It’s earnings season and that usually means a bit of turbulence in the stock market; last week’s early report from Google set the tone for a bumpy week.
Some Facebook employees that were awarded Restricted Stock Units (RSUs) will see their RSUs vest this week. That means that early next week an additional 234 million shares of Facebook stock could be up for grabs. When a flood of shares hit the market, share prices typically drop.
If the vesting RSUs aren’t already a concern for Facebook shareholders, the entire process comes after the company’s second-ever earnings report, which is scheduled for tomorrow. It will be interesting to see what Facebook shares look like a week from now. At press time, the stock is trading for $19.15/share, about half of its IPO price.
What do Apple, Google and News Corp have in common? They are three of the five stocks that appear in Meena Krishnamsetty’s article, “5 stocks billionaires are crazy about.”
“Apple is the most popular stock among billionaire fund managers. More than 40% of the billionaires had a large position in Apple at the end of June. Apple is also the most popular stock among other hedge fund managers.”
Last week’s weak earnings reports are likely to be followed up by more underwhelming results this week. Even though it is still early in the day, the decline has already started with a drop in the Dow after Caterpillar’s lackluster quarterly report. According to this Market Day report, only 38 percent of companies that reported earnings last week beat Wall Street expectations. This is significantly below the 62 percent long-term average.
Political advertising dollars are up. This isn’t a surprise because the 2012 Presidential election is just two short weeks away. However, the source of this information wasn’t an ad agency executive, instead the data came from the Media General Inc. third-quarter earnings report.