First quarter .. any surprises .. ?!



It is the earning season  of the year, mostly preferable for the masses of the investors is the “buy”signal. Diving in the details of their favorite stock’s making dissection of the reports and justify their expectation’s and prediction’s. 



Twitter (TWTR)


Twitter is pretty extraordinary if you sit down and think about it in an existential way.

(TWTR) basically invented a new language, or perhaps it’s more of a new way of communicating. It’s actually revolutionary in the sense that it requires pithy, concise thoughts, and is spread all over the world instantly.

This is a disruptive medium. Anything can literally explode in a heartbeat — news, reviews, jokes or really stupid statements. As a result of Twitter, a person could literally become famous or reviled overnight. Somehow, it seems natural that something this disruptive and innovative would be destined to make a lot of money. It hasn’t, though, and that’s why the amazing invention that doesn’t solve a problem can quickly become a relic. Clearly the market is struggling to define the value of Twitter stock. At the end of 2013, Twitter stock hit its high of near $70. Now it trades around $17, having fallen around 80%. So now Twitter has an identity problem, and that means Twitter stock will remain confused for some time.




Alibaba Group. (BABA)



Fortunately for Chinese stock lovers, Alibaba Group Holding Ltd(BABA) wasn’t having any of that neutrality business. (BABA) stock beckoned to bulls, one and all, looking for some momentum on an otherwise dismal day. The price surge was accompanied by notable volume, lending legitimacy to the move. Chart watchers love to see heavy volume backing a breakout, as it increases the likelihood the resistance breach sticks — and helps deliver follow-through in the days ahead. The July $80 calls suggested in last week’s article are now sitting at $4.60. Snatch ’em up if you think BABA stock continues running towards the $85 level. The reward is unlimited, the risk limited to the initial $4.60 debit. Traders wishing to sidestep the earnings drama should exit the trade before the close on May 4.



Apple Inc. (AAPL)



Apple Inc. (AAPL) is scheduled to report earnings after the close today. The options market is implying a 5% to 6% post-earnings move for the stock in either direction. If the options market is correct, then (AAPL) stock could either rally toward $111 or fall toward $99. Which way it goes will be important for investor sentiment and for the Nasdaq 100 as far as its near- to medium-term direction is concerned. With that in mind, traders may want to wait and see how stocks react to this week’s earnings parade. To yours truly, from a multi-week to multi-month perspective, the path of least resistance looks to be lower.





       BP PLC  (BP)


The company started cutting costs and selling assets following the 2010 oil spill in the Gulf of Mexico. It expects to spend about $17 billion in capital expenditure this year and can reduce that to $15 billion to $17 billion next year if oil prices continue to stay low, BP said in the statement. It spent about $19 billion in 2015 and $23 billion the previous year. The average price of Brent crude, the global benchmark, slumped to the lowest in almost 12 years in the quarter. While Brent’s decline below $28 a barrel in January cut earnings from production, it made crude cheaper for BP’s refineries.  

“The company is showing it is restructuring and reducing costs to adjust to oil prices and that’s pleasing,” “Higher-than-expected downstream earnings helped it beat estimates this quarter.” 

-Brendan Warn, a managing director at BMO Capital Markets in London, said by phone. 

BP’s quarterly results, the first among the world’s oil majors, are likely to be an indication of how the others will perform. Total SA is scheduled to publish first-quarter earnings on Wednesday. Exxon Mobil Corp. and Chevron Corp. will announce results on April 29 and Royal Dutch Shell Plc on May 4.




At moment of writing J.Mason did not hold any of the above securities.