Serious Government
By Wed, Oct 21, 2020
Hey Scoopers,
A mixed bag of earnings report pushed the stock market up first and dragged it down on Tuesday’s late afternoon. — More on that in the “Overall Market” section.
Beyond the overall market, shares of one tech stock rallied even though a considerable portion of its revenue is in jeopardy. Simultaneously, a small sign of weakness dragged the shares of a streaming stock down in the red even though the company has proven that it can recover from minor drawbacks again and again. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, the government proved it’s seriously pursuing the tech giants. — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
Market Recap
- U.S. markets: All three indices ended Tuesday in the green. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price inched closer to the $12,000 per coin level.
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A Mix Bag Of Earnings Reports
The market was on its way to a good Tuesday before reversing its direction late in the afternoon and managing to finish the day only barely in the green. The day started with high hopes with satisfactory earnings from companies such as Johnston and Johnston (Ticker: JNJ). Still, the mood got dampened as other earnings such as Netflix’s (Ticker: NFLX) latest quarter earnings report didn’t hold up to investors’ expectations.
Revenue Is In Jeopardy
So, what happened?
Shares of Logitech International (Ticker: LOGI) were up by more than 16% on Tuesday. The company announced its latest quarterly earnings report, and the results were impressive. However, a few weeks ago, when Apple (Ticker: AAPL) announced it is going to break ties with Logitech’s audio devices, investors sent the stock falling. While investors were excited about the latest earnings report, more than 17% of the company’s revenue comes from Apple, and that revenue is still in jeopardy.
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Signs Of Weakness
So, what happened?
Shares of Netflix (Ticker: NFLX) were down by approximately 7% on Tuesday. The company announced its latest quarterly earnings report. Investors got disappointed with only 2.2 million new users. Because of the widespread streaming war between several tech giants, any signs of weakness spook investors even though the company has managed to recover every time.
Government Proved To Be Serious
So what happened?
It’s hard to believe anything can drag tech giants off of their mighty stock market throne—however, the U.S. The Department of Justice just proved the opposite. Google, owned by Alphabet (Ticker: GOOG), just got sued by the DOJ for an antitrust case. Google is most likely the first of many other lawsuits to come in the next few months. The government just proved it is serious in its fight with the big tech.
If you have any questions, or suggestions let us know by emailing us at members@tradestocks.com. We look forward to hearing from you.
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
