Author: AnswerStock

Lyft vs. Uber: A Tale of Two IPOs

By AnswerStock•

Traders can learn a lot from the initial public offerings of the two ride-sharing giants taking the transportation business by storm.

Both IPOs happened in the last three months. And while there are some similarities, there are also some key differences…

After Lyft went public in late March, the company’s stock price slumped almost 15%. It’s a great example of just how tricky an IPO can be. Lyft shows losses of over a billion dollars in the last quarter. No big surprise that isn’t helping boost investor confidence.

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What U.S. Unemployment Numbers Really Mean

By AnswerStock•

A lot of experts like to hype unemployment numbers that represent record lows…

The total unemployment rate hovers under 4%. In April, reports sourcing the U.S. Bureau of Labor’s latest numbers showed a 6.6% unemployment rate for African-Americans and a 4.8% rate for Hispanics.

But these numbers don’t tell the whole story, as pundits and analysts so often point out. Just scratching the surface of BLS numbers show how complex the American work world is, what poor indicators generic unemployment numbers are, and how deceptive surface-level judgments can be.

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Costco Earnings: What Investors Want to Hear

By AnswerStock•

Costco continues to deliver solid results in spite of intense e-commerce competition.

Costco’s stock is up 22% this year and last week, it hit a 52-week high of $251 per share. The company’s earnings have been solid in spite of recent stock market volatility. In fact, the company’s business has been largely immune to the trade war.

The company released a strong earnings report in March and this week it will release its fiscal third-quarter earnings report. Investors are expecting earnings to rise by more than 7% to $1.83 per share.

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Pain All Around: Huawei and the U.S. Market

By AnswerStock•

Chinese telecom giant Huawei is working off of a limited reprieve from the U.S. Department of Commerce Bureau of Industry and Security (BIS) in the form of a “temporary general license” that allows limited operations to serve existing customers.

However, for a while now, some U.S. agencies had concerns that China could use Huawei to spy on other nations. Then President Donald Trump’s sudden blitzkrieg trade smackdown provided an opportunity to kick Huawei out of the U.S. market.

When Trump recently signed an executive order to ban Huawei, American stock indices plummeted — and many traders and investors started sweating.

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