI, Alphabet's Cloud infrastructure ranks #3 worldwide; after Amazon Web Services & Microsoft's Azure. Alphabet (Google) - Revenue by Geographical regions In Q4 2022 both US and South America managed to grow its bottom line by +6% & +5% respectively. Conversely, both (Europe,Middle East & Africa) and Asia Pacific have registered -6% respectively. Alphabet (Google) - Past revenue  Its safe to conclude that 2021's revenue is "exceptional" due to the sharp surge in internet usage caused by the pandemic In 2022, when the Fed commenced quantitaive tightening (QT) and 7 rounds of interest hikes these monetary policies resulted in contractionary reactions as advertisers reduced its budget.  The gradual tear down of pandemic restrictions worldwide also led to less usage & dependency on services rendered by Alphabet. Alphabet (Google) - Other Highlights Like other FAANG stocks whose "cost & expenses" increased by mutli-folds, Alphabet (Google) was no exceptions With a +8% expenditure increase, its costs totalled $57.9 Billion. Alphabet (Google) 's CEO on Q4 2022 Results “It’s clear that after a period of significant acceleration in digital spending during the pandemic, the macroeconomic climate has become more challenging... Alphabet CEO Sundar Pichai Is Alphabet (Google) A Good Price and Good Company ? Returns comparison amongst GOOG vs S&P 500 vs Nasdaq If a stock's history is a "mirror" of its stock price in the future, then above diagram has clearly shown that Google stock price has stayed above both S&P 500 and Nasdaq.  Alphabet is relatively more insulated than other ad-reliant platforms from the effects of a potential recession and Apple’s ATT privacy policies Google has several big opportunities to increase revenue and to extract more efficiency from its business by bringing machine learning to its fleet of services. Google cloud platform has machine learning (ML) built in. That same ML can be used to wring more efficiency from the company’s data servers, and will be incorporated into Gmail and other Google products The ML tech is also "baked into" Google’s Performance Max ad product Despite Youtube's sluggish Q4 2022's stats, it remains a monster growth engine.  In Q3 2022, it was reported that YouTube Shorts (Tik Tok's rival) were generating more than 30 Billion views per day.  Fast forward 3 months into Q4 2022 - ouTube Shorts is up to 50 Billion views per day. YouTube has a chance to become a more shoppable platform, although still in nascent, but lots of potential in making it easier for people to shop from the creators, brands and content they love. Alphabet is right-sizing its business to prepare for any anticipated slowdown with cost-cutting initiatives that includes reducing its global headcount by 12,000 employees The aggressive measures could boost the company’s bottom line in 2023 by as much as 1.5 to $2 Billion. Do you think Alphabet (Google) still has what it takes to become #1 again ? Do you think Alphabet is the best of the FAANG stocks ? Please "LIKe" this post ok. Thanks. The rating is very important to me ! @TigerStars  @CaptainTiger  @MillionaireTiger  @Daily_Discussion  @Tiger_SG  @TigerPM 
Google ($GOOG) - Good Price & Good Company ? FAANG To Fall?
avatarJC888
02-08 21:02

US Market on 08 Feb 2023 (Wed). MSFT & GOOG Time To Rise ?

It was a volatile affair ytd as everyone waited with abated breath to find out what Mr Powell would deliver at the Economic Club of Washington D.C. at 12:40pm ET. All 3 indexes traded sideway until Mr Powell delivered his speech that saw the indexes zoomed to its respective peak.  Then it was downhill slide for the next 45 mins until 1:45pm.  Luckily things turned better thereafter. By the time market closed : DJIA : +0.78% (+265.67 to 34,156.69) S&P 500 : +1.29% (+52.92 to 4,164.00) Nasdaq : +1.9% (+226.34 to 12,113.79). Backed to 12,000 mark. Apart from verifying if the 3 indexes are above their respective 200-day ma, 50-day ma and 20-day ma; I have also included a track on whether each index's 50-day ma has risen above its 200-day ma. The "golden cross" occurs when the 50-day exponential moving average crosses above a 200-day moving average. The thinking among chart users is that this price action illustrates a change in sentiment from bearish to bullish. Hope this is useful to you. With the internet awashed with articles on "ChatGPT" in recent weeks, I have done a bit of reading up as well. So, what is ChatGPT ? It is a chatbot developed by OpenAI and launched in Nov 2022. It is built on top of OpenAI's GPT-3 family of large language models It has been fine-tuned using both supervised and reinforcement learning techniques. In my Microsoft Q4 2022 earnings post , I have briefly touched on OpenAI - didn't know it will be so overexposed in a matter of weeks. Extract from my post on Microsoft And just ytd 07 Feb 2022 (Tue), Microsoft has disclosed its latest version of Bing search engine has been linked with ChatGPT. Will this bring renewed interest in $Microsoft(MSFT)$ in the immediate short term ? Will this interest in Microsoft have a rub off effect on $Alphabet(GOOG)$ 's stock price as well ? It will be "fun" to observe in the coming days before the week is out. Going Into 08 Feb 2023 (Wed), How Will The Stock Market Behave ? US pre-mkt indicator / Bitcoin & Ethereum prices  Looking at US Pre-market indicators (above diagram) - Mostly Green ! Bitcoin & Ethereum prices for last hour & 24 hours (above diagram) - Red & Red ! Asia markets (ASX - Green !, Nikkei - Red !, KOPSI - Green !, HSI - Red !) EU markets - -(DAX - Green !, FTSE - Green !, CAC - Green !). Do you think both MSFT & GOOGL stock prices will rise for this week ? Do you think the US market will rally today ? Please "Like" this post ok. Thanks.  The rating is very important to me. @TigerStars  @Daily_Discussion  @CaptainTiger  @MillionaireTiger  @Tiger_SG  @TigerPM 
US Market on 08 Feb 2023 (Wed). MSFT & GOOG Time To Rise ?
avatarJC888
02-08 18:44

T-Mobile ($TMUS) - Good Price & Good Company ? Better Than AT&T ?

My afterthoughts to Tiger_chat 's question of whether an investor profits from a good company or a good price ? "Why not both" I asked myself ? Wouldn't there be more upsides comparatively speaking ? Having put the theory to test on different company types (see below for details); time to try it on a Telecommunications company ? Testing $T-Mobile US(TMUS)$  & see if it fits the bill. Sidetrack: Below are stocks that I have covered. Interested ? Click to read. Please "Like" to show some love okie ? Thanks ! Chipotle Mex Grill Amazon Inc McDonalds United Parcel Services Spotify Inc Apple Inc Meta Platform (Facebook) AMD Inc Snap Inc General Motors Visa Inc An American wireless network operator Its largest shareholder is Deutsche Telekom AG (48.4% stake) It is the 2nd largest wireless carrier in US with > 110 million subscribers as of end of Q2 2022 Founded in 1994 as VoiceStream Wireless In 2001, Deutsche Telekom purchased and renamed it after its T-Mobile brand Provides wireless voice & data services in the US under brands (a) T-Mobile & (b) Metro by T-Mobile brands It was listed on Nasdaq on 01 May 2013 at $25 per share. In 2015, it was ranked #1 - American wireless carrier by Consumer Reports. On 01 Apr 2020, T-Mobile & Sprint Corporation completed their merger. The Sprint brand was officially erased on 02 Aug 2020. As part of the merger, T-Mobile US acquired Assurance Wireless, the service subsidized by the Lifeline Assistance program of the federal Universal Service Fund. It grew to its present size thru a series of strategic mergers & acquisitions n 2022, a year where US market has been hammered by extreme volatility and ease of covid pandemic restrictions - how did T-Mobile fare ? Revenue came in at $20.27 Billion vs $20.78 Billion (Q4 2021); thats a -2.46% decline. Net income came in at $1.48 Billion vs $0.42 Billion, thats a +352.38% gain Earnings per share (diluted) was $1.18 vs $0.34 (Q4 2021); thats again a +347% gain Operating income came in at $2.75 Billion vs $1.06 Billion (Q4 2021); thats a +259% gain. T-Mobile - Customer growth Like any companies with customers as its most important asset, the same applies to T-mobile.   Its potential and future growth lies in its ability to retain existing customers and attract new ones. In Q4 2022, T-Mobile was able to grow its customer base to 113.6 Million customer vs 108 Million (Q4 2021); thats a +5.19% gain "Total Service" revenues came in at $15.52 Billion vs $14.96 Billion (Q4 2021); thats a +3.7% gain With "Postpaid Service" revenue registered a growth of +7% to $11.73 Billion; that constitute 75% of "Total Service" revenue. T-Mobile - Other Highlights It maintains a very healthy churn rate of -18 bps.  *note : Churn Rate refers the percentage of customers who close their contract or subscription with T-Mobile in Q4 2022 For postpaid customer, it was able to grow its ARPU by +2%.  *note : Average revenue per account (ARPA) is a profitability measure that assesses a company's revenue per customer account. For prepaid customer, its ARPA registered a slight decline by -3%. T-Mobile's CEO on Q4 2022 Results With record postpaid account and customer net adds that translated into industry-leading postpaid service and cash flow growth, T-Mobile absolutely smashed 2022 once again focusing on putting customers first. In true Un-carrier fashion, we have no plans to slow down in 2023. Now that we are being recognized as not nly the 5G leader but the clear overall network leader in the US, our differentiated and sustainable growth strategy is opening up even bigger pathways for our future.... T-Mobile, CEO, Mike Sievert.... Is T-Mobile A Good Price and Good Company ? T-Mobile - Customers growth & retention T-Mobile is known for shaking up the US telecoms industry by thinking out of the box and giving what the customer wants Its customer service is second to none and its ability to not only retain but grow its customer base is legendary It is also said to be making inroads as the nation’s fastest growing home broadband provider, with 2 million customers added in year 2022, ending with a grand total of 2.6 million high speed internet customers  With the push and adoption for 5G services gaining traction overtime, new services that could be provided to customers old & new could potentially become additional revenue streams (refer to below diagram)... T-Mobile has better 5G coverage Do you think T-Mobile is the better of Top 3 telcos in the US ? Do you think T-Mobile is both a Good price & Good company to invest ? Please "LIKe" this post ok.  Thanks.  The rating is very important to me. @TigerStars  @CaptainTiger  @MillionaireTiger  @Daily_Discussion  @Tiger_SG  @TigerPM 
T-Mobile ($TMUS) - Good Price & Good Company ? Better Than AT&T ?
avatarJC888
02-08 13:09

Chipotle Mex Grill ($CMG) : Good Price, Good Company ?

My afterthoughts to Tiger_chat 's question of whether an investor profits from a good company or a good price ? "Why not both" I asked myself ? Wouldn't there be more upsides comparatively speaking ? Having put the theory to test on different company types (see below for details); time to try it on another fast food stock ? Testing $Chipotle Mexican Grill(CMG)$  & see if it fits the bill. Sidetrack: Below are stocks that I have covered. Interested ? Click to read.  Please "Like" to show some love okie ? Thanks ! McDonalds Inc United Parcel Service (UPS) Spotify Inc Apple Inc Meta Platform (Facebook) AMD Inc Snap Inc An American chain offast casua / restaurants Founded in 13 Jul 1993 (a barely 30 years old company) Founder was Steve Ells who was a graduate from The Culinary Institute of America and worked as a line chef prior to venturing out on his own In 1993, he opened the first Chipotle Mexican Grill in Denver, Colorado with a $85,000 loan from his father Needless to say it broke even in a relatively short time frame In 1995, the 2nd restaurant was opened, soon followed by a 3rd etc.. all within Colorado In 1998, the 1st inter-state restaurant (outside of Colorado) opened in Kansas City, Missouri. In the same year, $McDonald's(MCD)$ made an initial minority investment in Chipotle Flushed with cash, Chipotle expanded from 16 restaurants (1998) to over 500 by 2005. On 26 Jan 2006, Chipotle made its initial public offering (IPO) at $22 per share In Oct 2006, McDonald fully divested from Chipotle (its non-core business) as part of its  internal strategy.  Along with it $1.5 Billion from its $360 Million investment. As of 31 Dec 2021, Chipotle Mexican Grill has 44 international stores. Chipotle has a placed ranking in Forune's 500 companies In 2022, a year where US market has been hammered by extreme volatility and ease of covid pandemic restrictions - how did Chipotle fare ? Current sotck price > 08 Feb 2022 stock price by +17.98% - Impressive ! Chipotle - Summary Revenue came in at $2.2 Billion vs $2.0 Billion (Q4 2021); thats a gain of +10% gain Net Income came in at $223.7 Million vs $133.5 Million (Q4 2021); thats a +67.57% gain Earnings per share (GAAP) was $8.02 vs $4.69 (Q4 2021); thats a +71% gain  Earnings per share (non GAAP) was $8.29 vs $5.58 (Q4 2021); thats a +48.57% gain Chipotle - Operating Statistics In the face of the covid pandemic adversity, could it be concluded that Chipotle as a whole fared rather well ? For starters, it managed to grow its number of restaurants Statesside from 2,966 (Q4 2021) to 3,187 (Q4 2022); thats a whooping 215 restaurants; given the persistent high labour crunch and costs And in terms of sales (average) every restaurant generates - it has also valued added from $2.64 (Q4 2021) to $2.82 (Q4 2022); thats a +6.82% gain Also is it justified to "discount" or "disregard" year 2021 sales as being out of the ordinary when that was the year where lockdowns, takeaways (permitted) and work from home was the norm ? Chipotle - Other Highlights The operating margin gain of +24% is consistent with the Revenue and Net income announced Like the other US listed companies especially in the Tech and Financial services that are "labour" intensive as well, Chipotle has registered a +5% increased in operating expenses. Chipotle's CEO on Q4 2022 Results Our continued focus on recruiting and retaining the best people, delivering Chipotle's operational standards with delicious food prepared fresh daily uniquely positions Chipotle to successfully expand to 7,000 restaurants over the long term... Chipotle, CEO, Brian Niccol... Is Chipotle Mex Grill A Good Price and Good Company ? Chipotle - Market Cap from 2013 to 2022 Looking at this company's market capitalisation makes you realized that this is a Food company that mean business and its good at what it does Ignoring year 2021 capitalisation record due to the year's abnormally in the US stock market (due to easy liquidity), Chipotle has capped off year 2022 with a credible results For 2023, it plans to open between 255 & 285 new locations.  Including relocating 10 to 15 restaurants to add a drive-thru lane. Its looking to hire15,000 workers by spring ahead of its busiest time of the year. The increased in food item pricing (for the first time after many years) should help Chipotle to weather the overall price increases experienced by all businesses; as a result of 2022 & 203 interest hikes Do you think there is still upside potential to Chipotle in 2023 ? Do you think it offers a better value compared to McDonalds ?  Its stock price is not exactly "cheap".  Please "LIKe" this post ok.  Thanks.  The rating is important to me !! @TigerStars  @CaptainTiger  @MillionaireTiger  @Daily_Discussion  @Tiger_SG  @TigerPM 
Chipotle Mex Grill ($CMG) : Good Price, Good Company ?
avatarJC888
02-07 17:41

US Market on 07 Feb 2023 (Tue). TESLA Hit $200 ?

US market ended lower on Mon (06 Feb) as investors had ample time (over the weekend) to really think over and realized that the Fed is unlikely to halt interest hike anytime soon. In addition, its really beginning to sink in that it going to be really further down the road for the Fed to start cutting interest rates. Coupled with last Fri (03 Feb) Non-farm payroll (Jan 2023) data coming in much stronger than anticipated, these 3 factors were sufficient to see investors taking profits. Most definitely, it did not help that  US Treasurey Secretary Ms Janet Yellen has publicly acknowledged that the US may avoid a recession; given that inflation is coming down, while the labor market remains strong. By the time US market called it a day : DJIA : -0.10% (-34.99 to 33,891.02). S&P 500 : -0.61% (-25.40 to 4,111.08). Nasdaq : -1.0% (-119.50 to 11,887.45).  Falling further lower from 12,000 mark. Declining issues outnumbered advancing ones on (a) NYSE by a 3.37-to-1 ratio and (b)  Nasdaq, a 1.98-to-1 ratio favored decliners. EXTRACTS - 3 Indexes - Moving Averages of 200day, 50day & 20day. With Dow Jones falling a little, daily since 01 Feb 2023 - Wed (when the Fed announced the 0.25% interest hike), its prudent to take a more detail look at the 3 indexes with regards to their respective Moving averages. The Dow Jones index is almost going to "kiss" its 20-day MA. Both S&P 500 and Nasdaq index are still "up-trending" for now. Tesla stock price for the past month Does mr musk's acquittal by a US district court over a tweet that forced him to resign as Tesla’s executive chairman in 2018 has anything to do with ytd price surege of +2.52% ? Think so ! Any punter/s will not miss this opportunity to drive up the stock price based on "euphoria" Next question on everyone's mind will be "Will Tesla Be Able To Rise Above The $200 Tag" ?  To be able to make an educated guess, will have to know what is US Market's today sentiments - right ? Going Into 07 Feb 2023 (Tue), How Will The Market Behave ? Looking at US Pre-market indicators (above diagram) - Mostly Green ! Bitcoin & Ethereum prices for last hour & 24 hours (above diagram) - Red & Red ! Asia markets (ASX - Red !, Nikkei - Red !, KOPSI - Green !, HSI - Green !) EU markets - -(DAX - Red!, FTSE - Green !, CAC - Red !). Its mix sentiments in both Asia and Euro market.
US Market on 07 Feb 2023 (Tue). TESLA Hit $200 ?
avatarJC888
02-07 16:45

Amazon ($AMZN) - Good Price & Good Company ? Best of FAANG ?

My afterthoughts to Tiger_chat 's question of whether an investor profits from a good company or a good price ? "Why not both" I asked myself ? Wouldn't there be more upsides comparatively speaking ? Having put the theory to test on (1) Meta Platform, Snap, (2) Visa & Mastercard (3) Tesla, General Motors (4) Netflix (5) AMD, Lam Research, Intel and (6) Spotify; time to try it on another FAANG stock ! Let's put to the test & see if it fits the bill. Sidetrack: Below are stocks that I have covered. Interested ? Click to read. Please "Like" to show some love okie ? Thanks ! United Parcel Service Spotify Inc Apple Inc Meta Platform (Facebook) AMD Inc Snap Inc Lam Research (semicon) General Motors Visa Inc An American multi-national technology company Founded on 05 Jul 1994 (28 years young company) Founder was Jeff Bezos Initially it was purely anonline marketplacefor books. However it grew into a multitude of product categories Earning it the moniker The Everything Store. It was listed on Nasdaq in15 May 1997at $18 per share In 2021, it surpassed Walmart as the world's largest retailer outside of China As of 2023, it is the world's largest online retailer & market place, as measured by revenue & market share. Its core businesses are eCommerce, subscription services, brick & mortar business, 3rd party seller services and technology services via Amazon Web Services (AWS). In 2022, a year where US market has been hammered by extreme volatility and ease of covid pandemic restrictions - how did AMAZON fare ? Current stock price < 08 Feb 2022 stock price by -35.95% Amazon - Summary Net Sales (revenue ?) came in at $149.2 Billion vs $137.4 Billion (Q4 2021); thats a +8.59% gain. Net Income came in at $278 Million vs $14.32 Billion (Q4 2021); thats a -98.06% decline Earnings per share (diluted) was $0.03 vs $1.39 (Q4 2021); thats a -97.84% decline. Operating Income came in at $2.73 Billion vs $3.46 Billion (Q4 2021); thats a -21% decline Amazon - Revenue by Quarters Quarter for quarter comparison, Amazon has managed to deliver on its top line. Amazon - Revenue breakdown analysis As could be seen, North America still accounts for the bulk of Amazon's revenue / net sales at 62.6%. In Q4 2022, it managed to grow the business by +13%. This is followed by International segment that accounts for 23.1% of top line. However due to persistent pandemic restrictions worldwide (particularly in China), growth dipped by-7% to $34.4 Billion. Amazon's technology service - Amazon Web Services launched only in 2002 (mere 10 years ago) completes the Sales Mix at 14.3%. In Q4 2022, it managed a +20% growth. Amazon - AWS ranking worldwide FYI - Amazon Web Services (AWS) is ranked #1 when it comes to Cloud computing servicing with a leading worldwide market share of 34%. Amazon - Key Business Metrics Amazon - AWS's sales & operating income breakdown Above are Amazon's 5 Key Businesses & its Q4 2022 results All 5 businesses have registered growth of various degrees except for AWS's Operating Income that was $5.2 Billion vs $5.3 Billion (Q4 2021); that's a -1.88% decline. Amazon - Other Highlights During 2022, most companies operating expenses have ballooned in an unsustainable manner - eg. Meta (+22%), AMD (+100%), General Motors (+26%) etc.. Amazon was no exceptions. Its operational costs have swelled by +9%. For a labour intensive company, this needs to be managed to prevent a galloping expenses. Amazon 's CEO on Q4 2022 Results We're also encouraged by the continued progress we're making in reducing our costs to serve in the oprations part of our Stores business. In the short term, we face an uncertain economy, but we remain quite optimistic about the long term opportunities for Amazon...Amazon, CEO, Andy Jassy Is Amazon Still A Good Price and Good Company ? For 2022, Amazon noted a -$12.7 Billion pre-tax valuation loss due to its investment in EV company Rivian; that's still in the red. To keep operating expenses under control, it has also planned to layoff 18,000 staff in 2023 On eCommerce, it will continue to focus on providing the broadest selection, exceptional value, and fast delivery of merchandise to customers; which had underpinned it Q4 top line Not to mention enhanced the shopping experience by partnering Snapchat to launch a 3D augmented reality shopping experience Amazon's latest investments & innovations in its new ventures (eg. streaming entertainment, customer-first healthcare (Amazon Clinic), broadband satellite connectivity for more communities globally), are beginning to bear fruits As for AWS core business, Amazon is growing at a healthy rate as customers selected to be hosted by AWS eg. Yahoo Ad Tech, Descartes Labs, Brookfield Asset Management, American Family Insurance, Duke Energy, Wallbox etc... As of end 2022, AWS has 96 Availability Zones within 30 Geographic regions globally, with announced plans to launch 15 more Availability Zones and five more AWS Regions all through 2023. Do you think 2023 will be the turning point for Amazon ? Do you foresee Amazon's stock price rising in tandem with market sentiments ? Please "LIKe" this post ok. Thanks. The rating is very important to me. @TigerStars  @CaptainTiger  @MillionaireTiger  @Daily_Discussion  @Tiger_SG  @TigerPM 
Amazon ($AMZN) - Good Price & Good Company ? Best of FAANG ?
avatarJC888
02-07 12:09

MacDonalds ($MCD) : Good Price & Good Company ? Food For Investment ?

My afterthoughts to Tiger_chat 's question of whether an investor profits from a good company or a good price ? "Why not both" I asked myself ? Wouldn't there be more upsides comparatively speaking ? Having put the theory to test on companies type (see below for details); time to try it on an Integrated Freight & Logisticsstock ? Gonna put $McDonald's(MCD)$  to the test & see if it fits the bill. Sidetrack: Below are stocks that I have covered. Interested ? Click to read. Please "Like" to show some love okie ? Thanks ! United Parcel Service (UPS) Apple Inc Spotify Inc Meta Platform (Facebook) AMD Inc Snap Inc Lam Research (semicon) General Motors Visa Inc The famous Golden Arches that has littered the world over The smart thing the Management has promoted is to allow each region's autonomy over its menu; apart from the must-have, signature burgers made famous worldwide eg. Big Mac, Filet-o-Fish Without much ado, lets jump into its quarterly earnings Current stock price > 07 Feb 2022 stock price by +8.07% - IMPRESSIVE McDonalds - Summary Revenue came in at $5.9 Billion vs $6.0 Billion (Q4 2021); thats a -1.67% decline which is almost negligible. Net income came in at $1.9 Billion vs $1.64 Billion (Q4 2021); thats a whooping +16% gain.  Impressive.  And this is the crucial bottom line figure ! Earnings per share (GAAP) was $2.59 vs $2.18; thats a +19% gain.  Again, bravo ! Will not dwell on Adjusted EPS since the difference is marginal only. McDonalds - Revenue by Components Like any worldwide fast food chain - the business model operates in 2 modes - (a) restaurants run by the organisation itself (usually the money spinning ones) and (b) restaurants operated by licensees "on behalf" of the company. As could be inferred from above, both modes of business are contributing towards the topline with "self-run" restaurants registering a +4.25% growth from Q3 2022. Franchisee restaurant from Q3 2022 to Q4 2022 saw a miniscule dip of -0.54% Given the pandemic situation, the results are credible. McDonalds - Sales by Regions Above is further sales analysis breakdown; that is necessary to find out whether McDonald's businesses - local & worldwide are growing in tandem As could be inferred from the data - Sales overall grew an impressive +12.6% in Q4 2022 By region, each of the major key indicators are all registering healthy growth of at least 10%; with International Licensees gaining the most at +16.5%. There is really "nothing" much to complain about MacDonald's other information. At a time when all Tech companies' (eg. Meta, Google, Amazon, Twitter) operating costs & expenses have increased by leaps & bounds - leading to them laying off staff now to the tune of 10,000 staff etc..  MacDonalds actually managed to reduce its costs of running business by -7%; given the tight labour market and escalating salaries.  Now, what do you have to say to that ? McDonalds's CEO on Q4 2022 Results While we expect short-term inflationary pressres to contineu in 2023, we remain highly confident in Accelearting the Arches, which now includes a greater emphasis on new restaurant openings. The recently announced Accelerating the Organisation initiative will complement this strategy to enable the McDonald's System to be faster, more innovative and more efficient. McDonalds, CEO, Chris Kempczinski.... Is McDonalds A Good Price and Good Company ? So far, with all the companies reporting their Q4 2022 earnings - especially the Tech companies and Financial institutions - most have either missed their top line or bottom line No different for McDonalds in that its top line has fell by -1.0% (big deal).  However its bottom line of +16% have more than made up for it - agree ! Looking at CEO's summary on its Q4 2022 results, one can sense that this Food conglomerate is pushing ahead with its expansion plan Like other American corporates, McDonalds has exited Russia market in soldarity against its political ambition Do you think there is money to be made in the Food Industry even in times of inflation, recession or deflation ? Do you think now is the time to take a stake in McDonalds ? Please "LIKe" this post ok.  Thanks.  The rating is very important to me. @TigerStars  @CaptainTiger  @MillionaireTiger  @Tiger_SG  @TigerPM 
MacDonalds ($MCD) : Good Price & Good Company ? Food For Investment ?
avatarJC888
02-06 19:20

UPS Courier - Good Price & Good Company ? Better than FedEx ?

My afterthoughts to Tiger_chat 's question of whether an investor profits from a good company or a good price ? "Why not both" I asked myself ? Wouldn't there be more upsides comparatively speaking ? Having put the theory to test on companies type (see below for details); time to try it on an Integrated Freight & Logistics stock ? Gonna put $United Parcel Service Inc(UPS)$  to the test & see if it fits the bill. Sidetrack: Below are stocks that I have covered. Interested ? Click to read. Please "Like" to show some love okie ? Thanks ! Apple Inc Spotify Inc Meta Platform (ex Facebook) AMD Inc Snap Inc Lam Research (semicon) General Motors Visa Inc An American multi-national shipping & receiving and supply chain management company Founded in 28 Aug 1907 (a 115 yo company) Founder were James E Casey and Claude Ryan Its original name was American Messenger Company, specializing in telegraphs In 1919, it made its first foray outside of Seattle in Oakland, California and changed its name to United Parcel Services; that remained until today. In 1975, it expanded abroad into Canada. A year later in 1976 to West Germany. Its the largest courier company in the world by revenue, ahead of competitors DHL & FedEx. Today its primarily known for its ground shipping services, as well as the UPS Store, a retail chain which assists UPS shipments and provides tools for small businesses. UPS grew into a mega cap company over the years via strategic acquisitions In 2022, a year where US market has been hammered by extreme volatility and ease of covid pandemic restrictions - how did UPS fare ? Current stock price < 07 Feb 2022 by -14.84% UPS - Summary Revenue came in at $27.03 Billion vs $27.77 (Q4 2021); thats a -2.66% decline  Net Profit (GAAP) came in at $3.45 Billion vs $3.09 Billion (Q4 2021); thats a +11.65% gain Earnings per share (GAAP) was $3.96 vs $3.52 (Q4 2021); thats a +12.5% gain Similarly EPS (non GAAP) was $3.62 vs $3.59 (Q4 2021); thats a +0.8% gain UPS - Revenue breakdown analysis Domestic demand constitutes 67.5% of UPS's revenue; followed by International feight serves at 18.3% and Supply chain solutions making up 14.2%. For Q4 2022, US registered a +3% growth in revenue while International courier services & Supply chain solutions saw contractions of -8% & -18% respectively UPS - Operating statistics Average daily package volume fell -4.5% in the Dec 2022, although revenue earned per piece rose +5.2%. UPS - Other highlights Operating profit (GAAP) came in at $3.2 Billion vs $3.89 (Q4 2021); thats a -17.34% decline Casn & cash equivalent was $5.6 Billion vs $10.26 (Q4 2021); thats a -45.42% decline UPS's CEO on Q4 2022 Results For the year, we reached our targeted consolidated operating margin and return on invested capital goals one year earlier than originally anticipated. Our results in 2022 demonstrate our strategy is working. UPS, CEO, Carol Tome.... Is United Parcel Service (UPS) A Good Price and Good Company ? 2022 Top 10 Most valuable Logistics brands Being at the top of the ranking comes with both benefits and banes Trade growth worldwide is expected to slow this year as import demand weakens across major economies and several developing countries face debt shocks and food insecurity, according to the World Trade Organization’s forecast last Oct. Domestically, anticipates US to face a mild recession in the 1st half of 2023 before a recovery in the 2nd half. Overall, expects 2023 to be a bumpy year, considering (a) rising interest rates, (b) relative inflation, (c) Russia / Ukraine war, (d) China's gradual recovery from pandemic & lockdown and (e) UPS's US labor negotiations with the Labour union. UPS's experience is not unique. Competitor FedEx reported revenue has slipped 3% and earnings fell by nearly 25% in the 3 months ended Nov. 30. FedEx's average number of packages handled daily has fallen by -10.2% as well. Its betting on (1) productivity gains and (b) stronger business from small & midsize shippers can help it make up for an overall decline in package volumes UPS is also practising "out of the box" strategy by shifting focus to high-margin shipments rather than just boosting volume It has also announced that it would cut $500 million in capital expenditures by leasing certain locations instead of buying them. It also aims to leverage on automation to optimize capacity during periods of shifting volumes. Its revised shipping rates by +6.9% at end 2022 should be a boon to UPS’s margins as volumes sag and costs rise. Do you think UPS is currently in a good price & good company position ? Do you believe that UPS will be able to report a profit in 2nd half of 2023 ? Please "LIKe" this post ok. Thanks. The rating is very important to me. @TigerStars  @CaptainTiger  @MillionaireTiger  @Tiger_chat  @Tiger_SG  @TigerPM 
UPS Courier - Good Price & Good Company ? Better than FedEx ?
avatarJC888
02-06 18:00

Is Spotify ($SPOT) - Good Price Or Good Company Or No ?

My afterthoughts to Tiger_chat 's question of whether an investor profits from a good company or a good price ? "Why not both" I asked myself ? Wouldn't there be more upsides comparatively speaking ? Having put the theory to test on (1) Meta Platform, Snap, (2) Visa & Mastercard (3) Tesla, General Motors (4) Netflix (5) AMD, Lam Research, Intel and (6) Apple; time to try it on an Online Music stock no ? Gonna put $Spotify Technology S.A.(SPOT)$   to the test & see if it fits the bill. Sidetrack: Below are stocks that I have covered.  Interested ? Click to read. Please "Like" to show some love okie ? Thanks ! Apple Inc Meta Platform (Facebook) AMD Inc Snap Inc Lam Research (semicon) General Motors Visa Inc A Swedish proprietary audio streaming & media services provider Founded on 23 Apr 2006 Founders were Daniel Ek & Martin Lorentzon. Listed on NYSE on 03 Apr 2018 at $132 per share It is one of the largest music streaming service providers It has > 100 Million songs & 5 Million podcasts, from record labels & media companies. As a "freemium" service, basic features are free with advertisements & limited control, Additional features eg offline listening, commercial-free listening, are offered via paid subscriptions. It is available in most of Europe, Africa, Americas, Asia and Oceania, with a total availability in 184 markets. It has no presence in Mainland China, dominated by QQ Music. In 2022, a year where US market has been hammered by extreme volatility and ease of covid pandemic restrictions - how did SPOTIFY fare ? Current stock price < 07 Feb 2022 stock price by -29.35%. Mmm... Spotify - Summary Revenue came in at EUR$3.17 Billion vs EUR$3.16 Billion (expected by Refinitiv analysts) vs EUR$2.69 Billion (Q4 2021) thats a +17.84% gain, according to Refinitiv Net loss stood at -EUR$270 Million vs -EUR$39 Million (Q4 2021) Loss per share was -EUR$1.40 vs -EUR$0.21 (Q4 2021); thats a -666.67% decline. Operating loss was -EUR231 Million vs -EUR7 Million (Q4 2021); thats a -3,300% decline Spotify - Revenue by Component type and Revenue mix As could be seen, Spotify's main revenue source is from its Premium Service offering; contributing the lion's share of revenue at 85.8% Secondarily, remaining revenue is from Advertisement support For Q4 2022, both revenue source grew at +18% and +14% respectively Spotify - Revenue Component breakdown Above diagram is another look at Revenue Components (Premium & Ad Supported) based on its constituent quarters from 2020 to 2022 Spotify - Monthly Active users (MAU) vs Premium subscribers As with any company providing apps services online, one of company's assets / cash cow would be its users' base. In terms of Monthly Active users at 489 Million vs 406 (Q4 2021); thats a +20.44% gain As for paid subscribers at 205 Million vs 180 Million (Q4 2021); thats a +13.88YoY gain Ability to grow its customers' base both organically or inorganically is good news to investors and Wall St analysts whose price forecasts are based on future earnings / prospects Spotify - Other highlights Spotify - Gross Margin breakdown by quarters Spotify's Gross Margin came in at 25.4% vs 27% (Q4 2021); thats a -1.6% decline The decline could be attributed to both of Spotify's revenue components of (a) Premium services and (b) Ad-supported service. Free Cash Flow (FCF) was -EUR$73 million, a decrease Y/Y as a result of lower Net Income adjusted for non-cash items and reduced favorability in net working capital. Spotify's CEO on Q4 2022 Results Looking back on 2022 in its entirety, we are pleased with our overall results. Each year presents certain challenges and opportunities and, over the past 12 months, we largely delivered on our internal goals and we are excited about the momentum we are building heading into 2023... Spotify, CEO, Daniel Ek . Is Spotify - Both A Good Price and Good Company ? For starters, (1) its revenue beat forecast & Q4 2021 results, (2) its MAU is uppped +20% and (3) its paid subscribers of 205 Million is upped +14% from a year ago. Just to note, its Q4 2022's MAU of 33 Million net additions to monthly active users during the quarter, marking a record high for the company Like other US Tech firms, Spotify's workforce has seen a reduction too. It announced plans to cut 6% (approx. 600 staff) of its global workforceas The "gloomy" economic environment (worldwide) has caused consumers & advertisers to limit their spending. One of Spotify's continual investment would be its podcasts, where it has spent > $1 Billion over the past 4 years Spotify - Activities in 2023 Spotify is certainly on the right path & direction in its continuous effort to enthrall and entrench its customers whether when (a) using the App or (b) listening to its podcasts Do you think Spotify is both a good company and at a good price now ? Do you think Spotify would be able to reach out and grow its customers' base in 2023 ? Please "Like" the post ok. Thanks. The rating is very important to me. @TigerStars  @CaptainTiger  @MillionaireTiger  @Daily_Discussion  @Tiger_SG  @Tiger_chat  @TigerPM 
Is Spotify ($SPOT) - Good Price Or Good Company Or No ?
avatarJC888
02-06 17:53

US Market on 06 Feb 2023. Fall - AMZN, GOOG ? Rise - AAPL?

Will Market today (06 Feb - Mon) continue from where it has left off last Friday ? In my Friday's post , assumed that both Google and Apple may fall due to weak Q4 2022 earnings. Only $Alphabet(GOOG)$ fell about -3%.   Strangely, $Apple(AAPL)$ gained approx +$2.44% instead. The "bigger" surprise of the day was the Non-Farm payroll added 517,000 jobs last month, far more than payroll gain of 188,000 expected; not to mention unemployment rate fell to 3.4%; lowest since 1969.  See below details. US - Non Farm payroll and Unemployment rate Data released has completely dashed any hope/s that the Fed will halt tinterest hike in the next FOMC meeting slated for 21-22 Mar 2023. By the time market closed for the week : All 3 indexes fell on 03 Feb 2023 DJIA : -0.38% (-127.93 to 33,926.01).  Getting dangerously closed to its 20-day & 50-day MA. S&P 500 : -1.04% (-43.28 to 4,136.48). Maintaining a healthy gap from all 3 MAs. Nasdaq : -1.59% (-193.86 to 12,006.95). Maintaining a healthy gap from all 3 MAs. 3 Indexes' Moving averages on 03 Feb 2023 (Fr9i) To ReCap FAANG's Q4 2022 Earnings : All 3 FAANG stocks' last quarter earnings came in "weaker" than anticipated. Both Google and Amazon stock prices fell by -3.29% and -8.43% respectively last Friday. Only Apple Inc manage to buck the trend and rose a credible +2.44%. How Will Market Perform Today - 06 Feb 2023 (Mon) ? US Pre-market indicators / Bitcoin & Ethereum prices Looking at US Pre-market indicators (above diagram) - Red ! Bitcoin & Ethereum prices for last hour & 24 hours (above diagram) - Green & Green ! Asia markets (ASX - Red !, Nikkei - Green !, KOPSI - Red !, HSI - Red !) EU markets - -(DAX - Red!, FTSE - Red !, CAC - Red !). From the above pre-market indicators, very likely that US market would continue from where it has left off  last Friday No mega cap company will be reporting its quarterly earnings today No official report is due for release today as well. All 3 FAANG stocks'  pre-market indicators are all showing up Red ! Do you think all 3 stocks - Google, Amazon & Apple will fall or fall further today ? Do you think the Market will continue to fall today ? Please "LIKe" this post ok.  Thanks.  The rating is very important to me. @Daily_Discussion  @TigerStars  @CaptainTiger  @MillionaireTiger  @Tiger_SG  @TigerPM 
US Market on 06 Feb 2023. Fall - AMZN, GOOG ? Rise - AAPL?
avatarJC888
02-05

APPLE ($AAPL) - Good Price or Good Company ? Rise / Fall Of FAANG ?

My afterthoughts to Tiger_chat 's question of whether an investor profits from a good company or a good price ? "Why not both" I asked myself ? Wouldn't there be more upsides comparatively speaking ? Having put the theory to test on (1) Meta Platform, Snap, (2) Visa & Mastercard (3) Tesla, General Motors (4) Netflix (5) AMD, Lam Research, Intel and (6) JP Morgan & Morgan Stanley; time to try it on another FAANG stock no ? Gonna put $Apple(AAPL)$ to the test & see if it fits the bill. Sidetrack: Below are stocks that I have covered. Interested ? Click to read. Please "Like" to show some love okie ? Thanks ! Meta Platform AMD Inc Snap Inc Lam Research (semicon) General Motors Visa Inc An American multi national technology company Founded on01 Apr 1976(46 yo company) Founders were Steve Wozniak,Steve Jobsand & Ronald Wayne Went public on12 Dec 1980at $22 per share The largest technology company by revenue (2021 - US$365.8 Billion in 2021) As of Jun 2022, it is the world's biggest company by market capitalization. It is one of the Big 5 American information technology companies, along side Alphabet (Google),Amazon, Meta(Facebook) and Microsoft. Apple became the first publicly traded US company to be valued at > $1 Trillion in Aug 2018, $2 Trillion in Aug 2020, and $3 trillion in Jan 2022. It is ranked as one of the world's most valuable brand. In 2022, a year where US market has been hammered by extreme volatility and ease of covid pandemic restrictions - how did APPLE fare ? Current stock price < 03 Feb 2022 stock price by -12.77%; tolerable ! Apple  Summary Net sales (revenue) came in at $117.2 Billion vs vs $121.10 Billion (Refinitiv expected) vs $123.95 Billion (Q1 2022); thats a -5.45% decline. Net income came in at $30 Billion vs $34.63 Billion (Q1 2022); thats a -13.37% decline. Earnings per share (diluted) was $1.88 vs $2.10 (Q1 2022); thats a -10.47% decline Operating income came in at $36.0 Billion vs $41.49 Billion (Q1 2022); thats a -13.23% decline. The quarter was a stunning miss by Apple, Its Apple 1st earnings miss versus consensus expectations in almost 7 years. In fact, it was only its 2nd revenue miss since Aug 2017, with sales coming in more than 3% below expectations. Apple - Revenue by Product Above please find illustrations depicting Sales / revenue by Category (product). In essence, APPL's revenue comes from its 5 core products; iPhone, iPad, Mac, Services and Wearables, Home & Accessories. Of the 5 core categories - only iPad (+30% - see below chart) & Services (+6%) registered a growth; remaining categories lost its footing especially the iMac (-29%); that is consistent with overall decline experienced by other PCs, laptops and chips makers. Apple - iPad phenomenal growth in Q1 2023 Apple - Sales/ Revenue by 5 Core products  Please find full breakdown for Q1 2023 vs Q1 2022 : iPhone: $65.78 Billion (vs. $71.63 Billion) Mac: $7.74 Billion (vs. $10.85 Billion) iPad: $9.40 Billion (vs. $7.25 Billion) Wearables, home, and accessories: $13.48 Billion (vs. $14.70 Billion) Services: $20.78 Billion (vs. $19.5 Billion) Apple - Sales by Country segment Overall drop in sales is not specific to a particular continent or region. Its just that in Year 2022, demand has been weaked throughout the year; not just in the US but world wide due to the covid complexities settling in. It is a general weakness experienced by all Tech stocks Apple - Other Highlights Apple is a "cash rich" company with a healthy cash flow at $34 Billion However its operating expenses like other Tech and Financial stocks need to be better managed. In Year 2022, it has ballooned by +12% to $14.3 Billion. Other tech companies who saw 2022 inflated operating expenses includes - Meta Platform, AMD, General Motors etc... Apple's CEO on Q1 2023 Results  As we all continue to navigate a challenging environment, we are proud to have our best lineup of products & services ever, and as always, we remain focused on the long term and are leading with our values in everything we do. During the December quarter, we achieved a major milestone and are excited to report that we now have more than 2 Billion active devices as part of our growing installed base.... Apple Inc, CEO, Tim Cook...... Is Apple Inc - Both A Good Price and Good Company ? There is potential upside to its stock price; given the current market situation The tri-factor that affected Apple's sales / revenue in 2022 were - (1) a strong US dollar, (2) production issues in China affecting the iPhone 14 Pro & Pro Max, and (3) overall macro economic environment China supply chain issue should ease with time given that China has lifted its internal & external restrictions With the latest interest hike at 0.25%, macro economic conditions in the US is also getting less "tense" compared to 2022. With the easing of interest hike, the strength of the US dollar will ease off as well. As of 03 Feb 2022, the Straits Times has also reported that the SGD dollar is at an all time high against the dip in the US dollar. Apple’s installed base has exceeded 2 Billion active devices, as confirmed by Tim Cook during today’s its Q1 2023 earnings call. CEO Tim Cook's opening remarks, revealed that just 7 years after passing one Billion active devices (2017), Apple has doubled that figure. Lastly, a focus on Services for revenue growth has paid off. It generated $20.8 Billion in revenue, a new all-time record said CFO Luca Maestri. Transactions processed through Apple Pay and subscriptions to things like Apple TV+ has been growing steadily. Apple have > 935 Million paid subscriptions across the Services on its platform. This is upped by > 150 Million during the last 12 months alone. And its nearly four times compared to year 2018... confirmed by CFO Luca Maestri.... Do you think Apple now is the time to invest in Apple ? Do you think Apple is at good price point as well ?  Please "Like" this post ok. Thanks. The rating is very important to me. @TigerStars  @CaptainTiger  @MillionaireTiger  @Daily_Discussion  @Tiger_SG  @TigerPM 
APPLE ($AAPL) - Good Price or Good Company ? Rise / Fall Of FAANG ?
avatarJC888
02-03

US Market on 03 Feb 2023 (Fri). $AAPL & $GOOG To Fall ? $META ??

A day after the 0.25% interest hike, words spoken by Mr Powell were still reverberating "positively" across the US market. Market continued to rally especially for both S&P 500 and Nasdaq.  Strangely enough Dow Jones slipped a little. By the time the bell signalled at of trading day : DJIA : -0.11% (-39.02 to 34,053.94). S&P 500 : +1.47% (+60.55 to 4,179.76). Nasdaq : +3.25% (+384.50 to 12,200.82).  Conquered the 11,999 barrier. Despite the slight dipped, the Dow Jones indexed is still healthy above its 200-day, 50-day and 5-day Moving Averages.  As are both S&P 500 and Nasdaq. Is this really the turnaround that all investors are hoping for ? Is it time to re-enter the market again ? Stop & Wait !! Quarterly earning reports by the FAANG stocks Both $Apple(AAPL)$ and $Alphabet(GOOG)$ reported their Quartelry earnings after the market closed. It wasn't a pretty sight.  Both Tech giants have missed the expectations. Actually to me, $Meta Platforms, Inc.(META)$ performance was a mixed bag but the market liked the idea of a $40 Billion share buyback and so it rallied. Going into the first Fri of Feb 2023, will the market end on a higher note than ytd ? Not so certain of it; not unless there are other companies Quarterly Earnings report that's going to distract the market momentarily. A check on the quarterly earnings calendar did not yield any Mega Cap companies reporting their earnings today.  Is it likely that market might take a breather ? Not unless the Jan Non-farm payrolls, due out in the morning by the US Bureau of Labor Statistics paints a different picture that pleases the market ? US pre-mkt indicator / Bitcoin & Ethereum prices Looking at US Pre-market indicators (above diagram) - Red ! Bitcoin & Ethereum prices for last hour & 24 hours (above diagram) - Red & Red!  Asia markets (ASX - Green !, Nikkei - Green !, KOPSI - Green !, HSI - Red !) - All in full force to celebrate Chinese New Year perhaps ? LOL !! EU markets - -(DAX - Red!, FTSE - Green !, CAC - Red !). Do you think the market will end on a higher note OR take a breather ? Do you think the FAANG stocks will rise above its quarterly earnings or fall ? Please "Like" this post ok.  Thanks.  The rating is very important to me !! @Daily_Discussion  @TigerStars  @CaptainTiger  @MillionaireTiger  @Tiger_SG  @TigerPM 
US Market on 03 Feb 2023 (Fri). $AAPL & $GOOG To Fall ? $META ??
avatarJC888
02-03

$META - Good Price or Gd Company ? Return Of FAANG ?

My afterthoughts to Tiger_chat 's question of whether an investor profits from a good company or a good price ? "Why not both" I asked myself ? Wouldn't there be more upsides comparatively speaking ? Having put the theory to test on (1) Facebook rival - Snap, (2) Visa & Mastercard (3) Tesla, General Motors  (4) Netflix (5) AMD, Lam Research, Intel and (6) JP Morgan & Morgan Stanley; time to try it on a FAANG stock no ? Gonna put $Meta Platforms, Inc.(META)$ to the test & see if it fits the bill. Sidetrack: Below are stocks that I have covered. Interested ? Click to read. Please "Like" to show some love okie ? Thanks ! AMD Inc Snap Inc Lam Research (semicon) General Motors Visa Inc   Formerly known as Facebook is an American multinational technology conglomerate Founded in 04 Jan 2004 (19 years young company) Founders were Mark Zuckerberg, Eduardo Saverin, Andrew McCollum, Dustin Moskovitz and Chris Hughes Listed on Nasdaq on 18 May 2012 at $38 per share; making it one of the biggest in technology & Internet history, with a peak market capitalization of over $104 Billion It owns  Facebook, Instagram, and WhatsApp, amongst a host of other products & services Meta was once one of the world's most valuable companies.  As of 2022, it is not one of the Top 20 biggest companies in the US. It is considered one of the Big 5 American information technology companies, alongside Alphabet (Google), Amazon, Apple & Microsoft.  As of 2022, it is the least profitable of the 5 US Tech giants. In 2022, a year where US market has been hammered by extreme volatility and ease of covid pandemic restrictions - how did Meta Platform fare ? Current stock price < 03 Feb 2022 stock price by -20.6%; has upside potential ? Meta Platform - Q4 2022 Earnings Summary Total revenue came in at $32,165 Billion vs $31.53 Billion (Wall St expectations) vs $33,671 Billion (Q4 2021); thats a -4.47% decline Net income came in at $4.65 Billion vs $10.29 Billion (Q4 2021); thats again another -54.81% decline Earnings per share was $1.76 vs $3.67 (Q4 2021); thats a -52% decline Income from Operations was $6.39 Billion vs $12.59 Billion; thats a -49.25% decline Meta Platform - Advertising Revenue by Region Its common knowledge that Meta's main revenue comes from advertisers' dollars It is a miracle that this Social media giant is still able to hang onto majority of its advertisers despite the blunder-venture into Metaverse; shows how much clout Meta still wields With the Biden administration expected to formally lift all restrictions on Covid by May 2023, it remains to be seen how Meta wil be able to once again canvas for more advertiser dollars Meta Platform - Net Income for Year 2021 & 2022 Its 2022 Net income is a shadow of its 2021's. The economic situation (eg. High labour costs during the pandemic) has definitely eaten into the income, coupled with the falling revenue from advertisers all played out in the Net income quotient. Again into 2023 as every country tries to pick up from where it has left off in 2020, how quickly will Meta be able to capitalise on this "energy" is left to be seen. Meta Platform - Daily Active Users (DAU) breakdown Like any other social media apps, the asset is of course the members' base and the "bond" between the apps and its members. For this, Meta has fared better in Q4 2022.  Its DAU of 2 Billion vs 1.99 Billion expected, according to StreetAccount - gives both investors and advertisers (more importantly) the confidence that Meta still has what it takes Meta Platform - Other highlights Still cannot wrapped my head around the escalating expenses experienced by a lot of Tech and Financial institutions in 2022.  Was the increase due to incessant hiring or salary adjustments ? In the case of Meta, it ballooned by +22% to $25.7 Billion. Correspondingly, its no wonder that staff headcount registered a +20%. Meta 's CEO on Q4 2022 Results Our community continues to grwo and I'm pleased with the strong engagement across our apps. Facebook just reached the milestone of 2 Billion daily actives. The progress we're making on our AI discovery engine and Reels are major drivers of this. Beyond this, our management theme for 2023 is the "Year of Efficiency" and we're focused on becoming a stronger and more nimble organisation. Meta Platform, CEO, Mark Zuckerberg..... Is Meta Platform Still A Good Price and Good Company ? As an IT giant in the Technology space where one day you're in and the next day you're out - Meta seemed to be holding onto its ground quite well This despite the blunder committed by Mr Zuckerberg by taking the company headlong into its the Metaverse without due considerations Stock price wise, there is still a potential upside gain of approx +20% no ? After non-stop hiring in 2022, it is now in the process of "firing" and laying off staff to the tune of 11,000; with a "human" touch approach. With that total expenses in 2023 will be in the range of $89 billion to $95 billion, that would be lower than its prior outlook of $94 billion to $100 billion.  Good news ? Similarly, it is also lowering its capital expenditure estimates for the year to be in the range of $30 billion to $33 billion, down from $34 billion to $37 billion. This will be achieved thru spending less money on data center construction and instead, shift to a different kind of data center architecture intended to be more cost efficient while acting as the backbone of its various artificial intelligence projects. Perhaps the most important piece of the puzzle in 2023 will be Mr Zuckerberg's authorized a $40 Billion increase to its stock repurchase plan.  This definitely "sets the tone" in terms of self-confidence that the company has on itself. Already, the company bought back $27.9 billion worth of its shares in 2022. How Do Both Rivals Stacked Up Against Each Other ? Snap vs Meta stock price on 01 Feb 2023 Its a tale of 2 cities right. Both social media stocks did not exactly hand in an excellent earnings report Yet the fate of each stock were dealt with differently by the market or wall street Does this indicate the return of the FAANGs ? Will 2023 see further inroads to be made by Tik Tok instead ? Do you think Meta is backed for good ? Do you think it will be able to better itself in 2023 as the Covid restrictions start coming down ? Please "LIKe" this post ok.  Thanks.  The rating is very important to me !! @TigerStars  @MillionaireTiger  @CaptainTiger  @Daily_Discussion  @Tiger_SG  @TigerPM 
$META - Good Price or Gd Company ? Return Of FAANG ?
avatarJC888
02-03

$AMD - Good Price or Good Company ? Better Than $INTC ?

My afterthoughts to Tiger_chat 's question of whether an investor profits from a good company or a good price ? "Why not both" I asked myself ? Wouldn't there be more upsides comparatively speaking ? Having put the theory to test on (1) social media company, (2) credit cards companies, (3) EV company, (4) entertainment company (5) technology companies and (6) financial institutions; time to try it on a semiconductor company. Gonna put $Advanced Micro Devices(AMD)$ to the test & see if it fits the bill. Sidetrack: Below are stocks that I have covered. Interested ? Click to read. Please "Like" to show some love okie ? Thanks ! Snap Inc  General Motors Visa Inc . Tesla. Netflix . Mastercard . Intel . Microsoft. JP Morgan . Morgan Stanley . An American multi-national semiconductor company. Founded in 01May 1969 (its a 53 years old legacy) Founder was Jerry Sanders and a group of other technology professionals. Its initial offerings were primarily memory chips & other components for computers. It expanded its product range by venturing into microprocessor market, competing with $Intel(INTC)$, its main rival. On 15 Oct 1979. it listed on the New York Stock Exchange (NYSE) Its initial collaboration and subsequent rivalry with $Intel(INTC)$ could be traced to the fact that both founders were ex-colleagues at Fairchild Semiconductor. In 2022, a year where US market has been hammered by extreme volatility and ease of covid pandemic restrictions - how did AMD Inc fare ? Current stock price < 02 Feb 2022 stock price by -31%. Hmm.... AMD - Summary Total revenue came in at $5.6 Billion vs $4.82 Billion (Q4 2021); thats +16.18% gain Net income (GAAP) came in at $21 Million vs $974 Million (Q4 2021); thats a -97.8% loss Earnings per share (GAAP) was $0.01 vs $$0.80 (Q4 2021); thats a -98.75% loss. Earnings per share (non GAAP) was $0.69 vs $0.92 (Q4 2021); thats a -25% loss. AMD - Revenue breakdown by Key Business Segments The 4 main key businesses contribute almost equal share towards Total Revenue For Year 2022, both Clients and Gaming registered negative growth of -51% & -7% respectively. Refer to above diagram on declines' justifications. This have been buffered by Data Centre and Embedded respective growth of +42% & > +100% respectively. Refer to above diagram on gains insights. AMD - Other highlights In 2022, AMD like other US companies; operating expenses have inflated without salient reasons (eg. Visa : +25% to $2.8 Billion, Tesla : +16% to $1.87 Billion). There is a need to bring down expenses in the face of a still challenging 2023 market environment. AMD's CEO on Q4 2022 Results We accelerated our data centre momentum and closed our strategic acquisition of Xilinx, significantly diversifying our business and strengthening our financial model. Although the demand environment is mixed, we are confident in our ability to gain market share in 2023 and deliver long-term growth based on our differentiated product portfolios... AMD, CEO, Dr Lisa Su.... . Is AMD - Both A Good Price and Good Company ? Being a major player in the semiconductor industry means it will be subjected to the demand cycles "common" in this industry. In the midst of the current lull period, AMD will continue to push forward in its core pillar products so that when demand returns, they are ready for the next demand lap. Refer to below diagram on details. Similarly, AMD will continue to commit to ESG implementation & governance while pushing forward its purpose driven, high performance & adaptive computing persues. Refer to below diagram for details. History Between INTC & AMD : Intel vs AMD - share price from 1990 to 2010 The intense rivalry between the 2 major semiconductor companies are legendary or as it had been drummed up by the media All thru the 90s into the early 20s, Intel seemed to be a stronger player especially with its 80x86 microprocessor. However things have turned around for AMD right around 2014 with the onboarding of Dr Lisa Su as the new CEO. AMD's stock has soared more than 25-fold under her helm, propelling it to a $110 Billion market capitalization as of early Jul 2021. Apple To Apple Comparison Intel & AMD - Jan 2023 stock price movement Above is the both stocks' price movement for Jan 2023 In terms of Quarterly performance, AMD had fared better than Intel In terms of stock prices, Intel's value is one third of AMD ? Do you think AMD is both a good price and good company ? With the 0.25% interest hike confirmed, do you think Semiconductor stocks will rally from today onwards ? Please "Like" this post ok. Thanks. The rating is very important to me. @TigerStars  @MillionaireTiger  @CaptainTiger  @Daily_Discussion  @Tiger_SG  @TigerPM 
$AMD - Good Price or Good Company ? Better Than $INTC ?
avatarJC888
02-02

US Market on 02 Feb (Thu). $META To Follow $SNAP ?

On Wed, the US market did not rally; not until in the afternoon. The moment Mr Powell confirmed the 0.25% interest hike, the market came alive and rallied like it never did. By the time market closed, it was sweet redemption : DJIA : +0.02% (+6.92 to 34,092.96).  Hardly excited by Mr Powell's announcement. S&P 500 : +1.05% (+42.61 to 4,119.21). Capped its best Jan performance since 2019 Nasdaq : +2.00% (+231.77 to 11,816.32). Notched its strongest Jan in 22 years. With a stellar performance like this, there's no need to check the Indexes' Moving Averages for today.   Will $Meta Platforms, Inc.(META)$ Emulate $Snap Inc(SNAP)$ Today ? Snap vs Meta On 31 Jan (Tue), Snap's Q4 2022 earnings report was less than ideal and the market was unrelentless is showing its displeasure. On 01 Feb (Wed), Meta's Q4 2023 earnings report was better than expected.  More important, the $40 Billion stock buyback made the deal even sweeter.  Will Meta coninue its rally today (a day after Q4 2022) or will it loose its steam and languish ? How Will US Market Behave On 02 Feb 2023 ? US pre-mkt indicators / Bitcoin & Ethereum prices Looking at US Pre-market indicators (above diagram) - Green mostly ! Bitcoin & Ethereum prices for last hour & 24 hours (above diagram) - Red & Red ! *Note: Will Bitcoin be able to break thru the $24,000 "ceiling" anytime soon ? Asia markets (ASX - Green !, Nikkei - Green !, KOPSI - Green !, HSI - Red !) EU markets - -(DAX -Green !, FTSE -Green !, CAC - Green !). Do you think Meta will continue to rally today ? Do you think US market will continue to rally another 2% today ? Please "LIKe" this post ok.  Thanks.  The rating is very important to me. @Daily_Discussion  @TigerStars  @CaptainTiger  @MillionaireTiger  @Tiger_SG  @TigerPM 
US Market on 02 Feb (Thu). $META To Follow $SNAP ?
avatarJC888
02-02

$SNAP - a Good Price & Good Company ? Better Than $META ?

My afterthoughts to Tiger_chat 's question of whether an investor profits from a good company or a good price ? "Why not both" I asked myself ? Wouldn't there be more upsides comparatively speaking ? Having put the theory to test on  (1) credit cards companies, (2) EV company, (3) entertainment company (4) technology companies and (5) financial institutions; its time to try it out on a Social Media company, no ? LOL Gonna put $Snap Inc(SNAP)$ to the test & see if it fits the bill. Sidetrack: Stocks that I have covered so far.  Interested ?  Click to read.  Please "Like" to show some love okie ?  Thanks ! General Motors Visa Inc. Tesla Inc. Netflix . Mastercard. Intel. Microsoft. JP Morgan. Morgan Stanley. An American multi-media company Found in Sep 2011 (an 11 yo young company) Founders were Evan Spiegel, Bobby Murphy and Reggie Brown Its core activities - developed & maintains technological products and services, namely Snapchat, Spectacles and Bitmoji. Apps original name was Picaboo, then christened as "Snapchat" and finally on 26 Sep 2016 renamed as "Snap" until present day. It was publicly listed in 02 Mar 2017 at $24 per share; making its market cap $33 Billion on its debut It grew to its current size thru very strategic acquisition of business-related companies and integrated their products seamlessly with Snap In 2022, a year where US market has been hammered by extreme volatility and ease of covid pandemic restrictions - how did Snap Inc fare ? Current stock price < 02 Feb 2022 stock price by -67.66%, Dismal !! Snap Inc - Summary Total Revenue came in at $1.299 Billion vs $1.297 Billion (Q4 2021); thats a +0.1% QoQ. Net loss (GAAP) came in at -$288 Million vs $22,550 Million (Q4 2021); thats a -1,379% QoQ. ** "Note" - is net loss is improving quarterly in Year 2022 (Refer to below chart). Loss per share (GAAP) was -$0.18 vs $0.01 (Q4 2021); thats a -1,900% QoQ.   Earnings per share (non GAAP) was $0.14 vs $0.22 (Q4 2021); thats a -36.36% QoQ Snap Inc - Net Income / Loss - Quarterly charting - gradual improvement ? Snap Inc - Revenue breakdown by Region As Snap is a social media company, its viability will be based on its ability to penetrate every mobile phone users; estimated to be 7.26 Billion handphones worldwide. Above breakdown clearly shows that Snap's growth outside of US is still relatively healthy. However its prospect in the US is not looking bright Could this be a case of Tik Tok (English version of China's Dou Yin apps) being a darling and dampener in the socal media sphere ? Snap - Operating Statistics As with any social media company / apps - a key performance indicator is the number of daily active users (DAU) Snap's Q4 2022 DAU came in at 375 Million vs 319 Million (Q4 2021); thats a +17.55% gain in customer base. Snap's CEO on Q4 2022 Results This quarter we took action to further focus our business on our 3 strategic priorities; growing our community and deepening their engagement with our products, re-accelerating and diversifying our revenue growth and investing in augmented reality. The growth of our community to 363 Million daily active users, an increase of 19% YoY continues to expand our long-term opportunity. Snap, CEO, Evan Spiegel... . Is SNAP - Both A Good Price and Good Company ? In his letter to shareholders, CEO Evan Spiegel has raised the following pointers : Refocus Snap's investments to support its 3 strategic priorities: (1) grow the community & deepend members' engagement with Snap's products,  (2) accelerating and diversifying Snap's revenue growth, and (3) investing in the future of augmented reality. Snap has an outreach of > 75% of members in the "13- to 34 year-olds" category;  in more than 20 countries. Whatsmore, the 20 countries represent > 50% of Global Digital Advertising spend. Continued on the path to sustainable profitability by generating $378 million of adjusted EBITDA in 2022, that is 3rd consecutive year of positive adjusted EBITDA. Generated $55 Million of free cash flow (FCF) in 2022; that is 2nd consecutive year of positive FCF. See below diagram for details. Q4 2022 also saw the introduction of a subscription based account Snapchat+; that has grown to > 2 Million subscribers in the quarter. It is also investing in Snap's augmented reality (AR) platform, making significant progress in building a differentiated AR offering that provides significant value to Snap's community, developers, and businesses. Snap's - Free Cash Flow table Do you think Snap will be able to better and improve itself in 2023 ? Do you think with the impending Covid & Lock Down complete removal / abolishment; it will help everyone to get back to pre-Covid pandemic situation ? Please "LIKe" this post ok.  Tks.  The rating is very important to me ! @TigerStars  @CaptainTiger  @MillionaireTiger  @Daily_Discussion  @Tiger_SG  @TigerPM 
$SNAP - a Good Price & Good Company ? Better Than $META ?
avatarJC888
02-02

Lam Research ($LRCX) a Good Price or Good Company or Both ?

My afterthoughts to Tiger_chat 's question of whether an investor profits from a good company or a good price ? "Why not both" I asked myself ? Wouldn't there be more upsides comparatively speaking ? Now that semiconductor stocks seemed to be on the up swing again, why not put $Lam Research(LRCX)$ to the test & see if it fits the bill. Sidetrack: I have covered (1) credit cards companies, (2) EV company, (3) entertainment company (4) technology companies and (5) financial institutions; to test out this theory. General Motors - Click here to read. Like the post ok. Tks. Visa Inc - Click here  to read. Like the post ok. Tks. Tesla - Click here to read. Like the post ok. Tks. Netflix Inc - Click here  to read. Like the post ok. Tks. MasterCard - Click here  to read. Like the post ok. Tks. Intel - Click here  to read. Like the post ok. Tks. Microsoft - Click here  to read. Like the post ok. Tks. JP Morgan - Click here to read. . $Morgan Stanley(MS)$ - Click here to read. American supplier of wafer fabrication equipment and related services to the semiconductor industry. Founded in 1980; this is a 43 years young company In May 1984, it IPO-ed on Nasdaq As it area of business is very niche, competition is almost non-existent Its manufacturing plants are located across 5 countries - US, Austria, Korea, Taiwan and Malaysia Through strategic acquisitions, it was able to grow into its current $67.71 Billion market cap As of 2018, it was the 2nd largest manufacturer in the Bay Area, after Tesla. In 2022, a year where US market has been hammered by extreme volatility and ease of covid pandemic restrictions - how did Lam Research fare ? Current stock price < 02 Feb 2022 stock price by -18.25%; resilient ! Lam Research ($LRCX) - Summary Revenue came in at $5.2 Billion vs $4.23 Billion (Q4 2021); thats a +22.93% gain (QoQ). Net income (GAAP) was $1.47 Million vs $1.19 Million (Q4 2021); thats a +23.53% gain (QoQ) Earnings per share (GAAP) was $10.77 vs $8.44 (Q4 2021); thats a +27.6% gain (QoQ) Minimal deviation for Non-GAAP earnings per share. Lam Research - Revenue by products & Revenue by regions Bulk of revenue was contributed by memory chip of which non-volatile memory chips constituted 39% of the 50%. Next revenue generating product was the foundry businesses When it comes to country / region that contributes to the group's revenue, the top 3 countries are (a) China (24%), (b) Korea (20%) and (c) Taiwan (19%). Lam Research - Other highlights Gross margin (non GAAP) was 45.1% vs 46.8% (Q4 2021); thats a marginal -1.7% decline (QoQ). Strangely enough, like other Mega cap companies, operating expenses have inflated in 2022 by +9% to $696.2 Million Lam Research pays a dividend of $6.90 per share. Lam Research's CEO on Q4 2022 Results: Given the decline in wafer fabrication equipment spending expected in calendar year 2023, we are taking proactive steps to lower our cost structure and drive efficiencies across our global footprint; while preserving critical R&D. With these actions, Lam is focused on accelerating our strategic priorities to capitalize on the semiconductor industry's long-term growth prospects... Lam Research, CEO, Timothy Archer.... . Why Is Lam Research - Both A Good Price and Good Company ? As mentioned earlier, LRCX makes the very complicated machinery used by foundries like Taiwan Semiconductor Manufacturing Co. (TSM) to make the silicon for chips made by the likes of Nvidia Corp. & Apple Inc. While the niche business means little to no competitor; in a cyclical industry like semiconductors - it could also mean dry seasons during demand-drought periods Despite reporting a stellar Q4 2022 earning results, LRCX is already in the process of cutting expenses and ramping up its Research & Development to bring about "new" demands Based on its current price, there is still a possible potential of +18% upside to its stock price. Looking at its 200-day, 50-day and 20-day Moving Averages; its a "happy" ending that its current stock price is a comfortable margin +9.83% from its 20-day MA. Do you think Lam Research is a "Buy" now before the semiconductor industry picks up momentum ? Do you think there is any upside to Lam Research in 2023 ? Please "LIKe" this post ok. Thanks. The rating is very important to me. @TigerStars  @CaptainTiger  @MillionaireTiger  @Daily_Discussion  @Tiger_SG  @TigerPM 
Lam Research ($LRCX) a Good Price or Good Company or Both ?
avatarJC888
02-01

US Market on 01 Feb (Wed). $AMD : Re-Look Semi Con Stocks ?

Yesterday (31 Jan) was the last trading day of Jan 2023. Stocks jumped to end January on a strong note. By the time market closed  : US market performance on 31 Jan 2023 (Tue) DJIA : +1.09% (+368.92 to 34,086.04). S&P 500 : +1.46% (+58.83 to 4,076.60). Nasdaq : +1.67% (+190.74 to 11,393.81). Best showing ytd BUT has not recovered from the drastic 30 Jan's  -1.96% loss. The 3 Indexes Overall Sentiments : 3 Indexes Moving Averages dated 31 Jan 2023 All three indexes' Moving averages of 200-day, 50-day and 20-day are indicating that market is in an uptrend momentum. The "weakest" index of the 3 would be Nasdaq because it has just surpassed its 200-day MA by 97.61 points only. Semiconductor stocks' Jan 03 to Jan 31 performances Is Semiconductor stocks worth a look now ? $Advanced Micro Devices(AMD)$ Q4 2022 earnings and revenue slightly beat expectations. Stock is working on a bottoming base with a $79.33 buy point. It's well below the 200-day line, but a real breakout would involve clearing that key level. Rival $NVIDIA Corp(NVDA)$ edged lower in late trading. Stock rose nearly +2% to $195.37 on Tue (31 Jan), in buy range from a short cup base. Looking at the selected Semiconductor stocks - 3 of 4 have risen in Jan 2023; only 1 of 4 (Intel) slipped due to weak Q4 2022 earnings report. How Will US Market Behave On First Trading Day In Feb 2023 ? US pre-market indicators and Bitcoin & Ethereum prices Looking at US Pre-market indicators (above diagram) - Red ! Bitcoin & Ethereum prices for last hour & 24 hours (above diagram) - Green & Green ! *Note : Bitcoin has broken thru the $20,000 barrier; is it poised to take off or is there manipulation by the whales ? Asia markets (ASX - Green !, Nikkei - Green !, KOPSI - Green !, HSI - Green !) - All in full force to celebrate Chinese New Year perhaps ? LOL !! EU markets - -(DAX -Green !, FTSE -Green !, CAC - Green !). With both Asia and EU markets rolling in the Green, is it possible that US market languishes in the Red ?  Or is it just Pre-Fed announcement jitters ? Do you think the US market will rally when the 0.25% interest hike is announced ? Do you think the US market will rally if a 0.5% interest hike is announced instead ?  Quite unlikely but you never know, the Fed might just throw a curve ball right ? Please "LIKe" this post ok.  Thanks.  The rating is very important to me !! @TigerStars  @Daily_Discussion  @CaptainTiger  @MillionaireTiger  @Tiger_SG  @TigerPM 
US Market on 01 Feb (Wed). $AMD : Re-Look Semi Con Stocks ?
avatarJC888
02-01

Market Reaction After FOMC Interest Hike News.

Before making an educated guess on which direction (up or down or sideways) Market will react on 01 Feb afternoon; it is important to know where US economy stands currently. Right ? US 2022 - 7 Interest hikes from Mar to Dec 2022 In 2022 alone, national interest rate has been adjusted 7 times with the last in Dec 2022.  Currently interest stands at 4.50 %. The Fed has repeatedly sounded that there is room at the top for more hike/s where required to bring inflation under control. US- Dec 2022 CPI Dec 2022 CPI had registered another month of slow down. Is this a clear indication that the 7 interest rate hikes is beginning to do its job ? Think the reply is a resounding "Yes". US - Dec 2022 PCE Dec 2022 PCE just released recently is also pointing to a rise that is weaker than Nov’s, coming in at 5.0%.  If you have read my previous posts you would’ve known that the Fed prefers to refer to PCE data over CPI for many reasons. US - Dec 2022 Gross Domestic Product (GDP)  Lastly, Dec 2022 Gross Domestic Product (GDP) is also registering a healthy 2.9% growth; despite a strong  / resilient Labour market.  This is particularly important because should the Fed continues with interest hike; the current GDP is proof that US is able to weather further hikes. In the short term it may cause a bit of turbulence in both (a) the Stock Market and (b)  Labour market in terms of short term unemployment rising.  To this end, Mr Powell had indicated in the past that the Fed is willing to accept these fallout if it means curtailing runaway inflation.  The 0.25% hike seems to be a done deal already given the above data set.  Question is whether the Fed is willing to take a bold step to adjust interest by 0.5% instead. This would definitely get the job done in bringing inflation back to the targeted 2% within a shorter time frame instead of letting things drag out over a time period. If only things are so straight forward and simple.  The 2022 interest hikes have already caused a lot of economies in the world (particularly the less developed economies) a lot of hardship and turmoil in the local economy. For whatever reason/s the other countries could not afford to adjust their national interest rate in tandem and in reaction to the Fed’s.  As a result, they suffer all the side effects ranging from importing inflation into their economies, extreme fluctuations in their national currencies against the US Dollars, sudden drop in their stock exchanges as funds fled to safer havens etc… The US being a default leader of the “free” world has both a duty and obligation to keep as much as possible the world in a “stable” situation in order that every country could find its way around the US interest hikes ripple effects. While the Fed is non-political and does not have to be answerable to other world economies – it needs to work closely with the Biden Administration to ensure that its policies does not bring chaos and burden to the incumbent government. If the interest announced is 0.25% as anticipated, Market sentiments would turn to Q4 2022 earnings  report being released daily to chart directions.  However if interest hike is a “surprised” 0.5% - Market is likely to dip as this has definitely not been factored by market experts. As to when the Fed will halt interest hike – think everyone is clear by now that the halt will come only when inflation returns to the ideal and universally accepted 2%. Do you think Market will rise or fall today? Do you think  that the Fed will halt or slow down interest hike? Please "LIKe" this post ok. Tks. The rating is very important to me. Tks tks!! @TigerStars   @CaptainTiger   @MillionaireTiger   @Daily_Discussion   @Tiger_SG   @TigerPM  
Market Reaction After FOMC Interest Hike News.
avatarJC888
02-01

General Motors ($GM) a Good Price & Good Company ? Better Than $TSLA ?

My afterthoughts to Tiger_chat 's question of whether an investor profits from a good company or a good price ? "Why not both" I asked myself ? Wouldn't there be even more upsides comparatively speaking ? Having covered electric vehicle pioneer $Tesla Motors(TSLA)$ , I am keen to cover an incumbent internal combustion engine (ICE) turned EV maker. This should be interesting. So, lets take a look at $General Motors(GM)$ , its Q4 2022 earnings and see if it still fits the bill. Sidetrack: I have covered (1) an investment management company, (2) a healthcare company, (3) an entertainment company and (4) 7 financial institutions; to test out this theory. Visa Inc - Click here to read. Like the post ok. Tks. Tesla - Click here to read. Like the post ok. Tks. Netflix Inc - Click here  to read. Like the post ok. Tks. $MasterCard(MA)$ - Click here  to read. Like the post ok. Tks. Intel - Click here  to read. Like the post ok. Tks. Microsoft - Click here to read. Like the post ok. Tks. JP Morgan -  Click here to read. . Morgan Stanley -  Click here to read. An American multi national automotive manufacturing company Founded in 16 Sep 1908 (114 years old) The 3 founders were William C. Durant, Charles Stewart Mott and Frederic L. Smith Largest car maker in the US and was largest worldwide until 2008 when it was displaced by Toyota It has manufacturing plants in 8 countries Brands under GM includes - Chevrolet, Buick, GMC, and Cadillac. Holds interests in Chinese brands Wuling Motors, Baojun and DMAX (via joint ventures). Interestingly Wuling mini EV has been the "Best" seller (by volume) in China for a few years According to Investopedia, GM has 10 joint ventures in China alone GM grew to its current size through strategic acquisitions. It suffered major setbacks due to poor quality works and in 01 Jun 2009; it filed for Chapter 11 bankruptcy. With aid from the US government (due to its fallout impact to the workforce), the company undergone a massive restructure On 17 Nov 2010, GM IPO-ed (technically again) at the price of $33 per share It is also one of the component stocks in S&P 500 list of companies Like they say, the rest is history In 2022, a year where US market has been hammered by extreme volatility and ease of covid pandemic restrictions - how did General Motors fare ? Current stock price < 01 Feb 2022 stock price by -27.28% - holding its ground Total revenue came in at $43.11 Billion vs. $40.65 Billion expected vs $33.6 Billion (Q4 2021); thats a gain +28.27 (QoQ). Net income (GAAP) came in at $2.0 Billion vs $1.7 Billion (Q4 2021); thats a gain +17.65% (QoQ) Earnings per share (GAAP) was $1.39 vs $1.16 (Q4 2021); thats a gain +19.83% (QoQ). GM Revenue breakdown by Country segment While GM is predomaintly a car maker; it has other businesses complimentary to its core car business eg. car insurance, automotives financing (GM Financial), investments in Chinese EV makers & joint ventures (GM International Ops) Under "Revenue Mix" - US still accounts for the bulk (82.4%) of GM's revenue Similarly under "Segment Revenue" - North America growth (+32%) is still second to none It is safe to "conclude" that GM is highly ingrained & integrated with America General Motors - Vehicle sales by Regions As both an ICE & EV Seller, it is important to understand where demand is coming from. Broadly GM's Vehicle segments are : (1) North America (2) Asia/Pacific, Middle East & Africa and (3) South America Only demand from North was up ever so slightly in Q4 2022. While Asia/Pacific, Middle East & Africa regions saw a dip of 48,000 vehicle units from Q3 to Q4 2022. General Motors - Other information GM is registering a strong cash that is "necessary" and places them in a strong position to engage in revenue generating projects or initiatives Just like other US mega cap companies, its "Costs & Expenses" have ballooned in Year 2022 by a whooping +26% to $40.5 Billion.  Perhaps it is timely to review and rein in the unsustainable costs expenditures. General Motor's CEO on Q4 2022 Results: The Chevrolet Bolt EV and Bolt EV saw record sales, which demonstrates the importance of affordable EVs in our portfolio. They were the best selling mainstream EVs in the second half of 2022, and we plan to increase production to more than 70,000 this year for global markets...... GM, CEO Mary Barra Is General Motors Inc - Both A Good Price and Good Company ? Let's perform a detailed analysis. GM has clinched the #1 spot for US auto sales in Year 2022 Amidst crazy price slashing by rivals EV makers eg. Tesla (Model 3 & Y), Ford (Mustang Mach-E) etc.. to maintain and hopefully attract demand, GM is not resorting to tactics that would hurt its bottom line In a letter to shareholders, CEO Mary Barra described 2023 as a “breakout year” for GM’s electric vehicle business, highlighting the introduction of more mainstream products like the Chevrolet Equinox EV as well as increases in production of its current models.   In 2023, GM has three all-new EV models due from its mass-market Chevrolet brand. Those new models include all-electric versions of the bestselling Silverado truck, and the Blazer and Equinox SUVs. Additionally, GM has already started production of everyone's favourite Hummer EV SUV (see below). On 31 Jan 2023, GM also announced that it has an equity investment of $650 Million in Lithium Americas Corp ($LAC); to develop a lithium mine in Nevada where GM is to receive exclusive access to phase one of its Lithium materials vital in EV manufacturing. $LAC's Thacker Pass aims to produce Lithium for up to 1 Million EVs a year; securing GM's demand Despite the beautiful report card (Q4 2022 earnings), GM is looking to trim its expenditure by $2 Billion (see below).  This will definitely relief its bottom line tremendously. There is a lot going on for General Motors in 2023.  If the traditional car maker is able to transit seamlessly from internal combustion engine to electric - the sky's the limit for this 114 years old Grand Old Dame.  Agree ? Hummer EV SUV - in the house soon ? Do you agree that GM is showing strong signals that 2023 is going to be a great year for this grand dame ? Do you agree that GM's price will soar from H2 2023 when inflation fever blows over and the Fed halts its interest hike ? Please "Like" this post ok.  Thanks.  The rating is very important to me. @TigerStars  @CaptainTiger  @MillionaireTiger  @Daily_Discussion  @Tiger_SG  @TigerPM 
General Motors ($GM) a Good Price & Good Company ? Better Than $TSLA ?

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