Stocks continue to creep higher as the Dow, The S&P and the NASDAQ all gained ground. At the close the Dow gained 36 points today to finish at 20,949 on heavier trading volume. Apple reports numbers at the close.
Something is happening with Twitter. After a $26 IPO price and a climb to over $70 per share the stock fell like a rock and eventually hit $14 per share. The latest earnings report however was better than expected and then Twitter signed a deal with Bloomberg giving it “news streaming” access to Bloomberg’s high end customer base who pay $25k per year for each terminal. Then it was announced today that Mark “The Shark” Cuban has been buying shares of Twitter citing AI investments that the company has made. Twitter is an interesting story since it seems to be everywhere yet no one has figured out how to really monetize that traffic like Facebook has done. While Twitter is profitable, revenue growth is slowing and people have been leaving the company like rats jumping off a ship. It will be interesting to see how this plays out.
In the vehicle space, car sales for April were off a bit more than expected. GM reported a 5.8% sales decline while Ford posted a worse than expected 7.1% decline in sales. Fiat Chrysler said that Jeep sales are down and this led the company to realize a 7% overall sales drop from this time last year. Tesla reports Q1 numbers tomorrow. Shares of Cummins Diesel hit an all-time high as sales were up 7% and net income gained 26%.
The most popular free stock picking app used by millennials is called RobinHood. On the RobinHood app the number one owned stock is AMD or Advanced Micro Devices which today is getting smoked after reporting earnings that failed to inspire. The company posted an 18% increase in revenue but going forward, investor hopes for accelerated growth were dashed when AMD lowered its gross margin guidance. The stock fell 23% and as Charles Barkley might say to a rookie whom he just ran over …..”Welcome to the NBA”!