Alphabet (GOOG/GOOGL) reported a good quarter relative to expectations but saw more mixed fundamental trends than the other tech giants including its closest peer, Facebook. There was nothing wrong with GOOG’s quarter but it paled in comparison to blowouts reported by Amazon, Apple, and Facebook and this led to a modest sell off of about […]
Apple reported a surprisingly robust quarter, beating expectations across the board. Revenues grew 11% vs a year ago, the best growth rate in almost two years. Margins rose modestly, which accompanied by continued share buybacks, allowed EPS to grow by 18%. The source of strength was broad. The small form factor, lower price iPhone SE […]
“Comcast’s 1Q20 2Q20 earnings report and conference call exposed sharp differences of how the COVID crisis is impacting the company’s three business segments. Already positive trends in the core cable business are getting a boost. NBC Universal and Sky, however, are in the direct path of the virus with little visibility for the pace or […]
IBM reported modestly better than expected earnings against lowered, pandemic-impacted expectations. Revenue and EPS both fell year-over-year as growth in cloud-related business lines (including Red Hat) could not overcome secular decline in legacy software and hardware business and cyclical impacts from the pandemic. Importantly, we continue to see green shoots in IBM’s transition toward cloud […]
Northlake’s Market model shifted to small cap for the first time since 2017. This is the culmination of a gradual move in the model in favor small cap over the last four months. Client positions following the model will sell holdings in the S&P 400 Mid Cap (MDY) and reinvest the proceeds in the Russell […]
There are no changes to the signals from Northlake’s Market Cap and Style models for June. Last month’s new recommendation of mid cap is in place for a second month, and growth remains preferred for the fifth consecutive month. With no changes, client positions following the models and invested in the S&P 400 Mid Cap […]
Shares of ViacomCBS (VIAC) performed poorly prior to the economic shutdown and COVID-19 crisis and have fallen further. The stock is now about 50% lower than its mid-February level even after rallying 70% from its March low. Of all the investments Northlake has owned over the past couple of years, VIAC has performed the worst […]
Few companies are more directly impacted by the economic shutdown related to the COVID-19 crisis than Disney (DIS). The company’s theme parks are closed. Movies theaters are shut denying Disney the ability to launch the massive blockbusters from its Marvel, Pixar, Disney, and Star Wars franchises. Sports are not being played, crippling viewership and ad […]
Nexstar Media Group (NXST) shares responded well to the company’s 1Q20 earnings report as investors gained a better understanding of the stability of the company’s free cash flow. Shares in NXST were pummeled in the initial stages of the COVID-19 crisis despite a much less cyclical financial profile than the company had in Great Financial […]
Apple reported better than expected 2Q20 earnings albeit after the company announced new guidance as COVID disruption closed the company’s stores in China, the U.S. and the rest of the world. The company did not provide its usual detailed guidance for the quarter ahead but did provide some big picture comments. iPhones and wearables will […]
