Down goes the Dow

MSFT Q3 2014 Revenue $23.2 billion

MSFT Q3 2015 Revenue $20.3

This information from their 8-K. Buy the market if you like, but it is for momentum and not valuation.

MSFT up 5% after hours - that's a big one in the plus column

although sometimes MSFT will reverse itself once the call starts.

MSFT diluted share count in millions:

2014 8,351

2015 8,066

Google expected earnings $7.22, reported non-GAAP $7.35 and GAAP $5.73.

Stock compensation 2014 $1.255 billion and 2015 $1.432 billion. Of course none of this is the cost of doing business.

From the 8-K: "Stock Repurchase The board of directors of Alphabet

authorized the company to repurchase up to $5,099,019,513.59 of its Class C

capital stock, commencing in the fourth quarter of 2015."

That might help earnings!

wow.

google at all time high - up 10%

that is massive - msft and goog up huge - that is billions and billions of dollars.

Stock repurchases affect "earnings per share", not "earnings".

Lesson,

I don' think I said anything contrary to your correct comment. Earnings are highlighted on a per share basis by Wall Street. Revenue on the other hand are reported as a gross number.

Igy

agip,

A couple of points to temper your enthusiasm. Alphabet and Microsoft did not beat earnings as I have outlined in the above posts. If earnings per share of a company is going down but the price is going up that makes the stock of that company more overvalued not less overvalued. It amazes me how many people are making the same mistakes most made in 2000 and 2007.

Igy

coach d,

I will defer to you on matters technical. If a trader can make technical indicators work as an investment strategy, than good him/her. I would suggest that most traders were burned in the aftermath of 2000 and 2007, at least that was my observation. Investors on the other hand should be cognizant of the valuation of the asset to be purchased. Contrary to the headlines, earnings per share are down not up on several key Dow/S&P stocks as I have highlighted in previous posts. If you doubt my analysis you can pull the 8-Ks yourself. Furthermore, corporations continue to buy back their own stock in an attempt to cushion earnings announcements. So the growth in earnings is more fiction and can be added to the non-GAAP earnings fantasy highlighted by the financial media. Rational investors, your phrase, should be more concerned about actual revenues and expenses rather than some hokum spun to prop-up the inevitable decline of this market. I respect your right to a view but it is not supported by actual data or market history. By the way I am up 11.5% on my shorts thanks to biotech. That said, I will close my shorts if charts prove the willingsness of rational investors to do stupid things. Best of luck with your trading.

Igy

coach d,

I couldn't download the Yamada piece, but she does look like crazy lady. The other piece is quite a bit flawed using analyst forward earnings estimatevto predict future earnings gowth. That estimate is so historically wrong it is slightly better than worthless.

Igy

It's not about "revenues", it's about "profits".

A lesson 4 U wrote:

It's not about "revenues", it's about "profits".

"Profit is an opinion, cash is a fact"

It's totally valid to focus on revenues rather than profits.

I read the Amazon 8-K. Amazon had a good earnings this quarter but with a rather large caveat. Currently AMZN is still losing money on an annual basis. If the current quarter could be replicated for four quarters and then multiplly those earnings 25 times the company would stll trade at 34 PE. So those expecting Amazon to easily reach a reasonable valuation--think again.

Igy

Also, I have to compliment AMZN with transparency in their financial statement. It is a contrast to GOOG and MSFT.

"Are you an active trader too."

"No, but I found me an advisor and he put me into a couple of hedge funds and they are doing great."

agip wrote:

"Profit is an opinion, cash is a fact"...

Sounds profitable.

Ghost of Igloi wrote:

I read the Amazon 8-K. Amazon had a good earnings this quarter but with a rather large caveat. Currently AMZN is still losing money on an annual basis. If the current quarter could be replicated for four quarters and then multiplly those earnings 25 times the company would stll trade at 34 PE. So those expecting Amazon to easily reach a reasonable valuation--think again.

Igy

Meanwhile the stock sits near their 52-week high and analysts across the board are raising AMZN's price target by as much as 1/3 more.

Big,

Hopefully with the nom de guerre of "Big Dog Investments" you understand the basic financial principle that if the price is advancing at a greater rate than the earnings the valuation gets more not less distorted. Prior to the market open AMZN's PE was 817.26 and opened at a PE of 893.86. Even though AMZN is a remarkable company and the earnings were an improvement it is still not a poor but a bad investment. If you believe in the analyst recommendations buy some AMZN and see how you fare over the full market cycle.

Igy