Diamonds and Dogs
Hopefully today is the first of many positive days to come. With the stock market moving straight down to start the year, it's time for earnings reports to tell us if the selloff is justified or not. If JPMorgan Chase & Co. (JPM) is any indicator, the banks are in good shape. JP Morgan is the diamond today up 3% thanks to better than expected results. Along with the better than expected results, JP Morgan also stated they don't have a large exposure to oil debt. CEO Jamie Dimon said the bank doesn't plan to pull credit it's extended to drilling firms, and they aren't worried about a major spillover from the oil patch amid today's distress. A can hear the sigh of relief.
How are you filming your extreme sports activities, maybe not with today's dog, GoPro (GPRO). GoPro is trading down 14% to a new all-time low following dismal earnings and guidance. The company reported revenue of $435 million which is considerably lower than analyst estimates of $511.9 million. The company also announced that they plan on laying off 7% of their workforce (105 people). The analysts are climbing over each other to downgrade and lower price targets. The analyst at JP Morgan lowered his price target from $90 to $21. With the stock down 81% from the August highs, the analyst community wasn't much help.
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