Earnings Are Back!

Earnings are back!

Weren’t we just talking about earnings?

Time flies when you’re having fun!

I waited until after-hours on Tuesday, Oct 24th, to write my newsletter to know a more about the lay of the land from the MSFT and GOOGL earnings. These stocks are heavy hitters!

I like to trade both of these. MSFT is a long-term hold for me.

Earnings reveal a lot about the state of the consumer and the health of US and global business. As more numbers come in, recession rumors will be stamped out or build some momentum.

These 2 tickers reveal more about the business world than a picture of the American consumer.

MSFT beat expectations. The stock jumped in after-hours trading. By reading the charts for the last 4 earnings, I noted that 3 out of 4 times, the stock rose, and stayed elevated all until just after the ex dividend date. Immediately after shareholders got paid that dividend bonus check, the stock often sold off down $10-20 a share. (Guess who sold it off? You guessed it; The Institutions!)

What is BRILLIANT news for MSFT investors is that in after-hours, the stock peaked above it’s all-time high. MSFT has fully retraced and those charts sing! 

GOOGL usually spreads some love in the 3rd quarter. But it fell short of expectations today, reporting missed revenue in their cloud services. That may be a sign things could be slowing in US business, but one company’s earnings aren’t enough to make a judgment call. We’ll wait for more earnings to come in to speculate on that.

GOOGL dropped in after hours trading by about $7.00 per share. After hours moves are often irrelevant to the next days trading price, as I am sure you’ve noticed. I don’t expect GOOGL to stay down for long. It’s a big name in AI and I suspect buyers will buy at what they see to be a discounted rate. Let’s see what happens next!