💎Alphabet, Paypal, GM, AMD 💎

⏰The rally continues🎉

The equity market continues to rise despite the incoming job report worry (which is expected to weaken). As a result, all significant indexes rose with Russell 2000 shinning after periods of underperformamce. 

Markets participants are adjusting to the possibility that the Fed may not be as hawkish as many would expect after many FOMC members spoke about a more data-driven approach in their monetary stance. 

🪜Alphabet: The moon is here🚀

The company smashed expectations and announced a 20-for-one stock split, which spurs the stock to rise sharply after-hours. Despite supply constraints, substantial advertising revenue coupled with record sales for their Pixel phones helps brighten the risk-on sentiments. 

Cloud business showed strength. Given the split nature of the stock, it may appeal to participants who generally love such trade. Pika World will be on the sideline unless there is an opportunity. 

🧨Paypal: A disappointing quarter⛽️

The company guidance lack conviction, and it is down more than 10% in after-hour. This is by far the most significant burden in the Pika World portfolio, and we are considering shedding the positions as we move to a more defensive mood. 

The CEO discussed the weaker guidance due to the amplified effect on Omicron on cross border businesses and hit primarily on SMEs. Without the revenue from eBay, investors’ patience are thinning on how the CEO can transform the company back to a power pack growth mode. 

🚘General Motors: Poor guidance🏀

While the company announced better than expected fourth-quarter results, its mixed bag outlook dampened sentiments. As a result, shares are slightly weaker in after-hour trading. Nonetheless, investors are warming to the idea of a conservative outlook by GM as the EV transformation story unfolds. 

Semiconductor shortage continued to be the main reason for the company’s outlook. Still, with the consumer strength remaining firm, it is hopeful that they could hit the upper range of their guidance despite the headwinds such as chips shortage, commodity prices increase a higher interest rates environment. 

Pika World will be on the sideline at the moment. 

💻AMD: The sky is clear🛎

Shares popped higher with a forecast that blew the minds of analysts. Each of their businesses is doing well, and revenue from the data centre doubles yearly. In addition, the growing adoption of their EPYC processors in cloud platforms among enterprise customers delivered strong results. 

The company expects to deliver another solid year as they ramp up on their existing strength and set sight to launch the next generation of their products in the area of PC, Gaming and Data centre. A higher than expected gross margin also reflected the company’s ability to control cost and a rich product mix that helps to sustain healthy growth. 

Pika World wishes everyone a prosperous day ahead!

Cheers,

Pika Nat.