MARKET MOVERS
- Microsoft misses estimates but the stock is up 5% on rosy guidance. In the fiscal fourth quarter, the biggest challenge stemmed from worsening foreign-exchange rates. Microsoft said that reduced revenue by $595 million and earnings by 4 cents per share. With respect to guidance, Microsoft called for $49.25 billion to $50.25 billion in fiscal first-quarter revenue implying 10% growth. Read more here.
- Google reports the slowest rate of growth in 2 Years. Alphabet posted $69.69 billion of second-quarter revenue on Tuesday, up 13% from the same period last year. That marked the slowest rate of growth since the second quarter of 2020. Google is considered a bellwether for the strength of online advertising. The slowdown suggests further weakness in an industry critical to the health of many internet companies.
- U.S. home-price growth slips from record high in May says Case-Shiller. Home prices in May were 19.7% higher compared with the same month last year, according to the S&P CoreLogic Case-Shiller National Home Price Index. This marks the second month of slower increases, as the housing market cools due to higher mortgage rates and increasing concern over inflation. In April, the annual gain was 20.6%. Read more here.
- General Motors’ income tumbles 40% on China loss and parts shortages. Supply-chain troubles left the automaker with tens of thousands of partially built vehicles it couldn’t sell during the period. China is the company’s second-largest market, where its joint-venture business posted a rare loss of $87 million. Net income for the April-to-June period totaled $1.69 billion, down from $2.84 billion a year earlier.
- The NFL launched its own streaming service, NFL+. On Monday, the league launched its new streaming service, NFL+ for $4.99/month, or $39.99/year. NFL+ will give subscribers access to in-market Sunday afternoon games and national games on Sunday, Monday, and Thursday nights. A premium version of the service for an additional $5 a month (or $79.99 per year) will feature full replays and bird’s-eye views of games.
- Sellers in some of the hottest pandemic markets are slashing prices. This spring the number of homes for sale more than doubled in each of these metros as sellers raced to get their homes on the market—before it was too late. But while more homes were going up for sale—boosted in some markets, like Boise, by new construction coming to market—the number of buyers dropped off leading to the slashing of prices. Read more here.
- YouTube TV counts 5 million viewers on its cable TV alternative. Not only does that make it the largest virtual Multichannel Video Programming Distributor, beating Disney's Hulu + Live TV, but it's now the fifth-largest distributor in the nation. YouTube TV gives the company approximately two minutes of every hour of viewing to fill with commercials. To do so, it relies on Google's ad technology.
WHAT TO WATCH
- Intel plans to make chips for Taiwan’s MediaTek to keep up with Asian manufacturing rivals. Intel will manufacture semiconductors for Taiwan’s MediaTek, giving the U.S. company a big boost for its contract chipmaking business. Intel CEO Pat Gelsinger has made revitalizing the foundry business a key priority to catch up with and break the dominance of its Asian rivals TSMC and Samsung. MediaTek is one of the biggest suppliers of smartphone processors and a rival to Qualcomm.
- Shopify will cut 10% of Its staff, with most workers gone by day’s end. Tobi Lütke, the company’s founder and chief executive, told staff in a memo sent Tuesday that the layoffs are necessary as consumers resume old shopping habits and pull back on the online orders that fueled the company’s recent growth. Shopify, which helps businesses set up e-commerce websites, has warned that it expects revenue growth to slow this year.
- Amazon Prime plans inflation-busting 31% price hikes in Europe. The annual price of the free-shipping service will increase to £95 ($114.06) from £79 in the UK starting from Sept. 15, the company said in a statement on Tuesday. Prices will jump by 31% on average across the affected European countries and follows similar hikes in the US announced in February. Read more here.
