The stock market soared on Friday after Federal Reserve Chair Jerome Powell indicated that there could be interest rate cuts in September.
Overall, S&P 500 rose 1.5% to 6,467, while NASDAQ increased 1.9% to 21,497.
Tweet of the Day
Fiserv $FI stock dropped after the company reported earnings. The reasons were:
1. revenue growth now expected to be 10% for the year versus previous estimates of 10% top 12%.
2. Less margin expansion than previously anticipated.
But now with a P/E around 14, the stock’s a…
— David Sharek (@GrowthStockGuy) August 22, 2025
Chart of the Day
Here is the one-year chart of Fiserv (FI) as of July 25, 2025, when the stock was at $142.
Fiserv stock dropped after the company reported earnings. But why? Two reasons.
First, the company expects organic revenue growth to be 10% this year. That is down from previous estimates of 10% to 12%. Second, management guided adjusted operating margin increase to 100 basis points, down from 125 basis points due to the impact of four new acquisitions.
Management also talked about an increase in investments in software and hardware. The company anticipated a big ramp of growth during the second half of this year due to a rollout of along list of projects and initiatives, but now they need more time to pay off.
FI is part of our Conservative Growth Portfolio and Growth Portfolio. It is a safe stock with a mid-teens growth rate and a reasonable P/E.
