Stock markets opened Q2 and April 2024 on shaky ground. Yesterday, selling accelerated minutes before the close. Nasdaq (QQQ) lost 2.04%, taking the S&P (SPY) and Dow down with it.
Watch McDonald’s (MCD) today. The stock recovered from the sub $265 price after discussing its Q1 results. The restaurant reported revenue of $6.17 billion and GAAP EPS of $2.66. Management said that consumers are careful with every dollar they spend daily. However, the firm will push back on high-priced menu items. That should increase restaurant traffic.
Beverage firm Coca-Cola (KO) posted solid revenue growing by 2.7% Y/Y to $11.3 billion. It earned 72 cents a share (non-GAAP). The firm expects to report EPS growth of 4% to 5%.
Watch Amazon (AMZN) inch above its 52-week high in the coming days. The firm is going “all in” on generative AI. It believes this sector will enjoy a multi-billion dollar revenue run rate for the firm. AWS is a cash flow monster, which Amazon expects will grow to $100 billion in annualized revenue. Operating margin in Q1 topped 37.6%.
Amazon’s strong results should keep technology investors interested in the Magnificent 7. This includes buying Apple (AAPL) which reports later this week, Microsoft (MSFT), and Alphabet (GOOG).
