IBM (IBM): IBM shares sold off following a mixed report for 3Q24. The selloff is mostly related to elevated expectations after the stock had doubled since October 2022, with over half of the gain coming since the start of 2024. Our original purchase of IBM just over five years ago was based on an investment […]
IBM (IBM): IBM reported an inline quarter with the normal give and take that any large, diversified corporation will experience. All guidance was reiterated with a slight boost to the growth rate for software revenue. Software was a little better than expected driven by double-digit growth at Red Hat for hybrid cloud and transaction processing […]
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 […]
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 […]
Meta (FB) reported a mixed 4Q21 but the big news was materially lower 2022 guidance accompanied by very cautious commentary about the company’s competitive position and challenges. In our 3Q21 update we discussed the company resetting its outlook. It turns out that was just a small first step as the new 2022 guidance and overall […]
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 […]
Facebook (FB) shares are trading down about 4% following the company’s 2Q21 earnings report. The report was good across the board. Financial measures including EPS, revenue, operating income, and profit margins all exceeded Wall Street estimates. Engagement metrics matched estimates even as reopening economies likely distracted user attention. Management guidance for the balance of 2021 […]
Facebook (FB) reported another blowout quarter with growth accelerating. Strength was across the board in all geographies. Earnings estimates for 2021 thru 2023 are moving up substantially. If this sounds like what we wrote for Alphabet and Apple that is a fact. You can add Amazon to the mix with a similar report. It is […]
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