—— Apple’s iPhone sales beat expectations; two major U.S. economic indicators get worse; Sequoia Capital enters New York City; oil giant revenue creates new records; LeBron invests in bicycle brands; Amazon’s earnings beat expectations, pushing stocks higher.
1. iPhone sales beat expectations
On Thursday, Apple (Apple Inc.) announced its highly anticipated fiscal third-quarter results.
The quarterly report shows that Apple’s net profit fell 11% to $19.4 billion, the worst quarterly performance since the third quarter of 2020, due to the impact of supply chain problems in China.
Still, sales of the flagship iPhone remained resilient, and investors were somewhat encouraged. iPhone sales rose 2.8% from a year earlier to $40.67 billion, far better than analysts’ expectations for a 2.5% decline.
Apple CEO Tim Cook (Tim Cook) said that the company did show some weakness in the third quarter of the fiscal year, but the company expects revenue growth to accelerate in the next quarter.
Shares of Apple rose more than 3% after the market closed on Thursday.
Investors encouraged by good sales of expensive iPhones despite Apple’s lower net profit
______
2. Two major U.S. economic indicators get worse
Today, the Labor Department’s hiring cost index, which tracks employee salaries and bonuses, rose 1.3% from the first quarter, beating analysts’ expectations of 1.2%.
In addition, the personal consumption expenditures price index calculated by the Commerce Department rose 1% from June, the largest increase since 2005.
At present, the number of vacancies in the U.S. job market is still close to an all-time high, and employers need to offer higher salaries and benefits to attract workers.
According to statistics, compared with a year ago, Americans’ salaries have increased by 5.3%, and benefits have increased by 4.8%.
Federal Reserve Chairman Jerome Powell said that the job market is still very tight, and hiring costs may continue to grow. The good news is that vacancies are gradually being filled.
The increase in consumer spending may directly raise the salary requirements of practitioners, thereby increasing the cost of employers
______
3. Sequoia Capital opens its New York Office
Venture capital giant Sequoia Capital will open its first headquarters outside of Silicon Valley in New York City.
Sequoia has contracted an entire 13,089-square-foot floor in the Zero Irving building at 124 East 14th Street, with rents ranging from $100 to $175 per square foot.
The Zero Irving building was jointly renovated by RAL Development Services and Junius Real Estate Partners. Floors 8 to 12 of the building are dedicated to lower-rent office space for start-up tech companies, while the rest of the space is occupied by larger businesses.
Currently, Sequoia Capital has total assets under management of $85 billion.
New York City has attracted a large number of startups and technology companies In the past two years
Source: Commercial Observer – VC Firm Sequoia Capital Opening First East Coast Office at Zero Irving
______
4. Oil giants beat revenue record
Benefiting from the surge in crude oil prices, the two major oil giants ExxonMobil and Chevron have “shattered” previous revenue records in the second quarter of this year.
Mobil and Chevron posted net profits of $17.9 billion and $11.6 billion, respectively, according to the two companies’ earnings reports, easily beating analysts’ expectations and breaking the previous record for the highest profit.
In the second quarter, the five major Western oil majors – Mobil, Chevron, Shell, BP and Total Energies – are likely to earn more than $50 billion in net profit.
However, many politicians are more convinced that major oil companies should pay more taxes on their profits to help citizens pay for surging oil prices.
During the epidemic, global sports enthusiasts became more interested in bicycles, and LeBron also found this trend
______
5. LeBron invests in bicycle brand
Recently, the German bicycle brand Canyon received €30 million in a new round of financing, at a valuation of €750 million.
It is reported that NBA superstar LeBron James (LeBron James) led this round of financing.
Canyon sells high-end road and mountain bikes primarily through its website, with products retailing for up to €8,000.
The company’s revenue has grown by an impressive 21% annually over the past 6 years and will reach €475 million in 2021. Last year, Canyon sold a 52 percent stake to investment firm GBL for €350 million.
Canyon CEO Nicolas Wallace (Nicolas Wallace) said that LeBron is the biggest name in sports, and his involvement can significantly increase the company’s profile and help the company quickly penetrate the US market.
During the epidemic, global sports enthusiasts became more interested in bicycles, and LeBron also found this trend
______
6. Evergrande updates asset restructuring plan
This week, China’s Evergrande Group, the world’s most debt-ridden developer, said it was willing to offer its assets outside China, including trams and stakes in property management companies, to repay creditors.
The filing also shows that Evergrande has promised to give a final asset restructuring plan by the end of 2022.
Anne Stevensen, co-founder of J Capital Research, said that the “pyramid” of Evergrande is gradually collapsing, but the situation is worse than a year ago, because Evergrande’s debt crisis is likely to affect the entire economy system.
Evergrande still has $300 billion in debt on its books
______
7. Amazon’s earnings beat expectations, pushing U.S. stocks higher
On Thursday, the e-commerce leader Amazon (Amazon) announced its second-quarter earnings that delighted investors, and the company’s stock price rose more than 10% today.
Amazon’s revenue rose 7.2 percent from a year ago to $121.2 billion, beating analysts’ estimates, according to the earnings report.
In the second quarter, Amazon’s net loss hit $2 billion, down from a net profit of $7.8 billion a year earlier. Much of the loss, though, came from the collapse in shares of tram company Rivian Automotive.
Over the past month, U.S. stocks have slumped back to their lowest levels. The S&P 500 rose 7.3% for the month, while Amazon’s stock rose 23.9% over the same period, beating the market by a wide margin.
The financial reports of giants such as Amazon and Apple are relatively optimistic
______
The content of this article comes from various financial news media such as The Wall Street Journal, Financial Times, and Bloomberg.