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Highlights from the past week

Market / Macro Economic Summary

The new number is 5, as in five straight weeks that the markets rise. This is great news, of course, but I like to dig into numbers and find gems. While this rally in the markets is great, what I love is that it’s becoming more widespread.  As I mentioned in my newsletter on November 10, the market has been led by 7 stocks this year (Nvidia, Apple, Amazon, Google, Meta/FaceBook, Tesla and Microsoft).  While we love a rally in any regard, the more widespread it is, the better it is for continued momentum. The S&P 500 index was up .8% for the week; the Dow Jones Industrial Average (DJI) was up 2.4% for the week and the Nasdaq Composite was up 0.4%.  Not only does inflation keep running at yearlong lows, the 10-year Treasury note yield keeps dropping like a rock to 4.213%.

Company Specific / Macro Economic Summary

Crowdstrike (CRWD)

Shares jumped over 10% despite a considerable move heading into the report.  Earnings of $0.82 cents per share on revenue of $786.01 million were much better than the Wall Street expectations of $0.74 cents and $777.13 million, respectively. Revenue grew 35.31% on a year-over-year basis and gross margin was an impressive 78%. CEO George Kurtz touted the company exceeding $3 billion in annual recurring revenue.

Snowflake (SNOW)

Shares jumped 8% on a top and bottom-line beat.  Earnings per share of $0.25 cents per share were much better than the $0.16 cents analysts were looking for.  Revenue of $734.17 million also exceeded the expectations of $712.78 million and was a 34% rise from a year ago.

Salesforce (CRM)

Shares jumped 10% as the customer service management software provider reported a great quarter.  Earnings per share of $2.11 were better than the calls for $2.06.  Revenue of $8.72 billion in the quarter matched the estimates of $8.73 billion.  CEO Marc Benioff highlighted that “We’re now the third largest enterprise software company by revenue, the number one AI CRM and the number one enterprise apps company.”

Ulta Beauty (ULTA)

Shares jumped 11% as the specialty retailer beat on the top and bottom-lines.  Earnings per share of $5.07 came in better than the $4.96. analysts expected.  Revenue of $2.49 billion was also better than the calls for $2.47 billion.  Same store sales grew by 4.5% which also exceed estimates of 3.1%.  CEO Dave Kimbell thanked the team as sales, gross profit, and diluted EPS all exceeded internal expectations.

Parting Thoughts

I hope the markets keep the winning streak alive, and the wider the rally becomes the better.  We should expect the rally to maintain into the year end.  



Erick J.  Palacios, MBA

Plan to Prosper Wealth Management’s clients & employees will from time-to-time hold securities mentioned above. Commentary is not endorsements or recommendations of any securities.