NEWS
Meta Adds To Tech’s Momentum

Strong results from AMD and Morgan Stanley’s bullish note on Nvidia helped buoy big tech, and the Fed setting up a September cut added fuel to the fire. Additionally, a cooling labor market and strong earnings from Meta after the bell have bulls ready to charge again tomorrow. Let’s see what you missed. 👀

Today's issue covers Meta’s ‘flawless’ quarter, the Fed setting up a Sept. cut, Nancy Pelosi’s latest buy, and something we need to taco bout. 📰

Here's today's heat map:

7 of 11 sectors closed green. Technology (+4.24%) led, & healthcare (-0.37%) lagged. 💚

Pending home sales rose 4.80% in June after a jump in available inventory helped draw buyers out of the woodwork, though transactions fell 2.60% YoY. 🏘️

Buyers finally hooked up with Match Group shares after the company announced plans to cut 6% of its staff and reported earnings that suggest its worst may be behind it. It rose 13% in its best day since November 2022. 💘

Carvana shares jumped another 11% after topping second-quarter earnings expectations and issuing guidance that points to a ‘record year.’ 🚗

Texas-based power company Vistra rebounded 15% after receiving a license extension to operate its Comanche Peak Nuclear Power Plant through 2053. ⚡

Constellation Energy also rose 13% after grid operator PJM’s auction results cleared 17.60 gigawatts of capacity from the company from 2025 to 2026. ☢️

Teladoc tumbled 14% after its revenues missed estimates and management withdrew its full-year and long-term outlook. 📉

And two chip stocks had opposite results. Qualcomm jumped 6% after topping estimates and issuing strong guidance. While Arm Holdings fell over 10% after issuing second-quarter earnings guidance below analyst estimates. 😮

Here are the closing prices: 

GUEST AUTHOR: STOCK MARKET NERD
Meta Earnings Review: “A Flawless Quarter”

Meta was the star of the earning show today, so we asked Stocktwits user Bradley Freeman (aka @StockMarketNerd) to help us break down the results. 🧠

Before we dive into the numbers, here’s Brad’s takeaway from the report:

And now, here are some of Brad’s key highlights from the report: 👇

As the table below shows, Meta beat revenue and daily active user (DAU) estimates. Additionally, ad impressions rose 10% YoY, with price per impression rising 6% QoQ, its fastest growth in over 3 years. 📈

As for margins and profitability, Meta beat EBIT estimates by 3.10% and the consensus GAAP EPS estimate of $4.76 by $0.40. 🔺

Looking ahead, Meta’s Q3 revenue guidance beat by 1.40%, with management reiterating 2024 operating expense (OpEx) and capital expenditure (CapEx) guidance. This should lead to upward profit revisions for 2024. 📊

From a valuation perspective, Meta trades for 23x this year’s earnings. Analysts currently expect EPS to rise by 35% Y/Y this year and by 14% Y/Y next year. Here’s how that multiple compares to its historical norms:

Overall, as alluded to at the top of this post, it was a stellar quarter for the company and the stock is responding, with shares up 7% after the bell. 🤩

Big thanks to Brad for guest authoring this post and providing great coverage of today’s top earnings story.

If you want more of Bradley’s analysis, you can check out his “Stock Market Nerd” newsletter, which sends detailed coverage on dozens of public companies right to your inbox. And make sure to follow him on Stocktwits for more great info! 👍