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Three socks will watch may 2018 edition that’s what we’re doing here today as always one of my favorite videos i do each month i get super pumped up for these ones three socks to watch in may 2018 very interesting companies okay two of these companies are absolute giants all right and they’re expected to report numbers in may all right the other one is the most talked
About stock probably in the entire stock market right now and this one is supposed to report numbers in the month of may so this is going to be very very interesting guys i hope you really really enjoy this and let’s get into it the first stock to watch in the month of may is gonna be apple now before i get even into what you know you’re supposed to pay attention
To here with apple and whatnot and all the stuff that’s going on with apple i want to explain something to every single person watching this right now i don’t care whether you have a dime invested in apple or not apple stock literally affects you okay apple stock literally affects you don’t matter if you have a dime invest in that company or not okay and here’s a
Few reasons why apple is such a big company that literally if apple is to make a big move up or down it will affect the entire market negatively or positively for instance if apple goes up let’s say 5% on a day it’s almost impossible for the market to go down in the same way if apple goes down five plus percent in the date it’s literally almost impossible for the
Market to go up because apple is a biggest company in the world and it has such heavy weight and it affects so many companies so many semiconductor companies all right the skyworks solution is a cirrus logic the qualcomm’s texas instruments cuervo just company after company after company is affected directly from apple and those stocks will go up or down depending
On how apple stock goes because they’re huge suppliers of apple all right also if you had a 401 k or an a or your investment index fund of a high high probability some money is invested in apple stock okay oh this be completely honest as the biggest company in the world almost every single you know mutual fund manager a hedge fund manager out there probably owns
Some apple stock so you probably you know are actually indirectly owe an apple and you don’t even know it also if you own facebook or snapchat or twitter well you know those type of mobile forms what do you think they’re used on apple devices every single person out there is affected by apple and should absolutely care regardless if you own the stock or not okay i
Once want to explain that so apple should be reporting numbers here on may first and it’s gonna be very very interesting because everything’s negative right now in apple as far as like sales go morgan stanley you know this katy huberty she slashed her iphone shipment projections for the quarter ending in june on friday citing weakness in china can court journey’s
A michael watsky also cut his iphone sales forecast and cut his earnings estimates for apple too it doesn’t help that the chief financial officer of a key apple supplier taiwan semiconductor warned of mobile softness and continued week to meet when it reported numbers this week okay so very interesting there now something i want to draw your guys attention to is
The fact that this whole iphone sales are weak thing this is nothing new to app this happens every few years okay look it back in 2014 spring iphone sales are looking extremely weak okay turn to articles at that time about you know iphone sales are weak back in 2014 more in 2014 apple iphone sales disappoint and then we go into 2015 apple may have slashed iphone
6s orders due to weak demand okay articles all about that then we go into 2016 more articles apples big trouble in little china iphone sales 7 sales are weak in revenue is down year after year now this year obviously started in december apple suppliers drop on week iphone 10 demand year after year there are worries about apple sales okay as far as the iphone goes
Oh my gosh the iphone sales they can’t grow any more they’re gonna decrease you know it’s all bad it’s just bad news and you know their business is going down the track every zall most every single year it seems like that’s the that’s like what’s talked about but then we look at the factual information and we see that in 2017 apple sold 216 million smartphones
Okay iphones 216 million phones then we realize all theirs they’re like insanely dominant okay so this is almost happens every other year there’s a lot of worries about iphone demand it’s always short-term stuff and then you know apple grows long-term okay and it’s just kind of the way it is with apple you know this always happens you know 2014 apple 2015 2016
2017 it’s happened in 2018 always always happens and it’ll continue to happen but as far as if you’re looking at a long term perspective on apple does it really affect it does it really matter if apple you know sells an extra two million iphone units you know this quarter versus the next quarter or versus next year it really doesn’t if you own little this stock
Long-term it’s just short-term mumbo-jumbo that’s affecting apple the suppliers of apple and just a markets in general now let’s look at the numbers analysts are expecting here so analysts are expecting as far as the eps goes analysts are expecting them to do around two dollars and 69 cents right that’s versus two dollars and ten cents a year ago that number should
Be very very very easy to beat i’ll explain why in just a second okay our i would be extremely surprised if they miss that number let’s just put that way i’ll explain in just a minute and then as far as revenue goes analysts are expecting the revenue to climb about fifteen and a half percent so very strong revenue growth especially when you’re already the biggest
Company in the world now why should a polite lee beat on that eps number well there’s a lot of things going good for apple right now okay one is taxes okay the taxes just got dropped dramatically okay so that should make them much much more much more profitable okay oh so apple has bought back a ton of shares in the last 12 months okay meaning there are less shares
To be counted against that net income which usually makes the eps look much better okay that’s another thing also services it has been growing you know 20 plus percent for apple and that’s a straight profit machine for apple okay also a sps our iphones have gone up so which means iphone problem profitability should also be up there are so many you know different
Things you should look at why apple should easily probably beat that number i can tell you if they do miss that eps number then that means that apple sales were really really really weak i would be extremely surprised if somehow they miss analyst expectations on eps we shall see we shall see what happened but i’m just gonna tell you if they do miss then that means
There’s their numbers were really really weak because they should easily be able to beat those analyst expectations with all the stuff they have going for them okay so that’s apple stock let me know if you guys own apple stock if you’re doing anything down there in the comments section stock number two you’re gonna want watching the month of may and it’s gonna be
Very interesting is walmart they’re also supposed to be reporting numbers and walmart you know it’s all about online in the future where is their online business going at least from my perspective that’s what it should be about right there expect to roll out a new website on this upcoming month and i’m not sure how i feel about this new website i don’t know if it’s
Even that much better you know i don’t know let me know what you guys think about it you know there’s some screenshots of it i’m gonna be showing you there on the screen let me know in that comment section but with walmart here look at ecommerce sales okay year-over-year this is the past five quarters so they had a huge bump up there in e-commerce sales because
They bought jack calm okay so that fluffed up their numbers that made their numbers look so good for a few quarters there right and then that jet dot-com acquisition starts to bank year-over-year and sales start to fall in a major way ecommerce is a hundred percent the game of the future it doesn’t take a rocket scientist to understand that that that is the game
In the future okay physical retail walmart already won that war i’ve been talking about the same thing for two years now walmart already won the physical retail war it’s all about the next war okay which is a completely online landscape okay so whatever’s going on the walmart physical stores right now great five years from now ten years from now that’s not gonna
Be going on nearly as much okay even maybe three years from now okay so those sales of those physical stores will start to go down especially in a major way start in about two or three years from now especially once amazon gets to a point where they can get you know one-hour delivery or one-day delivery 24-hour delivery those type of things as dantan doesn’t cost
You an arm and a leg when we get to those levels which is going to be probably within the next year or two you know wait to see what happens to physical retail stores so what basically what needs to happen is walmart needs to react in a huge way i don’t think they’re doing enough in the online space they’re trying to change up their website here we’ll see what
That’s like i don’t think i’d really like it but let me know what you guys think look the numbers that analysts are expecting here analysts are expecting them to do around $1 12 of eps a year ago they did a $1 in my opinion walmart should not even care about eps right now it should just be 100% focused on growth but whatever whatever revenue estimates analysts
Are expecting them to have revenue go up around two and a half percent we see it’s almost you know i barely i guess you could say growth expected there the current year analysts are expecting just over two percent growth next year and i also expect around 2.7 percent growth you know walmart’s kind of a stagnating company right now we see there a year-to-date cor
As far as a year-to-date stock performance it’s actually down around 12 percent year-to-date and so a lot going on with walmart there are they taking a you know on line is serious enough i’m not convinced of it and they should have been already on this stuff like years ago they thought they’d just buy jet comm and fluff up the numbers what’s that do what’s that
End up doing it doesn’t really do anything for you there so very interesting we’ll see what the online sales it that’s what that’s what i think investors are gonna start really paying attention to now is the online sales or the online sales you know growing out they need to be growing out thirty to forty to fifty percent right now because remember they’re playing
Catch-up in a big way from amazon so you need to be growing my least 30 plus percent but really they need be growing 40 50 60 percent right now we’ll have to see if they they put up those type of numbers i wouldn’t bet my money on them this is put it that way and the third stock to watch is tesla oh my goodness tesla’s the most talked about stock in the entire
Stock market right now there’s so much like negativity kind of toward tesla right now coming from all these different things there’s a tesla factory safety under scrutiny after workers injured that came out today tesla investor pushing for more board changes tesla model 3 deliveries are expected to come up short okay company targeted making 2,500 of the sedan’s
A week by march so they might not hit that number elon musk he did an interview recently on cbs he said he’s sleeping on the factory floor tesla suspends model 3 production again it’s just been bad news bad news bad news finally some pretty much good news i was they came out about two days ago and that is that tesla model 3 is moving to 24/7 production so
Around-the-clock production elon musk is serious about reaching six thousand cars per week by june he wants to hit yesterday it was revealed that tesla intended to stop model 3 production for up to five days the reason given was to improve automation however a letter sent by elon musk to employees reveals a real reason for the pause in production tesla’s upgrading
The plant for round-the-clock production next week as electric reports in the letter must confirm that model 3 production had reached 2,000 per week which is double that attained in january the goal is to reach 5,000 per week no later than june 30th but in order to achieve that and to allow for a margin of error musk is setting a new goal of 6,000 per week going
From two thousand a six thousand and just over two months would be very optimistic if not for the fact that tesla is introducing another shift to the production line meaning that model 3 will be manufactured 24/7 in fremont tesla’s general assembly body painting teams without a third shift and require more people tesla is expecting to employ an extra 400 people
A week for several weeks across its entire operation to help support that so that’s a big thing like getting a 24-7 production i think that is something they should absolutely do i think it’s a must right now everybody’s paying attention those those those model 3 numbers you know that’s so important to tesla right now and just kind of getting those sales out to
Customers so they don’t cancel and things like that it sam is a good decision i think is that this isn’t that should already been made but you know whatever it’s good that they made it now okay also you i must send out you know i want to i don’t know if i would say a nasty email to some suppliers but a pretty hard email let’s just put it that way this is a quote
From him some part suppliers will be unwilling or unable to achieve this level of precision i understand that and this is considered as an unreasonable request by some it said that’s okay there are a lot of other companies with much lower standards they just can’t work with text tesla he categorized some contractors performance as being worse then a drunken sloth
Oh worse than a drunken sloth and said they would have one week to demonstrate excellence any that fail to meet the tesla standard of excellence will have their contracts ended on monday contract end on monday oh boy holy smoke is so he’s talking tough to see some suppliers we know they’ve had to make a lot of changes to some of these you know i guess you see
Products that some suppliers are sending them then they end up having a send a tooling factory or whatnot and get them reworked it’s been kind of a bad situation so that’s that’s what we’re looking at there and as far as like earnings actually go analysts expecting them to lose around three dollars and 27 cents a share versus a dollar thirty three loss a year
Ago they’re expected in revenue growth of about twenty three and a half percent but really honestly with tesla right now you know eps numbers revenue numbers that doesn’t even matter they’re in a type of situation that netflix is in right now where tesla all people care about is what the production numbers are a model three okay what our order numbers what our
Production numbers whereas netflix you know people only care about subscriber numbers right now people at that own netflix talk they don’t care about what the revenue or eps netflix is really that’s like back you know backdoor stuff what people really care about is the subscriber numbers and netflix same thing with tesla people just care about what those production
Numbers are and you know that’s kind of the way it is right now so anyway so let me know what you guys think about all three of these stocks do you own any of them i’d love to hear from you guys as always thank you for watching and have a great day you have some very exciting news for you guys just here today i uploaded my full eleven part stock market investing
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Transcribed from video
3 STOCKS TO WATCH! MAY 2018 By Financial Education
