Facebook Inc. (NASDAQ:FB) is due to announce earnings on July 26th after the market closes. Facebook tends to be volatile after earnings are announced and typically pop to the upside as Facebook’s earnings have continued to post robust growth. Back on June 2nd, 2017, I authored an article “Facebook Will Hit $175 By Year End” and with five more months to go before the end of the year, I think Facebook has a good chance of breaking through this number. Facebook has been on an uptrend heading into earnings and currently sits at $160 per share and while the stock is up 39% YTD. These numbers may seem staggering, and some would state that buying at these levels would be cashing the stock. Normally I would agree with this approach. However, I think Facebook is an exception to this situation. Even at these levels and YTD appreciation, factoring in Facebook’s projected growth with tech comparators such as Alphabet Inc. (NASDAQ:GOOG), Netflix Inc. (NASDAQ:NFLX) and Amazon.com (NASDAQ:AMZN), collectively known as the FANG stocks, Facebook is superior with a lower risk profile. Facebook’s projected growth is greater than Google’s and just shy of Amazon’s yet has a P/E ratio that’s lower than Google’s and a fraction of Amazon’s and Netflix’s. Regardless of the upcoming earnings announcement, this will be an immaterial event to the long term narrative for Facebook investors. I feel that Facebook represents value even after this massive run YTD and continue my long thesis. Continue reading "Upcoming Facebook Earnings - A Nonevent Long-Term"
Hello traders everywhere. The indexes are ending the week on a soft note after reaching records highs earlier in the week. This is primarily due to General Electric Company (NYSE:GE) falling more than 4% to a 19-month low.
Meanwhile, the euro climbed to its strongest level against the dollar since January of 2015 after ECB President Mario Draghi said that the ECB would discuss plans to unwind quantitative easing this fall.
Key levels to watch next week: Continue reading "Market Ends On A Weak Note"
Hello traders everywhere. The stock markets opened little unchanged for on Monday holding just above the record levels set on Friday. The reason for the slow start? Earnings. That's right, it's earnings season and we're kicking off a big week of earnings with Netflix Inc. (NASDAQ:NFLX), which reports after the close today.
If you're looking for a place to find a full listing of earnings dates look no further. I use Yahoo! Finance's earnings calendar.
Key levels to watch next week: Continue reading "Earnings, Earnings, Earnings"
Hello MarketClub members everywhere. The indexes are looking and pacing to snap a 3-day losing streak today with the big 3 all being in the green. This move comes on the heels of a relatively quiet holiday weekend where fears of geopolitical upheaval that never came to fruition.
Traders have turned their attention to a slew of corporate earnings this week, led off by Netflix and of course United Airlines, who both report after the close today.
Netflix Inc. (NASDAQ:NFLX) is expected to report earnings of .37 EPS according to analysts. That would be more than a 38% increase compared with the .6 ESP Netflix reported during the same quarter a year ago.
Analysts expect United Continental Holdings Inc. (NYSE:UAL) earnings per share to drop 69% to .38 EPS, this decline is a reflection of higher fuel costs. Revenue is expected to increase 2% to $8.379 billion.
Key levels to watch this week: Continue reading "Market Looking To Break 3 Day Losing Streak"
I’ve written many articles highlighting the advantages options trading and how this technique, when deployed in opportunistic or conservative scenarios may augment overall portfolio returns while mitigating risk in a meaningful manner. Timing the market has proven to be very difficult if not altogether impossible. However creating opportunities to lock-in the downward movement in a given stock one is looking to own is possible. If a stock of interest has substantially fallen to near a 52-week low, then one has an option to “buy” the stock at an even lower price at a later date while collecting premium income in the process. Alternatively, it's also possible to make money on the option itself without owning any shares of the company via realizing options premium gains as the underlying stock appreciates in value off its lows. This is called a covered or secured put option, covered in the sense that one has cash to back the option contract. Leveraging covered or secured put options in opportunistic scenarios may augment overall portfolio returns while mitigating risk when looking to initiate a future position in an individual stock or looking to make money on the potential appreciation without owning the stock. In the event of a covered put, this is accomplished by leveraging the cash one currently has by selling a put contract against those funds for a premium. Why buy a stock now when you can purchase the stock in the future at a lower price while being paid to do so? Why buy stocks at all when you can make money on the underlying volatility without ever owning the shares? Continue reading "High-Quality Secured Puts Yield 20% Return"