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Besides Alphabet, Big Tech Failed to Impress

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Investors are busy digesting Big Tech earnings as tech stocks suffered a big sell-off after earnings failed to impress Wall Street last week on the busiest day of the reporting season. Facebook (NASDAQ: FB), Apple (NASDAQ: AAPL), Twitter (NYSE: TWTR), Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOG) reported earnings last Thursday to a tough crowd as Wall Street was already getting fidgety about the presidential election. Shares of Facebook, Apple and Amazon all fell roughly 6% in Friday trading, with Twitter dropping more than 20% hit. Only Alphabet managed to deliver a positive surprise with its shares up 4% in afternoon trading.

Facebook: surprising strength despite challenges

The surprise for Facebook was the July boycott that did not have as detrimental impact as initially thought, as far as advertisers are concerned, considering most of them already came back. But Facebook’s shares closed down more than 6% on the day because it spooked investors with a decrease in users in the U.S. and Canada. This user base dropped from 198 million in the prior quarter to 196 million daily active as lockdown measures eased. As for the outlook, Facebook expects this user base to remain flat or even decrease further in the fourth quarter. Globally, the social media giant was benefiting from higher usage per day as global lock-downs substituted screen time for in-person social time, but this is no longer the case and it did not manage to achieve the success of Snap Inc (NYSE: SNAP) whose price soared more than 22% on the day it posted an unexpected, adjusted profit along with positive user and revenue growth in its third-quarter earnings. With 249 million daily active users, Snapchat’s user base has expanded almost 4% from the 238 million within three months.

Apple: subtle confidence

Investors were disappointed with Apple’s lack of forward guidance. On the other hand, Apple hasn’t given guidance since the pandemic started, so, this is consistent with what they’ve already been doing, but it still caused its shares to drop more than 5.5%. Apple did manage to slightly exceed Wall Street expectations but didn’t offer fourth-quarter guidance, along with reporting a 20% decline in iPhone sales on a YoY basis. The decline was due to two factors: a one month delay of the launch and that fact that new iPhone 12 sales didn’t form part of the quarter in question. Wall Street is more focused on how the iPhone 12 will sell in the coming year and Tim Cook did show a subtle sign of confidence.

Twitter: disappointing user growth

Twitter stock plunged and closed down more than 21% on Friday after it reported disappointing user growth during the third quarter. But, it did manage to beat analysts’ expectations on profit and revenue. From its previous quarter, Twitter grew its total monetizable daily active users by just 1 million people. With 187 million users, it was well below analyst expectations of 195 million mDAUs. Its prior growth was in large part attributed to lockdowns across the globe.

Amazon earnings: execution challenges

The fourth quarter is going to be incredibly challenging for Amazon, just like the whole year. It has a challenging task to maximize revenue while solving challenges at their fulfillment centers to get products in and out as quickly as possible. Amazon has remained loyal to its “Day One” policy despite dominating various industries ranging from e-commerce to cloud computing.

It kicked off the holiday season with its Prime Day in October, hoping it will improve their yield at the fulfillment center level and help them maximize sales in the holiday quarter. But, a big challenge is ahead.

Despite a 37% revenue growth to $96.1 billion and a near doubling in operating income grabbed most of the attention, Amazon stock closed down nearly 5.5% after the company gave a wide guidance range for the fourth quarter with sales expected in the range between $112 billion to $121 billion, about 28% to 38% growth from a year earlier. Analysts were expecting revenue of $112.3 billion but they still expect Amazon can go far and continue to grow.

Alphabet crushed estimates

Google has one of the biggest cash hoards ever, but it comes with a lot of exposure to the travel business, one that no one wants to in right now. But, the world can no longer be imagined without Google. Or YouTube, whose ad growth was particularly strong, up 32% from a year ago. Alphabet overall has an extraordinary business and there’s a lot to like about it as it keeps evolving. It managed to beat Wall Street’s revenue expectations across each major section during the third quarter.

As Alphabet blew away both earnings and revenue estimates, its stock rose as much as 9% in after-hours trading. Its earnings figures showed its core advertising business has nicely recovered after being hit hard with pandemic-induced cuts in ad spending.  Executives also announced that as of next quarter, the company will break out operating income from Google Cloud. Alphabet showed a textbook example of a rebound.

Outlook

Shares of Twitter, Facebook, Apple and Amazon sank on Friday as their latest quarterly reports failed to delight investors. But shares of Alphabet, which crushed expectations and alleviated advertising crunch fears, closed up. Alphabet’s success follows similarly strong earnings reports by ad-driven online companies such as Pinterest (NYSE: PINS) and Snap (NYSE: SNAP).

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure . IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

EV News

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Europe’s EV market is leaving the United States in its dust. According to a recent report obtained by Bloomberg News that is scheduled to be published next week, the European Commission seeks to have at least 30 million EVs on its roads by the end of the decade. This ambitious plan would require stricter emission regulations and the auto industry to massively accelerate its transformation.

At the moment, approximately 1.4 million EVs are being driven in Europe, according to BloombergNEF. Therefore, this research is forecasting there will be 28 million plug-in hybrid and battery-electric vehicles on the road by 2028. But, it’s no secret that young and old-school automakers are gearing up for the race with December being the month that the EV pioneer Tesla (NASDAQ: TSLA) will finally be included in the S&P 500.

Germany’s EV market is poised to overtake California’s

Until the end of September, Germany registered 98,370 battery-powered cars this year, according to a report by Berlin-based Schmidt Automotive Research. California is significantly behind with 73,166, as growth has slowed this year. Meanwhile, growth in Germany has been fueled by aggressive subsidies of up to 9,000 euros per car, as reported by Bloomberg News. But this is great news for Tesla who is Berlin Gigafactory Berlin is set to open in 2021 with an annual target capacity of building 500,000 vehicles annually, which is greater than its total 2019 sales. But Tesla’s entry in the backyard of automotive legends has not gone unnoticed as Volkswagen Group’s (OTC: VWAGY) CEO Herbert Diess revealed its plans is to become, on the technological basis, competitive with Tesla. The German giant has committed last month to launch approximately 70 all-electric vehicles by 2030, of which 20 are already in production.

Hyundai revealed a modular EV-only platform

By now, automakers have come to the realization that shoving electric vehicle parts into ICE built vehicles won’t do the trick. For this reason, the industry leader, Tesla, designs its own motors. Same goes for the EV startup, Lucid Motors, who just finished the first phase of its $700 million EV factory in Arizona as it invested heavily to follow Tesla’s footprints. With that in mind, Hyundai is the latest automaker to introduce an EV-only platform. It also revealed it will produce 23 battery-electric vehicles by 2025. The new Electric-Global Modular Platform (E-GMP), which stands for “Electric-Global Modular”, will be the underpinning of Hyundai and Kia’s electric future beginning next year.

The first vehicle will be the Hyundai Ioniq 5that we’ve so far only seen in concept form. Hyundai didn’t share details on battery pack size on Wednesday, but revaled that the EVs will come with a 500 kilometres driving range.

The race is just getting started

The global electric vehicle market has evolved immensely over the past decade. But even though we’ve already seen some incredible growth across the globe, these developments and industry predictions suggest that we’ve only seen a trailer of the EV blockbuster that will take place across the globe.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

EV Updates – Europe and China Are Going Full Speed Ahead

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Europe’s EV market is leaving the United States in its dust. According to a recent report obtained by Bloomberg News that is scheduled to be published next week, the European Commission seeks to have at least 30 million EVs on its roads by the end of the decade. This ambitious plan would require stricter emission regulations and the auto industry to massively accelerate its transformation.

At the moment, approximately 1.4 million EVs are being driven in Europe, according to BloombergNEF. Therefore, this research is forecasting there will be 28 million plug-in hybrid and battery-electric vehicles on the road by 2028. But, it’s no secret that young and old-school automakers are gearing up for the race with December being the month that the EV pioneer Tesla (NASDAQ: TSLA) will finally be included in the S&P 500.

Germany’s EV market is poised to overtake California’s

Until the end of September, Germany registered 98,370 battery-powered cars this year, according to a report by Berlin-based Schmidt Automotive Research. California is significantly behind with 73,166, as growth has slowed this year. Meanwhile, growth in Germany has been fueled by aggressive subsidies of up to 9,000 euros per car, as reported by Bloomberg News. But this is great news for Tesla who is Berlin Gigafactory Berlin is set to open in 2021 with an annual target capacity of building 500,000 vehicles annually, which is greater than its total 2019 sales. But Tesla’s entry in the backyard of automotive legends has not gone unnoticed as Volkswagen Group’s (OTC: VWAGY) CEO Herbert Diess revealed its plans is to become, on the technological basis, competitive with Tesla. The German giant has committed last month to launch approximately 70 all-electric vehicles by 2030, of which 20 are already in production.

Hyundai revealed a modular EV-only platform

By now, automakers have come to the realization that shoving electric vehicle parts into ICE built vehicles won’t do the trick. For this reason, the industry leader, Tesla, designs its own motors. Same goes for the EV startup, Lucid Motors, who just finished the first phase of its $700 million EV factory in Arizona as it invested heavily to follow Tesla’s footprints. With that in mind, Hyundai is the latest automaker to introduce an EV-only platform. It also revealed it will produce 23 battery-electric vehicles by 2025. The new Electric-Global Modular Platform (E-GMP), which stands for “Electric-Global Modular”, will be the underpinning of Hyundai and Kia’s electric future beginning next year.

The first vehicle will be the Hyundai Ioniq 5that we’ve so far only seen in concept form. Hyundai didn’t share details on battery pack size on Wednesday, but revaled that the EVs will come with a 500 kilometres driving range.

The race is just getting started

The global electric vehicle market has evolved immensely over the past decade. But even though we’ve already seen some incredible growth across the globe, these developments and industry predictions suggest that we’ve only seen a trailer of the EV blockbuster that will take place across the globe.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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BenzingaEditorial

Snowflake Is Keeping The Magic Alive

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Snowflake Inc’s (NYSE: SNOW) September magic will go down in history as the world’s hottest software IPO. When Snowflake announced its public debut, the demand for its shares was far higher than the supply. It seems that it still is. The initial share price expectation was between $75 and $85. However, the company went public at $120 a share, and it skyrocketed to an amazing $300 on its first day of trading, breaking the record and becoming the largest company to ever double its value on its opening day. This is how Snowflake’s blockbuster debut became the largest software IPO on record.

One of Snowflake’s key innovations in keeping the data storage separate from computing, allowing the businesses to get insights from the stored data. Snowflake came out with this service before Microsoft (NASDAQ: MSFT), Amazon.com (NASDAQ: AMZN), and Google (NASDAQ: GOOG) offered their equivalent products, making it easier for Snowflake to grab a part of the data warehousing market.

Snowflake’s earnings report

Snowflake’s revenues jumped 119% to $159.6 million in the fiscal third quarter which ended October 31st. Revenue growth in the previous quarter was 121%. There is an improvement in the segment of losses – in the year-ago quarter, losses were $1.92 per share, whereas this time around, the company showed a loss of $1.01 per share. The company also reported an adjusted loss of 62 cents per share. Although the earnings report pulled down the share price by 16.1%, with the closing price that day at $339.89, we cannot forget that the company went public with a share price of $120.

Microsoft’s answer

The cloud data management service market is expected to be worth around $13 billion next year. Amazon has been improving its AWS cloud unit so it’s not only Snowflake who has the answer for more and more customers trying to understand all the data and information stored in the cloud and corporate data centers. Microsoft also decided to take on Snowflake and Amazon by unveiling another product designed to enable companies to analyze and keep track of data. Azure Synapse Analytics tool is already used by companies like ABN AMRO Bank N.V. (OTC: ABN.AS), Wolters Kluwer N.V. (OTC: WKL.VI), FedEx Corporation (NYSE: FDX), and The Procter & Gamble Company (NYSE: PG).

Outlook

Snowflake’s management was satisfied with the company’s performance in its first quarter as a public company. Forecasted revenues for the quarter ending in January are within a range between $162 million and $167 million. As many businesses are increasingly shifting their activities to the cloud, the demand for warehousing solutions, like Snowflake’s, will stay high, and it is safe to say that more growth is ahead of us. Having in mind that the demand is expected to increase, the cloud data management service market should follow suit. Therefore, Snowflake’s expectation to generate revenues of $540 million in fiscal 2021 seems doable.

This article is not a press release and is contributed by a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. IAM Newswire does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you’re interested in becoming an IAM journalist contact: contributors@iamnewswire.com

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