Finbitesize @finbitesize

Market Update: •S&P 500 & Nasdaq fell 5th day straight •Dow -236 pts (Walmart drag) •Futures flat ahead of Powell @ Jackson Hole •Rate cut odds dropped to ~75% •Asia up (Kospi +1%) •Oil set to snap 2-wk losing streak All eyes on Powell’s speech.

Market Update: Markets hit record highs. Dow & S&P rally, small caps lead. AI stocks cool, while banks, homebuilders, and airlines shine. Eyes on Powell’s Jackson Hole speech + big retail earnings (WMT, HD, TGT). India bounces back after 6 weeks red.

Market Update: US stocks dipped ahead of CPI: • Dow -0.5%, S&P -0.3%, Nasdaq -0.3% • Credit spreads hint at overoptimism • Nvidia & AMD to give 15% China chip rev to US govt • Tesla hits new buy zone, Micron +4%, CoreWeave +8% • India rallies (Nifty >24,550)

Market Update: • Futures slightly up ahead of CPI (Tue) & PPI (Thu) • Last week: Nasdaq +3.9% (record high), S&P 500 +2.4%, Dow +1.3% • Nvidia & AMD to give 15% China chip revenue to US gov for export licenses • Google, Apple, Tesla flash buy signals

Market Update: •Futures +0.3% •Dow -0.5%, S&P -0.1%, Nasdaq +0.35% near record highs •100% tariff exemption boosts U.S. chipmakers & Apple •$7T in money-market funds could fuel rally if Fed cuts in Sept Caution: weak jobs, slowing services, sticky inflation

Cash Flow > Income Statement? A company can report $200M profit, but not have $200M in cash. Why? Credit terms delay actual cash. Example: •Supplier gives 30 days •You give customer 20 days •Customer pays late → cash delayed Cash flow tells the real story.

Market Update: • S&P 500, Nasdaq dipped after weak services data • Fed rate cut odds jump to 90% • AMD, SMCI, Snap plunge on earnings • Shopify, Arista, McD surge • Tariff fears + soft data = cautious mood • Futures up slightly - bounce or bull trap?

Key metrics to check in the income statement: • Revenue Growth: >5% YoY • GPM: >20% = healthy buffer • NPM: >10% or high volume business • Net Profit & EPS Growth: >10%, with EPS > NP = buybacks • Watch crisis performance (e.g. 2008, COVID) for resilience

Market Update: • S&P 500: -1.6% • Nasdaq: -2.2% • Dow: -1.2% - Weak jobs data (73K) - Tariffs take effect Aug 7 - 82% of S&P 500 firms beat EPS - Fed rate cut odds rising Volatile week ahead. Eyes on earnings (AMD, Uber, Disney) & macro moves.

Why track EPS growth? EPS should ideally outpace net profit growth—indicating limited dilution (or active buybacks). Apple’s EPS CAGR: • 15 Y: 19.07 % • 10 Y: 10.90 % • 5 Y: 20.57 % Fast‑growing EPS = shareholder value focus.

EPS 101: • EPS = Profit per share • Key for valuing a stock • Rising profit + falling EPS? Could mean share dilution • Find “Diluted EPS” on the income statement • Example: Apple EPS in mid 2025 = $6.43

Market Update: – S&P 500 dips -0.3%, Nasdaq -0.38% – AAPL ↓ 1.3%, GOOGL ↑ 1.6% – Fed meeting in focus – Earnings mixed: UNH, UPS disappoint – Margin debt > $1T raises bubble worries – Oppenheimer sees S&P 500 at 7100 by year-end

Want to assess a company’s cost management fast? Compare Gross Profit Margin vs. Net Profit Margin: - Flat GPM + Falling NPM = Rising expenses ⚠️ - Falling GPM + Stable NPM = Good cost control ✅ Trends reveal more than numbers.

Market Update: S&P 500 & Nasdaq hit record highs again • S&P 500: +0.40% • Nasdaq: +0.24% • Dow: +0.47% Weekly Gains: • S&P: +1.5% • Nasdaq: +1.0% • Dow: +1.3% Big Tech earnings & Fed decision next week. Volatility? Lowest since Feb.

Net Profit Margin = Net Profit ÷ Revenue In 2022, Apple made 25.3¢ of pure profit for every $1 earned. A margin >10% is strong. <10%? Not so great. The higher the margin, the more efficient the business. Simple, powerful metric.

Watch out for Exceptional Items in net profit: These are one-off gains or losses not from core business ops. Example: In 2022, Apple had no significant exceptional items - its net profit reflected its true operating performance.

Want to evaluate a company’s strength? Look at Net Profit Growth over time: Check CAGR (Compound Annual Growth Rate) over 15, 10, and 5 years. Strong = 10%+ Minimum acceptable = 7%

Understanding Net Profit in simple terms: Think of it as your personal savings — what’s left after you pay all your bills. On a company’s income statement, it’s the bottom line. Example: In 2022, Apple made a net profit of $99.8B.

Market update: •S&P 500 & Nasdaq hit record highs •Dow slips as industrials weigh •Tech rallies behind Google’s AI momentum •Intel tanks, Tesla still down YTD •Global markets cautious ahead of Aug 1 tariff •All eyes on Fed, earnings, and jobs data next week

Understanding Gross Profit Margin: - Formula: Gross Profit ÷ Revenue - High Margin = More room to grow, invest, and compete - Low Margin = Tight on costs, limited growth The higher the margin, the more a company can thrive, not just survive.