Super Friends Prove Brainpower Is More Effective Than Brute Force

“Meanwhile, at the Hall of Justice…” Super Friends

Yesterday the MoneyShow reached out to me and asked me to join a technology trends panel along with George Gilder, whose books and philosophies about tech trends were influential in my early investing career. The panel starts at 3:20pm ET today and you can register for the online event here.

Meanwhile, the markets are trying to bounce back a little bit some today after yesterday’s 3-4% pounding. We’ll have a lot of earnings to digest tonight from the likes of Apple, Amazon, Google and Facebook. I’m not doing much of anything trying to game these earnings reports, but some feet-to-fire guesses of the reports and the stocks’ reactions to those respective reports would be:

Apple: Beats handily but doesn’t talk up iPhone 5G enough to satisfy the market so the stock goes down 2-3% tomorrow. Alternatively, if the company reports that iPhone 5G demand has exceeded their expectations and is ramping strongly, the stock would be up 5% tomorrow.

Amazon: Beats handily but the slowing growth in Amazon Web Services becomes the focus of the analysts and the stock is down 5% tomorrow. Alternatively, if the company says AWS is accelerating and the retail side of the business shows margin improvement, the stock could be up 3-5% tomorrow.

Google: Spending from advertisers is through the roof and the stock ramps 3-5% tomorrow off a strong beat. Alternatively, the company could talk about ramping up spending and regulatory issues and the stock would be down 5-10% tomorrow.

Facebook: Like with Google, spending from advertisers is through the roof and maybe usage/user growth is strong too so the stock ramps 5-8% tomorrow off a strong beat. Alternatively, the company could talk about ramping up spending and regulatory issues and the stock would be down 5-8% tomorrow.

Meanwhile meanwhile, another one of our social media stocks that we bought darn near at the all-time lows, Pinterest says business is on fire, usage and user growth are better than anybody expected and the profitability trends are blowing Wall Street’s minds. So the stock is completely resetting valuation metrics and is up 35% today after already rallying 200%+ heading into the earnings report. I’m going to follow the playbook and sell 15-20% of my PINS today.

Meanwhile meanwhile meanwhile, Spotify reported strong usage and user growth but had profitability issues. The margins for Spotify are not as high as some of our other stocks and that’s got the market concerned about future earnings growth. At least the market is concerned about that today. With the strong and steady growth of users and usage, I’m going to stick with my SPOT and might nibble more if it drops closer to $200 in coming days and weeks.

Meanwhile meanwhile meanwhile meanwhile, let’s plan on doing this week’s Live Q&A Chat at 11am ET tomorrow (Friday). As promised, we’ll do a Zoom call.

https://us02web.zoom.us/j/89076435567?pwd=c1VEelN1dDhra2pKc3Z0T2NCaitjZz09

Meeting ID: 890 7643 5567
Passcode: 449982
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“Once again, the Super Friends have proven that brainpower can be more effective than brute force.”