Down goes the Dow

Since early April (about 4 months) the Nasdaq is up about 45%. Pretty remarkable.

Since 2009 it is up 1800%.

https://x.com/econguyrosie/status/1955612640518058282?s=61

Winning! trump dissenters go home devastated because if the markets were in a free fall instead of record territory it would be his fault. Hypocrisy knows no bounds.

https://x.com/kobeissiletter/status/1955262243320541630?s=61

You are incredibly dumb. No one is cheering for the market to tank.

Ok, I think I get it. But it took more than a little thought.

Let's keep things in perspective and be fair, okay?

It is not unbiased to pick a low point from which to measure the appreciation.

Here's the bigger picture:

S&P 500 is up 12.8% since the election (Nov. 5, 2024) and is up just 7.5% since Trump's inaugeration (Jan 20 2025).

That is nothing unusual and nothing to really be bragging about.

Yet….

“On a GAAP basis, CoreWeave LOST -$290.5 million in Q2. But with the stroke of an “adjusted EBITDA” wand, it suddenly became $753 million in profit with a 62% margin. How? By ignoring $559 million in depreciation, $267 million in interest, and $145 million in stock-based comp. That’s nearly $1 billion in real costs erased from view — the same optical surgery Enron and WorldCom performed on their income statements.”

coastaljournal.substack.com

AI Stocks Using "HFV" Hypothetical Future Value

The Coastal Journal

CoreWeave uses Enron’s Darkest Accounting Trick

Open link

Oof. With today's PPI data, this isn't aging well.

We haven't seen any doomsday scenarios from Igy or Hussman lately? Have they learned about the boy continuing crying wolf?

And since Trump was first sworn into office (1/20/17) the Nasdaq is up 285%. That is something to brag about.

And the Nasdaq is up 1,800% since 2009.

The market rocks.

Maybe I'm missing something, but I don't understand comparing non-GAAP financial info to what happened at Enron and WorldCom. Enron and WorldCom reported false GAAP financials. If someone doesn't find a company's supplemental Non-GAAP financials useful, they can just ignore them and look at the GAAP financials (which are required to be shown first in their earnings release).

Yours is the all too common excuse. CNBC uses non-GAAP exclusively when reporting EPS, as well as highlighting the same by companies. Why? it makes the growth of trees to the sky more plausible. While the average investor does not know the difference. All the stuff quoted in the previous post are business expenses.

I see it as the zeitgeist of this era. Anything goes. Everyone wants their cut.

Okay, fair enough - CNBC isn't a source I tend to use so I wasn't familiar with their practice. I guess I'm old fashioned in liking to go to the source and read the earnings releases and listen to the earnings calls. I still don't think it has anything to do with what happened at Enron and WorldCom though, and I think it makes light of the type of massive fraud that occurred at those companies to compare it to reporting non-GAAP financials.

The tolerance for bad behavior is high. Look at politicians trading on insider information. These things are revealed after the damage.