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Markets Are Positive

Major US stock indexes closed the week with growth. The S&P 500 added just under 3% and closed the trading session on Friday at an all-time high of 4,280.7 points. The Nasdaq 100 tech index rose 2.1% over the week and hit its all-time highs, ending trading at 14,345 points. The improvement in investor sentiment was facilitated by the statements of the head of the US Federal Reserve, Jerome Powell, who on Tuesday confirmed his opinion that the rise in inflation in the country is temporary. He also noted that the Fed will continue to support the economy. At the same time, Powell acknowledged the existence of significant uncertainty amid the opening of the economy after the restrictive measures introduced due to the COVID-19 pandemic. However, Powell considers it unlikely that the rate of growth in consumer prices in the country will reach the level of the 1970s, when inflation was in double digits.

Nvidia quadruples net profit

Nvidia posted record-breaking net income and revenues in the second quarter of fiscal 2022. Revenue jumped 68% to $ 6.51 billion from $ 3.87 billion a year earlier. Net income for the quarter ended Aug. 1 nearly quadrupled to $ 2.37 billion, or $ 0.94 per share, from $ 622 million, or $ 0.25 per share, in the prior year’s comparable period. Adjusted earnings rose to $ 1.04 per share from $ 0.55. According to market consensus, the company’s adjusted earnings were expected at $ 1.02 per share on revenue of $ 6.33 billion. The company itself forecast revenue in May in the range of $ 6.17 billion to $ 6.43 billion. Nvidia expects to receive revenue in the third financial quarter. the level of $ 6.66 billion – $ 6.94 billion. The consensus forecast assumes $ 6.57 billion.

Johnson & Johnson increased quarterly revenue in all divisions

Johnson & Johnson posted strong 2Q2021 results. The company increased its net profit in the second quarter of 2021 by 73% thanks to the growth of revenue in all major divisions. J&J’s quarterly revenue increased 27% to $ 23.312 from $ 18.336 billion. The consensus forecast for this indicator was $ 22.49 billion. According to a J&J press release, net profit in April-June rose to $ 6.278 billion, or $ 2.35 per share, up from $ 3.626 billion, or $ 1.36 per share, in the same period the previous year. Profit excluding one-off factors was $ 2.48 per share, beating the market average forecast of $ 2.29 per share.

DraftKings Will Maintain Its Leadership Position

Following the release of the quarterly results, we have raised our estimate of the company’s revenues for fiscal 2021, reflecting strong first quarter financial results and higher management forecasts. With a conservative outlook for estimated 2H21 earnings, continued legalization of sports betting in individual states and the takeover of betting technology provider SBTech.

Markets are high again

Last week, the broad S&P 500 index gained 0.7% and ended the week at historic levels of 4,468 points. The Nasdaq 100 tech index added 0.2%, remaining slightly below the historic high, but the capitalization of the Dow Jones Industrial Average rose 0.9%, and the indicator itself conquered historic highs at around 35,515 points. Investors were encouraged by the news that the US Senate has approved an infrastructure bill with over $ 1 trillion in funding. Now it must be considered by the House of Representatives. In addition, a new $ 3.5 billion stimulus package was proposed that will fund social goals and fight poverty.

Snap doubled its quarterly revenue

Snap, the owner of the Snapchat app, posted excellent quarterly results. The company reduced its net loss in the second quarter of 2021 and more than doubled its revenue as the advertising market continues to recover. The company’s revenue in the second quarter was $ 982 million, compared with $ 454 million a year earlier. The indicator exceeded the consensus forecast of analysts at $ 846 million. Snap’s net loss in April-June decreased by 53% – to $ 151.6 million compared to $ 326 million in the same period last year. Loss on a per share basis declined to $ 0.1 from $ 0.23 on the average market forecast of $ 0.21.

Luxury Goes Digital

We’re highlighting Farfetch because we focus on the fast-growing online luxury goods market. The company operates a leading platform connecting luxury brands and boutiques. The global luxury goods market is undergoing a structural shift towards digitalization and we believe that Farfetch will be the main beneficiary of the $ 300 billion market transformation. The company’s management predicts revenue growth of an average of 16% per year over the next ten years, primarily due to growth demand from China and other emerging markets.

Buying Afterpay is the key to future success

Square posted good results for the second quarter. The company’s revenue reached $ 4.68 billion, compared with $ 1.92 billion a year earlier. The consensus forecast of analysts provided for the figure at the level of $ 5.03 billion. Net income in April-June was $ 204 million, or 40 cents per share, compared with a loss of $ 11.5 million, or 3 cents per share in the same period a year earlier. Adjusted earnings were 66 cents per share, up from 18 cents per share a year earlier. Analysts on average had forecast an indicator of 31 cents per share.

Markets Peak Again Despite Delta Strain

Last week, the main indices completely won back the correction of the week before last and again reached their absolute historical values. The capitalization of the S&P 500 increased by 2%, and the index itself rose to the level of 4,412 points. The Nasdaq 100 rose 3% and finally broke through the 15,000 mark, consolidating at 15,112. Investors started buying tech stocks again amid optimism about the sector’s growth ahead of reports from some of the industry’s biggest names. We previously noted that we expect the technology sector to outperform the broad market.

Fortinet. Strong Quarterly Results

We believe Fortinet will pleasantly surprise investors in the second quarter. We expect to see strong quarterly earnings that exceed market expectations. Strong demand for network security products and cloud solutions is having a positive effect on the company’s business. Fortinet records high demand in all regions of its presence. The company plans to publish its financial statements on August 6. We raise our target valuation for the company’s shares from $ 250 to $ 270.