Today we are watching…
1. General Motors (#gm)
In 40 days, General Motors lost more than $2 billion as over 40,000 employees went on strike. Electrification has rapidly changed the auto industry, and staff are feeling uneasy about job security. At last, however, this nightmare for GM is over. The firm has agreed to a new four-year contract with the United Auto Workers (UAW) union, which at the cost of a “stronger wage and benefit package,” puts most employees back to work as early as Saturday! The stock rose almost 3% after-hours on this news, but now it’s Ford’s turn to feel the pain. The union is on the warpath to all every Detroit automaker. The picket line roadshow goes on. Are you investing in auto companies? Watch your back!
2. Alphabet (#googl)
Google’s earnings never fail to surprise. After releasing first quarter results, its stock sank 7% as ad revenue failed to hit analyst’s expectations. A quarter later, however, the slenderest of earnings beats saw an 11% break out. For another good day today, Alphabet will need to gather all the ad revenue it can muster to overcome $12.57 profit per share demands on $32 billion in sales. That’s serious money, and the company’s ‘TAC’ costs are in full-focus. The company pays $7.2 billion every year to be the default search engine on independent sites and apps. Investors see that as a rising cost, not a growing investment!