Alphabet (GOOG/GOOGL) reported better than expected earnings with revenues, expenses, and EPS all coming in ahead of expectations. The revenue upside was especially impressive given the turmoil in internet and mobile advertising caused by Apple’s privacy initiatives. Google did not escape completely unscathed as YouTube ad growth was a few percent less than expected (although […]
Facebook (FB) has had a rough go lately. News stories have occurred almost daily criticizing the company. Politicians and regulators are looking for a way to punish the company and limit its influence. Apple’s changes to enable greater privacy for iOS users is limiting FB’s ability to measure and target its users on behalf of […]
AT&T (T) reported its first quarterly results since Northlake took a long position in client accounts in July. Virtually across the board, the results slightly exceeded estimates leading the company to modestly increase its 2021 guidance for financial results and subscriber counts. Our thesis is built upon a hated company that is showing improved execution […]
After two consecutive quarters of improved results and a positive analyst meeting earlier this month, IBM’s 3Q21 earnings were disappointing. Revenues fell slightly short of estimates, and after adjusting for a favorable tax rate, EPS did as well. Key growth areas like consulting and hybrid cloud performed well, but software, mainframe systems, and soon-to-be spun […]
There are no changes to the recommendations from Northlake’s Market Cap and Style models for October. The models continue to favor large cap and remain neutral on growth vs. value. For clients with assets invested in Northlake’s models, positions in the S&P 500 (SPY), Russell 1000 Growth (IWF), and Russell 1000 Value (IWD) will be […]
Northlake’s Market Cap model has been trending toward large cap for several months and the latest update confirmed a new recommendation in favor of the S&P 500. As a result, clients using Northlake’s models will swap current holdings in the S&P 400 Mid Cap (MDY) into the S&P 500 (SPY). We remain neutral on the […]
Surprisingly to Northlake, intermediate and long-term interest rates have fallen slightly over the last several months. We had been anticipating higher rates as the economy emerged from COVID impacts, inflation held at well-above pre-pandemic levels, the timing of the Federal Reserve’s monetary policy tightening grew closer. Instead, for reasons that most on Wall Street still […]
Sony (SONY) reported better than expected 1Q22 earnings and raised full-year guidance. We had thought that guidance was conservative, both short-term and long-term, so the news was not surprising. It is welcome news in support of the long-term investment thesis that SONY’s individual business are deeply undervalued compared to peers with a management team that […]
Nexstar Media Group (NXST) reported another in a string of excellent quarterly earnings reports. Revenue and EBITDA exceeded management guidance and the company raised the all-important annual free cash flow guidance. NXST has always benefitted from having one of the best management teams across all the industries we follow in terms of operating execution and […]
Activision Blizzard (ATVI) reported a much-needed beat-and-raise quarter. Strength was broad-based with Call of Duty, Candy Crush, and World of Warcraft all exceeding expectations. Management raised 2021 guidance to reflect the results, with a portion of the upside held back due to the shift of Diablo Immortal from 2021 to 2022. Given current strength across […]
