If you beat, your stock goes up.
If you don’t, you stock goes down.
This has nothing to do with “Is the stock worth holding?“
Let’s take Netflix. It earned 85 cents, versus an analyst estimate of 79 cents. Hence it beat. So things should be good.
But No. Wall Street is obsessed with subscriber growth. on that it missed the estimates of the learned analysts (who don’t work in Netfix’s business and hence know zip about it) .
To wit:
+ Domestic subscriber additions: 674,000 vs. 1.23 million subscribers estimated, per FactSet and Street Account
+ International subscriber additions: 4.47 million subscribers vs. 5.11 million subscribers estimated, per FactSet and Street Account
Like many popular tech stocks, you can’t measure Netflix on the traditional metric of P/E ratio. Netflix’s is a ridiculous 268, according to Finance Yahoo.
Popular tech stocks like Netflix boom or bust based on popularity. Also called momentum.
I’ve had an inkling that Netflix — one of my recommendations — was zooming too high. Along the way up, I thought of selling some… But when? It kept going up and up. That’s the classic dilemma with momentum stocks. My approach is to eye the company’s basic business and the way it’s running it. Ask myself: Am I happy with it? The answer in Netflix’s case is a resounding YES.
Will there be future growth? Yes. It will come from more subscribers especially as we move into 5G. It will come as Netflix continues to boost its original content. It’s investing $12 billion. (That’s B, as in billion.) And it can always bump its price by a dollar or two a month:
These prices are a bargain!
Netflix is down 13.4% this morning. Will I sell it? No. Will I watch it? Yes. I’ll watch and listen for love or non-love in coming days…
Am I worried that I’m losing a boatload of money today? No. I’m up a boatload of money. Just now I’m up a smaller boatload.
Trump and Putin Helsinki Summit
There’s nothing I can say that every pundit and their uncle haven’t already said.
In my wildest dreams, I can’t imagine that what happened in Helsinki will have any affect on our stockmarkets, our economies or anything else.
I get press releases
ORLANDO, Fla.-Biblically Responsible Investing (BRI) continues to grow exponentially, due in part to 25 years of expanded awareness and success of financial advisers who are dedicated to help investors glorify God with their financial resources.
BRI funds don’t invest in companies”that support pornography, the abortion industry or have other agendas contrary to the teachings of Scripture, or that are actively participating in activities that have proven to be destructive to our communities-at-large.” (No explanation of what that might be.)
Another area not to invest in
Big fund manager BlackRock reported “significant outflows in funds that track emerging markets, which were popular with investors in 2017.”
An area to invest in?
This Hermes Berkin handbag costs $23,000+. You can buy it cheaper used.
Favorite church signs
Congratulations. You’ve just won $750,00.
All you have to do is to send $200 in iTunes gift cards. Buy the cards. Send the redemption codes.
iTunes gift cards have become an untraceable method of sending crooks money. Better and easier than bitcoin.
Warn your elderly parents and grandparents. The Mark Zuckerberg telling you of your win is not THE Mark Zuckerberg of Facebook fame.
Harry Newton, who warns again “Slow down. You move too fast.” Watch for cars, trucks and vans running red lights. Stand outside my building and watch them run the red light. And I mean every red light. It’s my amusement when I walk Rosie across the road to the park.
