Your Thursday Blip 1/28/21

Your Thursday Blip 1/28/21

Three monsters reported earnings yesterday while the populist Reddit army continued to smash the institutional shorts in what some are calling a small scale replay of the famous Northern Pacific short squeeze of 1902 when shares of NP went from $45 to $1,000. At the close the Dow was up 300 at 30,603. Trading volume was lower on the day. Both IBD and BTS indicators are positive but volatility is on the rise.
Apple came in with its largest quarterly revenue report ever as sales in every product category showed double digit growth. Revenue hit $111 billion up 21% while net income increased by 34%. The results were better than expected but going forward the company expects sales growth rates for wearables to decelerate.
Facebook, aka Faceplant, posted solid numbers with a 33% jump in sales and a 52% increase in net income. While weakness in domestic usage was worrisome it was offset by growth in global traffic. Facebook did mention that Apple’s privacy changes are a concern and warned that pandemic trends could hurt its advertising business in 2021.
Tesla rounded out the day by posting a 46% increase in revenue and a 95% jump in net profits. Revenue came in above guru estimates while the net income figure did not. Looking at 2021 Elon “Megalomaniac” Musk said they are expecting the factories in Germany and Texas to come online this year. They also talked up the 4680 battery, software licensing and subscription services. Shares pulled back from highs as investors took gains. Elon seems to be taking pleasure at the recent stress of the short sellers who two years ago had been bashing his company. No love loss there!