The stock market is off to a great start in 2023 in line with Northlake’s Market Outlook anticipating more volatility, avoidance of a severe recession, and positive returns in 2023. We are encouraged that our models, favored themes, and individual stocks are off to a good start. Our Market Cap model favors mid cap again […]
IBM (IBM): IBM reported good results in a tough macro environment, further increasing our confidence in the transformation underway at the company. Revenue and EPS exceeded expectations with strength across all segments of the company. Management raised 2022 revenue guidance and maintained free cash flow guidance. The only real negative in the quarter and outlook […]
Due to Steve’s travel schedule, we are going to try something new this quarter with our quarterly blog updates on individual stocks held widely in Northlake accounts. Rather than publish a separate commentary on each stock, we are going to produce two or three updates with each containing comments on several stocks. This will result […]
Alphabet (GOOG/GOOGL) reported another outstanding quarter led by search advertising along with solid contributions from YouTube and Cloud. Profit margins were better than expected. All this good news was juiced by the announcement of a 20-for-1 stock split that will become effective in July. We see little economic value in stock splits and history suggests […]
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 […]
Alphabet (GOOG/GOOGL) reported another outstanding quarter with growth in revenues, operating income, and EPS easily beating elevated Wall Street estimates. This is the third straight quarter where GOOG has beaten Wall Street estimates. Importantly, overall revenue growth accelerated to 32% on a constant-currency basis from the impressive 23% growth rate in 4Q20. The string of […]
Alphabet (GOOG/GOOGL) reported excellent 4Q20 results across the board in all segments and on all financial metrics. Revenue, EPS, Operating income and profit margins each easily and materially beat Wall Street estimates. These factors alone are worth a nice boost in GOOG/GOOGL shares. However, the company also took another meaningful step to improve financial disclosure […]
Alphabet returned to nearly pre-pandemic growth in 3Q20 led by Cloud and YouTube. Advertising revenues grew 15% adjusted for foreign currency, just below the high-teens level of late 2019. Revenues, margins, and operating profits all surprised materially to the upside, with the overall results relative to consensus estimates the biggest positive surprise in many years. […]
Alphabet (GOOG/GOOGL) reported 1Q20 earnings that indicated better than expected results in January and February before the economic shutdown, offset by a sharp but not quite as bad as expected slowdown in March. The company commented that advertising trends at Search and YouTube have stabilized in April with signs of green shoots. Emerging businesses like […]
Alphabet (GOOG/GOOGL) reported slightly disappointing 4Q19 results compared to elevated expectations that existed thanks to a +10% gain in the shares in January to all-time highs. Looking more closely at the quarter, the headline miss in revenues was heavily concentrated in hardware sales, an area where Northlake has little concern. Overall advertising revenues at search […]
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