Daily comment Jan 30
- Wall St opens lower amid Coronavirus fears
- TSLA +10% on strong 4Q results
- MSFT +3% on Azure revenue growth
- FB -6.8% on disappointing guidance
- Google closes offices in China
- US economy grew at slowest pace in 3 years
- WTI -1.6%
Companies:
- Tesla (+10%) reported another stellar quarter with upbeat guidance for the 2020. 4Q Rev. +2.1% y/y to $7.38bn vs est. $7.08bn. Tesla delivered 9,475 Model S/X vehicles in Q4 and 92,620 Model 3 units; plans to start Model Y deliveries in 1Q 2020. Adj. EPS was $2.14 vs est. $1.76. https://bit.ly/318CmGP
- Microsoft (+3%): The Co’ reported strong 2Q revenue results driven by +62% y/y Azure cloud revenue growth. 2Q rev. +13.6% to $36.9bn vs est. $35.68bn. Adj. EPS was $1.51 vs est. $1.32. https://bit.ly/37GXSEW
- Facebook (-6.8%): The Co’ topped 4Q revenue and profit estimate showing guidance for decelerating growth. 4Q Rev. +24.7% y/y to $21.08bn vs est. $20.9bn. DAU +9% y/y to 1.66bn. Adj. EPS was $2.56 vs est. $2.53. Sees 1Q rev. growth to decelerate by low to mid-single digits. https://prn.to/37I6w6b
- Alphabet (-1%): Google temporary closed its offices in China. https://bit.ly/38QogMP
Macro:
- US 4Q GDP: +2.1% y/y in-line with estimate. GDP growth for 2019 was 2.3% - the slowest pace in 3 years. https://cnb.cx/2Ob2xY8
- WHO officials announced the spread of Coronavirus outside China is of “grave concern”. Hang Seng Index -2.6%. Nomura economists estimate real GDP growth to fell to 4% from 6% in 4Q. https://cnb.cx/38PJ47e
Commodities:
- WTI (-1.6%): Oil futures dropped amid increase in US inventory, China coronavirus threat. https://yhoo.it/2RFcUpe
- Algerian EnMin said OPEC could bring its March meeting forward to February to address the situation. https://bloom.bg/36KZdJS
Coming up:
- On Fri (1/31): Scheduled Brexit date
- Companies to report earnings this week: Amazon