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Market Rally Spreads to Other Sectors; Plus TMUS, PTON, UBER
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The Dow, Nasdaq and S&P 500 are all enjoying their strongest week of trading in seven months, bouncing back from a big sell-off last week. The Dow is now within 1% of 2020 break-even, the S&P 500 is up 7% in the first four trading days and the Nasdaq is +9%. On the day, the small-cap Russell 2000 led the way, +2.78%; the Nasdaq followed, +2.59% to an even 300 points on the day; the Dow was +1.95% and the S&P 500 +1.94%.
Materials, Financials and Industrials led the way along with Tech stocks this Thursday, following a heavy-duty Wednesday trading session that was unquestionably led by Big Tech. It should give investors faith in the overall economy to see this many different sectors — 10 of 11 of which in the S&P 500 were positive on the day — performing well. Only Energy slipped into the red late in the regular session.
Speaking of performing well, T-Mobile (TMUS - Free Report) put up a strong earnings beat to $1.00 per share, way above the 51 cents in the Zacks consensus. Revenues of $19.3 billion surpassed the $18.25 billion analysts were expecting, with net adds for the quarter coming in north of 2 million, from the 839K estimate. Clearly the synergies from its merger with Sprint are paying off; could this also illustrate consumer interest in 5G technology? T-Mobile is no stranger to big blowout earnings surprises — its trailing 4-quarter average beat was by 125%.
Peloton (PTON - Free Report) also surged past estimates in it fiscal Q1 report released after Thursday’s close, with 20 cents per share easily outpacing the 12 cents expected, on $758 million in revenues, which represent 232% growth year over year. The company said unexpected demand in its Bike+ drove the quarter, with connected fitness subscriptions up 137% year over year. The company continues to have a large backlog, meaning demand appears strong for Q4, as well.
Uber (UBER - Free Report) , fresh off a Tuesday win in California when Prop 22 passed, reported a 2-cent miss on its bottom line to -62 cents per share, on $3.13 billion in sales which was exactly in-line with the Zacks consensus. Food Delivery has made an impressive surge, now accounting for more than a half of total gross bookings in the quarter, up 134% year over year, +23% quarter over quarter. Q3 net losses came to $1.1 billion, $6 billion year to date. The company expects EBITDA profitability by the end of 2021.
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Market Rally Spreads to Other Sectors; Plus TMUS, PTON, UBER
The Dow, Nasdaq and S&P 500 are all enjoying their strongest week of trading in seven months, bouncing back from a big sell-off last week. The Dow is now within 1% of 2020 break-even, the S&P 500 is up 7% in the first four trading days and the Nasdaq is +9%. On the day, the small-cap Russell 2000 led the way, +2.78%; the Nasdaq followed, +2.59% to an even 300 points on the day; the Dow was +1.95% and the S&P 500 +1.94%.
Materials, Financials and Industrials led the way along with Tech stocks this Thursday, following a heavy-duty Wednesday trading session that was unquestionably led by Big Tech. It should give investors faith in the overall economy to see this many different sectors — 10 of 11 of which in the S&P 500 were positive on the day — performing well. Only Energy slipped into the red late in the regular session.
Speaking of performing well, T-Mobile (TMUS - Free Report) put up a strong earnings beat to $1.00 per share, way above the 51 cents in the Zacks consensus. Revenues of $19.3 billion surpassed the $18.25 billion analysts were expecting, with net adds for the quarter coming in north of 2 million, from the 839K estimate. Clearly the synergies from its merger with Sprint are paying off; could this also illustrate consumer interest in 5G technology? T-Mobile is no stranger to big blowout earnings surprises — its trailing 4-quarter average beat was by 125%.
Peloton (PTON - Free Report) also surged past estimates in it fiscal Q1 report released after Thursday’s close, with 20 cents per share easily outpacing the 12 cents expected, on $758 million in revenues, which represent 232% growth year over year. The company said unexpected demand in its Bike+ drove the quarter, with connected fitness subscriptions up 137% year over year. The company continues to have a large backlog, meaning demand appears strong for Q4, as well.
Uber (UBER - Free Report) , fresh off a Tuesday win in California when Prop 22 passed, reported a 2-cent miss on its bottom line to -62 cents per share, on $3.13 billion in sales which was exactly in-line with the Zacks consensus. Food Delivery has made an impressive surge, now accounting for more than a half of total gross bookings in the quarter, up 134% year over year, +23% quarter over quarter. Q3 net losses came to $1.1 billion, $6 billion year to date. The company expects EBITDA profitability by the end of 2021.
Questions or comments about this article and/or its author? Click here>>
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>