Tech Earnings: Are Giants Overinvesting in Capex? Elon Musk Sums It Up Perfectly

This is a normal chart of the quarterly progression and explains the “fish-hook” effect Ed Yardeni talks about frequently, where the S&P 500 EPS estimate starts lower from negative revisions from the last few weeks in the previous quarter , and the first two weeks of the new quarter , and then moves higher as the bulk of the S&P 500 reports the last quarter.

The rub is that heavier investments in capex, are expected to lead to higher revenue in future quarters unless you get diminishing returns from all the major tech companies overinvesting. “They were building a Ferrari for every launch, when it was possible that a Honda Accord may do the trick.”

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

S&P 500 Earnings: Large-Cap Growth Corrects as High-Yield Credit Spreads TightenStocks Analysis by Brian Gilmartin covering: S&P 500, Microsoft Corporation, Coca-Cola Co, Alphabet Inc Class A. Read Brian Gilmartin's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

JPMorgan and Citigroup Q2 Earnings Previews: Both Should Have Decent QuartersStocks Analysis by Brian Gilmartin covering: Citigroup Inc, JPMorgan Chase & Co. Read Brian Gilmartin's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

Netflix Earnings Preview: Waiting on a PullbackStocks Analysis by Brian Gilmartin covering: Netflix Inc. Read Brian Gilmartin's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »

JPMorgan Vs. Citigroup Earnings: Which Is the Cheaper, Better Longer-Term Play?Stocks Analysis by Brian Gilmartin covering: Citigroup Inc, JPMorgan Chase & Co. Read Brian Gilmartin's latest article on Investing.com
Source: Investingcom - 🏆 450. / 53 Read more »