Stocks Hop In Rare Green Day

JPMorgan rallied 6.19% today after the firm’s Investor Day presentations reversed its January guidance, which suggested that the bank would miss a key performance target for the next year or two. 

The firm now says that a 17% return on tangible common equity “remains our target and may be achieved in 2022.“ 🎯

Additionally, it gave updates on its digital consumer bank in the U.K., which has attracted more than half a million customers and $10 billion of deposits since launching eight months ago. 💷

This U.K. initiative will lose the firm $450 million this year and not break even for 5-6 years. However, investors are looking at this test in Britain to determine whether the bank can successfully expand its services to other overseas markets. 🌐

Lastly, the banking giant had positive things to say about the U.S. consumer’s health. Chief Financial Officer Jeremy Barnum said, “Big picture, the near-term credit outlook, especially for the U.S. consumer, remains strong.” 💳

The upbeat outlook from America’s largest bank sent the entire financial sector higher today, with $XLF rising 3.25%.

Zoom is popping after the company reported better-than-expected earnings and strong guidance. 

The company’s adjusted earnings per share beat the $0.87 expected by analysts, coming in at $1.03. Revenues met expectations at $1.07 billion. 📈

The company now expects full fiscal year revenues of $4.53 – $4.55 billion versus $4.55 billion expected. More importantly, it now expects to earn $3.70 – $3.77 per share, significantly above analyst expectations of $3.53 per share. 🎯

After five straight quarters of triple-digit revenue growth during the pandemic, investors were worried that Zoom would be unable to reduce costs as growth decelerates.

Today’s results and updated guidance suggest that the company may be on the right path. 

With the stock down 85% from its all-time high set during the pandemic, investors are cheering any positive news, with shares up as much as 16% after hours. 👍

Gains are slowly fading, so we’ll have to see how investors ultimately digest today’s news.

Snap is collapsing after it surprised investors with a late-day guidance update. ⚠️

The company missed Q1 top and bottom-line expectations in April but apparently wasn’t aggressive enough with its forecasting at the time.

Today, CEO Evan Spiegel warned employees in a company note, saying it will miss its own targets for revenue and adjusted earnings this quarter. He noted, “We believe it is now likely that we will report revenue and adjusted EBITDA below the low end of the guidance range we provided for this quarter.” 🔻

Additionally, he noted that Snap would slow its hiring pace for the rest of the year as it looks to control costs amid rising inflation and interest rates, supply chain shortages, labor disruptions, and platform policy changes.

$SNAP is currently down 30%, with shares of $FB (-8.71%) , $TWTR (-3.22%), and $PINS (-16.42%) also sliding on the news. 📉