Equifax

A large credit bureau, Equifax, reported that a computer code error resulted in a change in the credit score of 25 points for roughly 300,000 consumers. This error caused a shift in both directions for about three weeks, from march 17th – April 6th. 

The situation came to light when the housing agency Freddie Mac, alerted its clients that Equifax told the housing agency nearly 12% of the credit scores released during that time frame may be incorrect. 

In 2017 Equifax reached a settlement to pay up to $700M for the data breach. The breach resulted in compromised personal information for roughly 150 million people.

Apple

Near the end of July, Apple reportedly hired a long-time Lamborgini executive Luigi Taraborrelli, as part of the Titan project. The Titan project began in 2014. The project remains largely a secret; however, they seem to be working on an electric & self-driving car. 

Apple recently reported customer statistics that 79% of car buyers wouldn’t buy a vehicle without CarPlay. So while many speculate that Apple is working on a physical car, I believe they are developing an operating system with self-driving capability. 

Pepsi/Celsius 

Energy drinks are one of the fastest-growing nonalcoholic beverages. Pepsi acquired 8.5% of the energy drink company Celsius and created a long-term distribution deal. 

The company was started in 2005 and has shown impressive growth in the last few years. Its U.S. revenue soared 217% in the first quarter to $123.5 million. The company claims to be a healthy alternative to energy drinks like monster or red bull, coming in at just ten calories and 200mg of caffeine. In addition, the drinks have no artificial preservatives or sugars.  

Exxon 

On July 29th, ExxonMobil reported earnings of 17.9B. The CEO said, “Earnings and cash flow benefited from increased production, higher realizations, and tight cost control.”

In a press conference, President Biden fielded a question asking if he would go after Exxon’s profits. “We’re going to make sure everybody knows Exxon’s profits … Exxon made more money than God this year.” For this quarter, ExxonMobil paid 2.8B in taxes.  

Starbucks

Starbucks reported a better-than-expected revenue of $8.15 billion vs. $8.11 billion (estimated). 75% of sales came from cold beverages. In the U.S., same-store sales increased by 9%. However, Outside the US., same-store sales decreased by 18% – largely weighed down by China. 

In addition, Starbucks gained an additional 318 new stores. However, the company stated that inflation and higher wages trimmed this quarter’s profit margins. 

CVS

On August 3rd, CVS raised its forecast after beating second Quarter expectations. As a result, the company anticipates adjusted EPS for the entire year to be $8.40 & $8.60.

Same-store sales rose 8% compared to 2021 as customers bought covid at-home kits and other over-the-counter medicine. In addition, CVS administered 4 million Covid tests & nearly 6 million covid vaccinations.

Also, the CVS CarePass membership rose 26% in the past year. The program offers coupons, free 1-2 day shipping, and costs $5 a month.