Fox Corporation (FOXA) shares handily outpaced the market on Tuesday after the media company announced their latest earnings results to the market before the markets opened for trading.
The company’s results were mixed as Fox reported revenue that was slightly lower than expectations. Revenue on a year-over-year basis grew by 2%, the company’s best top line growth in five quarters.
Fox’s earnings per share came in almost 10% higher than expectations at $0.90 versus The Street’s estimates of $0.80. That counts for the company’s sixth straight quarter of besting earnings estimates.
In addition to the earnings report, Fox’s management announced an increase to the stock’s semi-annual dividend. The stock’s current dividend yield stands at 1.42%. With investors searching for yield ahead of the Fed’s upcoming interest rate cuts, any dividend increase will garner the attention of investors.
Shares of Fox are one of only seven stocks in the S&P 500 that are trading at new 52-week highs on Tuesday. Shares are still well below their all-time high price near $48.
Fox and other media companies are in a seasonally strong period as we head into the final three months of the General Election campaign season.
The stock’s key trendlines turned bullish in May ahead of the current rally that has lifted FOXA shares almost 30% in the last three months.
Shares of Fox Corporation remain bullish with a long-term price target of $50.
Gig economy and ride share company Uber Transportation (UBER) shares posted a strong performance on Tuesday after the company’s earnings report eased investors concerns for the company’s outlook.
Uber shares traded more than 11% higher to end the day near $65 a share, reversing the latest three days of brutal selling of the stock.
Investors have been worried about the strength of the consumer and what effect a possible recession scenario could have on Uber. The company allayed those fears with positive earnings report that showed the company moving back into profitable territory.
Uber’s revenue grew by 16%, continuing a solid trend of growth, though not as rapid as what was seen after the stock’s pandemic recovery.
Earnings per share beat their mark by $0.16, or 51%, a quick reversal from last quarter’s loss of $0.32 per share.
In all, the report was solid, but the stock has some work to do from a technical perspective.
Shares of Uber barely missed crossing into a long-term bear market trend over the last week. The stock’s 20-month moving average - the line of demarcation between a technical bull and bear market – currently resides at $53.34. A break below that “line in the sand” will see an increase in bearish selling of Uber stock.
From a shorter-term perspective, the stock is ripe for a reversal of today’s large gains.
Uber’s 20-, 50-, and 200-day moving averages, all key trendlines for the market, are grouped just above the current stock price at $67.50.
The stock’s 50-day moving average shifted into a bearish pattern in Mid-April, and is the most likely trendline to shift the balance of power from short-term buyers to sellers within the next week.
Investors should maintain a cautious eye on the $67.50 level for Uber shares to begin seeing some “sell the news” pressure.
Uber shares have a Neutral-to-bearish outlook with a price target of $50.
Palantir (PLTR) represented the AI Service industry well last night as the company once again impressed investors with their latest earnings results.
While the company’s earnings per share were only $0.01 better than expectations, Palantir’s revenue grew by 27.2% for the quarter. That revenue growth is the best quarter since May of 2022.
Palantir’s management added to the bullish results by providing upgrade revenue guidance for the next quarter and the company’s current fiscal year.
The big data analytics and AI software company has been forging forward into the government and healthcare industry.
CEO Alex Karp commented that “persistent and unbridled demand for our software, for an effective enterprise platform that makes artificial intelligence capabilities useful to large institutions, shows no sign of relenting.”.
Palantir is just one of the AI Service companies that are showing success in utilizing the innovations in AI technology. Other companies that have been showing the same, or early stage, success include IBM (IBM) and Salesforce.com (CRM).
Palantir stock dropped more than 20% in the last three days of trading ahead of Monday night’s earnings report.
The stock gained 11% in trading on Tuesday, shifting the stock back above its key 50-day moving average.
From a technical standpoint, Palantir shares are in both a long- and intermediate-term bull market trend. The stock trades above its bullish 50-day moving average. That trendline shifted into a bull market trend in June.
After losing 85% of its value from January 2021 through January 2023, Palantir moved back into a long-term bull market trend in May 2023. The stock is 130% higher since the beginning of its current bullish trend.
Shares of Palantir remain bullish with a target price of $40.
