Earnings Meltdown

Things are getting scary before Halloween, and here is what you need to know.

Hey, Extra Guac-ers 🥑 Things are getting scary before Halloween, and here is what you need to know.

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📰The Ultimate Earnings Recap

GOOGL 🔽9% - Alphabet's Q3 earnings surpassed expectations, driven by strong ad revenue of $59.6 billion, signaling increased ad spending despite recent economic uncertainties. However, the company's cloud segment underperformed, falling short of analyst forecasts, leading to a 5% dip in Alphabet's stock.

AMZN ⬆️5% - Amazon beat expectations with revenue at $143.1 billion. The company's core e-commerce business rebounded with 7% growth, while advertising revenue surged by 26%, but its cloud service, Amazon Web Services, grew at a slower rate of 12%, facing increased competition.

MSFT 🤷‍♂️ 0% - Microsoft ended the week flat after beating expectations for the top and bottom lines. Highlights include the Intelligent Cloud segment, including Azure, which grew revenue by 19%, with Azure's revenue surging by 29%. The Azure OpenAI Service gained 18,000 customers, and the Teams app now has over 320 million monthly users.

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📅Weekly Recap: The pullback we waited weeks for finally occurred. The market hit two key gaps below at 410 and 418. We still have one more gap at 405 that we would like to see filled in November.

Right now, the market is craving a bounce, and we'll likely witness one in the coming week (especially with the FOMC meeting on Nov 1st). With the RSI hovering around 30, it's becoming increasingly challenging for the market to sustain its downward trajectory. Keep an eye on the gaps higher!

📉Short-Term Levels:

  • 416-418 - Daily gap higher

  • 404-405 - Daily gap lower

  • 415-415 - Daily fair value gap

Top Chart of the Week | NVDA💻

$NVDA is consolidating within a massive triangle. These patterns are statistically bearish for a breakdown and sell-off. When trading patterns be sure never to buy without a confirmation. With that being said, be sure to set your alerts for break of 400 and get ready.

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