New Relic press release (NEWR) reported Q4 Non-GAAP EPS of -$0.83, missing estimates by $1.05. The company's revenue came in at $242.5M, beating expectations by $1.37M, and showing a 17.9% YoY increase. Despite the positive revenue growth, the company struggled to meet earnings estimates due to high operating costs.
As a result of the earnings miss, New Relic's stock price fell by over 15% in after-hours trading. The company's stock has been volatile in recent months, with highs of $84.98 and lows of $42.02 in the past year. Investors will be closely monitoring the company's financials in the coming quarters to see if it can turn its revenue growth into profitable earnings.
In other news, an Seeking Alpha contributor has shared their weekly top stock picks for a dividend portfolio. The goal of this portfolio is to collect weekly dividend checks that cover monthly expenses in retirement. The contributor highlights companies such as AT&T (T), Verizon (VZ), and Johnson & Johnson (JNJ), which have a history of consistent dividend payments.
The contributor also notes the importance of considering the inflation rate when selecting dividend stocks. Inflation is an expansion in the supply of money - not a rise in prices. When an individual saves, what matters is saving purchasing power. Therefore, selecting stocks with a strong history of dividend growth can help offset the impact of inflation on retirement income.
ZIM Integrated Shipping Services (ZIM) has been known for its monstrous dividends, but Seeking Alpha contributor, John Vincent, warns that the situation has changed for the worse. He notes that the company's dividends are not sustainable in the long run, as the company's earnings are not enough to cover the payouts. Vincent suggests that investors should be cautious when investing in ZIM, as the company's high dividend yield could be a warning sign of financial distress.
In technology news, Alibaba (BABA) is aiming to integrate AI LLM into all of its business applications, with plans to roll it out to enterprises. The AI LLM technology, which stands for "Apsara AI Logical Modeling", is designed to help businesses automate decision-making processes. Alibaba's goal is to make AI LLM a core part of its business operations, allowing it to improve efficiency and reduce costs.
Seeking Alpha contributor, Avi Gilburt, shares his experience with Elliott Waves, a pattern that is formed by the price movements of the market. Gilburt notes that the up and down patterns formed by Elliott Waves are unpredictable, making them difficult to use as a trading strategy. However, he suggests that understanding the basic principles of Elliott Waves can help investors gain a better understanding of market trends and make more informed investment decisions.
The S&P 500 has faced strong resistance at the 4,200 level due to options market positioning. Powell's speech last week has shifted market sentiment, with investors now awaiting the next Fed meeting for clues about the future of interest rates. A rally on narrow breadth indicates limited participation, and the chances of failure are above average. The largest stocks in the index by market capitalization continue to drive the index higher, while smaller companies struggle to keep up.
As a reminder, Seeking Alpha offers a daily podcast of Wall Street Breakfast, available on iTunes, Stitcher, Spotify, and Seeking Alpha. This podcast provides listeners with a quick summary of the day's top financial news, allowing them to stay up to date on the go.
