Kevin Cook here to kick off the week for Steve…
The most disturbing thing about earnings season so far is that we seem to be looking at another potential “revenue recession”. That’s the point of my inquisitive title: Where’s the Top line growth?
I’m not worried about the stock market making new all-time highs. I think that’s on the way this earnings season. But I’m concerned if it’s on the back of just a handful of Tech companies like Google and Netflix last week and probably Apple and Amazon this week.
Corporate America and Wall Street will always find creative ways to “beat” on the bottom line. But we really want to see consumer confidence and spending show up on the top one first.
I keep saying, “it will happen… next quarter”. Well, next quarter is here, but I think Q2 still gets a pass as long as CEOs and guidance are upbeat about the second half. “Next quarter” lives on.
Stay informed on the big picture here by checking in with Sheraz Mian and his Earnings Analysis.
And speaking of Amazon and consumer spending, don’t miss Brian Bolan’s analysis of the monster Prime Day sales event that just broke their Black Friday sales records.
Senior Stock Strategist, Zacks Investment Research