Earnings so far
Let’s look at the MEGA tech earnings to foretell or confirm the economic outlook going forward.
I will be brief and to the point here. It is about the future not the past so let’s see what AMAZON had to say in its Conference Call.
Let me provide backdrop. When the “past” numbers came out they looked “good” against the “expected”. If you revise lower enough then you can easily beat and look “good” relative to expectations but were they really good? I like to focus on guidance and future for investment and especially during these times.
The rally faded quickly when these words were said:
“Uncertain environment”
“Ongoing inflationary pressures”
“Continue to drive cautious spending”
“Customers focused on VALUE”
“Moderated spending on discretionary as well as a SHIFT to lower priced items and “healthy” DEMAND in ESSENTIALS”
There you have it. Proceed with caution.
Necessities, value, inflation, uncertainty, DEMAND shifts.
Make note.