Hubert Senters here.
I got a question from a viewer. Question from Rich. I can’t zoom in slack now. I just cut and copy and paste them in the notepad. Hubert, I hope you can clarify something for me. Amazon reported earnings last evening and the street was looking for earnings of $3.14 per share and Amazon hit $5.75 per share so they beat. Make sense.
So they beat earnings significantly however the street was looking for revenue of $57 billion and they reported revenue of $56.57. Seems to me that if a company is more profitable on slightly less revenue that that would be positive. I just don’t understand the huge sell off in Amazon.
Well here’s the thing. Everything in the market can be fickle from time to time and heads up if the entire market is going down so I believe in the theory is if all the index futures if they go higher regardless of how something will report it’ll pull that thing higher if the whole market is in sell mode regardless of what the earnings are that thing will sell off so all ships will rise and lower with the tide.
Now that being said also it’s not so much. I mean I’ve been doing this for 25 plus years. You can have a company that just smokes earnings and just goes down. You can also have a company that has terrible warnings that just goes up. It’s really what the public is willing to pay for that thing.
Well, they believe it is worth not what it’s actually worth but what they believe it to be worth so that’s why they call us speculators because we’re speculating on the future price of stuff so. A lot of times earnings won’t make sense so I tend not to play the earnings theory of oil. If they have good earnings I should go up and if they have bad earnings they should go down because a lot of times the street is fickle and you just kind of built into your trading so.
Best thing you can do is trade your plan accordingly stick to it as best you can. And don’t worry about whatever else is done. Do your own thing. When I said that I know I messed up as soon as I said that. Do your own thing as long as you have a stop-loss. Don’t just blindly buy Amazon thinking that it’s going to go you know to $9,000 just because it has good earnings. It could. It probably won’t but it could.
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Good luck. Hope it helps. I will lead you over to this page.
Hubert.
