Today's big stories

Microsoft reported better-than-expected quarterly earnings
Tech stocks might be the only thing keeping the US stock market rally going right now – Read Now
Alphabet’s self-driving car business, Waymo, signed an exclusive deal with Fiat Chrysler

1/3

‘Puter-hero

What’s Going On Here?

Microsoft was the hero investors needed late on Wednesday: the cloud-based crusader swooped in to save the day with an expectation-busting quarterly update.

What Does This Mean?

Microsoft – the second-most valuable public company in the US – reported quarterly revenue and profit that eclipsed investors’ predictions. The tech giant had been in a good position to do just that, with analysts’ earnings estimates having fallen since the pandemic began. That might seem odd on the face of it: investors might’ve expected a boost in demand for cloud computing services and Office 365 from workers who found themselves stuck at home. And they weren't entirely wrong: Microsoft’s cloud segment did grow revenue by more than expected, but its productivity business fell slightly short.

Why Should I Care?

For markets: Zero to hero.
America’s tech-focused Nasdaq Composite index rose 31% last quarter, even as analysts cautioned its tech company-driven rise was going too far, too fast. Those firms, after all, have been forecast to report roughly 10% lower profits on average than the same time last year. And after Netflix’s weaker-than-expected update last week sent its shares lower, some investors were worried it was the beginning of the end for tech. Just as well, then, that Microsoft – six times the size of Netflix – proved them wrong, in turn vindicating the climb tech stocks saw earlier this week (tweet this).

The bigger picture: Rain on sunny days.
The sun might’ve shone on Microsoft’s cloud businesses last quarter, but LinkedIn – bought by the tech giant in 2016 – didn’t do so well. The professional networking platform saw a slowdown in both its advertising revenue growth and its recruitment-related purchases from small- and medium-sized businesses, leading to an announcement this week that it planned to cut almost 1,000 – or 6% – of its global staff.

Copy to share story: https://www.finimize.com/wp/news/puter-hero/

🙋 Ask a question

2/3 Premium

FAANGs For The Support

What’s Going On Here?

With just five stocks accounting for the largest proportion of the US S&P 500 in decades, some investors are worried a few unpleasant earnings surprises could bring the market’s recent rally tumbling down.

What Does This Mean?

➡️ Find out with Finimize Premium

💡 What a stroke of genius

Policygenius had a smart idea: to help you compare personalized life insurance quotes from top insurers in one place, so you can find the very best price.

You could save up to 40% – or $1500 a year – just by comparing a variety of different providers side by side. And you could save a lot of time too: once you find your ideal coverage, you can apply and buy in a matter of minutes. Their team of experts even takes care of the scheduling and paperwork for you at no extra cost.

See? We told you they were smart cookies: find out more today.

Find Out More

3/3

Knight Industries 2020

What’s Going On Here?

Google-parent Alphabet and Italian-American carmaker Fiat Chrysler announced they’d signed an exclusive deal to go on a shadowy flight into the dangerous world of... developing self-driving commercial vehicles together.

What Does This Mean?

Having worked with Fiat back in 2016, Alphabet thinks the carmaker is the right partner to help it make a name for itself in the self-driving commercial vehicle market. The tech giant will start by working to introduce autonomous driving technology – developed by its Waymo business – into Fiat’s Ram ProMaster van, and then they'll work together exclusively on “Level 4” autonomous vehicles, which require a driver to be present but not active.

Waymo has been busy: last month it announced it’d be teaming up with Sweden’s Volvo to develop self-driving electric vehicles, potentially for ride-hailers like Lyft to use. And if anyone’s a safe pair of hands, it’s Volvo...

Why Should I Care?

For markets: Shoot for the moon.
Of the 29 investment analysts who cover Alphabet’s stock, 28 of them are recommending that investors buy at the moment. But even the most optimistic don’t think the company’s “other bets” – including AI firm DeepMind, healthcare organization Verily, and, yup, Waymo – make any difference to its overall valuation (tweet this). So if long-term investors do their homework, they might find Waymo could become a sustainable business that propels Alphabet’s value far beyond its current $1 trillion in years to come.

The bigger picture: Cars, cars, cars.
The 290% rise of Tesla’s shares this year has some investors counting the days until the electric carmaker joins the S&P 500, America’s biggest stock market index. To qualify, the company needed to report four consecutive quarters of profit – and it just did exactly that late on Wednesday. Its investors should be very pleased indeed: investment funds that track companies in the S&P 500 may now be forced to buy its shares, likely boosting its stock even more.

Learn more: Our analysts calculate Waymo could be worth $108 billion – here’s why.

Copy to share story: https://www.finimize.com/wp/news/knight-industries-2020/

🙋 Ask a question

💬 Quote of the day

“There’s a billion-to-one chance we’re living in base reality.”

– Elon Musk (an engineer, industrial designer, technology entrepreneur, and philanthropist)

Tweet this

💅 It’s who you know

You don’t need to be a genius to find the right life insurance policy. You just need to know a genius – Policygenius, that is.

Policygenius make it easy to compare personalized life insurance quotes from top insurers in one place to find the best price. Comparison is great: you could save up to 40% by shopping the market – a saving of $1,500 or more per year.

And once you find your ideal coverage, Policygenius make it a breeze to apply and buy, too. Their team of experts even handles all the tricky bits like scheduling and paperwork for you – at no extra cost.

Policygenius help you get life insurance right: get started today.

Get Started

🌍 Finimize Community

🙄 Millennials, am I right?

Our Zambian Finimizers have arranged an event dedicated to millennial investing. That’s soooo like them, always getting up at a reasonable hour, doing us favors, and generally going out of their way to help others in their generation. Typical.

🇿🇲 Zambia: Millennial Investing – 11am Zambia Time, July 25th
🇬🇧 UK: How the Pros Pick Stocks – 6pm UK Time, July 27th
🌎 Global: Finimize Live AMA – 1.30pm UK Time, July 28th
🇨🇦 Canada: Searching For Financial Stability – 1.30pm Pacific Time, July 28th
🇬🇧 UK: What’s Next For The Global Economy? – 6pm UK Time, July 29th
🇬🇧 UK: The Bright Future for Renewable Energy – 12pm UK Time, July 30th
🇺🇸 USA: Money Behaviors 2020 – 1pm New York Time, July 30th
🇿🇦 South Africa: The Impact of COVID-19 on Cryptocurrency – 7pm South Africa Time, Aug 6th

📚 What we're reading

The history textbook of the future (The Atlantic)
Eco-friendly and easy on the eye (Architectural Digest)
What’s the world’s most overrated animal? (IFL Science)

Finimize - 📈 Microsoft saves tech stocks

Today's big stories

‘Puter-hero

What’s Going On Here?

What Does This Mean?

Why Should I Care?

FAANGs For The Support

💡 What a stroke of genius

Knight Industries 2020

What’s Going On Here?

What Does This Mean?

Why Should I Care?

💅 It’s who you know

🙄 Millennials, am I right?

Older messages

🇪🇺 Europe's 860 billion rescue package

💰 Alibaba just got richer

🎟️ New Events: Global Economic Outlook, Financial Risk, & Millennial Investing

📉 Netflix drops 12%

🥤 Pepsi crushes Coke

You Might Also Like

🥵 The Fed’s sweating

Don’t let this cost you thousands in home repairs.

Smart Investors Know: Success starts within...

Longreads + Open Thread

Don’t let vet bills break the bank

Inflation comes full circle

A 96% Win Rate - in a Simple Options Trade

🛢 Oil giants paid shareholders billions

AI’s big winner

The Biggest Investor in the World