AMAZON: Strong Quarter, Unboxed

Amazon announced robust and impressive earnings on Thursday. Its revenue came in at a staggering $143.1 billion, beating the estimated $141.6 billion. The best part was their EPS at $0.93 vs. the estimate of $0.60. Wall Street demanded that Amazon CEO Andy Jassy increase profit margins, and he did just that. Amazon has been focused on reducing expenses for the past year, realizing that rapid expansion during the pandemic may have been too aggressive. Since this time last year, the company has let go of 27,000 workers and has discontinued some of its less profitable ventures.

Sales from Amazon's primary e-commerce sector showed continued improvement, increasing 7% compared to last year, following a 4% growth in the preceding quarter. The figures for the September quarter encompass the performance from this year's Prime Day event in July, which Amazon hailed as its most significant sale to date.

Earnings:

• Earnings per share: 94 cents vs. 58 cents expected

• Revenue: $143.1 billion vs. $141.4 billion

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EXXON & CHEVRON: Disappointing Quarter

Exxon and Chevron did not meet Wall Street’s expectations in their earnings report. Despite higher oil prices, both petroleum behemoths experienced a significant profit drop compared to last year's quarter. Exxon cited increased expenses in its chemical sector as a critical factor affecting its results, while Chevron reported a nearly 40% decline in earnings from its upstream operations. However, Exxon raised its dividends and unexpectedly saw an uptick in cash flow mainly from improved U.S. oil-refining profit margins. Chevron’s overseas refineries underperformed expectations, delivering roughly half the profit of what Wall Street anticipated.

Exxon is set to acquire shale producer Pioneer Natural Resources and pipeline company Denbury. On the other hand, Chevron recently confirmed its plans to purchase Hess at a price tag of $53 billion.

Chevron Earnings:

• Earnings per share: $3.48 vs. $3.71 expected

• Revenue: $51.92 billion vs. $51.21 billion

Exxon Earnings:

• Earnings per share: $2.27 vs. $2.36 expected

• Revenue: $90.76 billion vs. $94.35 billion

FORD: A Hectic Week

Ford has had a hectic week. They were the first of the major car manufacturers to reach an agreement with the United Auto Workers Union, which lasted six weeks and cost the company billions in expenses. After the landmark deal was struck, Ford turned around and announced Q3 earnings. Ford swung and missed on earnings, which was a shock to many after GM had a good Q3.

The company retracted its prior earnings forecast, which had projected adjusted earnings of $11 billion to $12 billion and an adjusted free cash flow ranging from $6.5 billion to $7 billion. This decision came in light of the strike.

Earnings:

• Earnings per share: 39 cents vs. 45 cents expected

• Revenue: $41.18 billion vs. $41.22 billion

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MARK CUBAN: From Bags to Riches

This billionaire entrepreneur sold garbage bags door-to-door when he was a kid to afford his first pair of basketball shoes. You might know Mark Cuban for being a star on Shark Tank or as the NBA Championship Owner of the Dallas Mavericks, but do you know him before he became a billionaire? Mark Cuban was born and raised in Pittsburg, where he did many entrepreneurial ventures as a teenager. When Mark went to college, he started a bar called Motley’s Pub, which became his town's number 1 college bar. After graduating, Cuban moved to Dallas. He had many jobs, including bartender and salesperson, but his breakthrough came when he started MicroSolutions.

The venture grew rapidly and eventually sold for $6 million. This was just the beginning. Cuban then co-founded Broadcast.com, an internet radio company, which Yahoo acquired for a whopping $5.7 billion! With this sale, Cuban became a billionaire overnight. As a huge basketball fan, Cuban purchased the team in 2000 for $285 million, and the team is now worth $3.3 billion.

Chart of the Day

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Spotify is the number one streaming service. The Weeknd and Taylor Swift are the first artists to pass 100 million monthly listens in Spotify’s history.

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