✅ Earnings Season Continues: Apple, Amazon, Starbucks, Uber, + More
📱 Amazon ($AMZN)
This week, Amazon had a well-received Q2 2023 earnings report, easily surpassing analyst expectations and demonstrating double-digit revenue growth. The company has been experiencing single-digit growth in 5 out of the last 6 quarters.
Revenue: $134.38B (vs. $131.34B expected) ✅
Earnings: $0.65 per share (vs. $0.34 per share expected) ✅
Amazon Web Services: $22.1B (vs. $21.8B expected) ✅
Advertising: $10.7B (vs. $10.4B expected) ✅
🔥 Amazon ($AMZN) stock was up 8.27% following this report.
☁️ AWS: AWS revenue climbed 12% in Q2, hitting $22.1 billion, surpassing the Wall Street forecasts. Despite this being a slower growth pace than in the previous quarter, AWS notably constituted a whopping 70% of Amazon's $7.7 billion operating profit.
📈 Advertising: Advertising revenues soared, registering a 22% increase to reach $10.7 billion for the quarter, outpacing tech giants like Google, whose ad revenue grew by only 3.2%, and Facebook, which saw a 12% rise.
✂️ Cost-Cutting Initiatives: Amazon reported a net income of $6.7 billion, which resulted in its biggest earnings beat since Q4 of 2020. This stands in stark contrast to the loss of $2 billion, or $0.20 a share, reported a year prior.
📱 Apple ($AAPL)
Apple unveiled its fiscal Q3 results, beating Wall Street projections for both earnings and revenue, but showed a mixed bag in terms of product revenue estimates.
Here are the key takeaways from the earnings report:
Revenue: $81.8B (vs. $81.7B expected) ✅
Earnings: $1.26 per share (vs. $1.19 per share expected) ✅
iPhone revenue: $39.67B (vs. $39.91B expected) ❌
Mac revenue: $6.84B (vs. $6.62B expected) ✅
iPad revenue: $5.79B (vs. $6.41B expected) ❌
Other Products revenue: $8.28B (vs. $8.39B expected) ❌
Services revenue: $21.21B (vs. $20.76B expected) ✅
📉 Apple ($AAPL) stock was down 4.8% following this report.
Apple refrained from giving official guidance, a trend it has maintained since 2020, attributing it to prevailing uncertainties.
However, Apple did offer some insight into the forthcoming quarter. The stock experienced a further slump post-earnings when CFO Luca Maestri suggested that the company anticipates a revenue decline in the next quarter.
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Revenue: $9.17B (vs. $9.29B expected) ✅
Earnings: $1 per share (vs. $0.95 per share expected) ✅
📉 $SBUX is down 0.63% this week
Revenue: $9.23 billion (vs. $9.33 billion expected) ✅
Earnings: $0.18 per share (vs. -$0.01 per share expected) ✅
📉 $UBER is down 1.55% this week
Revenue: $7.29B (vs. $7.27B expected) ✅
Earnings: $1.16 per share (vs. $1.16 per share expected)
📉 $PYPL is down 16.26% this week
Revenue: $707.91M (vs. $636.00M expected) ✅
Earnings: $0.50 per share (vs. -$0.51 per share expected) ✅
📉 $COIN is down 3.79% this week
Revenue: $2.48B (vs. $2.42B expected) ✅
Earnings: $0.98 per share (vs. $0.78 per share expected) ✅
📉 $ABNB is down 8.90% this week
Revenue: $5.53B (vs. $5.10B expected) ✅
Earnings: $0.39 per share (vs. $0.37 per share expected) ✅
📉 $SQ is down 19.90% this week
Advanced Micro Devices ($AMD)
Revenue: $5.36B (vs. $5.32B expected) ✅
Earnings: $0.58 per share (vs. $0.57 per share expected) ✅
📈 $AMD is up 1.53% this week
💡 These earnings serve as a helpful reminder that just because a company beats earnings, it doesn’t necessarily mean the stock price will increase.
Many times, a beat in earnings will drive a stock price up after the market opens, but this should never be taken for granted. Sometimes investors may already expect the company to beat analyst estimates by a significant margin, leading to a large amount of buying until the earnings report is released. This can cause a beat in earnings to already be priced into the stock!
✅ Canadian Giants Report Earnings: Shopify, Enbridge, Telus and More
🛍️ Shopify ($SHOP)
Shopify, the Ottawa-based e-commerce giant, revealed its Q2 results, shedding light on both some growth areas and significant financial hit:
📉 Shopify ($SHOP) stock was down 12.34% this week.
🔥 Reported A Net Loss: Shopify's strategic decision to revert to its core e-commerce competencies resulted in the sale of its logistics business to Flexport Inc. This move inflicted a hefty $1.3 billion (USD) impairment charge and severance payouts amounting to $148 million (USD) - a big blow for Shopify.
🤔 Forecast for Q3: Looking ahead, Shopify predicts 20% YoY revenue growth for Q3 and anticipates a gross margin between 2-3 percentage points higher than Q2's 49.3%. Operating expenses are projected to stay flat, and free cash flow profitability is expected to surpass the $183 million (USD) reported for the first half of 2023.
🗼 Telus ($T)
Canadian telecommunications giant, Telus, unveiled its second-quarter results, indicating a challenging fiscal period marked by a significant miss on analysts' profit expectations.
📉 Telus ($T) stock was down 2.59% this week.
As part of a sweeping cost-cutting strategy, Telus revealed plans to slash approximately 6,000 positions or 6% of its total workforce.
The impending layoffs are forecasted to impose a financial strain on Telus, with associated costs anticipated to reach as high as $475 million (CAD) in the current fiscal year. On the brighter side, they expect the reductions to translate to an annual savings of $325 (CAD) million.
Revenue: $10.43B (vs. $11.75B expected) ❌
Earnings: $0.68 per share (vs. $0.68 per share expected)
📉 $ENB is down 0.54% this week
Revenue: $6.07B (vs. $6.06B expected) ✅
Earnings: $0.80 per share (vs. $0.79 per share expected) ❌
📉 $BCE is down 1.42% this week
Revenue: $270.9M (vs. $278.2M expected) ❌
Earnings: $0.37 per share (vs. $0.25 a year ago) ✅
📉 $REI-UN is down 3.13% this week
🎙 Top Discussions This Week
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🗞️ What else you might’ve missed: