What to Invest In as Amazon & Apple Earnings Disappoint

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Midas Letter

The Digital Businesss Channel for Cannabis, Crypto and Technology Stocks.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

Wealthpress Head Trader Roger Scott joined Midas Letter to analyze this weeks U.S. GDP data and earnings reported by the FAANG stocks, specifically Facebook, Inc. (NASDAQ:FB), Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), Netflix Inc (NASDAQ:NFLX), Alphabet Inc (Google) (NASDAQ:GOOG) (NASDAQ:GOOGL) as well as Microsoft Corporation (NASDAQ:MSFT).

Roger believes the GDP data and jobless claims has already been priced into markets as investors knew of the havoc the Coronavirus has reaped on the economy. What the world did not know 100% is how the major companies would be effected financially, and to what degree.

The S&P 500 Index (INDEXSP:.INX) as well as the other major North American indices traded lower after earnings from the “Top 5” tech companies failed to surpass investors expectations.

Apple reported Q2 2020 earnings of $2.55 /share with revenues of $58.3 billion. The earnings beat out estimates of $2.09 /share with revenues of $54 billion. Although the tech giant did not issue a financial forecast for Q2. This is the first time they haven’t forecasted in more than a decade, concerning investors that performance will suffer later this year.

Amazon.com reported Q1 2020 earnings of $5.01 /share with revenues of $75.5 billion. The earnings were estimated to be $6.36 /share with revenues of $73.4 billion.

Today’s drop in the U.S. equities follows the best month in 33 years on the S&P 500.

Roger believes traders should be prepared for a cool-off in U.S. equity markets with a corresponding rise in volatility shown on the VIX (INDEXCBOE:VIX). The opportunities, therefore, in the coming week for traders could lie elsewhere… in gold, in interest rates or non-directional option strategies.

To learn more about how to setup a non-direction option strategy to gain from big moves in the market, while limiting your exposure and downside risk, click here to sign up to our LIVE FREE webinar on Sunday.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.