Disclaimer: when we talk about, that something has grown, we mean a comparison with the same quarter a year earlier. Since all issuers are from the USA, then all results in dollars. References were used in the creation of the material, which are not available to users from the Russian Federation. We hope, Do you know, what to do.
Time to report
Microchip (NASDAQ: MCHP) reported an increase in sales by 10,6% - up to 1.467 billion and profit from 99.9 million to 116 million. Given the huge demand for semiconductors and sophisticated electronics, this is quite expected, but no less cool result.
Ball Corporation (NYSE: BLL) reported an increase in revenue from 2.785 billion to 3.125 billion, profit — from 23 million to 200 million. Such progress in terms of profit is due to the fact, that in 2020 the company had large expenses related to the reorganization and refinancing of the business, but sales in all regions and segments increased, as well as operating income.
Zillow (NASDAQ: ZG) reported revenue growth on 8% and the appearance of profit - a loss of 163.273 million was replaced by a profit of 51.964 million. It's better than forecasts. Considering the hype in the US real estate market, I would expect further improvement in the company's results.
У Arista Networks (NYSE: ANET) revenue increased by 27,6% — impressive growth was noted both in the segment of goods, as well as in the service segment. Profit increased from 138.431 million to 180.366 million - the result was better than expected. The company raised its forecast for the next quarter.
datadog (NASDAQ: DDOG) reported revenue growth on 51%. More good news: number of large clients, paying more than 100 thousand per year, increased by almost half, which will positively affect the financial stability of the enterprise. But the trouble with profit: if a year ago the company earned 6.479 million, then this year it suffered losses - 13.068 million.
At HubSpot (NYSE: HUBS) revenue increased by 41%, and higher growth 40% was like in the subscription segment, and in the professional services segment. With a profit, everything is not so great: losses increased from 17.7 million to 23.2 million.
Kellogg (NYSE: K) increased revenue by 5,1%, and the profit grew from 350 million to 371 million - this confirms the correctness of the idea we previously expressed in a number of ideas and reviews about the primitivization of demand in the West: people spend more money on food, and recognizable brands, saving on many other things.
Fastly report (NYSE: FSLY) caused mixed feelings among investors: revenue increased from 62.924 million to 84.852 million, but the losses also increased - in 4,5 Times, to 50.683 million. Both indicators turned out to be slightly worse than expected. The company also issued a worse-than-expected growth forecast for the next quarter., although it improved the forecast for 2021 as a whole. But analysts, obviously, worried about the company's slowdown, for which they used to forgive her unprofitability and other sins.
It's Etsy (NASDAQ: ETSY) revenue increased by 132,3%, and profit - up to 1048%. The results were better than analysts' expectations. But the company predicts the end of the pandemic boom in its sales.: expectations for the next quarter are already much more modest. More to note, that the company is so unsure of the future, which does not give forecasts for the year. With the expected end of the pandemic, many investors are skeptical about the prospects for Etsy, whose sales boom came just at the time of especially severe coronavirus restrictions.
Qorvo (NASDAQ: QRVO) showed a good result: revenue increased from 787.8 million to 1072 million, and profit - from 50.4 million to 298.7 million, mainly due to operating results, but also at the expense of avoiding large expenditures, that happened in 2020. In general, Apple's shift from selling devices to services has not yet affected Qorvo's business., which should please the shareholders of the latter.
У Trimble (NASDAQ: TRMB) revenue increased by 12%, to 886.5 million, — with a decline in services, but growth in the sale of goods and subscriptions. Profits rose by almost 2 Times, to 114.6 million. With industry growth in the US and around the world, I would expect, that the company will be able to build on its success in the next half year.
У Paycom (NYSE: PAYC) revenue increased from 242.368 million to 272.198 million, and profit - from 63.015 million to 64.616 million. Success seems humble, but really, given the scale of staff cuts in the American economy, the company is very lucky.
Carvana (NYSE: CVNA) increased revenue by 104% — up to 2.245 billion, losses also decreased - from 184 million to 82 million. Considering the perceived shortage of new cars on the market due to the lack of semiconductors, i would expect, that the demand for used cars in the US will still hold out for some time to the benefit of this issuer.
Albemarle (NYSE: WHITE) showed revenue growth from 738.845 million to 829.291 million, but the profit has decreased by a few percent, to 117.698 million, - all because of high debt service costs. Given the high demand for lithium, one would expect an increase in the profitability of the company's business, but here it is also worth bearing in mind the instability and unpredictability of prices for this resource: the market is very opaque and therefore vulnerable to speculation - both in the direction of increasing prices, so did her fall.
U Akamai (NASDAQ: MY BROTHER) the quarter came out very good: revenue increased by 10%, and profit - from 123.146 million to 155.695 million. It's better than expectations. The company also improved its forecast for the year..
Twilight SMEs
Experts FED The US conducted a study of the impact of the pandemic on small businesses in the service sector. The results are depressing: 35% companies, active before the pandemic, were closed and 3% from now closed companies, probably, will open after the end of the pandemic. Each additional week in the "closed" state reduces the likelihood of opening a company by 2%. Expected, that company, who opened their doors after the end of quarantine, only re-hired 35% previously laid off employees within the first four weeks after opening - and then how things go. For whom it is important? Generally for everyone.
America not Germany, which works for export and in which the consumer activity of the Germans themselves is not very important for local companies. Most of the US GDP is generated by domestic demand, therefore, the level of employment and demand of many enterprises will affect the reporting of those companies, who work primarily in the US. And this is true even for IT people., though not all: some Microsoft it, may be, won't affect much, but Rapid7, with its large share of small businesses in the revenue structure, could be seriously affected.
50 shades of different
According to HPS Insights, of all topics, that the governors of the American states touched upon in their speeches to the voters, the most significant growth occurred in the area of discussion of race relations: if in 2020 this topic was raised in their speeches 24% governors, then in 2021 it was already 41% governors. Interesting, that the topic of criminal justice was less addressed in their appeals — 73% governors in 2021 against 80% in 2020.
In this regard, a scenario with reputational damage for the largest technology companies in Silicon Valley and a subsequent drop in shares is likely.. Why did it happen? The fact, that they employ a huge number of people from Southeast Asia, in particular from the regions of the former British India. And as it turned out recently, all top positions among Asian employees of the largest technology companies were taken by representatives of the highest castes, who actively discriminate against members of the lower castes. I think, that this story will be further developed in the light of the start of the campaign of the largest Western corporations, including Facebook, BMW, AT&T, Comcast и ViacomCBS, to promote and support the Asian American community.
You can still expect that, that the racial issue will be very relevant to asset managers: recently NGO representatives, dealing with racial equality, published an open letter to asset managers, in which they were accused of supporting racism and called for changes in their investment policy in accordance with the principles of the struggle for racial equality.
In general, there were always many such letters, but now, due to the popularity of ESG investing, it may well have an effect and influence the policy of issuing loans and allocating investment assets. Maybe, this will make money, by purchasing shares of companies, most vocal about being progressive on racial issues. At the same time, it poses significant risks: any company can be blamed for the lack of progressiveness, even if there isn't much evidence, and then the stock will go down.
Warehouse affairs
According to the American study Spillover Effects from Voluntary Employer Minimum Wages, wage increase in warehouses Amazon leads to higher wages in nearby retail establishments. Who is it for?? At least for Walmart shareholders, Target, Costco and other retail chains: almost all of them are located near Amazon logistics centers and they have to compete with Jeff Bezos's company on salary, which affects reporting in the form of increased costs.
And Amazon recently just increased the wages of its employees..
Dislike, lobbying and robots
Last year's US presidential candidate Andrew Yang is now running for mayor of New York.. And according to a recent report by The New York Times, his campaign is backed by venture capitalist and lobbyist Bradley Task. He seriously helped the formation of Uber in New York and helped the company fend off regulators..
In my opinion, it is very important, because Tusk is a successful political player with a track record, full of victories, which increases the chances of Yang winning the election. Or at least make his campaign memorable and force many other politicians in the US at the state and federal level to accept some of Yang's provisions.. Well, so what?
The fact, what yang, among other things, on your agenda, which includes a lot of social-democratic provisions, focuses on limiting the robotization of the industry, or at least the payment of compensation to workers laid off during automation. With the theme of robots, he also went to the 2020 presidential election. Not yet known, what initiatives and programs he wants to implement, if he becomes mayor, but the very fact of the appearance of such candidates, backed by a politically strong team, symptomatic and may have far-reaching consequences for companies in the future, working in the field of labor automation: very likely, that they will try to neutralize the social effect of the fall in the number of human workers through special contributions from these companies.
Not banned - not a man
Facebook approved the ban of former US President Donald Trump on its platform. Basically, the news itself is not particularly important, but in a broader context it is quite interesting: the company spends huge efforts to delete posts and people, which in the future may lead to an outflow of active users from FB and, as a result, a negative impact on the company's advertising revenue. Or maybe not reflected: The number of views at the Oscars has been falling for a long time, although the cost of advertising there only grows.
Removed now for a long time
Google translates 20% their employees to work remotely on a permanent basis. Think, many IT giants will follow the company. Anyway, this trend has already strengthened enough — it will surely have a positive impact on companies, working in the field of Internet communications. And it will also be good for the companies themselves., who transferred employees to remote work: savings on offices.
But office REITs will be sad about this. Indirectly, it will also affect those REITs, who rent real estate for catering and retail: in the context of the exodus of overpaid IT specialists from large urban centers, the price tag per square meter should go down in parallel with a decrease in the volume of the solvent audience.
