I'll Take "Terrible Earnings Reports" for $600

[] Apple earnings arrived on Thursday afternoon to a wealth of anticipation. It turns out that the news was more important than anyone could have expected. Here’s a recap of Apple earnings... [View in browser]( [View in browser]( [] [Godesburg's Haven Investment Letter]( [] [Godesburg's Haven Investment Letter]( [] “Terrible Earnings Reports” for $600 [Garrett Pic] Dear Investor, I grew up on Jeopardy. Each afternoon, my mother and I watched it together. That was our time, answering the boundless limitations of human knowledge and hoping that the categories would be either “1990s Sports”, “Economic History,” or “Tennis.” There were always questions about financial crises or famous battles. She’d wonder why I knew the answers to certain questions. What I found was that the show would link to the present day. The Dot-Com bubble complemented a large number of questions about financial history. So, if we were to watch a show today… “Terrible Earnings” reports should be the final category. And this final answer to “Terrible Earnings Reports” would begin like this… Host Ken Jennings: “This tech giant changed its name from its original collage-themed social concept to one based on a fictitious dystopian world that no one wants to visit…” Me: “What is Meta Platforms?” Host Ken Jennings: “Congratulations, you’re our Jeopardy Champion!” Now What About Apple and Amazon I guess I could have said Amazon (AMZN) based on today’s forward guidance. Shares immediately fell 16% on weak forward guidance. Things are not going well over there. Although the earnings and revenue numbers didn’t break the company’s back - the ongoing fears of recession clearly did. The company said it will earn between $140 billion and $148 billion in revenue in the fourth quarter. Gulp. Analysts had projected revenue of $155.15 billion. That’s a big drop and reason enough for the stock to sink by a massive amount. But the big news today was the report from Apple (AAPL). Everyone who has even talked about the stock market seemed on edge all day. The tech giant is now the largest component of the U.S. markets. It represents 7% of the S&P 500 weight and 14% of the Nasdaq 100 weight. So goes Apple… so goes the U.S. stock market. Apple reported earnings at 4:30 pm Thursday and the numbers were just strong enough not to start the financial apocalypse. Earnings came in at $1.29 per share, a figure that beat estimates by two pennies. Revenue was also a bit above expectations. However, the company reported a drop in iPhone revenue, while iPad sales were also a little light. The company isn’t issuing guidance for the first quarter, which should give most sane people pause. The company has cited uncertainty around that quarter - and it hasn’t produced guidance since 2020. The company blamed the strong dollar for its inability to increase revenue by double digits. We’ll see if investors are ready to keep holding on to the market’s biggest asset… Oh, Great, They’re Going to Stress Me Out More?!? Next week, the Federal Reserve kicks off its fifth meeting of the year. Be sure to buy the big bottles of wine at the Grocery Store. No… not the 750 ml. The 1.75 liter bottle. Yeah, that one. It will be a long two-day stretch as traders and investors speculate. Right now, the odds dictate that the Fed will raise interest rates by 75 basis points. That’s despite the news that the As investors start to speculate on the December meeting, I think they’re looking at the wrong factor. The actual factor that will determine whether the Fed increases interest rates by 75 points in December is the midterm election. As I’ve noted, the Fed has struggled to tame inflation while Congress pumps out trillions in new green stimulus and promotes student loan forgiveness. But a debt-locked Congress would mute much of that spending - giving some power back to the Federal Reserve in the short term. This is one reason why we could have a bit of a rally after the election. (However, Democrats have considered a massive spending bill right before their exit). Regardless, I do anticipate that energy prices will continue to rise. That’s why I’m still looking for long-term positions in the oil-and-gas sector. We have no plans to properly direct supply to the U.S. economy. Enjoy your day, [Garrett signature] Garrett {NAME} [] Market momentum is Green... But things might change tomorrow based on today’s earnings reports from Amazon.com and Apple. Given that Apple represents about 7% of the S&P 500’s weight and 14% of the Nasdaq 100, the market could have an interesting reaction on Friday morning. Remember to be cautious and liquid into next week. [] [] [] “Terrible Earnings Reports” for $600 [Garrett Pic] Dear Investor, I grew up on Jeopardy. Each afternoon, my mother and I watched it together. That was our time, answering the boundless limitations of human knowledge and hoping that the categories would be either “1990s Sports”, “Economic History,” or “Tennis.” There were always questions about financial crises or famous battles. She’d wonder why I knew the answers to certain questions. What I found was that the show would link to the present day. The Dot-Com bubble complemented a large number of questions about financial history. So, if we were to watch a show today… “Terrible Earnings” reports should be the final category. And this final answer to “Terrible Earnings Reports” would begin like this… Host Ken Jennings: “This tech giant changed its name from its original collage-themed social concept to one based on a fictitious dystopian world that no one wants to visit…” Me: “What is Meta Platforms?” Host Ken Jennings: “Congratulations, you’re our Jeopardy Champion!” Now What About Apple and Amazon I guess I could have said Amazon (AMZN) based on today’s forward guidance. Shares immediately fell 16% on weak forward guidance. Things are not going well over there. Although the earnings and revenue numbers didn’t break the company’s back - the ongoing fears of recession clearly did. The company said it will earn between $140 billion and $148 billion in revenue in the fourth quarter. Gulp. Analysts had projected revenue of $155.15 billion. That’s a big drop and reason enough for the stock to sink by a massive amount. But the big news today was the report from Apple (AAPL). Everyone who has even talked about the stock market seemed on edge all day. The tech giant is now the largest component of the U.S. markets. It represents 7% of the S&P 500 weight and 14% of the Nasdaq 100 weight. So goes Apple… so goes the U.S. stock market. Apple reported earnings at 4:30 pm Thursday and the numbers were just strong enough not to start the financial apocalypse. Earnings came in at $1.29 per share, a figure that beat estimates by two pennies. Revenue was also a bit above expectations. However, the company reported a drop in iPhone revenue, while iPad sales were also a little light. The company isn’t issuing guidance for the first quarter, which should give most sane people pause. The company has cited uncertainty around that quarter - and it hasn’t produced guidance since 2020. The company blamed the strong dollar for its inability to increase revenue by double digits. We’ll see if investors are ready to keep holding on to the market’s biggest asset… Oh, Great, They’re Going to Stress Me Out More?!? Next week, the Federal Reserve kicks off its fifth meeting of the year. Be sure to buy the big bottles of wine at the Grocery Store. No… not the 750 ml. The 1.75 liter bottle. Yeah, that one. It will be a long two-day stretch as traders and investors speculate. Right now, the odds dictate that the Fed will raise interest rates by 75 basis points. That’s despite the news that the As investors start to speculate on the December meeting, I think they’re looking at the wrong factor. The actual factor that will determine whether the Fed increases interest rates by 75 points in December is the midterm election. As I’ve noted, the Fed has struggled to tame inflation while Congress pumps out trillions in new green stimulus and promotes student loan forgiveness. But a debt-locked Congress would mute much of that spending - giving some power back to the Federal Reserve in the short term. This is one reason why we could have a bit of a rally after the election. (However, Democrats have considered a massive spending bill right before their exit). Regardless, I do anticipate that energy prices will continue to rise. That’s why I’m still looking for long-term positions in the oil-and-gas sector. We have no plans to properly direct supply to the U.S. economy. Enjoy your day, [Garrett signature] Garrett {NAME} [] Market momentum is Green... But things might change tomorrow based on today’s earnings reports from Amazon.com and Apple. Given that Apple represents about 7% of the S&P 500’s weight and 14% of the Nasdaq 100, the market could have an interesting reaction on Friday morning. Remember to be cautious and liquid into next week. [] [] [] © 2022 Godesburg Financial Publishing, Inc. 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Please be aware that the claims regarding investing or trading results of non-employees are not tracked by GFP nor can they be verified. As always, past performance is not necessarily indicative of future results. Therefore, results presented in this email should NOT be considered TYPICAL. Actual results can and will vary based on everything from experience, ability, risk mitigation practices, and market volatility... to the amount of money exposed in the investment or trade. Investing and trading are speculative and carry serious risk. You may lose some, all - or possibly more - than your original investment or trade. GODESBURG FINANCIAL PUBLISHING IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER: GFP, including its owners and employees, are NOT registered as securities broker-dealers, brokers, or any sort of registered investment advisors with the U.S. Securities and Exchange Commission, any state securities regulatory authorities, or any self-regulatory organizations. GODESBURG FINANCIAL PUBLISHING EMPLOYEES MAY HOLD SECURITIES DISCUSSED: If a writer holds any securities in a communication, it will be disclosed along with the information on the potential investment or trade. HIR, its owners or employees, have not been - or ever will be - paid by the issuer of a security mentioned in our services or communications. GFP, its owners and employees are paid entirely or in part from commissions based on sales of their services to subscribers. For more information please visit [our disclaimer page here](. [] Sent to: {EMAIL} [UNSUBSCRIBE]( [] © 2022 Godesburg Financial Publishing, Inc. DISCLAIMER: COMMUNICATIONS FROM GODESBURG FINANCIAL PUBLISHING (GFP) ARE FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY – NOT INVESTMENT ADVICE: GFP and all the services it offers are for educational and informational purposes only and should NOT be understood to be securities-related offers or solicitations. None of GFP’s communications should be considered or used as personalized investment advice. GFP recommends that you speak with a licensed professional before making any investment decision. RESULTS PRESENTED ARE NOT NECCESSARILY TYPICAL OR VERIFIED: GFP communications may include information regarding the historical trading performance of gurus in their services (all verified by a third party), as well as testimonials of non-employees depicting profitable investments and trades that are believed to be true based on the representations of the persons providing the testimonial of their own free will. Please be aware that the claims regarding investing or trading results of non-employees are not tracked by GFP nor can they be verified. As always, past performance is not necessarily indicative of future results. Therefore, results presented in this email should NOT be considered TYPICAL. Actual results can and will vary based on everything from experience, ability, risk mitigation practices, and market volatility... to the amount of money exposed in the investment or trade. Investing and trading are speculative and carry serious risk. You may lose some, all - or possibly more - than your original investment or trade. GODESBURG FINANCIAL PUBLISHING IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER: GFP, including its owners and employees, are NOT registered as securities broker-dealers, brokers, or any sort of registered investment advisors with the U.S. Securities and Exchange Commission, any state securities regulatory authorities, or any self-regulatory organizations. GODESBURG FINANCIAL PUBLISHING EMPLOYEES MAY HOLD SECURITIES DISCUSSED: If a writer holds any securities in a communication, it will be disclosed along with the information on the potential investment or trade. HIR, its owners or employees, have not been - or ever will be - paid by the issuer of a security mentioned in our services or communications. GFP, its owners and employees are paid entirely or in part from commissions based on sales of their services to subscribers. For more information please visit [our disclaimer page here](. [] Sent to: {EMAIL} [UNSUBSCRIBE](