Thursday was a big day to varying degrees for a couple big names, but not so much for GDP.
First, Meta Platforms (META) , a member of my 2022 Tax Loss Selling Recovery Portfolio, jumped $14 following the release of its first-quarter earnings after Wednesday's market close. Earnings per share of $2.20 came in 23 cents ahead of consensus estimates while revenue of $28.65 billion exceeded expectations by $990 million.
Thursday's uptick in Meta puts its shares at a 14-month high, welcome news from shareholders who suffered through an awful 2022. Meta shares now trade at 19x and 16x 2024 and 2025 consensus earnings estimates, respectively. Meta was never my cup of tea until it crossed over into value territory and qualified for my Tax Loss Selling Recovery Portfolio. Its shares are up 91% year to date.
Meanwhile, Intel (INTC) , which has seen its share price decimated over the past two years and trades at the same level as it did in 2016, also showed promise Thursday with its first-quarter release after the market close. Intel reported a loss of four cents a share for the quarter, which was 10 cents ahead of estimates, while the top line of $11.7 billion was $570 million ahead of expectations. Intel was up about 3% during regular trading and was adding to that gain this morning.
Intel's guidance for the second quarter shows revenue of in the range of $11.5 billion to $12.5 billion (versus the $11.8 billion consensus) and a loss of 4 cents a share (versus a 2-cent profit consensus). INTC now trades at 16x and 11x 2024 and 2025 consensus earnings estimates, respectively.
First-quarter GDP was up a tepid 1.1%, well below the expected 1.9%. Some may be pleased by this news, interpreting it as a sign that the Fed has been successful in slowing the economy and inflation along with it. Not so fast, I say. I'm not convinced that inflation is under control and I still believe we are headed for a recession, and perhaps the much-dreaded stagflation.
On that ominous note, have a nice weekend.
