TGIF! Let’s wrap up the week by taking a look at what’s making headline news!
Amazon (AMZN) reported earnings and posted its THIRD $100 billion quarter in a row! Wowza! 👏 Amazon’s revenue grew by 27% year over year to $113.08 billion. However, this was still lower than the $115.2 billion that analysts were expecting.
Earnings beat Wall Street’s expectations thanks to its highly profitable cloud-computing, subscriptions, and advertising businesses.
Revenue from Amazon Web Services grew by 37% year over year to $14.81 billion in the second quarter. Analysts were estimating revenues of $14.20 billion.
Amazon’s “other” unit, which includes advertising and other services, grew revenue 87% year over year to more than $7.9 billion.
Amazon gave weak guidance for the third quarter and mentioned that they expect to see slower growth for the next few quarters. They expect revenues of $106 billion and $112 billion for the third quarter, which is well below consensus estimates of $119.2 billion.
Why is this important? Several tech companies enjoyed exponential growth during the pandemic. They are now struggling to keep the momentum going and to maintain their growth rates. The guidance from Amazon echoes similar warnings from Facebook (FB) and Apple (AAPL), who also expect revenue growth rates to decelerate from pandemic highs.
📉 Robinhood closes 8% lower on its first day of trading ⬇️
Shares of the stock trading app, Robinhood (HOOD) closed down over 8% on its first day of trading on the Nasdaq. The stock started trading at $38 a share and fell as much as 10% during the day. Yikes!
The stock finally closed at $34.82, down 8.37%.
P.S. Robinhood will be available on Gotrade soon!
📉 Nikola’s founder has been convicted on three counts of fraud 👮
A federal grand jury has convicted Trevor Milton, Nikola’s (NKLA) founder with three counts of criminal fraud, and for lying about “nearly all aspects of the business” in order to mislead investors. Uh-oh… He was charged with two counts of securities fraud, including making false statements about the company, and wire fraud. That’s not all, the Securities and Exchange Commission (SEC) also filed civil securities fraud charges against Milton on Thursday.
Shares of Nikola fell over 15% following the news of the indictment and closed at $12.03.
Top movers & shakers 🎢
What else is making headline news 📰
Popular companies releasing earnings this week 💰
A company’s market value may fluctuate considerably around the time that the earnings report is expected to be published. Stock prices may rise or fall according to analysts' speculative estimates, released prior to the actual earnings announcement.
The earnings season can be a time of great opportunity since better-than-expected figures could cause a company’s stock to greatly increase in value. Worse-than-expected results could have the opposite effect.
That’s all from us for now.
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The legal stuff 🤓
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