For most companies, share buybacks sound attractive. They can offset shares issued to executives. And as long as the market is rising, things look good. Most companies aren’tApple (AAPL). The consumer tech giant just beat earnings and raised its share buyback program to a staggering $90 billion. That’s on top of a dividend payout as well, increasing the amount of cash the company returns to shareholders every year. The $90 bullion share buyback is pretty close to the $89.6 billion the company earned in its most recent quarter, a 54 percent rise from a year earlier. And iPhone sales c...

Earnings season makes for some rich trades. While many traders expected shares ofMicrosoft (MSFT) to rally to a $2 trillion valuation after earnings, the company instead surprised with a drop instead. The company saw revenue up 19 percent compared to a year ago, its highest level. And the company beat analyst expectations. But revenues from the company’s Azure division, where it does its cloud services, seemed a little light to shareholders. The end result is that, in spite of great earnings, shares sold off rather than making an anticipated rally. However, that does point to some...

There’s always a lot to read on a company’s earnings report.Tesla Motors (TSLA) fared well with a strong earnings and sales beat. And the company disclosed that it sold some of its Bitcoin position at a profit, making over $110 million there—or more than it’s made from selling cars in its existence. Yet even with strong earnings numbers and a solid return on cryptocurrency trading, shares sagged a bit. Looking out over the longer term, shares appear to be setting up for a bigger move ahead. The company earned 93 cents per share, against estimates in the $0.75-0.80 range. And sales to...

What do you get when a stock beats on its quarterly earnings numbers and when it raises guidance? Typically, you get a rally. But not always. If you get a selloff when that happens, the numbers suggest such a selloff may be temporary. That could be the case withHoneywell International (HON). The industrial giant has been positioning itself for faster growth and embracing better technology. That allowed it to post better-than-expected earnings on Friday, and raise the full-year 2021 outlook. Yet shares sold off. The numbers, while great, were still down compared to the first quarter e...

While earnings season has come in strong, a few misses have occurred. Within that group of stocks, some companies are likely to continue to struggle. Other firms, however, are demonstrating short-term issues that are likely to lead to higher prices in time. One such name in the latter category isAmerican Express (AXP). Shares dropped on Friday as the company reported solid earnings with better-than-expected profits. The issue? The company’s revenues were a little on the low side. Overall, the company reported $9.1 billion in revenue versus $9.2 billion in expectations. And revenue is...

Earnings season is off to a strong start. Despite a few high-profile misses, most companies have beaten expectations. One company has had a series of better-than-expected numbers in the past year that’s about to report earnings once again. That company isMicrosoft (MSFT). The tech giant has seen explosive growth in the past year thanks to a shift to remote work during the pandemic, and analysts are expecting revenue up 17 percent this quarter. Shares are at all-time highs, but are only up 52 percent in the past year, just a slight outperformance relative to the S&P 500. Yet th...

Shares ofNetflix (NFLX) took a dive in after-hours trading on Tuesday as the company reported earnings. While earnings were fine, subscriber growth slowed to 208 million. That’s up 14 percent from a year before, but it’s also a sign that the boost at the start of the pandemic is starting to wear off. Despite the selloff, shares of Netflix were a top media play in the past year, edging out other companies that have also gotten into the streaming space. The selloff, based on lower-than-expected subscribers, is nothing new. That metric has become the key for an earnings season win… or m...

Media companies have moved to embrace streaming services in the past few years. That move has proven astute, given the pandemic. Now, a handful of companies with other operations are likely to benefit from reopening. Those companies include the cohort of media plays that also offer theme parks, cruise lines or the like. The poster child for this reopening exposure isThe Walt Disney Company (DIS). Unsurprisingly, shares are starting to get upgraded as it appears that the pandemic restrictions are starting to end. The company’s various theme parks were all shut down at the start of the...

The past few years has seen the rise of a handful of companies reach a market cap of $1 trillion. A few are now closing in on $2 trillion thanks to continued growth. One player near the $1 trillion mark has been an underperformer in this mega-market-cap space over the past year. But now signs are on track for it to close in on a $3 trillion valuation in the next three years. That company?Amazon (AMZN). The company just received a price target of $5,700 per share. At that price, the company’s value would top $3 trillion and shares would rally more than 70 percent in the years ahead. ...

Earnings season is coming in strong so far, as companies are comparing to the start of the pandemic last year. A reopening economy is also helping. But with stocks already back to all-time highs, investors are starting to worry about possible inflation. That suggests a need to focus on companies that can pass on higher costs to consumers. One such play just reported better-than-expected results. That company?Pepsico (PEP). Besides beating earnings, the company noted that it may not engage in any more share buybacks this year. Shares are already near all-time highs, and at prices set ...