What we’re reading (8/1)
“Amazon, Apple, Facebook Show Dominant Results, Grip On Society” (Wall Street Journal). That is, uh, quite a headline from the typically staid folks at The Journal, but it’s true. Q2 earnings from these three tech behemoths were great. Per a Jefferies analyst cited in the article: “The internet is the connective glue in Apple devices, Facebook ads, the Amazon shipments…[u]ltimately, we think there is a more permanent tailwind behind these big tech companies.”
“Gross Domestic Product, 2nd Quarter 2020 (Advance Estimate) and Annual Update” (U.S. Bureau of Economic Analysis). Notwithstanding the fantastic tech earnings, seasonally adjusted GDP fell over 9 percent in Q2. That’s real GDP by the way (inflation was also down).
“Apple Announces 4-For-1 Stock Split” (CNBC). Every “old” share of AAPL will now equal four “new” shares (each worth 1/4 as much). Importantly, “[s]tock splits are cosmetic and do not fundamentally change anything about the company, other than possibly making the shares accessible to a larger number of investors because of their cheaper price.”
“Permanent WFH: Easier Said Than Done” (CNN). One interesting data point from this article: 43 percent of respondents in a survey of 150 HR execs said they would keep most of their employees remote after the pandemic. My guess is that number is trending up. Once companies start shedding commercial office leases there will be no going back.
“How will A Coronavirus Vaccine Work?” (JSTOR). “Four different ways researchers use the virus’s own structure to train our immune systems to exterminate it.”
