7/19 TSLA and NFLX Earnings
Earnings for Big Tech Kick Off
Index
I. Forward
II. Reflection
III. Markets
IV. Analysis and Commentary
Forward
Today’s a big day, with both NFLX and TSLA kicking off earnings and setting the tone for the season.
As I step back in to saddle from vacation I am now looking to wind back up into some plays from here, and I believe this ER season has a ton of good opportunity once we understand the tone for it.
Additionally, as I wrote yesterday, MSFT 0.00%↑ - MSFT was only an intraday trade up for the time being, and it suffered a general pullback today.
I’m going to do some deep dive coverage of ER’s for next week in some special posts. So stay tuned for that as well.
Also, as I get better at figuring out how Substack works, I figured out how to discount student’s paid subscriptions. If you are a student and following the tribe, I’m now making sure it is even more manageable for those wanting to learn how to control their future. Below button will get you squared away, using your student email.
If you enjoy the stack, make sure to like this post, restack, retweet, subscribe to the tribe. It goes a long way and I think 95% of those that upgrade will say they’ve seen their trading improve incredibly. But enough of the biz, let’s get down to wiz.
Reflection
Stock earnings reports can be a fickle thing. One day, a company can report strong earnings and see its stock price soar. The next day, another company can report strong earnings and see its stock price plummet.
There are a few reasons why stock earnings reports can be so fickle. First, investors are always looking for the next big thing. If a company reports strong earnings, it can be seen as a sign that the company is on the cutting edge and has a bright future. This can lead to investors bidding up the stock price.
Second, stock earnings reports can be affected by a number of factors outside of the company's control. For example, if the overall market is down, a company's stock price may fall even if it reports strong earnings. This is because investors may be selling off stocks across the board, regardless of individual company performance.
Third, stock earnings reports can be subject to interpretation. What one investor sees as a strong earnings report, another investor may see as a disappointment. This is because investors have different expectations for different companies.
As a result of all of these factors, stock earnings reports can be a fickle thing. Investors should always be careful when interpreting earnings reports and should not make investment decisions based on a single report.
A few other things to consider with Stock ER’s:
Earnings reports can be manipulated. Companies have been known to release misleading or incomplete information in their earnings reports in order to artificially inflate their stock price.
Earnings reports can be misinterpreted. Even if a company reports accurate information in its earnings report, investors may misinterpret the information or draw the wrong conclusions.
The market is constantly changing. The stock market is a complex and ever-changing ecosystem. What is considered a strong earnings report today may not be considered a strong earnings report tomorrow.
Generally speaking, you should not make investment decisions based on a single earnings report and always do your own research before investing in a company.
Markets
