It’s gonna be a BAD day for me.
Why? Because I’m freaking long Apple (AAPL) and Amazon (AMZN), which are getting busted up after earnings.
And to top it off, I’m also in Starbucks (SBUX).
It’s a trifecta of epic earnings f*ckery! So bad I had to drown my sorrows in chicken tendies and emoji fries. (Thank you Fry-All)
So Why Should You Care?
Well, nobody can escape the freaking supply chain.
Yes, Apple is seeing gangbuster demand for the iPhone 13 lineup and the new Macbook Pros. And the services business is going strong.
But Apple can’t get enough product on the shelves. Tim Cook said supply shortages took a $6 BILLION bite out of Apple this past quarter!
Amazon, same issue. Yes, the economy reopening has more people going to retail stores, but Amazon also can’t get enough stuff to sell. Plus, the company has to take on billions in additional expenses because of labor shortages, higher employee salaries, and rising shipping costs.
Thankfully, Amazon Web Services (AWS) is growing like crazy. Revenue there grew 39% to $16.1 billion, which is ridiculous! how many $10 billion+ businesses can put up 39% growth? INSANE.
So if you think your company can escape the supply chain… think again.
In fact, just as we’re writing this, I saw that storage giant Western Digital (WDC) just issued crap guidance because of supply issues.
The upside? I’m short Corsair (CRSR), which I believe itself will guide down AGAIN because of supply issues, as well as a lack of demand. (more on that later)
BUT… let’s be positive. The supply chain crunch will not last forever, so I’ll be looking for great companies on sale.
Elsewhere in the tech world, Facebook’s (FB) Connect event was VERY interesting yesterday. The company is rebranding itself as “Meta,” and the stock will trade under the ticker MVRS starting December 1.
It’s all part of the company’s new focus on “The Metaverse,” which basically turns our lives into VR/AR experiences.
Now, Facebook is getting a lot of criticism because people don’t trust the company, and this feels like just another way to sell ad dollars.
BUT… if we’re in this game to make money, let’s not get mad. Let’s get PAID.
P.S. Have you joined Tech Stock Mafia? It’s dangerous but sexy.