Tag: General Electric

  • Big Market Players Are on Schedule

    Big Market Players Are on Schedule

    Big Market Players Are on Schedule
    The earnings reports season is continuing. So far companies’ earnings were better than awaited.

    by Guy Avtalyon

    Big market players are on the schedule this week.

    UPDATE 30/10/2019

    GE shares rose more than 11% after the company’s earnings report and beat analyst expectations. General Electric also boosted its cash flow for the year.
    Apple and Facebook each topped market expectations after the closing bell on Wednesday. Their stocks rose in after-hours trading.
    Apple posted earnings of $3.03 per share opposite to analysts’ expectations of $2.83 per share. Revenue was $64 billion and it was expected the $63 billion.
    Facebook also topped expectations with earnings at $2.12 opposite to the $1.91 forecast. Revenue was $17.65 billion vs. $17.37 billion forecasted.

    UPDATE 29/10/2019Ā 

    Alphabet (GOOGL) didn’t match earnings expectations in Q3 2019. The earning is$10.12 per share and was expected $12.42.
    Alphabet shares dropped by 4% as the company failed expectations for earnings per share, but recovered and set at around 2%.
    The rest in the company’s report was almost as investors expected.

     

    It is time for the big market players to reveal reports for the fiscal fourth-quarter earnings.
    For example, Tesla stock reported a surprising profit and it’s stock price rose, but the Twitter stock fell. Last week about 21% to $30.75 on Thursday.Ā  Among 168 S&P 500 companies that have reported earnings until Thursday morning, 80.4% hit or overcome analyst expectations.

    The companies have reported revenue hits about 62% of the time this season. This week we are waiting for several big players to raise the numbers.

    Monday, October. 28

    First is the Alphabet (GOOGL) on Monday (today). It has come under increased regulatory supervision, but shares stand good at 20%. Wall Street is predicting earnings of $12.28 a share on sales of $40.3 billion.

    Big Market Players Are on Schedule

    Wednesday, October. 30 is a day for a really big market players

    Apple stock (AAPL) has been up 54% in 2019. Recently the company announced that the new generation of iPhones went better than expected. The demand for new models increased and Apple has grown service offerings. For example, Apple Pay and Apple TV+ produced a lot of gains.

    We will see. Wall Street is predicting earnings of $2.83 a share with sales of $259 billion.

    Facebook is on schedule on Wednesday too. The market hasn’t paid much attention to regulatory concerns. Facebook shares (FB) have increased by 42% in 2019. Forget how Zuckerberg was grilled In US Congress and what did AOC ask him and Mark’s eye-rolling and constant sipping from a bottle with water.

    Wall Street estimates call for earnings of $1.90 a share and sales of about $17.4 billion.

    Facebook is followed by General Electric. Its stock (GE) could rise 23% this year, but it is down for 21% in a one-year period. The truth is that investors will keep attention on cash flow, debt reduction, and debt from legacy insurance liabilities. Wall Street estimates call for earnings of 12 cents per share and purchases of $28.9 billion.

    Big Market Players Are on Schedule

    Friday, November. 1 is reserved for Exxon Mobil (XOM).

    The company earnings have been spent on projects in the Permian Basin and in other countries. Goldman Sachs recently reported that earnings for the whole energy division should jump in 2020. Exxon Mobil stock increased by 1.3% during this year but decreased by 12% in a one-year period. For Q3 2019, Wall Street estimates earnings of 67 cents per share on trades of $60.9 billion.

    Bottom line

    As we know, good companies are delivering on-going earnings and revenue extension of at least 25%. For a long time, Facebook undoubtedly achieved that, the FB stock went higher and higher. Will Facebook get back to the winning trends?

    There’s a lot of skepticism toward Facebook’s future. Its new privacy-focused strategy might depress revenue growth. At the same time, an investigation, regulation, and legislation could restrict Facebook’s vigor. The same may happen to FANG stocks: Facebook, Amazon, Netflix, and Google. Really big market players.

  • The Boys Are Not All Right

    The Boys Are Not All Right

    3 min read

    The Silicon Valley Mentality of Boys

    History of the Silicon Valley goes as far back to ancient 1951 when the dean of the School of Engineering at Stanford, Frederick Terman, has spearheaded the creation of the Stanford Industrial Park. Place where Stanford University was leasing the office space to nascent high-tech companies. Hewlett-Packard, General Electric, Eastman Kodak, and Lockheed were some of the very first tenants.

    It was also a place where the silicon transistor was born, integrated circuits, MOSFET, the concept of the Intergalactic Computer Network, video games, and many other things without which we couldn’t imagine the modern life. Once it was a hotbed of innovation, the forefront of technological progress, today it is a shadow of its former self.Ā 

    Silicon Valley today is more of a state of mind

    Though the southern part of the San Francisco Bay still exists, and towns like Palo Alto, Cupertino, Menlo Park, Mountain View, Sunnyvale, and others of the Santa Clara County; Silicon Valley today is more of a state of mind than a physical place.

    Back in the day, it was inhabited by people who had extraordinary talent and knowledge of everything techy and sciency, the geeks. Today, by know-it-all Bros who will from time to time get some very bright ideas.Ā 

    For example to make a steel one person cigar-shaped submarine for rescuing people trapped in an underwater cave. And to pretend that it can swing around the bend in a submerged tunnel, where a U shaped bend is roughly twice the circumference of the submarine. And when subjected to the public criticism of such an ā€œingeniousā€ piece of engineering, the Silicon Valley mentality demands that one hurls the most abhorrent insults at one’s critics. After all the Bro knows it all, he’s a software engineer.

    We come to Elon Musk

    And yes, Elon Musk is a prime example of everything that is wrong about the Silicon Valley mentality. That, born in the primordial soup of buzzwords and overhyped software applications, arrogant attitude that any problem in the world could be solved by a software engineer.

    But reality has a nasty habit of rearing its ugly face. Especially when software engineers try to solve hardware problems.Ā 

    For example Tesla Model 3’s rear wheel arches.

    The Silicon Valley Mentality of Boys

    According to Sandy Munro of Munro and Associates, a manufacturing analyst company with analyzing more than 400 models of various manufacturers under their belt, they are made out of 9 separate parts which are welded, glued or riveted to each other. Other car manufacturers make this body part out of a single piece of sheet metal.

    Also, Model 3 features some of the body sub-assemblies which are made out of parts joined together in several ways, welding, glueing, riveting or bolting. Sometimes using all four of them. Something which is utterly foreign to other car manufacturers, who prefer to use one joining technique throughout the sub-assemblies as such a solution keeps manufacturing costs as low as possible. Overall, Mr. Munro has suggested 227 practices which are standard for car manufacturing, and which would lower production costs of Model 3 by at least $2,000. ā€œThis body is their single biggest problem. It’s killing them.ā€ Those are the words of manufacturing analyst, Sandy Munro.

    But, why is it so?Ā 

    By all appearances because Tesla has a corporate mentality characteristic for Silicon Valley. From what an observer can deduce, they prefer to hire software engineers over car engineers. While in the past five years many big engineering names from the likes of Ferrari, Mercedes, BMW, Peugeot… were poached by their competitors, none of them was snatched by Tesla.

    By all appearances, Tesla is throwing software engineers at car manufacturing problems. And those boys lack the old school knowledge of car engineering and production. But they have a quite ample attitude. For example, about their Autopilot system. On the official webpage, it is described quite dubiously capable, even though featuring a warning that the Autopilot features ā€œdo not make the vehicle autonomousā€.

    Fake it till you make it

    The system is touted as having 40x computing power of the previous system, features the Autosteer+, it is twice this and thrice that, and all ā€œnew Tesla cars have the hardware needed in the future for full self-driving in almost all circumstancesā€. And that is the lingo of Silicon Valley mentality, overstate everything no matter what, and curb the confusing and often misleading language just enough to satisfy the regulators. Convince the potential customers that your widget is the life-changing experience, without which their lives have no meaning.

    The Silicon Valley Mentality of Boys.

    Disruptiveness, insurgent, start-up, ā€œfake it till you makeā€ it are the epitomes of it. It’s a place where everyone can be miserable. Where working ā€œ9 to 5ā€ means from 9 am to 5 am. Place where every CEO is the man who will fundamentally change our world and way of life with his ā€œdisruptive appā€.