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Jim Cramer recaps the slate of Big Tech earnings reported today
CNBC Television· 2025-08-01 00:16
Market Overview & Valuation Concerns - The market experienced a downturn, with the Dow sliding 330 points, S&P declining 037%, and Nasdaq edging down 003%, attributed to concerns over inflated valuations exemplified by Figma's IPO [3] - The speaker emphasizes that valuation matters, and euphoria in the market is detrimental to business [3][4] - The speaker introduces "Fig Newtons law," suggesting that what goes up (in terms of valuation) must come down, cautioning against a new phase of the bull market driven by ludicrous valuations [15][16] Company Performance (Microsoft & Meta) - Microsoft and Meta exceeded earnings estimates significantly, driven by investments in artificial intelligence [5][6] - Microsoft's stock trades at approximately 35 times earnings, while Meta trades at less than 29 times earnings [6][7] - Microsoft gained nearly 4%, and Meta jumped more than 11% following their earnings reports [7] - The speaker believes Microsoft and Meta are undervalued compared to the S&P 500, which sells at 24 times earnings [8] Figma IPO & Valuation - Figma's IPO priced at $33, opened at $85, and closed at $115 and change, highlighting concerns about excessive valuation [2] - Figma's valuation is considered wildly inflated because it doesn't make that much money, making a price-to-earnings multiple irrelevant [13][14] - Figma's valuation is judged on a price-to-sales basis, reaching 67 times sales assuming 40% growth, compared to Meta at ten times sales and Microsoft at 12 times sales [14] Amazon & Apple Performance - Amazon reported a good quarter with healthy top and bottom lines, with better-than-expected sales across divisions, but gave mixed guidance [18][19] - Apple's sales and earnings came in substantially better, driven by strong iPhone sales, with 10% revenue growth [20]
I wanted the markets to be defined by huge earnings reports from Microsoft and Meta, says Jim Cramer
CNBC Television· 2025-08-01 00:11
Market Valuation & Sentiment - Figma's IPO surge to $115 after pricing at $33 reflects market euphoria and unreasonable valuation [1] - The market's decline was attributed to Figma's overvaluation, highlighting the importance of reasonable valuations [2][3] - Euphoria is considered detrimental to business [3] Company Performance & Comparison - Microsoft briefly reached a $4 trillion valuation [4] - Meta's valuation is just under $2 trillion [4] - Microsoft sells at roughly 35 times earnings, while Meta sells for less than 29 times earnings [6] - Microsoft's stock gained nearly 4%, and Meta's jumped more than 11% following strong earnings reports [6] Strategic Investment & Future Outlook - Microsoft and Meta's success is attributed to significant investments in artificial intelligence [5] - Despite their size, Microsoft and Meta are considered undervalued compared to national economies [7]
RBC Capital Markets' Calvasina: If you look at valuations modeling, market is way over its skiis
CNBC Television· 2025-07-31 15:07
Market Sentiment and Valuation - The market's sentiment suggests it could continue to rise, but valuation and earnings models indicate it may be overextended for 2025 [3] - Current GDP growth of 1-2% is not typically a strong foundation for the stock market [4] - Top 10 market cap names are approaching recent peak median PE forward numbers, nearing 25 times [10] - The rest of the market has a median PE of around 185 times, but earnings are not supporting a catch-up trade [11] Earnings and Corporate Performance - There are significant gaps up and down in stock movements, suggesting liquidity issues and visibility challenges in earnings [6] - Some companies are managing challenges better than others, creating a stock picker's market with winners and losers [7] - Corporate America is generally managing through challenges well, but not uniformly [7] AI and Growth Expectations - The AI story remains intact, supporting valuations of tech names [9] - Relative long-term earnings growth rates of the top 10 companies track their relative PE almost perfectly [14] - Meta is up 11% [5] Economic Outlook and Fed Policy - The speaker felt the Federal Reserve Chair Powell was hawkish and did not indicate a September rate cut [16] - The market has recovered faster from the April 8th lows than in previous growth scares [17] - There is softening in services, as seen in super core measures [19] - There is an incomplete discussion in earnings calls about demand, making it difficult to assess the setup for the next quarter [20][21]
Is Trending Stock Petroleo Brasileiro S.A.- Petrobras (PBR) a Buy Now?
ZACKS· 2025-07-31 14:01
Core Viewpoint - Petrobras has been a highly searched stock recently, indicating potential interest and volatility in its performance [1] Earnings Estimate Revisions - For the current quarter, Petrobras is expected to report earnings of $0.71 per share, reflecting a year-over-year increase of +51.1% [5] - The consensus earnings estimate for the current fiscal year is $2.66, indicating a decrease of -10.7% from the previous year, with a recent change of -4.4% [5] - For the next fiscal year, the earnings estimate is $2.48, showing a decline of -6.8% compared to the prior year, with a slight increase of +0.1% over the past month [6] - The Zacks Rank for Petrobras is 3 (Hold), suggesting it may perform in line with the broader market in the near term [7] Projected Revenue Growth - The consensus sales estimate for the current quarter is $20.25 billion, indicating a year-over-year decline of -13.7% [11] - For the current fiscal year, the revenue estimate is $82.16 billion, reflecting a decrease of -10.1%, while the next fiscal year's estimate is $83.47 billion, indicating a slight increase of +1.6% [11] Last Reported Results and Surprise History - Petrobras reported revenues of $21.07 billion in the last quarter, a year-over-year decrease of -11.3%, with an EPS of $0.62 compared to $0.75 a year ago [12] - The reported revenues were below the Zacks Consensus Estimate of $21.64 billion, resulting in a revenue surprise of -2.61%, while the EPS surprise was -32.61% [12] - Over the last four quarters, Petrobras surpassed consensus EPS estimates twice and topped revenue estimates once [13] Valuation - Petrobras is graded A in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [17]
Investors Heavily Search Alaska Air Group, Inc. (ALK): Here is What You Need to Know
ZACKS· 2025-07-31 14:01
Core Viewpoint - Alaska Air Group (ALK) has been trending in stock searches, with a recent performance of +4.8% over the past month, outperforming the S&P 500's +2.7% and the airline industry’s +9.2% [1] Earnings Estimate Revisions - Alaska Air is expected to report earnings of $1.59 per share for the current quarter, reflecting a year-over-year decline of -29.3%, with a consensus estimate change of -34% over the last 30 days [4] - For the current fiscal year, the consensus earnings estimate is $3.34, indicating a -31.4% change from the previous year, with a recent estimate change of -7.3% [4] - The next fiscal year's consensus earnings estimate is $6.19, suggesting an increase of +85.3% compared to the previous year, although it has changed -5.1% in the past month [5] - The Zacks Rank for Alaska Air is 4 (Sell), indicating potential underperformance in the near term based on earnings estimate revisions [6] Projected Revenue Growth - The consensus sales estimate for the current quarter is $3.74 billion, representing a year-over-year increase of +21.9% [10] - For the current fiscal year, the revenue estimate is $14.22 billion, indicating a +21.2% change, while the next fiscal year's estimate is $15.2 billion, reflecting a +6.9% change [10] Last Reported Results and Surprise History - In the last reported quarter, Alaska Air achieved revenues of $3.7 billion, a year-over-year increase of +27.9%, with an EPS of $1.78 compared to $2.55 a year ago [11] - The company surpassed consensus EPS estimates three times and revenue estimates three times over the last four quarters [12] Valuation - Alaska Air is graded A on the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [16]
Wall Street bull boosts his S&P 500 target to 7,100
Yahoo Finance· 2025-07-30 19:19
The S&P 500 will close out the year at a new record high. That's according to Wall Street's biggest bull. It's John Stalus of Oppenheimer.He's boosting his year-end target for the benchmark index to 7,100, citing progress on trade negotiations, removing lingering uncertainty for investors. Joining us now, the man behind that call, John Stalus, Oenheimer, chief market strategist. John, it's great to see you.Julie, great to be on the show. Always great to be working with you. Oh, I appreciate that.So, so tell ...
