Luce EmersonInvestorPlace Contributor
About Luce Emerson
Luce Emerson is a former sell-side banker with a broad range of capital markets experience. She continues to follow markets closely, with a particular focus on retail, financials and entertainment.
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Microsoft has reinvented itself and emerged as a growth company that is extremely profitable, which separates it from higher growth but net loss generating upstarts. Net income on a GAAP basis increased an astounding 137 percent over the prior year. You don’t expect a big tech company to be delivering growth numbers like that, but MSFT stock is doing just that.
Regardless of what Shopify earnings look like on August 1, which likely will be be more growth and more traction, there’s no doubt that SHOP stock is in a long-term uptrend.
The market response to Amazon (NASDAQ:AMZN) reporting its second quarter earnings is not unexpected, given lower-than-expected profit margins. However, with a strong revenue beat, the growth engine for AMZN stock is still grinding and AWS is still generating plenty of cash, so there is no reason to bail now.
The market has rewarded shareholders as GS stock has continued to climb throughout the year. With more consumer initiatives like the much touted partnership with Apple credit card ahead, GS should again deliver strong earnings in the third quarter.
The momentum from a solid first quarter has continued into the second quarter with SNAP seeing growth in users, engagement, and revenue. It is worth noting upfront that engagement is trending very positively with the average number of Snaps created every day topping 3.5 billion in the quarter.With the outlook for the next quarter looking easily achievable, investors can kick back and ride the momentum.