This Telemedicine Stock Is Up More Than 180%

Author

Adam Garcia
August 02, 2024

Good morning. Today is August 2nd, and we’re going to take a look at the disappointing results from Intel, Amazon, and Chevron. We’ll also share a telemedicine stock that is up more than 180% in pre-market trade.

Previous Close 📈

All three indices closed in the red yesterday amid growing concerns that a recession might be on the horizon.

Futures

Futures are also down today after both Amazon and Intel posted disappointing earnings guidance yesterday.

What to Watch

Energy giants Exxon and Chevron will be announcing their quarterly results before the opening bell.

Keep an eye out for the U.S. employment report for July, which will be released at 8:30 a.m, and the June factory orders data, which will become available at 10:00 a.m.

Technology

Chip Stocks Tumble Worldwide Following Intel's Earnings Miss

Global semiconductor stocks are experiencing a significant decline today following a disappointing earnings report from Intel, which is seeing its shares drop by 21.5% already in U.S. premarket trading. Intel's June quarter results fell short of expectations, prompting the announcement of a substantial workforce reduction of over 15% as part of a $10 billion cost-cutting initiative.

The negative sentiment extended to other major U.S. chip companies, with Nvidia's shares falling approximately 3.5% so far in premarket. Nvidia is also reportedly under investigation by the U.S. Department of Justice for potential antitrust violations related to its dominance in the AI chip market.

In Asia, Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung both saw their shares decrease by over 4%, while SK Hynix, a key supplier to Nvidia, dropped more than 10%. TSMC and Samsung are significant players in the global chip manufacturing and memory semiconductor industries, respectively.

European chipmakers were not spared either. Dutch companies ASML and ASMI experienced declines of more than 6% and 9%, respectively, while STMicroelectronics and Infineon also saw their stocks fall.

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Energy

Chevron Misses Q2 Profit Estimates, Impacted by Refining Downtime

Chevron Corp reported lower-than-expected second-quarter profits on Friday, primarily due to weak refining margins. The oil giant's shares are falling 1.5% so far in premarket trading following the announcement. The earnings shortfall follows a June warning from Chevron about the impact of maintenance work at its oil and gas production and refining facilities.

Earnings from Chevron's oil and gas production fell 9.4% compared to the previous year. Additionally, profits from gasoline and chemical production dropped significantly, down about 60% to $597 million.

Chevron's $53 billion acquisition of Hess has also been postponed until at least May of next year. The company reported adjusted earnings of $2.55 per share, falling short of analysts' estimates of $2.93 per share.

Technology

Amazon Drops Nearly 9% After Weak Revenue Forecast

Amazon’s shares are falling by nearly 9% in premarket trading following a mixed second-quarter earnings report. Despite a 10% year-over-year sales increase to $148 billion, the figure fell short of analysts' expectations of $148.7 billion. Earnings per share, however, rose significantly to $1.26, surpassing the anticipated $1.03.

Amazon Web Services (AWS), the company's cloud unit, reported a 19% revenue increase to $26.3 billion, exceeding estimates but slightly trailing the 21% growth of Microsoft's cloud business. Advertising services, Amazon’s fastest-growing segment, saw a 20% increase to $12.8 billion, though this was below expectations.

CEO Andy Jassy highlighted ongoing investments in AI and cloud computing, emphasizing the future growth potential of AWS and the generative AI sector.

However, investors are reacting negatively to Amazon's lower-than-expected third-quarter revenue guidance of $154-$158.5 billion, compared to analysts' forecast of $158.22 billion. Additionally, capital expenditures surged to $16.4 billion, well above those of competitors like Microsoft and Alphabet.

Despite the disappointing outlook, Amazon shares are still up 21% year-to-date, outperforming the Nasdaq Composite’s 15% rise.

Technology

Apple Beats Earnings Estimates as Services and iPad Sales Surge

Apple reported a 5% increase in revenue for its fiscal third quarter, surpassing Wall Street expectations. The tech giant posted sales of $85.78 billion, beating the projected $84.53 billion. Earnings per share also exceeded estimates, reaching $1.40 compared to the anticipated $1.35.

The iPad division experienced significant growth, with sales jumping nearly 24% year-over-year to $7.16 billion, driven by new product releases. The Services segment also performed well, generating $24.21 billion in revenue, up 14% and in line with forecasts. This category includes hardware warranties, cloud storage subscriptions, and content services like Apple TV+.

Despite the overall positive results, Apple's core business, the iPhone, saw a slight decline of 1% year-over-year, contributing $39.30 billion in revenue. However, CEO Tim Cook noted that on a constant currency basis, iPhone sales grew compared to last year.

Apple's Wearables, Home, and Accessories division reported $8.10 billion in revenue, slightly below expectations but still showing strong demand. The Mac division saw a modest 2% increase in sales, totaling $7 billion.

In greater China, Apple faced a 6% decline in sales, bringing in $14.72 billion due to increased competition from local brands like Huawei. Apple continues to invest heavily in artificial intelligence, with increased spending reflected in this quarter's results. The company is also gearing up to launch its Apple Intelligence service and expand its Project Kuiper broadband internet satellite network.

Movers and Shakers

VSee Health, Inc. [VSEE] - Last Close: $66.59

VSee Health, Inc. is trading 188% higher than yesterday’s close in pre-market.

The telemedicine stock is rallying after the company announced its partnership with Ava Robotics to develop telepresence solutions for inpatient intensive care.

This collaboration will create autonomous robots powered by VSee software, enabling remote physician presence and interaction in ICU settings.

My Take: VSEE has consistently declined over the past two years. It might be best to adopt a wait-and-watch stance on this one.

Exicure [XCUR] - Last Close: $0.49

Exicure is rallying today after the company announced that it had been granted an extension to remain listed on the Nasdaq, provided it meets all required listing criteria by September 16, 2024.

The stock is continuing its momentum from yesterday and is trading nearly 45% higher than its previous close.

My Take: This tiny stock was under the threat of being delisted, so it might be best to wait for now.

Integral Ad Science Holding [IAS] - Last Close: $9.92

Integral Ad Science Holding is up by nearly 13% in pre-market trading.

The stock is rising after the company reported better-than-expected Q2 results yesterday.

Its GAAP EPS of $0.05 surpassed analyst estimates by $0.03. Additionally, it reported revenue of $129 million, a 13.5% year-over-year increase, which exceeded analyst expectations by $2.72 million.

My Take: Apart from the excellent quarterly results, the company has also brought in tech veteran Bob Lord on its board. This is a stock that you should definitely keep an eye on.

Everything else

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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