If Apple and Microsoft blow earning we are in a recession
Apr 26
9 Comments
If the money printers don’t hit their targets we are in a recession 100%
TC 100k
If the money printers don’t hit their targets we are in a recession 100%
TC 100k
comments
Growth, or recession, is a variation of GDP
GDP is the sum of gross profits across the country
So, even if companies have poor or zero net income, they are still turning a gross profit and still contributing to GDP
Therefore these earning calls are not specifically correlated to gdp growth or decline, and neither is the stock market in general, which is supposed to track net earnings
Heck, people might switch to cheaper alternatives samsung/Motorola or other chinese phones
Sure EPS is important but the reason companies trade way over their value is because the market prices in future growth potential, the same thing happened to apple in 2013 (google apple slowdown 2013, stock took a dive in Q2-Q3) the market saw a slowdown and repriced it’s potential growth
In the end it’s still just all about EPS