Sectors: Technology
There’s no change with our view towards online accounting firm XRO as the stock rapidly approaches our initial $100 target area, we like the business but it struggled to maintain its challenging high valuation in today’s QT environment. XRO are holding their Annual Meeting on the 18th of this month while its FY23 Half Year Results won’t be presented unto the 10th of November hence it’ likely if MM acts it will be enabled by general market moves & sentiment as opposed to stock specific news.
PayPal (PYPL US) finally enjoyed a bounce in its shares this week while we expect more to play out after the company announced $US900mn in savings from cost-cutting, a huge $US15bn share buy-back and news that activist investor Elliot had taken a $2bn stake in the company with plans afoot to turn around the payments provider. “Elliott strongly believes…
APX -27.32%: The Artificial Intelligence (AI) company was whacked on the back of another major earnings downgrade with the company booking underlying EBITDA for the half of just $US8.9 million as revenue fell ~7% to $US182.9m as their core customers (Big US Tech) pull back spending on advertising-related AI projects. In short, the woes for APX…
BNPL adrenaline junky stock ZIP rallied 4-fold in a similar fashion to BRN over recent weeks but it’s just as easily fallen ~40% from last week’s high – we are very 50-50 on this stock.
Network connectivity business MP1 rallied strongly in late July following their 4th quarter update which showed revenue was up 10% on the 3rd quarter after they added 533 new ports and posted a positive EBITDA for the first time as monthly reoccurring revenue (MRR) grew by $1.2mn – all better than downbeat expectations although the move must be kept in the context of the huge decline in the stock.
This week saw Microsoft (MSFT US) miss estimates yet the stock rallied 5% on positive guidance – another clear illustration that the markets bears/sellers have currently lost control. Their revenue and income fell short as revenue from Azure and other cloud services – earnings came in at $2.23 v $2.29 expected while revenue of $US51.87bn was below the markets…
Google as its usually called reported earnings largely in-line with expectations with search’s outperformance offsetting a miss by YouTube revenue i.e. search revenue was a healthy $US40.7bn comforting MM that their business is doing fine even as economic conditions toughen although they, like most stocks are to a certain degree at the mercy of the macro environment…
This morning we saw Apple’s 3rd quarter result meet the Streets estimates easing fears that supply chain disruption and a questionable global economy would weigh on earnings. Revenue rose 2% to a whopping $US83bn while earnings equated to $1.20 per share (v $1.16 exp). The companies staples iPhone & iPad sales beat estimates while the secondary Macs and wearables…
MM is holding a large 7% position in this online accountancy business, there’s no change with our view and target towards XRO i.e. we are still looking to trim this back slightly ~$100 which could easily unfold sooner rather than later with this volatile stock.
Microsoft has been a phenomenal success story over the past 15 years and more importantly for MM, has been a core portfolio holding since the onset of Covid in 2020, currently showing a paper profit of ~50% in two years. They reported quarterly results overnight that were weaker than expected with both revenue and earnings slightly below most analysts’ expectations, the higher…
