Bulls, Bitcoin, & Beyond

Market Moves Yesterday

S&P 500 @5,544.59 ( ⬇️ 0.78%)

Nasdaq Composite @ 17,871.22 ( ⬇️ 0.70%)

Bitcoin @ $64,288.80 ( ⬇️ 0.22%)

Hey Scoopers,

The weekend is on the horizon, and we’re wrapping up:

👉 Netflix reports Q2 results

👉 Goldman Sachs raises Apple forecast

👉 Domino’s disappoints Wall Street

So, let’s go 🚀

Market Wrap 📉

All three major equity indices pulled back on Thursday as investors continued to pare position in big tech names while booking profits on recent runs elsewhere.

Wall Street continued to dump mega-cap tech stocks, a pattern largely seen in recent trading sessions as traders expect interest rate cuts to begin this September.

The excitement surrounding rate cuts has powered small-caps and cyclical stocks higher, as these companies are poised to benefit from lower borrowing costs.

Ten of the 11 sectors in the S&P 500 index traded lower yesterday, while 90% of the Dow members also reported losses.

In the last four trading sessions, the S&P 500 index is down 1% while the tech-heavy Nasdaq has declined almost 3%. Comparatively, the Dow Index is up 1%, and the Russell 2000 has popped by more than 2% this week.

Trending Stocks 🔥

Eli Lilly- Shares of the healthcare giant fell over 6% following Roche’s announcement that its latest weight loss drug showed promising early-stage trial data.

Warner Bros. Discovery - Shares added 2.4% following a Financial Times report that the media behemoth is considering strategic options to boost its share price.

Cintas - Shares rose over 5% after the maker of company uniforms reported earnings of $3.99 per share in Q2, above estimates of $3.79 per share.

Netflix Banks on Ad Revenue

Netflix announced its Q2 results after the market close yesterday and reported:

👉 Revenue of $9.56 billion vs. estimates of $9.53 billion

👉 Earnings per share of $4.88vs. estimates of $4.74 per share

👉 Total memberships of 277.65 million vs. estimates of 274.4 million

The streaming giant continued to add global subscribers and saw strong growth in its advertising business. In Q2, ad-supported memberships rose by 34% year over year, making it a key revenue driver for the company.

Notably, the ad-supported tier has gained significant traction, accounting for 45% of signups in the markets where it is offered.

Here are some key Q2 numbers for Netflix:

• Revenue rose by 17% to $9.6 billion due to an increase in average paid memberships

• It reported net income of $2.15 billion, up from $1.4 billion or $3.29 per share in the year-ago period.

• Global paid memberships rose by 16.5% year over year

Netflix expects to grow sales between 14% and 15% in 2024. Earlier this year, Netflix emphasized it would stop providing membership numbers starting in 2025 as it focused on revenue and operating margins as key metrics.

Goldman Sachs Expects Apple to Beat Estimates

Investment bank Goldman Sachs expects Apple to beat consensus earnings estimates in fiscal Q3 of 2024 (ended in June).

Goldman Sachs has a “buy” rating on Apple stock and expects it to post earnings of $1.36 per share, above average estimates of $1.33 per share. It also expects Apple to increase sales by 4% to $85.1 billion.

Goldman Sachs forecasts iPad and Macbook sales to rise by 23% and 13% year over year, respectively, while iPhone sales might decline by 5%.

According to Goldman Sachs, Apple’s brand loyalty resulted in a widening base of users, which provides the iPhone maker with visibility into revenue growth by reducing customer churn and acquisition costs for new product or service launches. This results in repeat purchases and device upgrades.

Domino’s Pizza Tanks 13.5%

Shares of Domino’s Pizza sank over 13%, putting the pizza chain on pace for its worst day since December 2008.

Domino’s Q2 Analyst Estimates

Domino’s reported adjusted earnings of $4.03 per share in Q2, topping estimates of $3.68 per share, while sales of $1.10 billion were in line with estimates.

Domino’s, however, stated it expects fewer store openings than previously forecast in 2024. It estimates new store openings to range between 825 and 925 this year.

However, the company maintained its target of opening 175 new U.S. stores each year between 2024 and 2028.

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Chart of The Day

According to a report from Adobe Analytics, consumers spent $14.2 billion over two days during Amazon’s Prime Day event, an increase of 11% year over year.

In 2020, Amazon Prime Day sales totaled $10.4 billion, rising to $12.7 billion in 2023.

Consumers have embraced shopping on smaller screens, with mobile devices driving almost 50% of online purchases, up 18.6% year over year.

Meme of the Day

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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.