{"id":61097,"date":"2022-04-29T09:23:46","date_gmt":"2022-04-29T13:23:46","guid":{"rendered":"https:\/\/www.t3live.com\/blog\/?p=61097"},"modified":"2022-04-29T09:23:46","modified_gmt":"2022-04-29T13:23:46","slug":"coffee-with-greta-apple-amazon-dip-on-earnings","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/04\/29\/coffee-with-greta-apple-amazon-dip-on-earnings\/","title":{"rendered":"Coffee With Greta: Is Apple Rotten?"},"content":{"rendered":"

Editor's Note:<\/strong> Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here<\/span><\/a><\/strong>.<\/p>\n

********<\/p>\n

DJIA Futures: <\/b>-135 (-0.4%)<\/span><\/p>\n

SPX Futures: <\/b>-39 (-0.9%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-165 (-1.2%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are lower following a string of earnings disappointments and the release of hot inflation data.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Apple Beats Expectations, Dips On Supply Chain Warnings<\/strong><\/h2>\n

Apple <\/b>(AAPL) shares are slipping 1.6% ahead of the open after topping fiscal Q2 expectations but warning about supply chain issues.<\/span><\/p>\n

The tech giant reported earnings of $1.52 per share on $97.28 billion in revenue.<\/span><\/p>\n

That was better than analysts\u2019 expectations for EPS of $1.43 on $93.89 billion in revenue.<\/span><\/p>\n

iPhone revenue rose 5.5% annually to $50.57 billion.<\/span><\/p>\n

Apple did not provide Q2 guidance.<\/span><\/p>\n

The board of directors authorized $90 billion in share buybacks and the company raised its cash dividend by 5% to $0.23 per share.<\/span><\/p>\n

CEO Tim Cook said on the earnings call Apple is \u201cnot immune\u201d to supply chain challenges.<\/span><\/p>\n

Executives expect those issues will dent sales by $4 billion to $8 billion.<\/span><\/p>\n

Amazon Tumbles On Surprise Loss, Weak Outlook<\/strong><\/h2>\n

Amazon <\/b>(AMZN) shares are plunging 10.1% in premarket trade after reporting a surprise Q1 loss and forecasting a weaker-than-expected Q2.<\/span><\/p>\n

The online retail giant reported a loss of $7.56 per share.<\/span><\/p>\n

That included a $7.6 billion loss from Amazon\u2019s investment in electric truck maker <\/span>Rivian <\/b>(RIVN) as the stock plunged more than 50% in Q1.<\/span><\/p>\n

Revenue rose 7% year-over-year to $116.4 billion.\u00a0<\/span><\/p>\n

That was in-line with analysts\u2019 expectations but marked the slowest growth in 20 years.\u00a0<\/span><\/p>\n

Amazon Web Services brought in $18.44 billion in revenue vs $18.27 billion expected.\u00a0<\/span><\/p>\n

Ad revenue rose 25% to $7.88 billion but that was lower than analysts\u2019 estimates for $8.17 billion.<\/span><\/p>\n

Amazon forecast Q2 revenue between $116 billion to $121 billion. <\/span>
\n<\/span>
\n<\/span>Wall Street was expecting guidance for $125.5 billion in revenue.<\/span><\/p>\n

Intel Slips On Disappointing Guidance<\/strong><\/h2>\n

Intel <\/b>(INTC) shares are down 4.4% ahead of the open on disappointing guidance despite beating Q1 expectations.<\/span><\/p>\n

The chipmaker reported adjusted earnings of $0.87 per share on $18.35 billion in revenue.\u00a0<\/span><\/p>\n

That topped analysts\u2019 expectations for adjusted EPS of $0.81 on $18.31 billion in revenue.\u00a0<\/span><\/p>\n

Sales at Intel\u2019s client computing division, which includes PC chips, fell 13% to $9.29 billion vs $9.42 billion expected.\u00a0<\/span><\/p>\n

Revenue in the company\u2019s data-center category rose 22% to $6 billion vs expectations for $6.78 billion.<\/span><\/p>\n

The company forecast adjusted Q2 EPS of $0.70 and $18 billion in revenue.\u00a0<\/span><\/p>\n

That missed analysts\u2019 estimates for adjusted EPS of $0.83 on $18.38 billion in revenue.\u00a0<\/span><\/p>\n

Roku Pops On User Increase<\/strong><\/h2>\n

Roku <\/b>(ROKU) shares are up 4% in premarket trade after beating Q1 revenue expectations.\u00a0<\/span><\/p>\n

The digital media company reported a loss of $0.19 per share on $734 million in revenue.\u00a0<\/span><\/p>\n

That loss was in-line with analysts\u2019 expectations but revenue beat expectations for $718 million.\u00a0<\/span><\/p>\n

Roku added 1.1 million active accounts last quarter, bringing the total to 61.3 million.\u00a0<\/span><\/p>\n

That was just shy of analysts\u2019 expectations for 61.8 million.\u00a0<\/span><\/p>\n

The CEO said, \u201cWe have delivered solid performance in a challenging operating environment and expect that we will continue to navigate through macro headwinds, including inflationary pressures, geopolitical conflict, and supply chaindisruptions\u201d.<\/span><\/p>\n

Roku forecast Q2 revenue will come in at $805 million vs expectations for $816 million.\u00a0\u00a0<\/span><\/p>\n

Robinhood Dragged Down by Weak Q1 Results<\/strong><\/h2>\n

Robinhood <\/b>(HOOD) shares are tumbling 11.3% ahead of the open after reporting a steeper than expected first-quarter loss.<\/span><\/p>\n

The stock trading platform reported a loss of $0.45 per share on $299 million in revenue.\u00a0<\/span><\/p>\n

That was worse than analysts\u2019 expectations for a loss of $0.36 per share on $355.8 million in revenue.\u00a0<\/span><\/p>\n

Robinhood\u2019s monthly active users fell for the second straight quarter.<\/span><\/p>\n

The company had 15.9 million MAUs in Q1 vs 17.3 million in Q4.\u00a0<\/span><\/p>\n

Average revenue per user tumbled to $53 vs $137 a year ago.<\/span><\/p>\n

This comes after CEO Vlad Tenev announced Robinhood is firing 9% of its full-time employees earlier this week.\u00a0<\/span><\/p>\n

The stock is trading far below its IPO price of $38 per share.<\/span><\/p>\n

Exxon Mobil Profits Hit By Russia Charge<\/strong><\/h2>\n

Exxon Mobil <\/b>(XOM) shares are down 1.2% in premarket trade after missing Q1 expectations.\u00a0<\/span><\/p>\n

The oil company reported adjusted earnings of $2.07 per share on $90.5 billion in revenue.\u00a0<\/span><\/p>\n

That missed analysts\u2019 expectations for adjusted EPS of $2.23 as the quarter included a $3.4 billion charge related to its Sakhalin-1 operation in Russia.<\/span><\/p>\n

But revenue beat expectations for $82.8 billion.\u00a0<\/span><\/p>\n

Chevron Profit Quadruples<\/strong><\/h2>\n

Chevron <\/b>(CVX) shares are down 1.2% ahead of the open despite reporting huge Q1 profits.\u00a0<\/span><\/p>\n

The oil giant reported adjusted earnings of $3.36 per share $54.37 billion in revenue.\u00a0<\/span><\/p>\n

The $6.3 billion in profit was more than quadruple $1.37 billion in Q1 2021 and revenue jumped from $32.03 billion.\u00a0<\/span><\/p>\n

Wall Street had forecast adjusted EPS of $3.27 on $47.94 billion in revenue.\u00a0<\/span><\/p>\n

Musk Sells $4 Billion in Tesla Stock After Twitter Deal\u00a0<\/strong><\/h2>\n

A new SEC filing shows <\/span>Tesla <\/b>(TSLA) CEO Elon Musk sold nearly $4 billion worth of the electric automaker\u2019s stock this week.\u00a0<\/span><\/p>\n

The bulk of those sales were made on Tuesday, the day after <\/span>Twitter <\/b>(TWTR) accepted Musk\u2019s $44 billion takeover offer.\u00a0<\/span><\/p>\n

Tesla shares tumbled 12% on Tuesday.<\/span>
\n<\/span>
\n<\/span>In a <\/span>tweet<\/span><\/a> Thursday, Musk said \u201cNo further TSLA sales planned after today\u201d.<\/span><\/p>\n

Tesla shares are 2.2% higher in premarket trade.<\/span><\/p>\n

PCE Inflation Hits 40-Year High<\/strong><\/h2>\n

The Bureau of Labor Statistics\u2019 Personal Consumption Expenditures index shows prices continued to soar in March.\u00a0<\/span><\/p>\n

The headline PCE Price Index surged 0.9% monthly and jumped 6.6% annually.\u00a0<\/span><\/p>\n

That was the fastest annual price gain since January 1982 and up from 6.4% in February.<\/span><\/p>\n

But core inflation pressures cooled in March.\u00a0<\/span><\/p>\n

The Core PCE Price Index, which is the Fed\u2019s preferred inflation measure and excludes food and energy prices, rose 0.3% monthly and 5.2% annually.\u00a0<\/span><\/p>\n

That was in-line with expectations on a monthly basis and a cooldown from 5.3% annual inflation in February.<\/span><\/p>\n

Economists are hoping the slowing core reading means inflation may have peaked in March.<\/p>\n

Wage Inflation Soars<\/strong><\/h2>\n

The Bureau of Labor Statistics\u2019 Employment Cost Index surged 1.4% in the first quarter.<\/span><\/p>\n

That was higher than expectations for a 1.1% increase.<\/span><\/p>\n

The index jumped 4.5% year-over-year.\u00a0<\/span><\/p>\n

Overall wages and salaries jumped 4.7% annually while benefits rose 4.1%.\u00a0<\/span><\/p>\n

The data shows wages continuing to lag behind inflation as employers face a severe shortage in the labor market.<\/span><\/p>\n

Consumer Sentiment Preview<\/strong><\/h2>\n

The University of Michigan releases its final consumer sentiment index for April at 10:00 a.m. ET.\u00a0<\/span><\/p>\n

That survey is expected to be unchanged from the earlier flash reading of 65.7.\u00a0<\/span><\/p>\n

Sentiment rose unexpectedly earlier this month to a three-month high as Americans grew more optimistic about job growth and wages.\u00a0<\/span><\/p>\n

The survey also includes consumer expectations for inflation over the next 12-months and 5-years.<\/span><\/p>\n

In Case You Missed It<\/strong><\/h2>\n
    \n
  • The U.S. economy contracted unexpectedly in the first quarter. The Commerce Department reported GDP growth fell 1.4% vs expectations for a 1% expansion. That was a major slowdown from 6.9% growth in Q4. The drop came as the U.S. trade deficit in goods hit a record-high, averaging $113 billion throughout Q1.<\/span><\/li>\n
  • The Labor Department reported weekly jobless claims fell by 5,000 to 180,000 as expected last week. Continuing jobless claims fell by 1,000 to 1.41 million in the week ending April 16. That was the lowest level of continuing claims since the early 1970s.<\/span><\/li>\n
  • Meta Platforms <\/b>(FB) jumped 17.6% Thursday after reporting strong Q1 earnings. The Facebook parent company beat profit expectations in the quarter while daily active users rose more than expected to 1.96 billion.\u00a0<\/span><\/li>\n<\/ul>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: -135 (-0.4%) SPX Futures: -39 (-0.9%) NASDAQ Futures: -165 (-1.2%) Good morning friends! Futures are lower following a string of earnings disappointments and the release of hot inflation data. Let\u2019s get right to it! Apple Beats Expectations, Dips On Supply Chain Warnings Apple (AAPL) shares are slipping 1.6% ahead of the open after topping fiscal Q2 expectations but warning about supply chain issues. The tech giant reported earnings of $1.52 per share on $97.28 billion in revenue. That was better than analysts\u2019 expectations for EPS of $1.43 on $93.89 billion in revenue. iPhone revenue rose 5.5% annually to $50.57 billion. Apple did not provide Q2 guidance. The board of directors authorized $90 billion in share buybacks and the company raised its cash dividend by 5% to $0.23 per share. CEO Tim Cook said on the earnings call Apple is \u201cnot immune\u201d to supply chain challenges. Executives expect those issues will dent sales by $4 billion to $8 billion. Amazon Tumbles On Surprise Loss, Weak Outlook Amazon (AMZN) shares are plunging 10.1% in premarket trade after reporting a surprise Q1 loss and forecasting a weaker-than-expected Q2. The online retail giant reported a loss of $7.56 per share. That included a $7.6 billion loss from Amazon\u2019s investment in electric truck maker Rivian (RIVN) as the stock plunged more than 50% in Q1. Revenue rose 7% year-over-year to $116.4 billion.\u00a0 That was in-line with analysts\u2019 expectations but marked the slowest growth in 20 years.\u00a0 Amazon Web Services brought in $18.44 billion in revenue vs $18.27 billion expected.\u00a0 Ad revenue rose 25% to $7.88 billion but that was lower than analysts\u2019 estimates for $8.17 billion. Amazon forecast Q2 revenue between $116 billion to $121 billion. Wall Street was expecting guidance for $125.5 billion in revenue. Intel Slips On Disappointing Guidance Intel (INTC) shares are down 4.4% ahead of the open on disappointing guidance despite beating Q1 expectations. The chipmaker reported adjusted earnings of $0.87 per share on $18.35 billion in revenue.\u00a0 That topped analysts\u2019 expectations for adjusted EPS of $0.81 on $18.31 billion in revenue.\u00a0 Sales at Intel\u2019s client computing division, which includes PC chips, fell 13% to $9.29 billion vs $9.42 billion expected.\u00a0 Revenue in the company\u2019s data-center category rose 22% to $6 billion vs expectations for $6.78 billion. The company forecast adjusted Q2 EPS of $0.70 and $18 billion in revenue.\u00a0 That missed analysts\u2019 estimates for adjusted EPS of $0.83 on $18.38 billion in revenue.\u00a0 Roku Pops On User Increase Roku (ROKU) shares are up 4% in premarket trade after beating Q1 revenue expectations.\u00a0 The digital media company reported a loss of $0.19 per share on $734 million in revenue.\u00a0 That loss was in-line with analysts\u2019 expectations but revenue beat expectations for $718 million.\u00a0 Roku added 1.1 million active accounts last quarter, bringing the total to 61.3 million.\u00a0 That was just shy of analysts\u2019 expectations for 61.8 million.\u00a0 The CEO said, \u201cWe have delivered solid performance in a challenging operating environment and expect that we will continue to navigate through macro headwinds, including inflationary pressures, geopolitical conflict, and supply chaindisruptions\u201d. Roku forecast Q2 revenue will come in at $805 million vs expectations for $816 million.\u00a0\u00a0 Robinhood Dragged Down by Weak Q1 Results Robinhood (HOOD) shares are tumbling 11.3% ahead of the open after reporting a steeper than expected first-quarter loss. The stock trading platform reported a loss of $0.45 per share on $299 million in revenue.\u00a0 That was worse than analysts\u2019 expectations for a loss of $0.36 per share on $355.8 million in revenue.\u00a0 Robinhood\u2019s monthly active users fell for the second straight quarter. The company had 15.9 million MAUs in Q1 vs 17.3 million in Q4.\u00a0 Average revenue per user tumbled to $53 vs $137 a year ago. This comes after CEO Vlad Tenev announced Robinhood is firing 9% of its full-time employees earlier this week.\u00a0 The stock is trading far below its IPO price of $38 per share. Exxon Mobil Profits Hit By Russia Charge Exxon Mobil (XOM) shares are down 1.2% in premarket trade after missing Q1 expectations.\u00a0 The oil company reported adjusted earnings of $2.07 per share on $90.5 billion in revenue.\u00a0 That missed analysts\u2019 expectations for adjusted EPS of $2.23 as the quarter included a $3.4 billion charge related to its Sakhalin-1 operation in Russia. But revenue beat expectations for $82.8 billion.\u00a0 Chevron Profit Quadruples Chevron (CVX) shares are down 1.2% ahead of the open despite reporting huge Q1 profits.\u00a0 The oil giant reported adjusted earnings of $3.36 per share $54.37 billion in revenue.\u00a0 The $6.3 billion in profit was more than quadruple $1.37 billion in Q1 2021 and revenue jumped from $32.03 billion.\u00a0 Wall Street had forecast adjusted EPS of $3.27 on $47.94 billion in revenue.\u00a0 Musk Sells $4 Billion in Tesla Stock After Twitter Deal\u00a0 A new SEC filing shows Tesla (TSLA) CEO Elon Musk sold nearly $4 billion worth of the electric automaker\u2019s stock this week.\u00a0 The bulk of those sales were made on Tuesday, the day after Twitter (TWTR) accepted Musk\u2019s $44 billion takeover offer.\u00a0 Tesla shares tumbled 12% on Tuesday. In a tweet Thursday, Musk said \u201cNo further TSLA sales planned after today\u201d. Tesla shares are 2.2% higher in premarket trade. PCE Inflation Hits 40-Year High The Bureau of Labor Statistics\u2019 Personal Consumption Expenditures index shows prices continued to soar in March.\u00a0 The headline PCE Price Index surged 0.9% monthly and jumped 6.6% annually.\u00a0 That was the fastest annual price gain since January 1982 and up from 6.4% in February. But core inflation pressures cooled in March.\u00a0 The Core PCE Price Index, which is the Fed\u2019s preferred inflation measure and excludes food and energy prices, rose 0.3% monthly and 5.2% annually.\u00a0 That was in-line with expectations on a monthly basis and a cooldown from 5.3% annual inflation in February. Economists are hoping the slowing core reading means inflation may have peaked in<\/p>\n","protected":false},"author":41,"featured_media":61101,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-61097","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61097","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=61097"}],"version-history":[{"count":5,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61097\/revisions"}],"predecessor-version":[{"id":61106,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61097\/revisions\/61106"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/61101"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=61097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=61097"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=61097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}