While the semiconductor chip shortage appears likely to continue well into next year, a number of tech plays are still able to avoid the challenge presented by that shortage. One particularly strong tech niche is one that has exploded during the pandemic era, specifically that of cloud services. As the world has continued to work remotely, companies playing to the cloud trend have done exceptionally well. There’s no better case study for this trend thanMicrosoft (MSFT). The tech giant saw its cloud-software division come in better than expected. And the company’s other business segme...

Led by Bitcoin, cryptocurrencies are moving higher. That’s great for cryptos themselves, as well as a number of companies that play to integrating cryptos into the existing financial system and the public’s mind. However, many tech companies have been burned, as crypto mining has gone in and out of favor over the years. That’s created a lot of uncertainty for a number of companies in terms of marginal demand, and the market hates uncertainty. Case in point?Nvidia (NVDA). The leading producer of graphics processing technology, the company now sees cryptocurrency mining having a smalle...

Some stocks in the same industry may have a vastly different valuation than others. This is typically the market’s way of indicating which company is the industry leader. That may be higher profit margins, or a better product, or even more loyal customers. This notion recently appeared on the market when chipmakerIntel (INTC) reported earnings. As with its prior reports, the numbers were okay, but poor guidance and a sense that the company was treading water operationally led to a selloff. While Intel dropped double-digits and traded flat for the year, shares ofAdvanced Micro Devices...

Investors are looking for how companies are navigating the worst environment for inflation in 25 years. Many companies are doing well, having found ways to cut costs, or raise prices without losing out on sales. Some of the best companies do a little bit of both. That’s the case withChipotle Mexican Grill (CMG). The company reported solid earnings, as higher costs were offset by higher menu prices, allowing the company to report earnings of $7.02 per share, beating estimates of $6.32. The company already warned customers back in June that menu items would rise 4 percent on average, b...

Merger and acquisition activity is alive and well. More importantly, even rumors of a possible deal are capable of moving shares of companies large and small alike. That’s the case withPinterest (PINS). News broke that the social media site might be acquired around $70 per share, at a valuation of nearly $39 billion. The potential buyer? Payment services companyPayPal (PYPL). On its face, the deal doesn’t seem to make a lot of sense. These are two very different companies in different sectors. For now, the rumor remains a rumor. But Wall Street likes the potential deal, sending share...

Some companies are still seeing sales and revenues below their 2019 pre-Covid peak. For these firms, changes in how we live and travel continue to impact their returns. And when it comes to how their stocks perform, it comes down to now how much a company loses, but whether or not it’s more or less than expected. That’s the case withUnited Airlines (UAL). The major carrier reported a smaller-than-expected loss in its most recent quarter. The carrier also reported that its top-line revenues are still down 32 percent compared to 2019. However, the company only lost $1.02 per share agai...

After a failure to deliver on time, the SEC finally released a report on January’s “meme stock” activity in the market, primarily centered around the explosive move higher inGameStop (GME). The report came out with a statement that the regulator will try and use the event as a way to ensure markets remain fair for the little guy. But what’s more important is what didn’t make the headline of the report. The report noted that the explosive move higher in share price at the start of the year didn’t lead to a meaningful drop in short interest. If true, that suggests that shares remain mo...

A number of retailers have already started dropping Black Friday deals. Typically starting the day after Thanksgiving, the story on Wall Street is that it really marks the day that retail companies move to profitability, or in the black, for the year. With some pent-up consumer demand and rising wages this past year, sales could blowout 2020’s pandemic-reduced numbers. While retail has already performed well as a sector this year, traders will likely fare best if they consider a best-of-breed player for the holiday season. Some analysts see that playing out in department stores, rath...

Investors have to pay up for quality. That tends to be worth it in time, as buying the best company in a sector can provide excess returns. In the past few trading sessions, the biggest Wall Street banks have been reporting earnings. Most have beaten earnings, as well as provided a buoyant outlook and reduced loan loss reserves, a sign of long-term financial health. While investors may think all big banks are the same, that’s not always the cases. Some banks have been out of favor with the market, but most have done well. Among the best-performing banks,JPMorgan Chase (JPM) had so...

After being pent up at home for months on end, consumers are looking to get out and travel more. That’s a trend showing signs of growth, a welcome indicator as the economy contends with persistent inflation and supply chain issues for physical goods. With that trend moving higher, a number of companies are likely to benefit. Probably not airlines, given higher energy prices. But investors who look elsewhere can be rewarded. One big potential winner isAirbnb (ABNB). The rental platform doesn’t own any real estate, but earns money on each transaction booked through its platform. And th...