Another busy week in the Stock Market - Tesla stock split, Amazon smart home, Earnings reports

7/8/22 ~ Sunday Summary

After yet another congested week of trading, stocks rose following growing beliefs amongst investors that the market has hit the bottom, and that the CPI report this coming Wednesday may reveal a drop off in the inflation rate.

Earnings summary - AMD, INTC, MELI, BP, SBUX, PYPL

Powerhouse chip makers $INTC (Intel) and $AMD (Advanced-Micro-Devices) both reported relatively strong earning reports in Q2 this week, however they mutually expect a decline in sales for the forthcoming quarter due to a fall in demand (Intel expects a 10% fall in demand for PC's) following the post-pandemic surge. As a result of the news, $INTC plunged 8% during Friday trading and CEO Gelsinger has since stated that he believes the stock has hit the bottom as it sits at a new 52 week low.

Over the last 30 days, shares of South-American e-commerce giant MercadoLibre surged 43.6% as investors' appetite for growth stocks increased once again. $MELI's earnings report was strong yet again, with it's Q1 revenue jumping 67% year-over-year and Q2 revenue surging 56.5%. The Gross merchandise value (GMV) and total payment volume grew 32% and 81% year-over-year.

$BP shares rose over 5% last week following a positive earnings report which revealed profits of $8.5bn (biggest profit in 14 years), shattering last years Q2 profits of $2.6bn. The U.K Cost of Living crisis has resulted in campaigners calling out the giant oil companies and condemning the high petrol and diesel prices and have ordered the U.K Government to take action.

Starbucks ($SBUX) beat Wall Street estimates, posting revenue figures of $8.15 billion versus $8.14 billion expected, causing a mild 2% rise during Wednesday trading. More positive news followed as Starbucks began to reopen stores in China following a recent wave of lockdowns due to a re-emergence of Covid-19. Due to these lockdowns, Starbucks reported a 44% decline in sales in China, but have now reopened over 900 stores in Shanghai, home to the most Starbucks stores in the world. In this quarter, Starbucks have opened 318 new stores, which now totals to 34,948 stores globally.

Paypal ($PYPL) released Earnings of 93 cents per share, vs 86 cents per share as expected by analysts alongside Revenue growth of $6.81 billion, vs. $6.79 billion as expected by analysts. The positive news caused Paypal to surge nearly 10% during Wednesday trading hours. This was much needed by investors as the stock is down over 50% year to date.

-Coinbase stock jumped 30% on Thursday morning after a partnership was announced with BlackRock (the world's largest money manager). This was received well by investors as in the Crypto industry layoffs and turmoil have become commonplace. As of now, the partnership only applies to Bitcoin, but a BlackRock spokeswoman has since said that client demand will determine how the partnership will expand to other digital assets.

In other news...

-Tesla announced on Friday that its three-for-one stock split will start on August 25th during its annual meeting. Each shareholder on record on Aug. 17 will get a dividend of two additional shares for each share held, to be distributed after close of trading on Aug. 24.

-Amazon announced their purchase of iRobot last week for $1.7bn in their attempts to dominate the smart home market.

Thank you for reading, and have a great week!