We’re keeping things short and sweet this Monday and, thanks to a few major players last week, there will definitely be some shine! Earnings season is officially underway and last week some A-Listers weighed in and set the stage for some pretty great news.
The big banks are always the first ones to drop jewels every earnings season and for the third quarter reporting, they came to play.
JP Morgan
,
Morgan Stanley
and
Bank of America
all beat Wall Street Nerds’ expectations, which is great for the banking sector.
Netflix
,
Johnson & Johnson
and
Coca-Cola
also came strong. They dropped impressive earnings and then dropped the mic! Let’s take a brief look...
Shares of
Netflix
were up 8% after the streaming giant reported super shiny third quarter earnings last Wednesday. International paid subscriber adds were up which is evidence that the company’s global growth game is pretty tight. Although they beat Wall Street Nerds’ expectations for earnings, they ever so slightly missed their expectations on revenue.
Netflix
CEO Reed Hastings feels pretty confident that their only real competitor is linear or “regular” t.v., despite
Disney
and
Apple T.V.
dropping streaming services later this year. He said that they’ve been competing with streamers like
Amazon
,
YouTube
and
Hulu
for a while so they are certainly not
scurred
!
Shares of
Coke
popped (All the puns intended!) on Friday after they released bubbly earnings beating Wall Street Nerds’ predictions.
Coke
has been intentional about offering healthier options like Zero Sugar and smaller can sizes...and all the girls about that low-carb life thank them! Consumer staple stocks like
Coke
have been having their moment this year. 2019 has actually been their best year in a decade, leaving the Nerds wondering how much room they have for further growth.
Coke
plans to launch an energy drink in 2020 that will rival
Monster
and
Red Bull
. Let’s see if that will give them wings.
What's It To You
To put things into perspective - stock prices are near the record highs they hit earlier in the year. Understanding what drives stock prices: earnings, dividends, valuations and not headlines, is one of the most important lessons in the stock game.
Even though corporate growth has slowed a little in the last two years, it’s still growing. The Nerds expect corporate earnings to accelerate through 2020 and they believe stocks will continue to outperform bonds. So,
chillax
. The road get a little bumpier in the later stages of a bull market, but reading and understanding is fundamental! So, continue to do your research and make sure your portfolio is diversified appropriately.
Know that quick and dirty usually just leaves you dirty...and broke...and that there are benefits for long-term investors which include dividends and the time needed to recover from declines.
