- 3 Big Scoops
- Posts
- CrowdStrike is On a Roll
Bulls, Bitcoin, & Beyond
Market Moves Yesterday
S&P 500 @ 5,291.34 ( ⬆️ 0.15%)
Nasdaq Composite @ 16,857.05 ( ⬆️ 0.17%)
Bitcoin @ $71,042.11 ( ⬆️ 2.92%)
Hey Scoopers,
Happy Wednesday! Are you ready to tackle the midweek hustle?
👉 CrowdStrike thumps Wall Street estimates
👉 Berkshire’s fixed-income exposure
👉 Can Intel stage a comeback?
So, let’s go 🚀
Market Wrap 📉
Equity indices traded higher, while Treasury yields moved lower on Tuesday as investors parsed the latest reading on the jobs market.
Employment data showed 8.059 million vacancies in April, the lowest level in three years. Comparatively, Dow Jones called for 8.4 million openings.
All eyes will now be fixed on the nonfarm payrolls report for May this Friday. Economists expect the data will show private employers added 175,000 jobs in May.
However, investors would want the nonfarm payroll number to be lower as a weak labor market should result in lower inflation and interest rate cuts.
Traders now expect the likelihood of two interest rates in 2024 at 62%, up from just 36% last week.
Trending Stocks 🔥
Bath & Body Works - Shares of the retailer sank 13%, heading for their worst day since 2021, despite topping fiscal Q1 revenue and earnings estimates. It forecast earnings to range between $0.31 and $0.36 per share, lower than estimates of $0.38 per share.
Carnival - Shares popped 5.8% after the cruise operator announced it would fold P&O Cruises Australia into Carnival Cruise Line, a strategic move that aimed to increase capacity for its flagship brand.
Axos Financial - The stock tumbled over 4% after a Hindenburg Research report raised concerns over the company’s glaring commercial real estate loan problems.
CrowdStrike Thumps Q1 Estimates
Shares of cyber security company CrowdStrike are trading 6.6% higher in pre-market after it beat Wall Street estimates in fiscal Q1 of 2025 (ended in April).
In the April quarter, CrowdStrike reported:
👉 Revenue of $921 million vs. estimates of $904.7 million
👉 Adjusted earnings per share of $0.93 vs. estimates of $0.90
The tech giant also raised earnings and revenue guidance for fiscal Q2 of 2025. It forecasts sales between $958.3 million and $961.2 million, above estimates of $944.6 million. Its earnings are forecast between $0.98 and $0.99 per share, above estimates of $0.91 per share.
Here are some key numbers for CrowdStrike in Q1:
Annual recurring revenue grew by 33% to $3.65 billion
It ended Q1 with an operating cash flow of $383.2 million, up from $300.9 million last year
Its free cash flow grew to $322.5 million from $227.4 million in the last 12 months
CrowdStrike’s free cash flow margin was 35% in the April quarter. Moreover, it ended Q1 with a cash balance of $3.70 billion, which allows it to invest in organic growth and target accretive acquisitions.
Berkshire Hathaway Owns 3% of the T-bill Market
A report from JPMorgan revealed that Warren Buffett’s holding company, Berkshire Hathaway, controls 3% of the Treasury Bill market.
Berkshire ended Q1 of 2024 with $182 billion in cash and cash equivalents, of which $158 billion was parked in T-bills. Basically, T-bills are short-term debt obligations backed by the U.S. Treasury with a maturity of one year or less.
Due to higher interest rates, T-bills are currently offering yields of more than 5%, which means Berkshire will earn roughly $8 billion in annual interest payments.
During the company’s annual meeting last month, Buffett said total cash in hand might surpass $200 billion by the end of Q2.
The Oracle of Omaha stated, “We’d love to spend it, but we won’t spend unless we think there’s really something that has very little risk and can make us a lot of money.”
Intel Unveils AI Chips
Yesterday, U.S. chipmaker Intel unveiled new AI (artificial intelligence) chips for data centers, hoping to compete with rivals Nvidia and AMD.
Intel claimed its Xeon 6 processor will deliver better performance and power efficiency for high-intensity data center workloads compared to its legacy chips.
Source: Techovedas
Intel aims to catch up with Nvidia and AMD after it has largely been driven to the sidelines amid the AI frenzy, which saw tech giants such as Meta, Microsoft, and Alphabet purchase as many Nvidia chips as possible.
Unlike Nvidia and AMD, Intel designs and manufactures its own chips. However, its foundry business reported a wider operating loss of $7 billion in 2023 compared to 2022.
Headlines You Can't Miss!
ECB to cut interest rates for the first time since 2019
SoftBank surges after hedge fund pushes for buybacks
Roaring Kitty is worth around $300 million
The diamond industry is in trouble
Bitcoin tops $70k as net inflows surpass $880 million
Chart of The Day
Valued at $1.87 trillion by market cap, Amazon is:
👉 The largest e-commerce platform in the world
👉 The largest public cloud platform globally
👉 The third-largest digital ad platform in the world
While e-commerce accounts for the majority of sales, AWS rakes in the maximum profits and its ad business is its fastest growing segment.
Meme of the Day
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.