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Folks i give up i give up uh thrown in the cards i he’s this market’s impossible to figure out in the short term here here’s what we’re looking at okay so we got the large super large caps trading like penny stocks you got facebook going down 26 today paypal made a crazy move the previous day you get netflix make a massive move you have literally you have the
The biggest companies in the world trading like their penny stocks making 20 25 30 moves it’s incredible amazon sells off way heavy into the earnings because people are scared out of their minds going in these earnings because they’re like oh my gosh look what just happened to facebook who’s to say amazon’s not going to be down another 20 after hours right you had
Pinterest going into this earnings down 10 plus percent here today snapchat down 23 going into their earnings here today people are scared right scared scared scared and everybody’s looking at this amazon earnings right everybody’s like waiting for amazon earnings here and then finally the amazon earnings come out and everybody’s looking at this right and first
Thing we see is kind of operating cash flows decreased 30 percent free cash flow uh decreased to an outflow of 9.1 billion dollars so start going over some of the numbers and what i saw at first was actually i had the tv on and i saw amazon stock was moving crazy huge up like 17 so i’m like oh man amazon must have reported great earnings wow that’s incredible i
Was a little you know worried about their earnings but i guess yes they must have had you know terrific numbers right they must have reported out of this world and and when it comes to amazon the eyes are always on their past revenue numbers in their guidance for revenue numbers that’s always the most important thing when it comes to amazon so based upon this move
They must have killed it last quarter in their guidance must be insane because the stocks have 17 plus percent well what’s the truth let’s find out the truth okay so first off no they didn’t kill it when it came to revenue they actually slightly missed and i mean slightly missed only 200 million dollar miss which isn’t a lot for amazon but it was a miss so they
Didn’t kill it wow revenue actually technically missed okay well now i was i was thinking okay so they missed there and then i was like let me dig into this deeper so i went to the amazon’s investor relations page and i’m like let me find the guidance because cnbc and everybody else didn’t have it up yet at that time and i was like okay i’ve got to understand if
They missed on revenue for this past quarter but guidance must be great right guidance must be great and then i looked at guidance and i’m reading through this and i find the financial guidance you have to scroll way down for it the next thing you know i’m looking at this okay net sales are expected to be between 112 billion dollars and 117 billion dollars or to
Grow between three percent and eight percent in the first compared to the first quarter 2021 what what okay no i don’t keep track of amazon’s uh earnings estimates off top my head but what i can tell you is as soon as i saw that i was like uh that’s a colossal mess and i mean a colossal miss i know amazon’s usually a company that’s expected to grow anywhere from
You know 10 percent on the low end to usually up to like 20 percent plus right so i know when i see a three to eight percent expected growth that’s going to be a massive miss so i go to the analyst tab and i’m like i got to see what’s going on here and sure enough analysts have them growing 15 for this upcoming quarter and amazon just told us that they’re actually
Going to grow between 3 percent and 8 this upcoming quarter which is a midpoint of maybe five to six percent which is one of the most colossal misses we’ve seen that’s uh as bad if not worse than what facebook just missed right and so here we are with the amazon the situation and you’re looking at this one you’re like wait a minute they missed on revenue and they
Just missed by 5.5 miles i i called a mile for every billion dollars in guidance umass they missed by 5.5 billion dollars compared to what the mid point is amazon just put out versus what analysts have for this company and the stock is up 17 percent after hours oh i give up i give up trying to figure out this market in the short term oh my gosh okay literally
If you would have told almost anybody amazon’s going to come out and they’re going to report that their next quarter guidance is going to miss by 5.5 billion dollars on revenue i think every single person who knows anything about stock market investing anything i don’t care if it’s a newbie or somebody that’s been doing this for 35 years okay i don’t care who it
Is i think if you told anybody that it would say amazon stock will be down more after hours probably another 5 10 15 if not another 20 move down after hours and the stock price is up 17 okay and here’s a bad part with that right so no analysts are gonna have to bring down their full year numbers of 22. you know has had uh amazon growing 17.3 percent they’re gonna
Have to bring down that number to anywhere between i would say seven percent and probably 11 to 12 percent now for for revenue growth 422 which means everything needs to be cut now for amazon revenue growth expectations need to be cut eps expectations need to be cut uh gross margin we’ll see what happens with gross margin if that needs to be cut or not every
Single thing needs to be cut for amazon but does that matter today no the stock’s up 17 percent and it just goes into this market of like what the heck is going on in this market it’s absolute insanity okay now look at pinterest this stock first off this is a 16 billion dollar company 16 billion market cap and it’s up and a half percent after hours like i said
Guys these large caps and even the mega caps are trading like penny stocks and this is just tip of the iceberg wait till the next stock we get into okay so pinterest makes this incredible move up it hit a 52-week low today and at some point when it comes to these stocks you know when they’re hitting 52-week low after 52-week low and all-time low after all-time low
At some point you know something has to give and even if a company doesn’t report the most exciting numbers in the world or something game changing their stocks are due to just absolutely go through the dang roof and that’s exactly what we saw with amazon trading near 52-week low and actually uh you know some of the lowest ranges it has in two years amazon stock
Was and they report awful guidance on the stocks up 17 pinterest here okay but uh you know you would think this was the best quarter in the history of mankind up 28 and a half percent after hours but when you you’re getting this devastated you’re getting pushed down to these levels right it doesn’t take much uh to just get people to flood into this okay this next
Talk oh my gosh okay wait until you see this next move it’s it’s hard to even wrap your head around a move like this okay snap is up over 50 percent after hours guys this is a 40 billion dollar market cap a 40 billion dollar market cap in this stock is up over 50 percent after hours after being down 23 during the trading day today on literally no news other
Than the facebook earnings right this is like you know if you want to talk about max volatility in the market right now i’ve never ever in my 14 years of doing this and i’ve seen i’ve seen multiple stock market crashes i’ve seen multiple corrections i’ve seen multiple scary markets uh i’ve never seen the market this crazy volatile in my time of doing this okay
This is epic i’ve never seen 40 billion dollar market caps move 50 plus percent on earnings and 23 prior to that earnings coming out this is new to me okay and this is new to anybody that’s uh been in the market because this is not the type of stuff you usually see this stock was just at a 52-week low literally here today and it makes this i mean a 50 plus move
That like i said these stocks are trading like penny stocks right now it’s nothing short of i mean i know everybody makes fun of me for using this term too often nothing short of extraordinary this is nothing short of extraordinary okay 40 billion dollar mark cap moves 50 plus percent after hours it’s just oh my gosh talking about frying your brain this market
Right now okay no here we go so basically what’s about to happen over the next few weeks a lot of my stocks are going to be reported in earnings okay and a lot of my stocks are smaller cap companies i don’t know what to expect with this i mean i could i guess these stocks are going to move 30 40 50 60 if a 40 billion dollar snapchat’s moving 50 i don’t even know
What to expect from my stocks to move okay 10 to chef i don’t know i guess after earnings that stock’s either gonna be seven dollars or seventeen dollars based upon the pricing action we’re seeing in these stocks it’s nothing either it’s insanity insanity i mean literally if this is happening with companies like snapchat if facebook’s moving 26 plus percent what’s
The chef gonna move a one billion dollar market cap or actually technically it’s under a one billion dollar mark cap right now what’s that baby gonna move on earnings man oh my gosh okay corsair gaming right corsair gaming has been devastated right close to a 52-week low tattoo chef’s right around an all-time low very close to it of course they’re gaming you know
Maybe they miss earnings and maybe the stock goes up 17 after hours like we don’t know like that’s how insane this is right now you know i don’t know what to expect with corsair i guess it might be 14 after earnings or it might be 26 dollars after earnings it’s like i said if these mega caps are moving like this what the heck should we expect from the small caps
Right i mean you know hey you know what the last thing to really fry our brains would be is if the small caps all hardly move imagine the chef moves like three or five percent after earnings up or down right imagine corsair does like a three or five percent move there’d be just a final straw just to make our brains go okay like that emoji you know apple has like
That would be the last straw to make our brains fry essentially where it’s like oh really yeah facebook’s moving 26 snapchat 40 billion market caps moving uh you know 50 plus percent and then uh oh small caps move all three to five percent or something like that palantir what should we expect from palantir i mean this is a stock near its all-time low nearest 52
Week low what is this stock gonna do you make a make a 50 move a 60 move a 70 move like you know when you when you think about these type of stocks that these ones are much more volatile than the ones we’ve talked about in this video and you know what should we expect from moves from these stocks guys it’s extraordinary i’m thinking about a few other stocks that
Are going to be epic right square stocks should be reporting earnings in a few weeks from now square okay this stock’s at a 52-week low it’s been devastated it’s down you know i don’t know 60 or so from its all-time high and this is a stock that you know look what just happened to paypal right look what just happened to paypal does square fa you know face that same
Fate but also do remember square has been pricing down this whole time right so square’s been pricing down so it’s kind of in terms of square people are already expecting kind of the worst in that situation right because of what happened with the paypal numbers and paypal owns paypal and venmo and so with square you know maybe that’s a stock that ends up being up
20 30 40 after earnings because everybody’s priced in the bad news and you got all the sellers out and it ends up making a huge upward move even if the earnings aren’t great which is a possibility right the good the good thing for squares our expectations are very very low but gosh if you want to expect some volatility watch that baby after earnings beyond me we
Know this is a super volatile stock we know the deals uh with kfc mcdonald’s going on wait tell their earnings come out you want to talk about a mover you know for their next earnings whenever that comes out oh my gosh get ready to hear a mover because they’re going to have commentary about the mcdonald’s deal the kfc deal and all that stuff oh my gosh okay that
That’s going to be a show to watch uh stitch fix this is one of the more volatile stocks you can watch in the market look at this 52-week high look at this 52-week low this is a 52-week high on the stocks i think 100 something dollars a share it’s 14 here today there’s a stock that routinely makes a 20 plus move on earnings so if this one moves a 50 plus uh after
Hours for their earnings don’t be shocked okay if snapchat can make that move i can tell you stitch fix is a much more volatile company i’ve seen over time than snapchat which snapchat’s usually a pretty volatile company this is like a next level wait to see that one man wait to see that one honest look at how small the honest market cap now is because it’s gone
Down so much i mean honest is trading at no market cap now of um gosh uh probably 600 million dollars maybe even below 600 million dollars you know with those honest earnings don’t be surprised if that one ends up moving 20 30 40 percent and that’s not even a stock that you should expect a huge move in honest sells you know beauty products they sell diapers they
Sell wipes they sell soaps and shampoos and stuff like you shouldn’t expect that stock to move massively but don’t be surprised if that one moves 20 30 40 percent on earnings because that’s the sort of market we’re in right now guys this is a max max volatility market we’re in uh you know epic epic market okay and as a great poet uh young boy never broke again
Uh once said he said it make no sense and you know i agree this market makes no sense right now we’re having the you know i don’t even know how to explain this sort of volatility when you have mega caps trading like penny stocks when you have you know a 40 billion dollar company making a 50 plus move after hours i don’t even know how to describe that market this
Is the furthest thing from a normal market we are in right now i can tell you that there’s a lot wrong with this market and i mean a lot wrong with this market small caps are trading way too down that’s uh there’s trading unsustainably low right now mid caps are trading unsustainably low right now that should not be that way those are huge issues in the market you
Got facebook and amazon trading like their penny stocks that’s not normal activity this market is messed up right now and i mean really messed up and how all this shakes out we’re gonna have to see you know a trillion dollars plus a day being bought and puts that is going to mess this market up even worse it’s going to make us even more volatile when you’ve got
The put volume has gone insane recently a trillion dollars plus a day the amount of option activity going on in this market because everything’s so volatile so people are like oh let me play let me get in let me get out let me let me try to play this earnings trade things like that let me let me swing this for the next month on this earth this option activity and
Things like that right when you have that going on this is just going to create a more volatile situation and then you have the the time periods here where people are flooding to cash going all cash going part cash those folks are going to come in they’re going to enter the market they’re going to exit the market they’re going to enter a position they’re going to
Exit a position which causes even immensely more volatility in this market and this creates you know like i said this is one of the most volatile markets i’ve ever seen the vix isn’t really showing the truth behind this market right now in my opinion the vix is not uh because of vixx isn’t just accounting for the fact that snapchat just moved over 50 after hours
The the vix isn’t really accounting for the fact that you know facebook just had its worst day in the history of that stock right and it’s trading near values that traded prior to ronyrona the vix isn’t really accounting for the fact that amazon just went down seven percent and then up 17 when they just missed revenue and they missed guidance by five and a half
Miles vixx isn’t accounting for that right and so i think this this to me i know there’s been time periods in my past 14 years where vix has been way higher than it is right now but for me looking at this market objectively this is the most volatile stock market i’ve ever seen okay and what i will say in a volatile market is you get some incredible opportunities
To buy some stocks at some disgustingly cheap valuations and um you know that’s usually a good thing when you can get stocks at 52 week lows all-time lows left and right that are actually have great underlying business models that’s the key they have actually great underlying business models that have great futures for the next you know four five six years in front
Of themselves those that’s the sort of opportunities you get and don’t don’t waste these sorts of opportunities if you need to know exactly how to research stocks with everything you look for and things like that we’ve got a massive valentine’s day sale coming for the prep stock group the financial fortress program that will be uh you know that’s only a week and
A half away or so so check out ping comment to sign up for the waitlist for that make sure to subscribe the channel more comment much love and have a great day
Transcribed from video
I give up By Financial Education
