Growing Quality Morning Market Feed 30.04.24

Let’s start by looking at what happened yesterday as investors recovered some of the lost sentiment of recent weeks. The big 4 ETF”s ended the day:

SPY: +0.35%
Dow Jones: +0.81%
Nasdaq: +0.39%
Russell 2000: +0.41%

So what was the news we need to look a from yesterday? Let’s do a little sum-up before going more in-depth. We had Sofi earnings, Meta continued to drop, Google got sued again, and Tesla jumped 15%. We will also quickly look at the day ahead.

• SOFI Earnings (-10.5%)

Sofi reported earnings which beat estimates on both the top and bottom lines. GAAP-EPS came in at $0.02, where $0.01 was expected. Revenue came in at $580.65 Million, vs $555.50 million expected.
So what went wrong?
Q2 guidance came in a little soft, but the company increased full-year guidance slightly.
As for the Q2 guide, the company is expecting $555 - 565 million in revenues, with a net income of $5 - $10 million. This stacks up against Analysts’ expectations of $580.8 million in revenues and $13.9 million in net income.
The company increased the full-year guidance slightly from $2.37 to $2.41 billion, to $2.39 to $2.43 billion. They also stated to stay GAAP profitable in each quarter in ‘24. All in all good earnings with slightly disappointing guidance.

• Meta Continues to Drop (-2.4%)

After the 10.56% drop on earnings last week, shares in Meta continued to drop as they are expected to be investigated by the European Commission. This time it’s about questions over countering disinformation from Russia and other countries, as reported by the Financial Times.

• Google got another lawsuit

After jumping 10% last Friday on incredible earnings with amazing beats, the stock is down almost 3.5% today as it was announced that Google got sued by a group of artists over the company’s AI image generator. It’s another in a long string of copyright lawsuits due to the training of AI models.

• Telsa jumps 15%

Shares in Tesla jumps 15%, this came as the company announced that it got the green light to sell FSD in China. A huge milestone as it allows for masses of additional data and training of the system. Besides the training, it also offers an extra high margin opportunity in the world’s largest car market.

• So what should we look at today?

We will see some economic data coming out as markets will start looking at the FED Interest rate decision on Wednesday. Today we will first have wage data, as employment costs are expected to increase 1% QoQ.

We will also see some important earnings, as Amazon is expected to report earnings of $0.84 EPS and $142.65 billion of revenue, showing further increases in efficiency.
Coca-Cola is expected to report $0.70 of EPS, on $11 billion of revenue. Analysts are looking for $0.62 of EPS from AMD, on $5.48 billion of revenues. Starbucks is expected to report EPS of $0.80, with $9.12 billion in revenue.
PayPal gets to show how the turn-around is going as they are expected to report $1.20 in EPS and $7.51 billion in revenues.
Finally, recent market leader SMCI is expected to report $5.63 in EPS, and $3.96 billion of revenue.