Episode 25: Q2 Earnings Season

Hi Pandocap Family… Happy Friday!  We are in earnings season, and as we saw last quarter, many investors know that companies won’t be providing guidance.  

We keep seeing that Wall Street has already priced some of the downturns into these companies and their models as they try to fly past 2020 and focus their optimism on 2021.  What would move the market is companies reporting better than expected results. Similar to what we saw this week with Goldman. Goldman’s results on Wednesday blew past Wall Street’s expectations as it posted its best trading revenue in years.  

On Wednesday, the market climbed higher after Moderna’s promising trial results boosted hopes for a coronavirus vaccine and a faster economic reopening. However, the continuing underperformance in tech stocks capped gains in the broader market.

Some of the names reporting next week are Microsoft, Tesla, United, CocaCola, and IBM. 

Netflix shares dropped as much as 8% on Friday, wiping $19 billion off the video-streaming giant's market capitalization at intraday lows.

• Netflix added 10 million subscribers in the second quarter, boosting revenue by 25% and earnings per share by 163%.

• However, its EPS figure fell short of Wall Street forecasts, and its guidance that 2.5 million subscribers will be added in the third quarter was less than half of what analysts had expected.

Robinhood, a no-fee digital brokerage, raised $320 million in new Series F funding at an $8.6 billion valuation, as we continue to see how the next generation drives the growth of this platform

Moving onto the market we ended up mixed.

Dow was down 26,671

S&P was up 3,224

Nasdaq was up 10,503

We have our mid-year report kick-off tomorrow with Lise Buyer, a capital markets expert who will be sharing her year-to-date insights.

Next week I will be sharing our message with the Latino community through a new feature called the “We Are Creators” virtual summit. 

Have a great weekend!

Nos Vemos!