Understanding the markets this week: April 26, 2021


    Revenue increased 3% year over year to $ 43.9 billion and earnings per share of $ 0.86 exceeded estimates by $ 0.08.

    “Consolidated revenue rose 3% to $ 43.9 billion, beating the consensus estimate of $ 42.4 billion.

    “HBO Max won 2.7 million US subscriptions for a grand total of 44.2 million. The worldwide subscribers amounted to 64 million. “

    AT & T leads to another interesting stock story of the week: The “disappointing” results for the stock market treasure Netflix. You know Netflix from the famous FAANG gang from Facebook, Apple, Amazon, Netflix and Google.

    Netflix exceeded sales expectations with a staggering 24% year-over-year increase. However, this may not come as a surprise given the reality of the pandemic of staying home and watching movies at home. However, the growth in new subscribers of 3.98 million fell short of expectations. Netflix then announced that “only” 1 million new subscribers are expected for the second quarter of 2021.

    The stock was hit hard on the earnings release, falling over 10% on Tuesday.

    But the trend continues, and as home streaming continues to supplant traditional television, this trend can potentially become permanent and permanent. And while we yearn for experiences, visiting crowded movie theaters may not be high on the list of things to do on the other side of the pandemic.

    In the defensive consumer staples category, Procter & Gamble had another very solid quarter Sales and earnings. Sales increased by 5.25% compared to the previous year. While these boring types of stocks may not do much when the stock markets are roaring, we may be happy to hold them if or when we get into periods of prolonged recessions. In that boring category I keep Colgate-Palmolive, Walmart, and Pepsi. Other names in the index of boring but solid are KImberly-Clark, Costco, Coca-Cola, General Mills, and Kraft-Heinz. These types of stocks and the sector can do well during difficult economic times because their products are essential. They can underperform for long periods of time, but we should remember why we hold them as riskier stocks.


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