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 […]
Our 2022 stock market outlook calls for lower than average but positive stock market returns with greater downside risk. For bonds, we anticipate higher interest rates in the 5-to-10-year maturity range we typically use in client accounts. In order to best align client accounts with our outlook and the latest signals from our Market Cap […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2022-02-01 16:52:392022-02-01 16:52:39Shifting to Large Cap and Value to Align With 2022 Outlook and Models
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 […]
Apple (AAPL) reported excellent 1Q22 results to wrap its CY21. Revenues, profit margins, and EPS all exceeded estimates. Guidance for the March 2022 quarter was also better than expected. Importantly, these results were achieved without much improvement in the supply chain issues that the company is facing. Revenue was held back by the $6 billion […]
AT&T (T) reported mixed 4Q21 results and issued guidance for 2022 that was below expectations and back-half loaded. This is a setback to our investment thesis after several quarters of improved operational and financial performance. Some of the issues are one-time in nature which should allow 2H22 to reveal steady growth of the new communications-focused […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2022-01-27 19:31:062022-01-27 19:31:06A Step Back for AT&T
After a misstep last quarter, the turnaround at IBM got back on track with 4Q21 results exceeding expectations. The big upside was in revenue which beat street estimates by several percent. Growth showed up in the right places with software, hybrid cloud, and consulting all strong. Stock Reaction: IBM shares were up almost 6% on […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2022-01-26 19:09:082022-01-26 19:09:08IBM Turnaround Back on Track
We begin 2022 sticking with our preference for small and mid caps, while remaining neutral on growth vs. value. Our Market Cap and Style models favor the S&P 400 Mid Cap (MDY) and are neutral on the Russell 1000 Growth (IWF) and Russell 1000 Value (IWD). These positions will be maintained. On our thematic strategies, […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2022-01-03 16:30:562022-01-03 16:30:56Staying the Course To Begin 2022
We are moving back to mid cap after three months of our large cap recommendation, while sticking with our neutral view on growth vs. value. For clients using Northlake’s Market Cap and Style strategies, the shift from large cap to mid cap triggers the sale of the S&P 500 (SPY) with proceeds reinvested in the […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2021-12-01 15:57:252021-12-01 15:57:25Back to Mid Cap for Above Average 2022 Economic Growth
Home Depot (HD) reported excellent 3Q21 results with sales continuing to grow ahead of consensus expectations and surprisingly good gross and operating margins despite supply chain driven cost pressures. Northlake’s investment thesis on HD has been built around three ideas. First, we believe that the pandemic has created a secular increase in willingness of consumers […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2021-11-17 14:42:002021-11-17 14:42:00Home Depot Story Continues to Build
Disney (DIS) reported slightly disappointing earnings for its 4Q21 with modest shortfalls across most business segments headlined by preannounced weak Disney+ streaming subscriber additions and poor operating margins at theme parks. With a new fiscal year starting in October, management took the opportunity to reset expectations across most of its business lines. Stock Reaction: Since […]
https://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gif00Steve Birenberghttps://northlakecapital.com/wp-content/uploads/2026/02/nl_logo.gifSteve Birenberg2021-11-11 18:16:482021-11-11 18:16:48Disney Outlook Leads to Delayed Gratification for Shareholders
Alphabet Announces Stock Split and Strong Earnings
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 […]
Shifting to Large Cap and Value to Align With 2022 Outlook and Models
Our 2022 stock market outlook calls for lower than average but positive stock market returns with greater downside risk. For bonds, we anticipate higher interest rates in the 5-to-10-year maturity range we typically use in client accounts. In order to best align client accounts with our outlook and the latest signals from our Market Cap […]
Comcast Expectation Reset Appears Complete
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 […]
Apples Shines Amid Challenging Backdrop
Apple (AAPL) reported excellent 1Q22 results to wrap its CY21. Revenues, profit margins, and EPS all exceeded estimates. Guidance for the March 2022 quarter was also better than expected. Importantly, these results were achieved without much improvement in the supply chain issues that the company is facing. Revenue was held back by the $6 billion […]
A Step Back for AT&T
AT&T (T) reported mixed 4Q21 results and issued guidance for 2022 that was below expectations and back-half loaded. This is a setback to our investment thesis after several quarters of improved operational and financial performance. Some of the issues are one-time in nature which should allow 2H22 to reveal steady growth of the new communications-focused […]
IBM Turnaround Back on Track
After a misstep last quarter, the turnaround at IBM got back on track with 4Q21 results exceeding expectations. The big upside was in revenue which beat street estimates by several percent. Growth showed up in the right places with software, hybrid cloud, and consulting all strong. Stock Reaction: IBM shares were up almost 6% on […]
Staying the Course To Begin 2022
We begin 2022 sticking with our preference for small and mid caps, while remaining neutral on growth vs. value. Our Market Cap and Style models favor the S&P 400 Mid Cap (MDY) and are neutral on the Russell 1000 Growth (IWF) and Russell 1000 Value (IWD). These positions will be maintained. On our thematic strategies, […]
Back to Mid Cap for Above Average 2022 Economic Growth
We are moving back to mid cap after three months of our large cap recommendation, while sticking with our neutral view on growth vs. value. For clients using Northlake’s Market Cap and Style strategies, the shift from large cap to mid cap triggers the sale of the S&P 500 (SPY) with proceeds reinvested in the […]
Home Depot Story Continues to Build
Home Depot (HD) reported excellent 3Q21 results with sales continuing to grow ahead of consensus expectations and surprisingly good gross and operating margins despite supply chain driven cost pressures. Northlake’s investment thesis on HD has been built around three ideas. First, we believe that the pandemic has created a secular increase in willingness of consumers […]
Disney Outlook Leads to Delayed Gratification for Shareholders
Disney (DIS) reported slightly disappointing earnings for its 4Q21 with modest shortfalls across most business segments headlined by preannounced weak Disney+ streaming subscriber additions and poor operating margins at theme parks. With a new fiscal year starting in October, management took the opportunity to reset expectations across most of its business lines. Stock Reaction: Since […]