Shares of International Business Machines Corporation (IBM) fell sharply on Friday after its latest earnings report from Q4 2020.
Among the lowlights of the disappointing report were declining sales for a fourth straight quarter – down 6.5% to $20.4 billion versus an expected $20.75 billion – and $2.07 Diluted EPS versus $1.79 estimates.
And even though IBM CEO tried his best to paint a rosier picture for 2022 and beyond, that does little to calm the nerves of current investors.
Meanwhile, cloud computing competitors Microsoft Corporation (MSFT) and Amazon.com, Inc. (AMZN) continue to thrive, making them far more attractive targets for short and intermediate-term traders.
Microsoft is expected to report earnings this Tuesday, January 26, and Amazon will release its earnings on February 2.
Trading tip of the week
Concern over whether a large number of stocks are currently overvalued is starting to creep into the market.
In the short-term, stocks move on a supply and demand curve between buyers and sellers. More aggressive buyers leads to prices going higher. More aggressive sellers, prices go lower.
In the long term, growth rates, P/E, moat and management start to come into play. However, in the short-term, none of those matter.
So the market could go higher in the short-term, even if valuations are high.
Earnings report to watch
We talked last week about how the sports gambling industry could be one of the hottest spaces of the year.
That’s why this week I’m going to really take a good look at the earnings report of Las Vegas Sands Corp. (LVS).
While the Q4 2020 results won’t tell us much – Las Vegas casinos are still only able to operate at 25% capacity and most of the new states to legalize sports betting have yet to take a single bet – any forward-looking statements on LVS’s interest in expanding sports gambling operations will be heavily scrutinized.
Las Vegas Sands has been resistant to entering the world of mobile sports gambling, but that stance could be softening. Keep a sharp eye on this Wednesday’s report.
A New Breakthrough in the Agriculture Industry
The biggest threat to the agriculture industry – particularly the cannabis industry – is only about 1/80th of an inch.
Yes, that’s the size of one of the mites that are already spreading like wildfire and terrorizing 33 states, feasting on over 200 types of crops… but their favorite seems to be the cannabis plant.
These predators have brought both small operations and industry leaders to their knees, costing billions of dollars.
But with every problem comes a solution… and that’s where this tiny startup comes into play.
With their proprietary technology, they’re waging a war on these menaces, and the companies that utilize this technology can multiply their revenue nearly 4X in a single year!
This company’s breakthrough could send it skyrocketing in the next year, with some predicting a 11,113% leap during that time – click here to view this presentation for your chance to become a part of this revolutionary venture.