Scary Earning Season | Trappin Tuesday's (Wallstreet Trapper)
Trappin Tuesday's
Wallstreet Looks Like Us Now Network
4.9 • 2K Ratings
🗓️ 14 October 2022
⏱️ 13 minutes
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| 0:00.0 | earnings are definitely going to be really really scary this quarter. So here's my prediction. Here's my |
| 0:15.7 | prediction. My prediction is that a lot of companies will lower their earnings. |
| 0:25.0 | Watch this, y'all. |
| 0:26.5 | See, I like to say stuff so that people can like, write it down and then I know they be tweaking to say you was wrong track. |
| 0:41.3 | I'd be tweaking to say you wasn't wrong. |
| 0:45.0 | But here's what I want you to understand. |
| 0:48.0 | A lot of companies will lower their guidance. |
| 0:52.0 | And because they're going to lower their guidance and because they're going to lower their guidance, watch this, |
| 0:58.5 | you're going to lower guidance and this time around when the lower guidance, the market might not reward her. |
| 1:07.0 | Here's why. |
| 1:10.0 | Remember earlier I talked about inflated earnings, right? |
| 1:17.0 | We talked about inflated earnings. |
| 1:20.0 | Now, over the last couple of quarters, what's been happening was because companies were lowering |
| 1:26.8 | guidance and the market was still rewarding those companies for hitting those lower guidance. |
| 1:33.0 | The market was rewarding companies for lowering guidance and hitting it. |
| 1:39.0 | Now normally the market never does that. |
| 1:41.0 | In a proper cycle, the market will not reward a |
| 1:45.0 | company that lowers guidance, right? The market will not reward a |
| 1:50.6 | company that lowers guidance. |
| 1:59.0 | Right? So, guidance means that a company is saying, hey, remember I told you the market is a what? |
| 2:13.7 | What is the market? A forward looking mechanism, right? So every quarter the market, the company has to say, hey, this is what we did this quarter this is what we were going to do next quarter based on what we did this quarter |
| 2:17.6 | based on the numbers that we see here here is our estimation that we were going to do next quarter. So over the next 90 days we're going to do this. |
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