Riding the Market Rollercoaster: Key Insights from a Turbulent Week in Stocks

Unraveling the Ups and Downs: In-Depth Analysis of Market Movers and Trends

Author

Justin Oh
April 28, 2023

📰 This week has been a rollercoaster 🎢 in the stock market! Our newsletter covers headlines on stocks like First Republic's 48% plunge, Microsoft's $75 billion deal for Activision Blizzard facing peril, Alphabet's revenue and earnings beat for Q1, Meta's shares popping 14%, Snap's revenue miss, Amazon's uncertain cloud outlook, and Intel's largest quarterly loss in company history 😲. We also delve into trending discussions on Generac (GNRC) and Snapchat's monetization challenges 📉. Don't miss our featured tweets, interesting posts on various companies, and upcoming events! To navigate this crazy week and maximize your returns, join Cents Invest Club for a premium investing community experience and exclusive access to valuable resources! 🚀💰📈

📣 As a reminder, if you’re an accredited or serious investor looking for a community of serious intelligent stock investors head over to centsinvest.com and get 7 days FREE! 📣

 What You Need to Know

Headlines

First Republic Stock Plunges 48%

Shares of First Republic are reeling again after the struggling lender on Monday reported a $100 billion drop in customer deposits during last month's banking turmoil. The stock was temporarily hal

https://www.wsj.com/livecoverage/stock-market-today-dow-jones-04-28-2023/card/first-republic-stock-plunges-again-XBgbS95qogQvM1imd9QC?mod=hp_lead_pos2

Microsoft’s $75 Billion Deal for Activision Blizzard Is in Peril

The country’s competition regulator said the deal would hurt competition in the videogame industry, raising new bar amid FTC and EU scrutiny.

https://www.wsj.com/articles/microsofts-75-billion-deal-for-activision-blizzard-rejected-by-u-k-1df1c26?mod=hp_lead_pos1

Microsoft stock rallies on earnings and bullish A.I. outlook

Microsoft shares sustained their rally off earnings even after a British regulator blocked a planned acquisition of video game company Activision Blizzard.

https://www.cnbc.com/2023/04/26/microsoft-stock-rallies-after-on-earnings-beat-and-strong-guidance.html

Alphabet reports revenue and earnings beat for first quarter

In beating estimates, Google broke a string of four straight quarters in which it fell shy of analysts' expectations.

https://www.cnbc.com/2023/04/25/alphabet-googl-q1-earnings-report-2023.html

Meta shares pop 14%, reaching a 52-week high on guidance, sales increase

Meta reported first-quarter results that beat on the top and bottom lines, alongside stronger-than-expected guidance.

https://www.cnbc.com/2023/04/27/meta-stock-pops-14percent-on-guidance-sales-increase.html

Snap plunges on first-quarter revenue miss

Snap continues to suffer in a tough digital ad market with its first-quarter sales missing analyst projections.

https://www.cnbc.com/2023/04/27/snap-q1-earnings-report-2023.html

Amazon stock dips as uncertain cloud outlook overshadows revenue beat

Amazon reported first-quarter sales on Thursday that beat analysts' estimates.

https://www.cnbc.com/2023/04/27/amazon-amzn-q1-earnings-report-2023.html

Intel reports largest quarterly loss in company history

The loss per share was slightly better than soft Wall Street expectations.

https://www.cnbc.com/2023/04/27/intel-intc-earnings-report-q1-2023.html

On Twitter

 Trends In Focus

In a recent discussion on our Discord, investors considered the prospects of Generac (GNRC) as an investment. The conversation touched upon the company's current inventory issues due to interest rate dynamics, its smaller Total Addressable Market (TAM) compared to Enphase (ENPH) or SolarEdge (SEDG), and its expansion into new areas such as EV charging and storage. With an EV/EBITDA of 10, Generac's valuation appears undervalued compared to ENPH's 23. The benefits of Generac's generators over solar and battery alternatives were debated, particularly for powering large appliances during outages, as well as the potential for aggregating distributed assets for resource adequacy in the face of slow-moving regulated power markets. Concerns over the management's ability to innovate were countered by mentioning Generac's growth through acquisitions and its reputation as a marketing and distribution powerhouse. While Generac was seen as a potential investment with upside, participants agreed that further analysis and understanding of the company's strategy and management are necessary. The bull case centered on generators becoming as widespread as air conditioners and tapping into the virtual power plant (VPP) market, but the consensus called for additional research and due diligence to form a solid opinion on Generac's investment potential.

To read the entire discussion click here.

Snapchat has serious monetization struggles compared to companies like Google and Meta. Although Snapchat has experienced growth, its revenue has declined, and operating losses have increased. The company's attempts at brand advertising have been met with challenges. Additionally, the discussion touched upon Snapchat's AR investment and the balance between core business and future investments. Comparisons were made with Meta's WhatsApp, which has a more successful monetization strategy. The challenges faced by chat apps like Snapchat were emphasized, highlighting that a majority of its activities are not easily monetizable, and its main user demographic (13-24 years old) is not ideal for revenue generation. A comparison with Facebook's average revenue per user suggested that Snapchat's current model may be less profitable.

To read the entire discussion click here.

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