Last week's earnings recap and this weeks headlines!

Last week's Q2 Earnings!

With the second-quarter earnings season now well underway, financial results disclosed by major U.S. companies are once again underscoring some of the most pressing issues facing businesses operating in current market conditions, including the risk of a global economic downturn and the enormous strain that growing expenses are placing on company profitability.

$NFLX (Netflix, Inc.) reported declining subscriptions for a second consecutive quarter on Tuesday, announcing a less-expensive ad-supported version of the service set for release in early 2023. The streaming platform said it lost 970,000 paying members in the quarter ending June 30th. However, this was far less severe than the 2 million subscriber loss forecasted by Netflix in April. Investors reacted positively to the news, and company shares surged by 7.4% in after-hours trade. The company is forecasting a return to growth in the July-September period.

$SNAP (Snapchat Inc) disappointed investors by reporting its worst quarterly revenue growth on record and a net loss of more than $422 million. The company’s revenue came in below expectations at $1.11bn compared to Wall Street estimates of $1.4bn. While Snap reported a 13% year-on-year revenue increase for Q2. This marks a 25% deceleration from its Q1 growth rate. On the positive side, the platform reported 347 million daily active users (18% growth year-over-year), beating analyst expectations by nearly 3 million and confirming the company’s attractiveness for advertisers and its ability to generate revenue. However, Snap’s refusal to provide guidance for Q3 due to “operating environment uncertainties” troubled investors. Shares of the company plunged more than -26% in after-hours trading before falling as low as -39% on Friday’s trading session.

$TWTR (Twitter) disclosed an unexpected drop in revenue, which the company pinned on increasing competition in the advertising industry and uncertainty surrounding Elon Musk’s $44bn attempted takeover of the social media company. Twitter reported $1.18bn in revenue, down from $1.19bn a year ago and well short of FactSet's average analyst projection of $1.32bn. Advertising income increased by 2% year-over-year to $1.08bn.

$TSLA (Tesla Motors, Inc.) shares rose 9.8% as investors reacted with relief to better-than-expected quarterly earnings by the EV-maker. Tesla earned $2.3bn in the second quarter, surpassing Wall Street's $1.9bn projections despite a challenging operating environment. The company cited “increased sales, higher average selling prices, and growth in other parts of the business” as factors contributing to its positive quarterly performance. Additionally, Tesla sold almost 75% of its Bitcoin holdings, thus adding $936 million to its balance sheet.

This weeks earning reports and key dates

it is perhaps the most important week of the summer 😊 — with the Fed meeting and GDP data planned this week. Almost a third of the S&P 500 are set to report quarterly earnings this week including Apple, Alphabet and Microsoft. Investors are still worried about the potential of an economic recession and are hoping this week’s news storm will help direct their expectations🤔

It’ll be the biggest week so far of the current earnings season, with about a third of the $SPX500 ′s companies due to report. Investors are also watching what the Fed will say during its meeting Tuesday and Wednesday. Markets are expecting another 75-basis-point rate hike from the central bank’s policymakers as inflation remains high, even while some observers think it may well have peaked. Here are some of the key companies set to report quarterly results this week:

- Tuesday: McDonald’s, Coca-Cola, General Motors (before the bell); $GOOG (Alphabet) , $MSFT (Microsoft) (after the bell)

- Wednesday: Boeing (before the bell); Ford, $META (Meta Platforms Inc) , Qualcomm (after the bell)

- Thursday: Comcast (before the bell); $AAPL (Apple) , $AMZN (Amazon.com Inc) (after the bell)

- Friday: ExxonMobil, Chevron, Procter and Gamble (before the bell)