Markets are mixed this morning despite mostly great earnings results from some of the largest names in the market including Apple (AAPL).
Apple (AAPL)
- Sales $111.4 billion consensus $103.1 billion
- Earnings $1.68
Handsets
- $65.6 billion consensus $60.3 billion
IPod
- $8.44 billion consensus $7.58 billion
Mac
- $8.68 billion consensus $8.86 billion
Wearables & Homes
- $12.97 billion consensus $11.84 billion
China
- $21.3 billion from $13.6 billion year ago
USA
- $46.3 billion from $41.4 billion year ago
Selling of these big earnings beats is a knee-jerk reaction that I think should be ignored or bought. A lot of stocks are priced for –near term- perfection.
Tesla (TSLA)
Beat on revs, missed on EPS
- Revenue +44.9% $10.7B vs $10.38B consensus
- EPS $0.80 vs $1.03
EBITDA $1.85B +57%
- Operating Cash Flow $2.8B
- Total vehicle production: 179,757
- Total Deliveries: 180,667 +61%
- No guidance issued
Key production and Deliveries:
- Model S/X production: 16,097 (-10%) y/y
- Model S/X deliveries: 18,966 (-3%) y/y
- Model 3/Y production: 163,660 (+88%) y/y
- Model 3/Y deliveries: 161,701 (+75%)
Mastercard Incorporated (MA)
- Revenue (-6.7%) $4.12B vs $4.01B consensus
- EPS $1.64 vs $1.52 consensus
- Operating Income: $2.1 billion (-12%)
- Operating Margin: 49.9%
- No guidance issued
GDP
Fourth quarter GDP came in at 4.0% against consensus of 4.2% and Atlanta Fed estimate of 7.0%.
To see the chart, click here.
The sharp decline in personal consumption should be a red flag for lawmakers dragging their feet and playing games with bills that cannot get bipartisan support.
Investors should feel good about domestic investments, including equipment and IP, and of course, the housing boom.
To see the chart, click here.
Portfolio Review
We added to Real Estate today.
Today’s Session
GameStop (GME) Saga
By now many of you have seen my rant about Wall Street, including most of the financial media whining about GameStop (GME).
For those that know me, and read my book Unstoppable Prosperity, you know I have long felt shorts and hedge funds have an unfair advantage over regular investors. Now, they are back on their heels.
I try to teach and practice discipline, and we have issued alerts on most of the ideas based in part on large short positions. That said, I have no idea about the top of these squeezes.
Here’s the rub…most of the shorts are still short. So these names keep getting squeezed.
It is a shame the financial media and Wall Street elites think regulators should shut down individual investors. It’s a damn crime, and if that happens, I hope there is a revolution. I would hope Main Street took all its money out of Wall Street.
That being said, contain your own greed. Be smart and be independent. There will be winners and losers. just like all the poor folks who told to load up on General Electric (GE), International Business Machines (IBM), and so many others over the last ten years in retirement accounts and missed big moves in NVidia (NVDA) and Tesla (TSLA) and so many others.