The Generals Are The Last To Fall In a Real Bear Market.

Earnings news came out after the Thursday stock market closed. Some key earnings came from top market cap companies Apple and Amazon. Their results were positive and after hours both stocks soar to the upside.

The question now we are facing is the overall stock market in a new bull market? On the flip side there are stocks that not doing well. Roku which is an entertainment streaming service and Intel computer chip manufacturer crashed after reporting.

It would not be easy to believe the current drop in ROKU and INTC be taken lightly as multiple tech and big cap stocks had also similar draw downs after posting quarterly results. Companies like Facebook and Walmart.

The reality is current market conditions is not fully bullish or fully bearish. There are companies that are continue to raise revenues and likely profits. While other companies struggle to keep revenues up and have losses to show.

Present Revenue and Profits Now Matter

Back when the FED had easing policies on lending such as low interest rates for borrowing, many corporations took out loans at low rates and use the cash loans to prop company stocks by performing share buy backs or using the loans to grow their companies. Even if companies were not profitable the ease of borrowing allowed companies good or bad easier path of existing.

Not that long ago AMZN posted data showing their quarterly income fall dramatically. This is not information that shows the company is moving in a positive direction. Yet today's quarter results makes investors optimistic on AMZN.

Furthermore online sales have been on a decline for a few quarters since 2021 up to current 2022. All these data points are hold more value to assessing the value of AMZN. As of now not ideal but since the quarter turn out to not be as bad as people expected the stock rose in dramatic fashion as after hours had it go over 13%.

Conclusions

Real company profits and losses will matter now in a market of uncertainty. This is not a bull market as there are steady signs where better off corporations get higher stock prices while others who not doing so well get crushed in price. All in all the for the name of capitalism.

What is cautious to note is that although companies like AAPL and AMZN are rising for the day there is potential signs that the current economy is not out of the woods. With two consecutive GDP numbers its sure does not look all is well.

The companies that tend to bigger profits are going to earn more while opposite is true. This is apart of capitalism where only the strong survives. All in all it maybe a good thing to identify which ones are running on positive revenue and growth than those who over borrow what they can afford and not producing any revenue.

None of what I write is financial advice. It is for entertainment purposes only. Thanks for reading!

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