5 charts from the past week that tell an interesting story in markets and investing…
1) Apple Mania
Investors can’t seem to get enough Apple, driving its shares to new heights each and every day. Its market cap is fast approaching $2 trillion. A year ago it stood at $890 billion.
Apple’s stock is up 134% over the last year, a remarkable feat considering its sales are up only 5.7% during that time.
The result: the highest valuation in company history, at 7.38x sales. The prior peak valuation was in December 2007 when the first iPhone was released and sales were growing at over 30% per year.
2) The Big Four is Eating the World
At $6.2 trillion, the combined market cap of Apple, Amazon, Microsoft and Google is now greater than the GDP of every country in the world with the exception of the US and China.
3) Uber Losses
Uber reported earnings this week, showing a revenue decline for the first time ever (-29% YoY).
Net income declined $1.8 billion, following a consistent pattern…
Uber Net Income:
- Q2 2020: -$1.8 billion
- Q1 2020: -$2.9 billion
- Q4 2019: -$1.1 billion
- Q3 2019: -$1.2 billion
- Q2 2019: -$5.2 billion
- Q1 2019: -$1.0 billion
- Q4 2018: -$0.9 billion
- Q3 2018: -$1.0 billion
- Q2 2018: -$0.9 billion
4) Disney vs. Clorox
Disney revenue fell 42%, the largest decline in company history. The biggest hit was from park closures, which declined 85% versus the prior year.
On the other side of the spectrum was Clorox, which reported a revenue gain of 22% over the past year. Demand for their products continues to grow and they can’t seem to make their popular wipes fast enough.
5) Story Stocks
Two of the most storied stocks reported earnings this week showing interesting numbers to say the least.
First, Virgin Galactic ($SPCE) reported $0 in revenue and a $63 million loss. It still has a market cap of $4 billion, down from over $7 billion at its February peak.
Then Nikola ($NKLA) reported $36,000 in revenue and an $86 million loss. It still has a market cap of $13 billion, down from $29 billion at its June peak.
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And that’s it for this week. Thanks for reading.
Have a great weekend everyone!
-Charlie
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