Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Retirement Compounders®
  • Free Email Signup

When Stocks Start Falling on Good News, There May Be a Problem

October 30, 2020 By Jeremy Jones, CFA

By pathdoc @ Shutterstock.com

Despite strong results, big tech companies are under pressure. Dan Gallagher reports for The Wall Street Journal:

Having a low bar helps; Alphabet’s shares have risen only 16% year to date compared with the average 56% gain by Apple, Amazon and Facebook. The company also saw a sharp bounceback for its core Google advertising business, which reported its first-ever decline in the second quarter. It also announced plans to turn its Google Cloud business into a separate reporting segment starting with its fourth-quarter report. Amazon’s share price surged 118% in 2015 when the e-commerce giant started doing the same for its AWS unit.

Apple, by contrast, brought the day’s biggest disappointment, though not in its results for the quarter ended Sept. 26, which included better-than-expected revenue despite a delay in the launch of this year’s iPhones. The company declined to give a revenue forecast for the December period, which several analysts expect to kick off a “supercycle” of 5G iPhone sales. Analyst Toni Sacconaghi of Bernstein said Apple would need to guide expectations to or above the $101 billion in revenue Wall Street had targeted for the quarter “for investors not to be disappointed.”

Amazon and Facebook also posted strong growth for the third quarter while adopting a cautious tone for what lies ahead. For Amazon, that came in the form of an operating income projection for the fourth quarter that was below Wall Street’s target. Results for the company’s closely watched AWS cloud business were also only in line with the Street’s projections. Facebook doesn’t give specific forecasts, but Chief Financial Officer David Wehner projected more headwinds for 2021, which will include changes to Apple’s mobile operating system that could make life harder for advertisers, as well as “the evolving regulatory landscape.”

The last speaks to the biggest risk facing the tech sector’s giants—one that will linger no matter the outcome of next week’s U.S. election. The problem is that regulators and lawmakers think Big Tech is too big and too powerful. The combined $228 billion in revenue just reported by Apple, Amazon, Alphabet and Facebook in the midst of a worsening pandemic won’t help them convince critics otherwise.

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Stocks Crater 831 Points
  • Look What’s Rising While Everything Else is Falling
  • Value Stocks are Nearly the Cheapest They’ve Ever Been…
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. CNBC has ranked Richard C. Young & Co., Ltd. as one of the Top 100 Financial Advisors in the nation (2019-2022) Disclosure. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • Money Market Assets Hit Record High: $5.4 Trillion - May 26, 2023
  • The Mania in AI Stocks Has Arrived - May 25, 2023
  • The Wisdom of Sam Zell - May 24, 2023

Search Young Research

Most Popular

  • Your Survival Guy Felt Like a U.N. Worker in Rome
  • The Mania in AI Stocks Has Arrived
  • Money Market Assets Hit Record High: $5.4 Trillion
  • Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • The Future of the American City is This…
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • A Three-Week International Research Trip to Paris via Rome
  • Is an Investment Property Disaster Looming?
  • The Power of a Compound Interest Table
  • Risk and Reward: An Efficient Frontier

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

The Importance of a Balanced Portfolio

Invest with Peace of Mind and Comfort

What Kind of Life Are You Investing For?

RSS The Latest at Richardcyoung.com

  • The Nickel Pickle from EVs
  • My Nephew Graduates, and I’m Larry the Cable Guy
  • Why Is the Media So Terrified of Robert F. Kennedy Jr.’s Ideas?
  • Sen. Rand Paul Says It’s Time to Fight Back Against the Woke Left
  • Should McCarthy Have Forced the Government’s Hand?
  • Will America Succumb to Intimidation from “The Group?”
  • Rewarding Loyalty with Ridicule
  • Rome, Paris, U.S.A.: Global Crisis in Confidence
  • June Is Retirement Compounders Month
  • Americans Scared of CBDC Control of Their Money

RSS The Latest at Yoursurvivalguy.com

  • Rome, Paris, U.S.A.: Global Crisis in Confidence
  • Your Survival Guy’s Best Insider’s Guide to Rome
  • What Is a Fiduciary Duty? Are You Working with a Fiduciary?
  • Survive and Thrive June 2023: Your Survival Guy in Rome 30-Years A.B. (After Babson)
  • Birth Rates in France Worst Since Post-WWII Era
  • Your Survival Guy Felt Like a U.N. Worker in Rome
  • Social Security: Declining Italy Needs a Bambino Boom
  • ATTACK ON THE IVAN KHURS: Unmanned Vessels Changing Naval Warfare
  • The Future of the American City is This…
  • Happy Memorial Day: Your Survival Guy: Proud To Be an American

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2023 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.