Your Wednesday Blip 2/3/21

Your Wednesday Blip 2/3/21

Stocks ended the day in mixed fashion. The Dow was up while the NASDAQ was off a bit. At the close the Dow posted a 36 point increase at 30,723 on lower trading volume. IBD has flipped back over the “market in confirmed uptrend”. Positive earnings reports continue to support market upside bias.
Amazon reported earnings yesterday afternoon and as usual the numbers were good. Revenue gained 44% and net income grew 118%. Both top and bottom lines beat guru estimates. The big news on the call however was the announcement that Jeff Bezos would step away from the CEO duties later this year while Andy Jassy will become CEO. Andy has headed up the cloud division and has been with the company since 1997. Bezos is 57 years old and said he is making the move so that he can focus on other things like Blue Origin and the Bezos Earth Fund. Maybe he will start an initiative for mini libraries in front of people’s homes.
Google (aka Alphabet) also reported blowout earnings that sent shares higher. Ad revenue from YouTube was strong plus cloud revenue saw a substantial uptick even though the cloud division lost money in the quarter. Overall revenue was up 23% while net income gained 29% handily beating estimates. Operating margins improved from 20% to 28% and going forward the gurus are saying the ad revenue looks strong.