Earnings Calls and Olympic Records
- The Prized Fruit – Apple announced its third quarter earnings for the period ending June 29, 2024, citing revenue of $85.8 billion, which is up 5% year-over-year. In addition, earnings per share increased 11% year-over-year to $1.4 and the company generated $29 billion in operating cash flow (source: Apple).
- Hoodwinked Again – Tesla is in the hot seat after recalling 1.8 million vehicles due to unlatched hood issues. Tesla filed a document with the National Highway Traffic Safety Administration announcing the recall (source: NBC News).
- In the Mud – Intel, a semiconductor and microprocessor manufacturer, announced a $10 billion cost reduction plan, including a 15% cut to its workforce and the suspension of dividend payments. Intel reported a 1% year-over-year decline in revenue for the second quarter ending June 29, 2024 at $12.8 billion (source: Intel).
- Moving Market Value – Nvidia makes history with the biggest market value gain in a single day, adding $330 billion on July 31, 2024 (source: Reuters).
- Bye Bye – Berkshire Hathaway has sold more than $3.8 billion of Bank of America shares since mid-July 2024. However, Berkshire Hathaway is still the largest shareholder in Bank of America, owning 942.4 million shares or about 12.1% of the outstanding shares (source: Reuters).
- Strike One – CrowdStrike Holdings, the global cybersecurity company responsible for the massive outage on July 19, 2024, is facing a class action lawsuit from investors after the update mishap. The lawsuit alleges violations of the 1934 Securities and Exchange Act. Delta Airlines also announced a lawsuit, claiming they lost over $500 million due to the outage (source: Bloomberg Law).
- AWOL Investors – The crypto market experienced the largest three-day sell-off in the past year, with $510 billion in market cap eliminated between August 2, 2024 and August 5, 2024 (source: Coin Telegraph).
- Hits and Misses – Amazon missed expectations in its second quarter ended June 30, 2024 earnings report. Revenue for the quarter was $147.98 billion, which was below the expected $148.56 billion. However, year-over-year net sales still increased 10% and operating cash flow was up 75%. One of the primary concerns Amazon is facing is changes in foreign exchange rates, outlining a $1 billion year-over-year unfavorable adjustment (source: Amazon).
- Just Keep Swimming – Katie Ledecky, a U.S. swimmer, has become the most decorated U.S. female Olympian, winning gold in the 1500m and 800m freestyles (source: The New York Times).
- Breaking the Dry Spell – The U.S. men’s gymnastics team secured their first Olympic medal win in 16 years, receiving the bronze medal in the team finals (source: Forbes).
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