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Dell goes beyond expectations

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Last Week’s Highlights

Dell beats expectations

Wall Street estimates on quarterly earnings and revenue for Dell Technologies Inc were beaten by the US company. This is explained by the strong demand for Dell-branded desktops and notebooks from several companies. Dell’s revenue from commercial PCs rose 22% to $12 billion in the quarter. Likewise, the computer manufacturing company forecasts for the current quarter, revenues and profits above expectations. For this reason, Dell shares rose about 7% in extended trading.

Old Navy is not filling the ‘Gap’

Gap’s stock fell 13% as it cut its annual earnings forecast. The clothing company blames poor decisions made with its Old Navy line. Several company executives claim that potential customers are not looking for casual wear, and instead want elegant party wear, something that Old Navy’s catalog does not offer. In addition to this, there is the problem linked to the low demand for this kind of products due to inflation. The high price of basic necessities limits consumers in their spending and therefore, clothing companies such as Gap, American Eagle, or Abercrombie & Fitch Co, suffer from low sales.

Coming Up This Week

Zoom prepares to blast off

Zoom Video Communications reached peak earnings in 2020 during the Covid-19 pandemic, thanks to the growth of telework. Since then, the company has declined due to the upturn the world is going through. The mood around Zoom was one of pessimism; however, new decisions within the company may transform negativity into pure joy. Zoom acquired Solvvy, a conversational artificial intelligence and automation platform for customer service. In the same way, it implemented new features and services such as Zoom Contact Center, Zoom Whiteboard or Zoom IQ for Sales, in order to implement its market opportunity for the future. 

Who can save Disney stock?

This year, Disney suffered several problems that led to a drop in its stock price. Since the beginning of the pandemic, Disney has been affected by several negative circumstances, such as the closure of some of its theme parks. However, in the face of such a negative outlook, it is expected that the second half of 2022 will not be so bad for the company. By summer, the Disney Resort in Shanghai is expected to reopen and boost its park business. On the other hand, its streaming service Disney+ is aiming to dispute the leading position in the streaming market. The platform has a huge content budget of $32 billion for fiscal year 2022, and has already announced several new titles such as the Obi-Wan Kenobi, Ms. Marvel and She-Hulk series. These generate enormous expectations; therefore, the investment in the streaming platform is expected to generate rewards for Disney.

All information provided was collected up to the last business day of the previous week of the release of this NewsFlight. The purpose of NewsFlight is to summarize and make accessible information on a variety of topics within the world of investing and personal finance, and thus cannot be considered formal research or reports. All sources utilized to compile the NewsFlight newsletter are considered trustworthy by the FlexInvest team. FlexInvest is not affiliated with and does not receive remuneration from the news sources used to compile NewsFlight. As well, any images or logos incorporated into the NewsFlight newsletter are not necessarily property of FlexInvest and may solely be included to provide context for the news covered. NewsFlight should not be taken as advice to sell or buy securities or to make any investment. When investing in securities or other financial products, there is always the potential to lose money or asset value. FlexInvest recommends that its users consider their investment objectives and risks before investing. Additionally, any projections or analysis made by authors of NewsFlight cannot be considered as a promise of future trends or returns. Opinions expressed in NewsFlight are not representative of FlexInvest.

Market News

Wall Street’s longest weekly losing streak in decades finally came to an end . Indices rallied on Friday on signs that inflation has already peaked. Investors are optimistic that the Federal Reserve has the ability to tighten monetary policy without sending the economy into recession.

The Dow Jones index rose 0.72% to 32,872.90, the S&P 500 rose 1.49% to 4,118.35, and the Nasdaq Composite rose 2.11% to 11,988.53.

Wild Card

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