  “Guys, who cares if revenue missed, as long as we all had fun.” – Sundar Pichai, on Alphabet’s most recent earnings call
Hey there carnivores, The markets clearly drank enough water and missed out on a Super Bowl hangover. Today we’re talking Google’s case of the Mondays. Keep raging, Jeff & Jason   Slide Alphabet reported earnings on Monday, with newly appointed CEO Sundar Pichai at the head of the table for the first time. It’s safe to say Sunny P. blew it faster than a freshman at a sorority house… The numbers were, from a high level, a mixed bag, as EPS of $15.35 crushed estimates of $12.53 and traffic acquisition costs hit the nail on the head at $8.50 for expectations and reality. But revenue, which apparently matters to Wall Street, came in at $46.08B, missing the boat by a casual $900M compared to $46.94B expected. Those are rookie numbers… Look inside For the first time, Google’s mama broke out YouTube and cloud revenue in its earnings report, and things looked solid. Cloud revenue was $8.92B for the year and $2.61B for the latest quarter, up from $1.71B in the same quarter last year. YouTube ads brought in $15.15B in 2019, with $4.72B coming from Q4 alone, both of which were increases from the previous year’s totals. That doesn’t even include numbers from YouPo–, I mean, YouTube TV. Google also did its best Don Draper impression as advertising revenue came in at $37.93B in Q4, which beat comparisons from both the previous quarter and Q4 of 2018. And a fun fact, half of the money it pulls in from “Search” (read: when people Google something) is now from automated bidding. Sounds like the robots are winning… The bottom line… Sundar couldn’t ride the recent momentum from the company becoming the fourth member of the $1T club into his first earnings call as head honcho, but it’s hard to say he’s worried. While advertising has been the backbone of Google for years, there are clear signs that Google is expecting its Cloud to rake in the cash moving forward. Since early last year, Googs has purchased five companies to beef up its cloud presence. 
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Watch Nathan trade LOTTO X live today at 2 PM ET.  To the moon. Tesla’s stock has gone bananas. Think back to October, when investors weren’t sure the electric vehicle maker would be able to make good on its yearly delivery estimate. The stock dropped to $250 and the infamous “$420” tweet seemed like it was a lofty goal. Fast forward to 2020 (dare I say the year of the MUSK-rat?) and Tesla exceeded its EV deliveries, opened a factory in Shanghai (which might be closed until coronavirus is all cleared up), and crushed its quarterly earnings. Oh, and did I mention the company passed Volkswagen AG in market value along the way? The final straw? Argus’ analyst Bill Selesky upped his estimate from $556 to $808, sending TSLA up 20% in a day, closing at $780. To the moon Elon, to the moon. Big tree fall hard. While US stocks bounced back yesterday after Friday’s melee, the Chinese stock market has not had the same fortune. The CSI, China’s benchmark stock index of 300 companies dropped 8% on the first day back from an extended Lunar New Year. The worst-case scenario of new year new me. In total 3.5k stocks dropped the maximum amount of 10% on the day, wiping out $400B in market value. On the plus side – Gilead Sciences is said to be testing a vaccine for coronavirus in human trials, and the UK has offered to provide $26M in aid to help find a vaccine for the disease as well. Stacking chips. FanDuel has finally picked a partner to provide the technology for its online sports betting and online-casino platforms. Scientific Games has hit the jackpot, partnering with one of the biggest names in the upstart US gambling market. The news sent SG’s stock up 8% on the day. Go taxes, amirite?! It was touch and go for Scientific Games as it invested $631M in sports technology provider XYZ games in hopes of landing whales like this one. The move officially gives investors confidence that SG is in bed with FanDuel, which is locked into the sports betting market, a market that expects to reach $7B by 2025. Young Forever. Forever 21 has reached a deal with two of its biggest real estate partners to take over the company for $81M. The beleaguered retailer has shuttered nearly 100 of its locations globally since filing for Chapter 11 bankruptcy in September. Luckily for F21, they inked enough deals with two major mall owners that the company will not go completely belly up. Simon Property Group and Brookfield Property Partners, along with Authentic Brands, are the power couple behind the takeover. The two own a few hundred stores between them, and a liquidation would have left the malls emptier than before. So they’ve chosen a slow death… |
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