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 mixed 4Q22 results that were not good enough to support the stock in the near-term or bad enough to derail Northlake’s bullish long-term thesis. Revenue came in above expectations, which for us is the key component in the bull case. IBM has not shown consistent growth for a long time. The […]
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 […]
IBM (IBM): IBM reported mostly solid 2Q22 results, but the stock fell victim to its strong performance from earlier this year. Ahead of the report, the shares were nearly unchanged against a 20-30% decline for major stock market averages. This strong performance raised expectations for IBM, and a good report with a few small flaws […]
Facebook (FB): FB shares soared off recent lows after the company reported 1Q22 results and issued updated guidance. The stock had fallen about 50% since last summer and was trading at pre-pandemic levels heading into the report. This is a good example of how expectations play a huge role in short-term stock price action. FB’s […]
Comcast (CMCSA) reported a mostly in-line quarter that is somewhat reassuring after a tough stretch for the stock and its cable peers. Potentially improving sentiment for the shares, the company reported new broadband subscribers in-line with estimates that management had lowered multiple times over the prior four months. Furthermore, there were no further cautionary comments […]
Comcast (CMCSA) reported another good set of quarterly financial results. Revenues, EBITDA, and free cash flow all at least met Wall Street estimates in 3Q even as the company had preannounced a slowdown in growth of new broadband subscribers. From a financial perspective, the huge increase in broadband subs during the peak of the pandemic […]
Comcast reported another good quarter with growth in the dominant cable business sustaining in the high single digits with margins continuing to expand. Encouragingly, the much smaller but still material media businesses at NBC Universal and Sky are showing clear signs of emerging from the severe impacts of the pandemic. It seems like most every […]
Comcast remains a tale of COVID winners and COVID losers. The cable/Xfinity business is performing great, driven by broadband. Cord cutting has minimal impact given margin dynamics and the fact that you cannot really cut the TV cord without maintaining the broadband cord. The NBCUniversal and traditional media side is still feeling pressure from COVID. […]
There are no changes to Northlake’s favored themes for December. We remain neutral on growth versus value and continue to favor mid caps. As a result, current client positions following the models in the Russell 1000 Growth (IWF), the Russell 1000 Value (IWD), and the S&P 400 Mid Cap (MDY) will be held for at […]
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