⚠️ Alphabet $GOOGL is down between -3% and -5% in extended hours trading after beating EPS and Revenue expectations
SUMMARY OF ALPHABET $GOOGL EARNINGS: 1. Revenue +13% Y/Y to $86.3B ($1.0B beat). 2. EPS $1.64 ($0.04 beat). 3. The search giant underperformed in its core ad search segment. -> Google’s advertising revenue totalled $65.52 billion, below expectations for sales of $65.80 billion. 4. Operating income also came in below expectations at $23.7 billion, compared to $23.82 billion. 5. On the bright side, Google cloud revenue topped estimates as the company spends heavily to compete with Microsoft’s Azure and Amazon’s AWS. ☁️ Google Cloud: • Revenue +26% Y/Y to $9.2B. • Operating margin 9% (+12pp Y/Y). 6. ▶️ YouTube ads +16% to $9.2B.
Market Breadth looking bullish!
Almost 84% of S&P 500 $SPX Stocks are now trading above their 100D moving average. Source: Barchart
Liquidity as a key market's driver in one chart -> The stock market's rise mirrors the money supply's growth. Both have risen over 4,500% since 1967
Source: Win Smart, CFA, Game of Trades
JUST IN: Fidelity has marked up the value of its shares in X by 11% during the month of December, according to a new disclosure
Usage of X is currently at an all time high of 384 billion user seconds per day. It is also believed that the launch of Elon Musk's AI company, Grok, has helped increase valuation. X is currently the #2 news app on the App Store. Source: The Kobeissi Letter
Equity futures spiked while bond yields dropped yesterday after the close after US Treasury unexpectedly slashed borrowing estimates:
- For Q1, US Treasury now expects to borrow "only" $760 billion in debt, which is $55 billion lower than what it expected in October 2023, and is about $30BN below wall street estimates. The difference the Treasury explained is "largely due to projections of higher net fiscal flows and a higher beginning of quarter cash balance." In other words, Treasury expects higher taxes to more than make up the $55BN difference from the previous estimate. - For Q2, the Treasury now expects to borrow only $202 billion in debt. While there was no previous Treasury forecast for this period, Wall Street expected a number somewhere in the $500BN vicinity, so clearly this is far lower than preciously expected. Source: Bloomberg, Chris Middleton, Lawrence McDonald, www.zerohedge.com
The SP500 is expensive
Source: Win Smart, BofA
investing
Source: Win Smart, CFA
"Australia (67%) and Canada (74%) have the highest percentage of money losing companies in the world and Japan (15%) has the lowest" - via @AswathDamodaran
Source: Charlie Munger Fans
