European and American stock markets continue to distribute "red envelopes" to investors.
Wind data shows that as of the close of trading on February 1, local time, the main stock indexes in Europe and the United States have collectively turned red, continuing the rebound trend, and the three major US stock indexes have harvested three consecutive yangs on the daily line. Judging from the trend of individual stocks, many of the latest financial performance exceeded expectations and the stock prices of individual stocks were also "booming".
Google parent Alphabet's fourth quarter revenue and earnings per share (EPS) and other indicators exceeded market expectations. After a sharp rise and retreat, Alphabet's latest stock price exceeded $2750 per share, and the company announced a 20-1 stock split plan. Once the plan is passed, each share held by the company's investors will become 20 shares.
European and American stock markets continued to rally
On February 1, local time, the three major U.S. stock indexes once again extended their rally, not only sweeping away the haze of the downturn in January, but also opening the door for the February market.
Wind data showed that as of the close, the Dow was up 0.78% at 35405.24 points; the S&P 500 was up 0.69% at 4546.54 points; and the NASDAQ was up 0.75% at 14346.00 points.
Image source: Wind
European stocks, which preceded the closing of the US stock market, also rose across the board, and as of the close, the UK FTSE 100, the French CAC40 and the German DAX closed up 0.96%, 1.43% and 0.96% respectively.
Looking at the sub-sectors, U.S. stocks and energy stocks rose collectively overnight. Wells Fargo rose 3.33 percent, Goldman Sachs 2.63 percent, Citi rose 2.2 percent, Bank of America rose 1.73 percent, Morgan Stanley rose 1.34 percent; ExxonMobil rose 6.49 percent, Occidental Oil rose 4.27 percent, ConocoPhillips rose 3.27 percent, Chevron rose 2.63 percent and Schlumberger rose 1.15 percent.
Most of the popular Chinese stocks rose, with Ebang Communications up 27.42%, Park Xin Education up 25.82%, Elite Education up 15%, iQiyi up 11.03%, and Qutoutiao up 10.39%. Chinese new energy vehicle stocks rose across the board, with Ideal Auto up 4.6 percent, Xiaopeng Motors up 3.7 percent, and Weilai Cars up 1.55 percent.
Google's parent company's earnings report exceeded expectations
"After a period of extreme distraction in January, investors and traders finally refocused on the earnings season." In contrast to the rise of the broader market, the stock prices of many companies that exceeded expectations overnight also continued to pick up.
On February 1, local time, Google's parent company Alphabet closed up 1.73%, and the daily line gained three consecutive yangs, and the price per share rebounded to $2752.88. After hitting an all-time high of $3,019.33 per share in November 2021, the company's stock price has retreated.
According to the latest financial report disclosed by the company, in the fourth quarter of fiscal 2021, Alphabet's revenue totaled $75.33 billion, higher than the previously expected $71.89 billion, an increase of 32% over the same period last year; earnings per share (EPS) was $30.69, also higher than the expected $27.35. In terms of segmented business, Alphabet advertising revenue totaled $61.24 billion in the fourth quarter of fiscal 2021, an increase of 33% over the same period last year; cloud operating loss of $890 million, exceeding expectations but declining from the same period last year.
The stock split was also an important driver of Alphabet's stock price higher overnight. According to media reports, Alphabet intends to split the shares of A, B and Class, and if approved by the company's board of directors, it is expected that each share held by investors will become 20 shares on July 15.
Some market participants pointed out that the stock split will not change the fundamentals of the company, but it will reduce the price per share, which is a measure that many companies often take when the stock price is higher. If Alphabet splits at the overnight close, the price per share is expected to change from $2572.88 to $128.64.
The financial reports of star companies are intensively disclosed
Alphabet is not the only one that has exceeded expectations and brought about a recovery in stock prices, and the stock prices of some companies that have performed lower than expected have also fluctuated.
AMD's fiscal 2021 fourth-quarter revenue totaled $4.8 billion, beating analysts' expectations of $4.5 billion. Wind data showed that AMD closed up 2.21% overnight, also reaping three consecutive daily suns.
Payment service provider PayPal closed up 2.24% overnight, but the company's stock price continued to fall sharply after hours. According to the company's latest financial report for the fourth quarter of fiscal 2021, the company's revenue totaled $6.92 billion, exceeding market expectations and increasing from the same period last year, but the company's net profit was only $801 million, compared with $1.567 billion in the same period last year.
Starbucks closed up 0.45% overnight, and the company released its fiscal 2022 first-quarter earnings report after hours, with revenue totaling $8.05 billion higher than expected, but adjusted EPS at 72 cents, below expectations of 80 cents. In response, the company said that rising costs are dragging down profits, causing the company to fail to meet quarterly earnings expectations.