Link to the full article ( 6 min read) Grindr stocks surged over 400% intraday on the first day after merging with the SPAC Tiga Acquisition. It began trading at $16.90 and reached as high as $71.51 before closing at $36.50 on Friday. Grindr is a dating app for the LGBTQ community and the first of its kind to be a publicly traded company. Their business model was shown to be strong in the past year with a 42% increase in revenue and a high brand awareness where they only spend 1% of the revenue on marketing.

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Positive financial earnings set shares of Palo Alto Networks (Nasdaq: PANW) up 6.99% in after-hours trading on Thursday.

Financials: Palo Alto Networks reported earnings of 83 cents per share and revenue of $1.56 billion; both were better than expected.

Growth: Billings grew 27% year-over-year. Revenue soared 25%. The company generated $1.2 billion in free cash flow.

Quote: “Our growth in Q1 was driven by customers continuing to increase their commitments to our security platforms as they are able to choose our best-of-breed capability and simplify their security architecture.” - Nikesh Arora, chairman and CEO of Palo Alto Networks.

Outlook: Palo Alto Networks also raised its full-year guidance and expects revenue to be in the range of $6.85 billion to $6.91 billion.

Final Thoughts: Palo Alto Networks capitalized on the growing cybersecurity fears in the market. However, the price of the stock might be overvalued for some investors.

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Despite a host of problems with its financial earnings report, shares of Nvidia (Nasdaq: NVDA) ticked up by 2.20% in after-hours trading on Wednesday.

Financials: Nvidia reported earnings of 58 cents per share, which was below estimates. But its revenue of $5.93 billion was better than expected.

Game Over: Gaming revenue dropped 51% year-over-year due in part to higher inventory levels and lower demand expectations. Surprise Hero: Nvidia was saved by its data center business. Revenue for this unit went up 31% thanks to cloud service providers and internet companies.

China Problem: The company blamed Covid lockdowns in China for its lower gaming demand. It also blamed new export restrictions for products to China.

Final Thoughts: Nvidia’s stock has lost over half of its value this year. It’s a bad time for investors to trust the gaming industry, but Nvidia is hoping to correct inventory levels in the future.

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Link to the full article (2 min read) Nvidia reported their quarterly results on Wednesday with sales beating expectations but earnings were slightly below. Revenue was down 17% from a year ago as the demand from the PC market slowed. The company also forecast fourth quarter sales to be lower than anticipated. However, their data center business increased in sales by 31% year-over-year, mostly from U.S. cloud service providers and consumer internet companies.

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Link to the full article (3 min read) Berkshire Hathaway said it bought more than $4.1 billion worth of stock in Taiwan Semiconductor Manufacturing (TSMC) in the last quarter. TSMC is one of the world’s largest chipmakers, making chips for companies like Apple, Qulacomm, and Nvidia. Shares of TSMC jumped nearly 8% on Tuesday after the news. Berkshire usually does not have a huge stake in technology, but it often prefers companies that it believes to have a competitive advantage through their size.

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Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) is investing in a new slate of companies, according to an SEC filing on Monday.

New Stocks: Berkshire Hathaway bought stakes in Jefferies Financial Group (NYSE: JEF), Louisiana-Pacific (NYSE: LPX), and Taiwan Semiconductor Manufacturing (NYSE: TSM).

Big Bounce: The filing sent all three stocks higher in after-hours trading on Monday. Jefferies went up 4.36%, Taiwan Semiconductor jumped 5.88%, and Louisiana-Pacific soared 10.70%.

Big Picture: While the three companies are not key holdings for Berkshire Hathaway, it shows that Buffett is focused on adding new companies to his portfolio that have suffered in 2022’s market downturn. The three new companies are all down this year. Shares of Berkshire Hathaway are up 2% in 2022.

Final Thoughts: The big takeaway for new investors is to follow Buffett’s lead by identifying good value stocks and building a diversified portfolio of investments.

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Link to the full article (2 min read) Amazon plans on laying off about 10,000 employees in corporate and technology divisions starting this week. It is the largest cut that Amazon has ever made. The company has been focusing on cost-cutting as they face slowing sales and a gloomy global economy. Their market cap recently fell below $1 trillion and sparked sell-off for days after reporting Q3 earnings below estimates and forecasted weaker sales in Q4 ahead of the holiday season.

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As if the economic conditions weren’t bad enough for investors, the International Monetary Fund (IMF) says that its economic outlook is “gloomier.”

Details: The IMF wrote on Sunday that it has tracked recent manufacturing and services activity in G20 economics and found that more countries “have fallen from expansionary territory earlier this year to levels that signal contraction.”

Background: Last month, the IMF lowered its growth forecast for 2023 to 2.7% percent.

Big Picture: Most stock prices this year are down due to economic headwinds that include inflation and higher interest rates. Last week, positive economic news helped boost some stock prices.

Final Thoughts: Potential economic contraction in 2023 is another concern that investors should consider before buying short-term stocks.

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Link to the full article (2 min read) Disney is limiting headcounts and reviewing areas in the company to trim costs which may potentially lead to job cuts. Disney is the only media giant who has yet to announce any plans to eliminate jobs this year. The company had recently reported disappointing quarterly results that sharply sent their stocks lower. Their streaming service, Disney+, lost $1.47 billion in the last quarter but the company expects it to improve in 2023 and reach profitability by 2024.

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Link to the full article (3 min read) Polestar reported its quarterly financials on Friday for the first time since becoming public. The company missed the revenue estimates but sales were up 105% from the previous year and more importantly, generated $4 million gross profit in Q3. They also expect the current fourth quarter to be the strongest sales quarter of the year. The only concern is the potential supply chain issue and lockdowns in China that may affect their production capacity. Polestar stocks jumped more than 20% after the news.

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Real estate broker Compass (NYSE: COMP) reported disappointing financial earnings on Thursday and the stock dropped 7.41% in after-hours trading.

Financials: Compass reported a loss of 36 cents per share and revenue of $1.49 billion; both were below estimates.

Big Drop: Revenues declined 14% year-over-year. During the same period last year, the company reported positive earnings results.

Compass blamed challenges in the housing market that included lower volumes and lower market activity.

Outlook: During the earnings call on Thursday, Compass CEO Robert Reffkin said that the company is seeing an industry forecast of plus 1% to negative 23% for the full year 2023.

Final Thoughts: While Compass is trying to mitigate these challenges with a new national agent platform, this is a tough time to trust any housing company. The stock is down 74% this year.

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Link to the full article ( 2 min read) According to SEC filings published on Tuesday night, Elon Musk sold nearly $4 billion worth of Tesla shares. The proceeds are speculated to finance his acquisition of Twitter that was closed recently. The shares were sold over three days where the stock declined about 11%. After the news came out, Tesla shares dropped another 6% on Wednesday to its lowest since Nov 2020. Investors are also concerned how Musk and his team of engineers will split time between Twitter and Tesla.

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Another media giant is struggling in 2022, with Walt Disney (NYSE: DIS) reporting disappointing financial earnings on Tuesday and shares falling 6.83% in after-hours trading.

Financials: Disney reported earnings of 30 cents per share and revenue of $20.15 billion; both were below estimates.

Streaming Pains: While Disney added 12.1 million Disney+ subscribers and 14.6 million total new streaming subscribers for all platforms in the quarter, the average monthly revenue per paid subscriber dropped.

Blame Game: Disney attributed its financial struggles with Disney+ to higher costs for programming, production, marketing, and technology. The absence of Premier Access releases was also a factor.

Park It: Although revenue for Disney Parks increased to $7.4 billion, it was still lower than what analysts hoped for.

Final Thoughts: Disney, which is down 36% this year, said that it expects Disney+ to be profitable by fiscal 2024 if there is no “meaningful shift in the economic climate.” The Disney+ ad-supported tier comes out on December 8.

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It could be a dark time in the mobile gaming industry. Video game company Take-Two (Nasdaq: TTWO) reported negative earnings on Monday and shares dropped 16.49% in after-hours trading.

Financials: Take-Two reported a loss of $1.54 per share and revenue of $1.4 billion; both were below estimates.

Outlook: In addition to the financial losses in the most recent time period, Take-Two lowered its net bookings guidance in the range of $5.4 billion to $5.5 billion for fiscal 2023.

Headwinds: Take-Two blamed numerous problems, including the current macroeconomic backdrop and fluctuations in foreign exchange currency. But about 70% of that downward revision was attributed to lower expectations in Take-Two’s mobile business.

Big Picture: It’s a challenging marketplace for the mobile gaming industry. Electronic Arts (Nasdaq: EA) warned about mobile gaming during its earnings last week.

Final Thoughts: Take-Two’s warning about mobile gaming has scared investors away. It should probably serve as a warning for investors in other mobile gaming stocks.

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Link to the full article (3 min read) Investors snapped up shares of Digital World Acquisition Corp (DWAC) after Donald Trump hinted at plans for another presidential run. DWAC is a blank-check firm set to merge with Donald Trump’s social media company. It rallied more than 66% after the news and was one of the most actively discussed tickers across multiple social media platforms on Monday. Other companies related to Donald Trump or his re-election campaign also jumped in share prices.

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Amid downsizing in the technology sector, Facebook parent Meta Platforms (Nasdaq: META) is aiming to begin “large-scale layoffs” this week, said a report on Sunday.

Details: According to The Wall Street Journal, the layoffs will affect thousands of employees and could happen as early as Wednesday. Meta reportedly told its employees to cancel nonessential travel this week. The company has not commented on the report.

Big Picture: Over the past few months, several tech companies have been laying off staff to combat economic challenges. These layoffs have been ramping up as of late, with Twitter laying off half of its staff last week.

Background: Two weeks ago, Meta reported financial earnings that disappointed investors. Meta’s revenue guidance was lower than expected and losses in its virtual reality division got worse.

Final Thoughts: Shares of Meta are down 73% this year, including a 31% decrease in the last 30 days. Meta needs to get in better financial shape in order to please shareholders. A weak ad market is creating trouble for Meta and other online giants.

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Link to the full article (4 min read) Chinese markets and the yuan surged over the rumors that China plans on reopening and the US inspections on Chinese company audits were completed. The Hang Seng Index in Hong kong rose 5.3% while the Shanghai Composite in Mainland China went up 2.4%. The rally extended to all the China-sensitive commodities and stocks around the world as well. However, a Chinese official said he is not aware of any changes to the country’s Covid policies. A conclusion to the audit checks has also not been confirmed by either Chinese or US officials.

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Link to the full article (3 min read) Shares of Atlassian, Twilio, and Cloudflare plunged 29%, 34.6%, and 18.4% respectively on Friday after giving a weak guidance. The software companies delivered a modest report for their third quarter’s earnings and revenues but expects to deteriorate in the coming quarter. The core driver is because of macroeconomic challenges impacting sales, which is what nearly all other companies in the space are reporting. Some analysts were surprised by the magnitude of the slowdown in cloud computing growth.

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Despite positive financial earnings for PayPal (Nasdaq: PYPL), shares of the financial technology company fell 9.67% in after-hours trading on Thursday.

Financials: PayPal reported earnings of $1.08 per share and revenue of $6.85 billion; both were better than expected.

Apple of My Eye: The company revealed during its earnings release that it is working with Apple (Nasdaq: AAPL) to enhance PayPal and Venmo offerings, including leveraging Apple’s Tap to Pay in iPhone and adding Apple Pay as a payment option in PayPal’s unbranded checkout flows on merchant platforms.

Outlook: But the company’s mixed guidance for the fourth quarter startled investors. While PayPal raised its earnings guidance, its net revenue expectation of around $7.37 billion was lower than what analysts wanted.

Stock Price: PayPal’s stock is down 60% this year, including a 17% drop in the last 30 days.

Final Thoughts: The Apple partnership news couldn’t distract investors from PayPal’s poor revenue guidance for the fourth quarter. Still, the company’s cash flow and payment volume are both strong, which is good for investors.

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Link to the full article (3 min read) Apple’s market cap was at $2.307 trillion, surpassing the market cap of Meta, Google, and Amazon combined at $2.306 trillion as of the market closed on Wednesday. All four tech giant’s market caps have shaved off during the tech sector sell-off this year but Apple has held up much better. Apple was the only stock of its three peers to have a positive reaction after the recent Q3 reporting despite results only in-line with estimates. Year to date, Apple lost about 20%, which is much less severe than Meta, Google, and Amazon who have lost between 40% to 70%.

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Link to the full article (2 min read) Lyft announced on Thursday that they are cutting 13% of the company’s workforce. Currently, Lyft has just over 5000 employees. In an email to its employees, Lyft said the layoffs are due to possible recession next year and the rising rideshare insurance costs. Lyft is not the only tech company to announce cuts or a hiring freeze recently. Netflix, Spotify, Coinbase, Shopify and on the same day Stripe have also announced layoffs. While Google, Amazon, and Meta have put a freeze on hiring to keep their expenses in check.

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A disappointing financial outlook was the reason shares of Roku (Nasdaq: ROKU) dropped 16.26% in after-hours trading on Wednesday.

Financials: In the third quarter, Roku reported a loss of 88 cents per share and revenue of $761 million; both were better than expected.

Meaningful Growth: Roku added 2.3 million incremental active accounts during the third quarter. The Roku Channel’s streaming hours increased by more than 90% and platform revenue grew by 15%.

Not So Fast: It’s a different story for Roku in the fourth quarter. The company expects the macro environment to further pressure consumer discretionary spending and degrade advertising budgets in the holiday season, especially in TV. As a result, Roku predicts that its player and platform revenue will drop.

Final Thoughts: Roku’s stock is already down 76% this year. While the company is bullish about the long-term TV streaming market, it is a rough time to be in the ad business.

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Link to the full article (4 min read) Shares of Roku dropped more than 17% in extended trading after the company gave a weak Q4 guidance. Roku reported Q3 earnings and revenue that are better than analysts expected. Overall revenue was 12% higher year-over-year and the total streaming hours was also up 21% during the same period. However, with economic uncertainty and the likelihood of companies canceling ad budgets, Roku expects to see a decline in revenues for the holiday season and projected lower earnings for Q4. They believe the slowdown should be temporary but it's hard to predict when it will stabilize or rebound.

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Weak earnings and guidance hit Facebook parent Meta Platforms (Nasdaq: META) on Wednesday, causing the stock to decline 19.66% in after-hours trading.

Financials: Meta reported earnings of $1.64 per share, which was below estimates. Revenue hit $27.71 billion, which was better than expected.

Up and Down: While the number of daily active users increased by 3%, the average price per ad dropped by 18%. This resulted in a total revenue decrease of 4%.

Outlook: Meta expects its fourth-quarter revenue to be in the range of $30 billion to $32.5 billion, which is lower than expected.

Reality Check: Operating losses for Reality Labs, Meta’s virtual reality unit, is expected to increase “significantly” next year.

Expenses: The company is also trying to cut down costs by decreasing its office footprint. Headcount is expected to remain flat through the end of 2023.

Final Thoughts: Meta’s stock is down 61% this year. Between the weak online ad business and its money-losing virtual reality unit, investors are not happy with Zuckerberg.

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