Hey Gotraders,
JPMorgan (JPM) just reported earnings. Letās take a look at what they reported:
They reported earnings of $2.63 per share vs analystsā expectations of $2.69 per share (this is unconfirmed)
They reported revenue of $31.59 billion vs analystsā expectations of $30.86 billion
Revenue was down 5% compared to last year
Profit amounted to $8.28 billion, down 42% from last year
JPM recorded a $902 million charge for building credit reserves for anticipated loan losses
JPMās provision for credit losses, which includes the $902 million reserve build, was $1.46 billion, more than 2x the $617.5 million expected by analysts
JPM booked $524 million in losses driven by markdowns and widening spreads after Russianās invasion of Ukraine
āWe remain optimistic on the economy, at least for the short term ā consumer and business balance sheets as well as consumer spending remain at healthy levels ā but see significant geopolitical and economic challenges ahead due to high inflation, supply chain issues and the war in Ukraineā - CEO Jamie Dimon.
Why is this important? Other companies are also affected by the macro environment and by the Russian war.
āThe markets are extremely treacherous at the moment; thereās a lot of uncertaintyā¦ The full ramifications of the current conditions are still uncertainā - Troy Rohrbaugh, JPMorganās Global Markets Chief.
In the last couple of days itself, these are a few of the companies that made headline news in relation to the Russian war:
Netflix (NFLX) - Analysts warn that subscriber numbers will take a hit from removal of Russian customers.
Boeing (BA) - Boeing loses more than 90 jet orders due to war in Ukraine.
Nokia (NOK) and Ericsson (ERIC) halt new business in Russia. Is Huawei next?
The list goes onā¦.
š Meta plans to take a cut of nearly 50% on NFT sales š°
Meta, Meta, Metaverseā¦ Meta-Facebook (FB) announced just recently that it plans to sell merch in the Metaverse. They are currently testing out in-app purchases on Horizons World, its social virtual reality app. This includes allowing creators to sell NFTs in the Metaverse. What they didnāt mention was their plan to take a huge cut for themselves.
Meta said that they would charge a 30% āhardware platform feeā for sales made through the Meta Quest Store (where it sells apps and games for its virtual reality headsets), plus a 17.5% fee for using Horizon Worlds. Thats a total of 47.5%! *Mind-blown!*
Thatās even more than the commissions that Apple (AAPL) and Google (GOOG) charge for their app stores!
People were obviously unhappy with this.
One Twitter user wrote: āI hate you Facebook.ā
Another said: āIf Meta wants 47.5% of NFT sales they gotta talk to the IRS because I donāt even have that after taxes.ā
Shares of Meta closed at $214.14, down 1.07% for the day.
š Lucid launches a new & pricier version of its EV š
EV maker Lucid (LCID) has announced that it will be launching an updated version of its flagship EV. This EV is known as the Lucid Air Grand Touring Performance Model, and it will arrive in June. It is a luxury sedan with a 446-mile range and 1050 horsepower, and it is priced at a whopping $179,000!
This is the longest-range and fastest-charging EV on the market currently. Impressive!
āThe remarkable speed with which we are able to conceive and bring this model to market is possible only because of Lucidās high degree of vertical integration and in-house production of our proprietary EV powertrain and battery pack technologyā - Peter Rawlinson, CEO and CTO of Lucid Group.
Shares of Lucid closed at $21.29, down 1.89% for the day. Shares are up 1.17% in extended trading at the time of writing.
Top movers & shakersĀ š¢
What else is making headline newsĀ š°
iPhone (AAPL) supplier Pegatron suspends production at two factories in China.
Twitter (TWTR) investor sues Elon Musk over delay in disclosure of stake.
Cruise expands Walmart (WMT) autonomous delivery pilot in Arizona.
CrowdStrike (CRWD) shares rise on Goldman Sachs (GS) upgrade.
Exxon Mobil (XOM) bets another $10 billion on Guyanaās oil boom.
Intel (INTC) debuts employee recruitment program as it looks to hire thousands.
Apple's (AAPL) Tim Cook warns of 'unintended consequences' in app store antitrust legislation.
Peloton (PTON) activist Blackwells Capital takes aim at new CEO, again pushes for sale.
Google (GOOG) to invest $9.5 billion in U.S. offices, data centers this year.
Walmart (WMT) hires PayPal (PYPL) executive as its chief financial officer.
Popular companies releasing earnings this weekĀ š°
Wednesday: JPMorgan Chase (JPM), BlackRock (BLK), Fastenal (FAST), First Republic Bank (FRC), Delta Airlines (DAL), Rent the Runway (RENT)
Thursday: Taiwan Semiconductor (TSM), United Health (UNH), Wells Fargo (WFC), Morgan Stanley (MS), Goldman Sachs (GS), Citibank (C), U.S. Bancorp (USB), PNC Financial (PNC), Ericsson (ERIC), State Street (STT), Ally Financial (ALLY)
A companyās 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 companyās stock to greatly increase in value. Worse-than-expected results could have the opposite effect.
Thatās all from us for now.Ā
Signing out,
Enjoyed the newsletter?Ā š¤
Why not share with your family or friends who may be interested in starting their investing journey. Simply forward this newsletter - all they got to do is click the āSubscribe Nowā button belowā¦ Or they can get the Gotrade app - theyāll automatically become a subscriber.
The legal stuffĀ š¤
Disclaimer: Gotrade Securities, trading as Gotrade, provides this service as general information only, without taking into account your circumstances, needs, or objectives. You should consider the appropriateness of any forecast or other information herein for your individual situation. If in doubt, you should seek independent professional advice.
Gotrade utilizes financial information providers and information from such providers may form the basis for analysis. Gotrade accepts no responsibility for the accuracy or completeness of any information herein contained.Ā Additionally, any third-party information provided therein does not reflect the views of Gotrade or any of their subsidiaries or affiliates.Ā Opinions are the authors; not necessarily that of Gotrade Securities or any of its affiliates, subsidiaries, officers, or directors.
All investments involve risk and past performance does not guarantee future results or returns. There is always the potential of losing money when you invest in securities or other financial products. Gotrade Securities is licensed to carry on business as a Labuan Securities Licensee under the Labuan Financial Services and Securities Act 2010 (License No. SL/20/0014).