Michael Hewson MSTA CFTe CMC Markets Follow Following
Meta Platforms Q2 22 – 27/07 – Meta’s share price performance has been a shocker so far this year, the shares down over 50% since last year’s record highs. In February, the shares tanked after a decline in daily and monthly active user numbers, as the various Apple privacy changes started to hit revenues, which saw Facebook downgrade its Q1 outlook to between $27bn and $29bn in revenue. This proved to be fairly accurate as Q1 revenues came in at $27.91bn, although profits were slightly better at $2.72c a share. Average revenue per user was slightly better than expected at $9.54c a share, while daily active users came in at 1.96bn beating expectations of 1.95bn and were better than the previous quarter of 1.93bn. Monthly active users went the other way however, coming in lower at 2.94bn. For this quarter Meta said it expects to see revenues to improve to between $28bn to $30bn, while investors ought to expect lower monthly active users due to the loss of its Russia user base. The regulatory outlook in Europe is also set to remain challenging, while Snap’s Q2 miss earlier this week could be a taste of things to come. Profits are expected to come in at $2.56c a share.
Alphabet Q2 22 – 26/07 – it’s been a difficult year for tech stocks year to date, although we are off the lows of the year so far. The last 3 months have seen Alphabet’s shares trade sideways. With the stock split now done it will be interesting to see whether there is renewed appetite for the shares at these sorts of levels. The Q1 numbers weren’t too disappointing, despite missing on YouTube ad revenues which contributed $500m. Advertising still makes up the majority of the company’s earnings with services revenue coming in short at $61.47bn, below expectations of $62.58bn. Total revenues did beat expectations, rising to $68.01bn, while operating margins came in at 30%. The key advertising market is likely to be the main standout, as companies pare back their ad spend in response to a slowing economy. The Google cloud business has been a key growth area with the total global cloud market reaching $126bn in Q1. Google will be hoping for a big slice of that, along with Microsoft and Amazon as the three big players in that market, however any gains in this segment will need to be significant to offset concerns about future revenues in advertising services. Profits are expected to come in at $26.50c a share.
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EURUSD has extended its recovery and reclaimed 1.0200 in the American session on Friday. After the data from the US pointed to a contraction in the private sectors business activity in early July, the dollar came under renewed selling pressure.
GBP/USD has gathered bullish momentum and advanced above 1.2000 ahead of the weekend. The weaker-than-expected Services and Composite PMI reading from the US caused the dollar to lose interest, fueling the pair's rally.
Gold price has stretched its daily rally above $1,730 in the American session on Friday. With the benchmark 10-year US Treasury bond yield losing more than 4% on the day after disappointing PMI data, XAUUSD continues to gather bullish momentum.
Dogecoin launched a new update to improve security and efficiency and lowered dust limits for all network participants from 1 DOGE to 0.01 DOGE.
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