Markets
Nikkei 225
32,254.56
▲ +61.81 / +0.19%
SSE Composite
3,268.83
▼ -19.25 / -0.59%
IBOVESPA
119,234.75
▼ -272.93 / -0.23%
Straits Times
3,309.87
▲ +17.48 / +0.53%
BMV IPC
53,972.07
▼ -19.35 / -0.04%
Dow Jones
35,391.67
▲ +326.05 / +0.93%
DAX 30
15,950.76
▼ -1.10 / -0.007%
BSE SENSEX
65,953.48
▲ +232.23 / +0.35%
FTSE 100
7,554.49
▼ -9.88 / -0.13%
JSE Top 40
71,586.14
▼ -17.72 / -0.02%
Last Week’s Highlights
Amazon sees a bright Q3 ahead
Amazon.com Inc had a solid second-quarter performance, beating Wall Street expectations with sales and profit growth driven by fast and inexpensive product distribution and a rebound in cloud sales. After the announcement, Amazon shares rose 9%, adding more than $120 billion to its market value in post-closing trading. The company has faced several challenges but has demonstrated its ability to remain the world’s leading cloud services provider and online retailer. In addition, Amazon has expanded its technology offerings, including an artificial intelligence service similar to the chatbot ChatGPT, attracting more customers and consolidating its market position. For the third quarter, the company expects additional momentum from the success of its biggest sales day, Prime Day, and continued growth in its cloud and e-commerce operations.
Apple sales to keep falling
Apple shares fell 2% despite beating Wall Street’s fiscal third-quarter sales and profit expectations. The company forecast a continued sales decline in the next quarter, which generated concern among investors. Although the services segment and sales in China drove growth, weak iPhone sales and uncertainty about the following product, the Vision Pro mixed reality headset, pose challenges for the company. Despite the difficult situation in the smartphone market in China, Apple achieved “double-digit” growth in iPhone sales in that country. In addition, the company reached 1 billion subscribers on its services platform. Expectations are focused on possible announcements related to Vision Pro or developments in artificial intelligence that could boost business.
Coming Up This Week
Mixed perspectives over chip stocks
Stocks in the chip sector experienced a volatile day, marked by earnings reports that have generated mixed results. After facing challenges due to chip shortages and a loss of consumer confidence, chip stocks mostly rose, indicating that the outlook may not be as bleak as previously thought. Companies such as Applied Optoelectronics saw an impressive 64% gain, backed by a new supply agreement with Microsoft valued at $300 million over the next three years. However, not all companies posted gains, with Microchip posting a 6.26% decline. Although the analyst consensus views Applied Optoelectronics and Microchip as moderate buys, future growth expectations differ significantly, with Microchip offering the highest upside potential of 13.37%.
Funko shares take a nosedive
Funko took a financial hit as its stock plummeted 14% on disappointing guidance. Projected sales for 2023 fell short of analysts’ expectations, and third-quarter sales are also expected to be below consensus. To counter the difficulties, the pop culture collectibles company reduced its workforce by 12%, eliminating 180 positions. Despite these challenges, there was some good news, as net sales and the gross operating profit financial indicator met forecasts, and the CFO’s cost-cutting plan appeared to be on track. Funko is also simplifying the business by reducing product lines. Although analysts maintain a “hold” rating on the company’s stock, the current difficulties are creating uncertainty in the market.
