Twitter Metrics Soaring, but Investor Patience Isn’t
Unfortunately, it’s going to take me more than 140 characters to describe Twitter, how it makes money, and why its share price is suffering.
What Is Twitter?
For those not in the know, Twitter, Inc. (NYSE/TWTR)… Read More is an online social media microblogging service that allows its users to post and read messages up to 140 characters in length, which are called tweets. Launched
With weak oil prices and many analysts forecasting slow times ahead for the stock market, many investors may be wondering, where are there good times in this market? Well, I believe they’re still with airline stocks and railroad stocks.
Airline Stocks Pushing New Record-Highs, Starting with Air Alaska
Many stocks within the airline sector are pushing new record-highs and earnings are coming in strong, both due to improving revenues and… Read More
Look at any newspaper or watch any financial news channel and you will hear someone saying the U.S. economy is growing. To prove their point, they will refer to gross domestic product (GDP) figures and unemployment data.
Yes, the GDP numbers and the unemployment picture do look better, but our economy is still in very big trouble. (more…)… Read More
Netflix, Inc. (NASDAQ/NFLX) got my attention on Tuesday after announcing a massive fourth quarter, reminding me why I have been bullish on the stock for so long. Threatened by emerging rivals such as Amazon.com, Inc. (NASDAQ/AMZN), Hulu, and Yahoo! Inc. (NASDAQ/YHOO)… Read More, Netflix proved why it is the “Best of Breed” in video steaming and everyone else is a “wannabe” for now.
Content Is King in the Streaming Business
How Uber Has Earned a Surprising $40.0-Billion Valuation
Many companies get their start by capitalizing on an untapped niche market, but few have upended an entire industry like Uber. Fewer still have been as polarizing. Toss in a valuation of $40.0 billion and you can see why so many investors are hoping Uber lists publicly in 2015. But what is it about Uber that has made it such a potent… Read More
One of the fundamentals of economics is that rising demand for an item pushes prices higher, while declining demand results in lower prices. It’s common sense: the more people want something, the higher the price; the less people want something, the lower the price.
That is what has me very suspicious about the stock market. Since 2009, stock trading volume has all but dried up, yet stock prices have gone… Read More
While the stock market’s trading action has been pretty subdued, even in the face of fourth-quarter earnings, the market’s actually been in consolidation since last September. It’s a near-term trend that I think will continue into 2015.
4Q14 Earnings Action
While we’re still in the early days of the fourth-quarter 2014 reporting season, so far, earnings reporting is similar to previous quarters. As I mentioned on Monday, if companies do… Read More
While public companies can manipulate their per-share earnings with stock buyback programs and other tricks (like reducing their capital expenditure budgets), there is little companies can do to mask revenue growth.
For the fourth quarter of 2014, S&P 500 companies are expected to report a pathetic revenue growth of 1.1%—that’s 68% below the average revenue growth over the past three years of 3.5%. (Source: FactSet, January 9, 2015.) Weak revenue… Read More
Railroad stocks are always good barometers on overall business conditions and the economy. Keeping up with railroads is equally as useful as following the Dow Jones Transportation Average for stock market direction. And for the most part, the major railroad companies have been excellent investments over the last few years, with oil, intermodal, and agriculture shipments handily making up for modest weakness in coal freight.
This earnings season, railroads are… Read More